Private Sales

Vikaroo

Hi all

I have posted on here a few times over recent months. Myself and my OH took advice from this website and posted letters through people's doors in a particular area we liked about 6 months ago and got a response from someone in our ideal location stating that they would like to sell in the next 12 months.

This was perfect as we are first time buyers. We are now in a position to buy and he is in a position to sell and up to a week ago things were fine. The seller offered us the entire contents of the house for a reasonable price which is great as we will be going in with nothing but have budgeted for buying furniture etc.

The problem is now that we had agreed to get the process underway at the start of January. I told the buyer that we hadn't yet applied for the mortgage as we were waiting for him to be ready (which was probably a mistake). Then a few days later he said that he had someone else make him an offer and could complete in 4 weeks (the house isn't on the market). He told us that he had told the other people that we had first refusal and could we make things happen any faster. When I told him the reasons we wanted to wait until the new year he said he was just worried that as we hadn't yet had our mortgage accepted he was worried that he would then be waiting and if we got refused he would then have to market the house (fair comment). So I agreed to get a mortgage in principle to put his mind at rest and he agreed that if we did this he wouldn't sell yet. We did this and forwarded the letter from L&C to him, we also told him to let us know if he wanted to start the process sooner because after seeking advice from L&C they said we could start now if we wanted.

Since we forwarded the e-mail the seller has been particularly quiet and now says he is having the house valuated because he thinks it might be worth a bit more than he originally sold. It is difficult to scope the value because it is in a rural location and two houses identical in layout and similar in decor have sold in the street in the last year one went for 124,000 and the other has nothing different except a conservatory but went for 154,000. Our Seller was originally asking for 135,000 but is now looking at this figure.

Just some general advice I'm looking for really as we are new to all this. Is the Seller just putting the pressure on us now? I think he may be bluffing in saying that he has had another offer as the house isn't advertised anywhere as of yet and I personally don't think the house is worth much more than his original asking price. I'm just worried now that he may choose to market it which is his prerogative I know. It is just a shame as we seemed to be looking ok until a few days ago.

I never realised buying a home was this stressful!

ethank

Once I had made up my mind to sell I would want to see some form of commitment from a buyer. You have an AIP, but (I am assuming) you have not spent one penny on the purchase. You have not submitted a full mortgage application, you have not arranged a valuation, and you have not instructed a solicitor. Yet you are asking your seller to commit to sell to you, whilst generally prices are rising.

You don't disclose your reasons for wanting to start the process in January here, but I assume that you have a good one. I would say however any process you start now would be unlikely to complete until January - so if I were selling to you, I would be thinking why are they holding back.

From the signals he is sending you, reading between the lines - he has told you on multiple occassions that this is not moving quick enough for him. You sent out some letters six months ago, but if you are not in a position to proceed, why should people wait until you are? Are you of the opinion that buying within 12 months of the original letters was acceptable?

Personally, I would have put it on the market by now.

Vikaroo

When we put the letters out 6 months ago we were saving for our deposit and told people it would be at least 12 months before we would be ready. The guy called us so he was well informed of our time and why at this point. He said he was going to be building his own house and so would need to get planning permission before he could sell anyway. I believe this has fell through and he now is moving in with his girlfriend so if anything the house prices rising would go in his favour. I rang him a month ago and told him we'd be ready Jan Feb time and he said he'd prefer feb as Jan was a bit soon. He was fine with Jan up until 3 days ago and now he's started to push for sooner and come out with all this about other buyers. I know his house isn't on the market. I have since agreed we could go ahead but he's getting this valuation now so we'll see how much difference it is I guess.

QTPie

The seller is very much in control, if the property means enough to you, in a private sale. However you have to set your own tolerances.

We are also in the process of purchasing through a private sale (letter drop). Our seller did seek updated valuations (before we agreed a sale) and the price has risen markedly: I would say that their asking price was realistic (although top end) and we decided to meet it. We were ready to proceed immediately they were. The only concession was completion date: they originally suggested before Christmas, but we got them to agree to mid-January (with the efficiency of their solicitor, looks like a very wise move - completion before Xmas would have been very tight and stressful and more for them than us because we are in rented...).

People's situations change and it sounds like your seller's have. I would recommend a very frank/open discussion with him. Say that you really want it to work, but that you need to know the updated valuation and any other requirements that you have. So you know where you stand and whether you are willing and able to proceed with that particular property.

QT

CKhalvashi

QTP makes a very valid point.

I've done private sales before now, both in my home country and in the UK, and what helped both times was that we were cash purchasers, and could complete within a flexible timeframe.

My main advice, would be not to look at a mortgage with HSBC, as from recent reviews, they seem to be taking months to get through an application.

CK

ethank

Vikaroo, I know that you feel that you are acting within the agreement that has been made, however as already been pointed out, people can completely change their minds.

I would also argue that you don't need a deposit to instruct a solicitor, put in a full mortgage application, or arrange a valuation. As a seller I want to see the buyer spend some money, as they are not truly committed to the property until they do. Plenty of people think it is okay to put an offer in and not go through with the sale, I am not accusing you of doing this, but look at it from the sellers perspective.

Vikaroo

we agreed on a date though in fact it was him that said he wouldn't be ready until Feb and now he's pushing us. 3 days before I wrote this post it was all hunky dory and he said look forward to hearing from you in the new year..we are still waiting to hear back from him after waiting a week. He said he was having the house valued and would keep us updated... nothing as of yet

Vikaroo

I never actually knew you could do any of those things mentioned until it was time to proceed either to be fair being new to all this. Plus he only advised us he was ready to sell a couple of days before I posted this. So surely theres no point doing all those things until hes ready to sell as he could have changed his mind 6 months after he first told us he was thinking of selling. He only told us a week last friday that he was ready jan then started pushing it. I thought you had to be ready before getting all those things under way.

thanks

vikki

ethank

Is it on the market? Have you searched on Rightmove?

Vikaroo

no its not on the market its a private sale and yes I've checked