Buying and selling house - new house owner threatening to put house back on market

Sotheran

We're buying a new build property - it's all finished and ready to move into as previous buyers dropped out before completion. Our house has been bought buy a first time buyer who wants to complete asap. Everything is going through searches almost done e.t.c.
The building company are now saying that they are going to put the house back on the market next week if we don't sign their contract by the start of next week. Our solicitor has told us that we would be complete fools to sign a contract as we would be in trouble if the buyers of our property dropped out. Solicitor reckons we will all be ready to exchange contracts in one to two weeks.
We've already forked out a lot of money on survey, solicitor and deposit and are certainly not considering dropping out ourselves - we want to be in it as soon as possible (first baby due in Sept).
Why do you think they want to put it back on the market? What if somebody puts in an offer?

Doozergirl

I was under the impression that te larger developers asked you to exchange contracts after 28 with an open ended completion date?

If this is a small developer and they don't do things that way, then I can't see how they're going to get anyone else to exchange contracts in the next 1-2 weeks.

Can you go and talk to these people directly. Explain exactly what is left to be done for your FTBs to be ready for exchange and that they are fully commited to buying your property. Ask for a further 14 days to exchange contracts (at which point they can remarket if they wish) with a week between exchange and completion.

They'd be mad not to agree - they won't get anyone else in that time! To be fair, if they are small and they've already had someone drop out, they're probably a bit twitchy. A more personal chat might set them at ease.

pinkshoes

Maybe they've got another buyer interested who's in no chain whatsoever, and is willing to exchange and complete within a few days?

I've just bought a new build flat, and normally you exchange pretty quickly, then completion is whenever you want depending on finish date and when you're ready to move in.

Can you speak directly to the builder? Are you sure this is not just a scare tactic by the estate agent to get you to hurry up?

rizla01

Would a 'Holding deposit' keep them happy.

This would be refunded if purchase didn't go ahead thru no fault of your own but will assure the builder of your intent. I.E. YOU cant pull out or you lose deposit.

Very common practice.

Sotheran

I've managed to get hold of the builder and have told him that our solicitor expects contracts to be exchanged in 1-2 weeks and he seems fine about it... I think that it was just pressurising tactics. He's going to call us again next week - if things still haven't progressed then I'll look into the holding deposit option - thanks rizla01. We've already put down a deposit on the property but offering more might help.

Fingers crossed

WiseOldBird_2

Good luck! I felt sorry for my daughter who bought a new build. They had settled on a price and paid a very small deposit, but unfortunately the guy buying their home dragged his feet a bit and the builders said that unless they completed within a couple of weeks they were putting it back on the market for £7k more! The annoying thing was that we as parents were willing to loan the kids the money to complete (they were putting around a 10%) deposit down. They would have just repaid us the money when their sale was completed. But they were told by their solicitors that this was not acceptable, because for a couple of weeks/a month or so they would technically have two mortgages and that wasn't allowed! Can you believe it?

Anyway a compromise was reached. The builders offered to hold it for them, and ONLY charge them £4k more! (But they also lost the 'free oven' offer). At the time it was devastating. And we were furious. However 5 years on they are glad they went for it - they love the house and prices have risen so much that they don't worry about the £4k more they had to pay initially - but it was frustrating at the time!