Making an offer without having a buyer

CashSaver_2

CluelessHomebuyer wrote:

Hi,

I wish to make an offer on a property but I have not yet sold my current property. I was considering making an offer for the full asking price subject to the vendor taking the property off the market and giving me X weeks to find a buyer.

Is such an offer likely to be considered?

I did exactly that last June. The vendor accepted my offer and I agreed through solicitors to make a small non refundable deposit to complete by a certain time. The vendor in accepting the deposit agreed to take his house off the market. I eventually found a buyer and should be completing in February.

So - definitely worth trying if the house is "the one for you"

benood

Doozergirl's advice is pretty sound, however, if you can establish a good rapport with the seller you might be able to swing something, whether you'd actually be better concentrating on selling your place only you can judge I'm afraid

lessonlearned

There is an old saying "what is for you won't go by you".

If this house has your name on it then it will be yours, if not then it won't.

Sorry if this sounds a bit "half-baked new age hippy" but things have a habit of working out in the end.

I would not advise tying yourself into any additional borrowing just yet - wait a few weeks and see how things go.

My advice would be to explain the position to the vendor (DO NOT TALK MONEY AT THIS STAGE - YOU MUST NOT COMMIT YOURSELF TO A PRICE JUST YET). You must leave yourself room to manoeuvre on price, just in case you have to accept a lower price on your property.

Try and speak to the vendor directly - face to face is better than the phone, so ask for a second viewing. Tell the vendors that you love the house but are not in a position to make an offer at the moment (explain why).

Tell them that you would like to "register your interest".and see if they will give you some kind of first refusal (without prejudice). They don't give a firm acceptance to any offers until they first speak to you and give you the chance to make your offer.

The Vendors are not committed to sell to you but they will at least know that they have a "back-up buyer" (you) waiting in the wings but they can still market their property as normal. It will give you a bit of breathing space whilst you try and sell your property. If the vendor agrees make sure you keep in regular touch with them with updates on your progress so that they know you are still keen.

Obviously there are no guarantees with this method, but any form of double borrowing whether bridging loans or "let to buy" are costly and risky.

Good luck.

MEGANJODELLE

This is indeed a classic "chicken and egg" situation, which I have recently found myself in.

I have been unhappy in my current home for ages, but was planning to sell in Jan 2008. I always look at local property websites as I think it is important to follow the market. There is a particular development near me which I would love to live on, but they tended to be too expensive. One of the flats came up for sale in December and I thought well, why don't I view? So I did, and it was perfect for me. More importantly, the owner had just dropped the price. Following this, I had my flat valued and then saw an IFA to see if I could raise the extra mortgage, based upon a realistic target price for mine. All the figures were right so everything seemed possible.

A friend of mine suggested selling my flat with the estate agent selling the one I wanted. That way there is one point of contact. Also, I made it clear to them, sell mine and you've sold the other one. I put in an offer on the flat I wanted, subject to selling mine. This was accepted, although it was to stay on the market, which is perfectly reasonable.

The Gods were with me, as mine sold about a week after going on the market, for the price I needed. I'm hoping to complete next month.

It really depends upon your specific circumstances and the amount of stress you're prepared to take. I was fairly confident my flat would sell quickly as it is an immaculate, souless show home in the way I've staged it. If it hadn't sold and I'd lost my new flat I would have just taken mine off the market. However, my original plan was to sell regardless in Jan 2008 and live with my Dad while I looked for something I liked. I appreciate I'm lucky to have that option. My nightmare would always have been to sell my flat and then buy anything decent to just get in. Moving house is far to expensive to make mistakes!

Good luck, whatever you choose to do.
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