FTB: I have been gazumped :(

modernlifeisrubbish

I am a first time buyer who has been saving up for years. I recently had an offer accepted on a house. I viewed the house twice, both times with the seller who seemed very nice. They did mention they had tried to sell the house privately but that sale had fallen through as the buyer could not get a mortgage. They did not mention that buyer was a friend. I realise in retrospect their reluctance to sell through an agent should have set off warning bells. After that sale fell through they decided to advertise with an estate agents (who I think they have used several times before). I was the first to view the property, put in a sensible offer which they accepted very quickly and got to work straight away arranging things. I thought in the current market that gazumping was unlikely and the family seemed so nice I thought it unlikely to happen.

I arranged a mortgage, although Brittania were a bit slow with this (2 weeks to arrange a survey). The surveyor went out and the mortgage was near being finished-the bank phoned to say it was all fine. Arranged a solicitor and paid them £300. Depending on how far the solicitor got with things I suspect I am going to be around £600 out of pocket, which is a lot of money to me.

I have now been gazumped-the previous buyer turned out to be a friend so close they were like family, so the sellers feel obliged, now the buyers have presumably managed to raise a mortgage, to sell to them privately (thus saving themselves some fees and putting me out of pocket significantly). Apparently the seller has bought and sold quite a lot of houses and "never done this before", but that doesn't really make it very nice. I feel like probably the whole time I've been arranging things I've been in an unknown race against their friend (EA of course are now saying I'd have got a free survey if I'd gone with countrywide for a mortgage-yeah right!).

I accept they want to sell to their friend and that sales fall through (I can find another house and don't really want it now as they still own next door and I don't want to live next door to such people!). What I don't understand is how they could let it get this far before pulling out and not offer to at least pay some of my fees as a goodwill gesture.

I am now wary of buying somewhere else-is it worth asking for the seller to put down a deposit next time, so at least if they do something daft I get my fees back, or is this more trouble than it is worth? I live in a very rural area with only a handful of solicitors. I can't afford to keep getting gazumped and as I'm buying at the bottom of the market (small cottages less than 100K) I feel vulnerable to exploitation.

whitewing

It feels personal but it isn't, so don't take the disappointment to heart.

I am a firm believer that it means there is something more suitable around the corner, and also that it is a learning experience in general that will save you money (on other things also, not necessarily house buying) in the long term because it will help refine your judgement on all matters. Doesn't sound like you did anything wrong. There is an element of risk in all matters and you were just unlucky right now. You'll get your share of good luck at a later date.

Panda78

Sorry to hear your experience. I came very close to this as i was being encouraged by vendor and EA to put an offer in on an property, even though another offer had been accepted and that person was well under way with the survey etc. I also viewed the house twice with the seller who seemed genuine.

As whitewing pointed out, the key is to not take it personal. Everyone is out of the for the best deal they can get and for your vendor, it was saving on fees by selling to a friend.

I don't think you can avoid this for certain in future, but next time you make an offer, say that it's on the basis of the property being taken off the market. That is the safest option you can hope for. Good luck.

modernlifeisrubbish

I do accept that I am not getting the house-it was a very good deal for my price bracket and what I wanted but I am quite practical about these things and accept that there is no such thing as a perfect house-for one thing it had no central heating so I might be glad of how it turned out next winter (although my rental house doesn't really have much more than a fire either!).

I am more annoyed that this will cost me over one months rent money. Renting here is 2x the price of a mortgage. I've saved up and can get a mortgage but what is difficult is when you take a big hit one month because of people messing you around-to be fair buying cheap cars is like this too-I cannot afford new cars so have to buy old bangers. Luckily my £650 car has been pretty good luck (although not that economical as its a huge estate!) but there has been the odd month when everything has fallen off, so I guess house buying is like that-this month everything fell off.

I just think the decent thing to do would be to offer to pay a bit of my losses for messing me around. They save on EA fees and end up making a friend happy and everyone feels better about it all. I live in the same village (admittedly quite a large village) as these people so I feel it is just a bit crap having to bump into them in the village shop. I've already bumped into almost everyone whose house I've viewed while shopping or parking, so this sort of area it is a bit more personal than buying in a big city.

whitewing

Send them a very polite letter then, suggesting that as a gesture of goodwill they pay £x towards your costs.

They may refer it to their solicitor and then ignore you, or write back and say no, but they may decide it is a fair request and send you all you have requested, or a cheque for a lower amount.

Don't expect to get it and then it will be good if it happens. Keep it polite and not a big sob story, or too angry and demanding. Let us know how you get on, i'd be interested in the outcome.

DRP

whitewing wrote: »

Send them a very polite letter then, suggesting that as a gesture of goodwill they pay £x towards your costs.

They may refer it to their solicitor and then ignore you, or write back and say no, but they may decide it is a fair request and send you all you have requested, or a cheque for a lower amount.

Don't expect to get it and then it will be good if it happens. Keep it polite and not a big sob story, or too angry and demanding. Let us know how you get on, i'd be interested in the outcome.

i think this is a good idea^

Gazumping when the deal is through an estate agent is one thing, but when you have had personal contact with the vendor throughout, i can understand why you feel a little cheated.

modernlifeisrubbish

This is a good idea. I will probably try this. I might wait a few days to calm down as I suspect writing such a letter right now might not work.

I probably need to wait a few weeks before looking at any other properties too although there isn't much on the market anyway at my price point. I might be able to snap something up in the autumn.

I have moved every year of my life (sometimes even every 6 months) since I left home so I was psychologically gearing up for another move, so it will be a bit weird staying in the rental. Its quite a nice rental cottage but not that practical (i.e. freezing with no way to improve bills!). Still compared to shared houses its not that bad!

kingstreet

If you paid a deposit to your solicitor to cover search fees and these have not yet been requested, this money should not be spent and available for a future property, or refundable to you.

If the solicitor hasn't done much work for you yet, they may make no charge for this if you agree to retain them for a future purchase.

Check the position as it's possible all you've spent is the valuation fee.

This situation happens and unfortunately you just have to move on. If something had caused you to pull out, like job loss, you probably wouldn't be too thrilled with picking up the vendor's tab for wasted expenses.

Onwards and upwards!

modernlifeisrubbish

Thanks for the advice.

My solicitor gets back tomorrow-I would certainly retain them for the next purchase as there aren't many solicitors in town and they are very convenient-maybe I will be glad I went local! Fingers crossed they haven't done too much.

Maybe this will not be so bad.

Slinky

They vendor may not have saved themselves the EA fees. I have a feeling that the fees will still be due if they have 'introduced a buyer in a proceedable position.'

Not that it helps you at all, but the vendor may be in for a bit of a reality check at some point.

harrup

whitewing wrote: »

Send them a very polite letter then, suggesting that as a gesture of goodwill they pay £x towards your costs.

They may refer it to their solicitor and then ignore you, or write back and say no, but they may decide it is a fair request and send you all you have requested, or a cheque for a lower amount.

Don't expect to get it and then it will be good if it happens. Keep it polite and not a big sob story, or too angry and demanding. Let us know how you get on, i'd be interested in the outcome.

I would second this suggestion.

Most people are actually decent people. If I was the vendor, I would absolutely reimburse you ( be that fully or partially) if you requested this politely and rationally ( and if the letter is accompanied by a copy your solicitor's invoice!).

Other than a sheet of paper and a stamp , there is nothing to loose and everything to gain if you send a letter. Remember - keep it brief, factual and polite.

And don't feel akward about it, either. Yes, it is a risk a buyer takes but most people are honourable enough to not leave a buyer out of pocket when they change their minds for whatever reason.

Courage! And good luck.

Good luck