Taking house off market for a hefty deposit?

ceegee

What are the pitfalls/benefits of taking a house off the market, on payment of a hefty non-refundable deposit, at the request of a keen purchaser who has not yet got a buyer for their own house?

It seems a bit dangerous and a potential minefield with regard to legal reponsibilities etc.

In this case, a house is on the market for £200,000. Someone (I'll call her Mrs. Bloggs) really, really wants it and has asked for it to be taken off the market and "reserved" for her. There is no question over her "desire" for the house.

Two other people also desperately want the house, but they haven't got buyers for their houses yet, either. It is so very frustrating.

I had wondered if taking a hefty non-refundable deposit from Mrs. Bloggs was a way forward to secure a sale, but what if either of the other two prospective purchasers find buyers for their homes before Mrs. Bloggs can sell hers? Mrs. Bloggs has someone who wants to buy her house, but they haven't got a buyer for theirs! I don't know how long that chain is.

I don't know what to do. Should I just be glad that, after 11 months on the market, the house has three prospective purchasers, although none of them is in a position to proceed? I am so bogged down by it all. It is so frustrating. Should I just be thankful that three lots of people are keen and that it gives us three chances of selling? It's just that none of them can proceed......

Taking a hefty non-refundable deposit from Mrs. Bloggs initially seemed like a good idea, but now I'm not so sure. Maybe one of the other two prospective buyers could turn out to be in a shorter chain, which could make it all less tortuous.....

I can't think straight on this........the housing market is so difficult at the moment, and I don't really know what is the best thing to do, although I'm tending towards just leaving it on the market and seeing who will be in a position first to buy it, because it might not be Mrs. Bloggs.......she might turn out to be in the worst situation of all three!

Can anyone be so kind as to spare a few moments to knock some sense into me, pointing out the most sensible way forward in this?
The house is unoccupied and belonged to my late Mum and Dad.

Thank you in advance.

DVardysShadow

As the house is probate, you are not under the same pressure to sell as if you lived in it. The problem with a non refundable deposit is that you need to put an end date on it for ypur own sake - and if you do the buyer wants their getouts and what happens if they don't like it on survey? It all begins to get messy.

With probate, as seller, I might consider asking for a rent of so much per month to keep it off the market, but that is as far as I would go. But with 3 buyers, i would get the offers in and make them race.

MacMickster

What is the benefit for you in taking the house off the market? How long would you have to take the house off the market for (6 months, a year, 3 years) while waiting for Mrs Bloggs to sell her house, and what would the penalties be if you sold the house to someone else? I presume that Mrs Bloggs has not yet had a survey done on your house. What if, 3 years down the line, she wants to reduce her offer due to the survey? What would happen if the value of your home changed significantly in the interim?

If the other potential buyers (or another buyer) found themselves in a position to proceed next month you would be unable to sell to them.

If Mrs Bloggs wants your house so badly I doubt that she will spit her dummy out and withdraw her offer if you won't take your house off the market for her (and even if she did, she would probably come back if she was in a position to move).

Personally I would avoid complications and leave the house on the market.

evansmummy

Taking a deposit might seem good on paper but could end in you not achieving the main objective of selling the house.
If your 'buyer' with the deposit ultimately never sells her house your in a predicament, especially if that means your other two buyers have gone elsewhere after selling theirs.
It's tempting to go down that route but if she really wants the house she could reduce her selling price to get a quick sale

ceegee

Thank you all so much, I really appreciate your comments.

It seems that it would be an absolute nightmare, with pitfalls everywhere and very little benefit! I will leave it as it is and just be glad that it has three lots of people who really do want it. It's a lovely bungalow and I know that any of them would be happy there.

I'm getting a bit upset now, as my lovely Mum and Dad were so happy there.

We (my sister and I) will just have to ride it out. The housing market is very difficult at the moment.

Thank you, chaps/chapesses.

MoneyJuggler

Not a lot to add, but just to agree with previous posters -if I was in your position I would keep house on market and then sell to whoever you are most comfortable with, sounds like you have now got good interest -if the other two go away then the person with the deposit should still be there.

If you were to take a deposit and (perish the thought) some misfortune happened to the person who gave you the deposit, then it could get messy and very stressful for you and them.

Good luck, and sorry for your bereavement.