what to do - Dilemma

littlemissy29

Saw a property recently - I really liked it. Was up for £380k and it needs a lot of work. Made an offer that was too low - and info back from EA that they would not accept less than 350k. Agreed to this after a short period. And house taken off the market.

2 days later get a call from the agent to say that someone else is interested and has made an offer slightly higher than mine. Not ethical I guess - but I know it happens. Agreed to match the slightly higher price as didn't want to lose it. (+2k)

Expecting a call back to say all sorted, but instead got a call back to say it has gone back up again as the other party had made a new offer. (now 359k apparently)
Really not happy with this obviously - Agent then said the vendor has decided sealed bids would win the right to buy by 9am the next morning. Horrific night not knowing what to do.

Decided we liked it lots and offered £364 in the morning - Bid accepted.

Feel frustrated and a bit cheated and also don't trust the vendor at all. Property has gone up £14k in 24 hours - and I feel very bitter.

Nothing to stop them changing their mind again once I've paid for a survey/searches of course.

What would you do in this situation?
There are no similar properties in the area and this would be an ideal family home

Littlemissy29

MaxTheCat

Sounds like the estate agent has had you bidding against yourself there. I have had them try this on me I usually withdraw my offer stating that I don't trust them or the vendor to do business with. More often than not after a couple of days the other offer mysteriously falls through and you get the original price you agreed upon.

Annisele

I don't think the agent has done anything unethical. It's his job to get the best price for his client - the vendor - and from that perspective he's done pretty well squeezing £14k out of you in 24 hours.

If all the stuff over sealed bids hadn't happened, would you have thought the property was worth £364k to you? If yes, continue with the purchase. If no, pull out. (I'm assuming here that you're in England).

If you need a mortgage, this could still fall apart over the valuation...

SG27

I had other bidders on a couple of properties I offered on. I always said to the agent I'm not interested in other offers as it will not effect what I'm prepared to pay. I just wanted to if it was accepted or not. Oddly enough of both properties I where I was "outbid" one took another four months to sell and the other never sold and was taken off the market. Make of this what you will.

Using this approach on the house I actually bought "the other couple who are going to make an offer today" I never heard anything of again.

A bidding war is a sure way of overpaying for a house. Where possible avoid it.

I_have_spoken

Gazunder them the day before exchange based on "worrying results from the survey which will cost £14k to remedy"

warehouse

OP, I'd seriously consider withdrawing your offer. You're being played. If the other bid is genuine then they've paid over the odds and you'll find another house, if not then you'll just save £14K. I'd say it's worth the gamble.

ACG

Something similar happened to me before i bought my house.

-Put an offer in, was accepted.
-Then received a call to say someone else had put in a slightly higher offer could i match it, i declined (in my eyes once you agree something you have agreed - paperwork signed or not) - told them i will let the other person have it.
-I then received another call saying it was a mistake and the other person actually put in the same offer as me, so another £500 would make the difference - i just laughed and refused (out of principle).
- Then yet another call to say right whoever can get down to the office first (20 miles away) to sign some paperwork gets it... at that point, i told them to stop calling me, we agreed a deal they reneged on it so im not interested in dealing with either the vendor or the agent.

Property was still up 3 months later, went to auction twice and didnt meet its reserve. I have a great house now in a nicer area for about £5k less than that would have cost me.

Nobody knows whether the agent is playing games with you or not, but at the same time as Hollie says, if the property had gone up for £364k originally would you have bought it?

Put yourself in the vendors shoes if a property went up for sale and there was plenty of interest and offers at £350k would you play the game and see if you can get an extra £10k?

You need to decide if this is your "dream house" and then make a decision on the price. Are there other similar houses up for sale where you could get it for close to the £350-360 mark where you wouldnt have a degree of bitterness?

littlemissy29

Thank you all for the speedy and useful replies.
Lots of food for thought.

It's difficult knowing what to do as
.I believe the other buyer is a genuine one
.i think I likely WOULD have paid £364k
.I do think this could be our 'final' home.

But
.i feel really resentful over paying £14k more than agreed
.i think about how long it takes to save this amount of money let alone earn it
.i hate anyone getting anything over on me
.can't trust the vendor now not to do it again even if I did proceed

It's going to be a long day of decision making.

LM29

fishpond

I_have_spoken wrote: »

Gazunder them the day before exchange based on "worrying results from the survey which will cost £14k to remedy"

Agree with this--assuming you will be getting a survey of your own done.
It also depends if it ticks all your boxes and you are happy to pay the price for what you will get

gingin_2

It could well be genuine.

Every property I've gone for has been bought in this way and I'm in England, not in Scotland, prices are not listed as offers over, either. It's just if there is a rare type of house in a low supply area that everyone wants to buy we all bid on it going up in steady increments through the agent and then sometimes it goes to sealed bids, sometimes not. Last house we tried to buy went to almost 25% over asking. On a number of occasions we've been bidding unawares against people we know, so I'm in no doubt it's all above board in my case.

If there are no other houses like it and you can afford it then I would suck it up and buy it. I wouldn't let pride or hurt feelings get in the way.

GM11

this kind of thing happens all the time, with me i tell the agent at the point i make the offer tat it is a final offer with no room to move, i also tell them if it's not excepted i will leave it on the table for 10 days.
if your that unhappy then you have two options. pull out now or a gazunder stunt 24hrs before signing contract. personally i wouldnt do the 24hr stunt unless there was a good reason that came to light, it's not the honorable way to do business, but its an option. or simply lower your offer now and give no reason. end of the day stay unemotional make a business decision is the house worth that kind of money to you? if yes then just pay it, if it isnt worth that much to YOU then pull out simples. be professional forget emotion and make your choice

cheerful regards Jason