We accepted too low an offer - help

[Deleted User]

We sold our house very quickly - mainly because the estate agent pushed us into accepting a low offer because of the "poor state of the market" (their words).

We've been looking for another house for months now but are having problems finding one in our budget (curtailed because of the low selling price). We have also realised that other houses ARE selling in the area, if they're in a popular location (which ours was).

Our buyer is still keen (not surprised - he got a bargain!) and the EA wants us to go into rented (which we don't want to do). We feel trapped by the whole thing.

Additionally, I met someone yesterday who used to work in that agency and she said that they have a practice of each choosing a property and then having a bet on how fast they can sell it (regardless of the price !) I now wonder if that's why the EA was so keen to push us into accepting a low offer ???

Can anyone offer any advice? Help !

GDB2222

You haven't exchanged contracts yet, have you? In that case, tell your buyers you are sorry but the price is too low, so you cannot move on. The purpose of this exercise for you is not just to sell the house but to move on, and the agreed deal does not permit this.

If you have exchanged, you can't get out of it, of course.

[Deleted User]

GDB2222 wrote: »

You haven't exchanged contracts yet, have you? In that case, tell your buyers you are sorry but the price is too low, so you cannot move on. The purpose of this exercise for you is not just to sell the house but to move on, and the agreed deal does not permit this.

If you have exchanged, you can't get out of it, of course.

No - haven't exchange. The buyer hasn't had the survey done, etc. Nothing has moved on since original offer.

Tr1pp

if you cant afford it then dont sell, let the buyers know and fast before they start arranging surveyors.

GDB2222

Corona wrote: »

No - haven't exchange. The buyer hasn't had the survey done, etc. Nothing has moved on since original offer.

No harm done, then. Your buyers will be disappointed, but they won't have spent loads of money on fees. As they say in the tabloids: "I made my apologies and left the room."

I'd take the house off the market altogether, then find a better agent. This one may try to sting you for fees, saying that they found a proceedable buyer but you can counter that they misled you etc.

DVardysShadow

GDB2222 wrote: »

.... I'd take the house off the market altogether, then find a better agent. This one may try to sting you for fees, saying that they found a proceedable buyer but you can counter that they misled you etc.

There is a big risk that a fee will be due. The anecdote about the negotiators laying side bets on how quickly a property would sell is very relevant - it creates a conflict of interest - but unfortunately it does not look like strong enough evidence to overturn fees.

somethingcorporate

What an awkward position to be in. You'll just have to hope that the EA are not feeling too militant because you could end up having to pay the fees.

You accepted the offer, regardless of pressure from the EA and I doubt you have any evidence of their poor reputation or the pressure they applied on you taking the offer.

angrypirate

Of course the EA has an interest in selling it as quickly as possible - the sooner he gets the sale, the sooner he gets the money and the less work he has to do. If a property sells in one week then he probably spends much less time trying to sell it than if its on the property for one month.

Ultimately you have agreed to sell it. If we are talking money in the order of a couple of thousand, then id say just grin and bear it. We would have to be talking in the order of tens of thousands to be worth cancelling the sale, terminating the contract with the agency and getting a new agency in. How much is a proceedable buyer worth?

Also, do you believe in karma? How would you feel if you are getting a price you are happy with then the buyer gazunders you? This is effectively all we are talking about. You want to gazump the buyer coz you arent happy with the price you are getting. Ethically wrong, but ultimately the law allows you to do it.

[Deleted User]

somethingcorporate wrote: »

You accepted the offer, regardless of pressure from the EA and I doubt you have any evidence of their poor reputation or the pressure they applied on you taking the offer.

The EA is supposed to act in our best interest (that's in the contract) and I would imagine part of that is to advise us honestly about the state of the market and about any offers we got? What I don't understand is why they just didn't say something like "it's the first offer; leave it on the table and see if we get a higher one". After all, the house had been on the market less than a month.

ILW

Corona wrote: »

The EA is supposed to act in our best interest (that's in the contract) and I would imagine part of that is to advise us honestly about the state of the market and about any offers we got? What I don't understand is why they just didn't say something like "it's the first offer; leave it on the table and see if we get a higher one". After all, the house had been on the market less than a month.

You could have disagreed, it is just an opinion the EA gives, the final decision is yours. Bear in mind that an unsold house earns the EA nothing.

societys_child

angrypirate wrote: »

Also, do you believe in karma? How would you feel if you are getting a price you are happy with then the buyer gazunders you? This is effectively all we are talking about. You want to gazump the buyer coz you arent happy with the price you are getting. Ethically wrong, but ultimately the law allows you to do it.

Buyers do it all the time. No different really.