Seller won't take the property off the market

sk123_3

I'm a first time buyer who needs to find a new house urgently. After some frenzied search, I finally managed to find a house that suited me well in terms of location, size etc., albeit it is priced on the higher side.

Last Monday (23 Mar), I made an offer on the house (£5k higher than the guide price) [given my urgency, school catchment and the potential to extend the property]. The Estate Agent (EA) told me that the seller/vendor was happy to consider my offer and would want me to proceed with mortgage. But the EA hasn't provided me the acceptance in writing.

I was informed the seller owns a portfolio of houses so he is not willing to take the property off the market until I can get the Mortgage Offer in place. Until that time EA has been instructed to keep arranging the open houses and viewings. That has made me wary of being gazumped anytime while I try to secure a firm mortgage offer from my bank.

I have already demonstrated to EA's own mortgage advisor that I have the necessary means to secure mortgage so the chances of me failing to obtain the mortgage is zero. The bank sent its surveyors yesterday, so the valuation report is still awaited.

Est Agent won't tell me:
(i) how many offers have been received.
(ii) is my offer the highest
(iii) are there other buyers who are also trying to secure mortgage like me, so the first to secure the mortgage wins the seller's nod
(iv) why the property hasn't sold for last 3.5 months

EA has been flaky and non-transparent. When I tried to ask these difficult questions, EA just said that I was welcome to withdraw my offer. Pressure tactics I understand and in normal situation, I would've called his bluff (but my search is bit desperate given the time I have at hand).

In the meanwhile I have appointed my solicitors/conveyancer and await the mortgage offer (so I have already sunk some money and lot of time into this), while EA continues to hawk the property around setting me up to be gazumped anytime. EA has even refused to let me talk to the vendor directly or to consider a lock-out arrangement.

Short of asking me to withdraw the offer, what advise would you give me to force the vendor to take the property off the market and to avoid getting gazumped?

HouseBuyer77

Sounds like the seller makes a business out of selling houses. This means they'll treat this sale entirely like a business deal which means they'll try and extract maximum value and before committing money to sale want some assurance it'll actually go ahead (hence insisting on the mortgage offer).

Beware that even once it's taken off the market there's nothing to stop the seller from accepting another offer until you've exchanged. As this is purely money driven for them they would certainly be open to someone else appearing with a higher/better offer (say a cash investment buyer turned up).

So really that's not much you can do to avoid being gazumped other than getting a move on so the seller is sufficently happy with you to not want to switch to someone else.

Bart1

I would walk away right now.

Hoploz

Have they said they accept your offer, but it will remain on the market until you get your mortgage offer, or have they said they are still actively looking for other offers?

The first would be quite normal, the second not.

If your lender has done the valuation then hopefully your offer will come through shortly.

I would add that perhaps you're getting the message from the agent that ŷour questions are not welcomed because in firing them all you at him you are making yourself sound a bit too over-enthusiastic (and desperate)?

djedga

sk123 wrote: »

I'm a first time buyer who needs to find a new house urgently.

The Estate Agent (EA) told me that the seller/vendor was happy to consider my offer and would want me to proceed with mortgage. But the EA hasn't provided me the acceptance in writing.

he is not willing to take the property off the market until I can get the Mortgage Offer in place.

I have already demonstrated to EA's own mortgage advisor that I have the necessary means to secure mortgage so the chances of me failing to obtain the mortgage is zero.

Est Agent won't tell me:
(i) how many offers have been received.
(ii) is my offer the highest
(iii) are there other buyers who are also trying to secure mortgage like me, so the first to secure the mortgage wins the seller's nod
(iv) why the property hasn't sold for last 3.5 months

EA has been flaky and non-transparent.

Short of asking me to withdraw the offer, what advise would you give me to force the vendor to take the property off the market and to avoid getting gazumped?

They are under no obligation to accept your offer and you are not in a position to force them to take it off the market...

There is no "sure thing" until you have a mortgage offer in place. As a FTB you need to prove that you can proceed either with an agreement in principle or a firm mortgage offer.

A verbal indication from the EA's own broker that you will get a mortgage is not enough. An AIP from the bank or a firm offer puts you in a much stronger position. Until you have this there is still some risk that you might not get a mortgage.

Given your own indication of your timings required just get that mortgage agreed ASAP (which you seem to be doing) and keep the vendors Estate Agent in the loop to prove how keen you are.

As the property hasn't sold in that time and your offer is £5k over I suspect you would be in strong contention if this were the case, even if this is an investment seller being able to proceed quickly would likely be a big tick against your name vs someone else who cannot.

stator

Have you paid the solicitors to start the searches yet?

I would say that once the mortgage offer comes through you are in a strong position to demand the property is taken off the market. If it isn't then I wouldn't spend any more money on it

sk123_3

djedga wrote: »

There is no "sure thing" until you have a mortgage offer in place. As a FTB you need to prove that you can proceed either with an agreement in principle or a firm mortgage offer.

A verbal indication from the EA's own broker that you will get a mortgage is not enough. An AIP from the bank or a firm offer puts you in a much stronger position.

Thanks for your views and everyone else who has responded so far.

I already have a AIP from the bank and a Mortgage Acceptance Certificate but that doesn't mean much. I do tick all boxes. Only thing that can nix the mortgage is an adverse valuation report. The property appears in decent shape; whether it has some issues or is over-valued I don't know.

It's unusual for the property in that area and in that condition (being chain free etc.) not to have sold yet after 3/4 months. If the seller/EA is hiding anything it will come out anyway (except that I would have lost some money and time in the process, and will now be forced to look at rental options for the lack of time).

With Easter holidays I expect longer turnaround for actual mortgage offer.

Hoploz wrote:

Have they said they accept your offer, but it will remain on the market until you get your mortgage offer

that is the case. But the EA won't confirm in writing that my offer has been accepted. What worries me is that EA has been conducting Open Houses every weekend (including this coming Sat). It's only a matter of time that a cash buyer turns up with a higher offer.

HouseBuyer77 wrote:

Beware that even once it's taken off the market there's nothing to stop the seller from accepting another offer until you've exchanged.

understood. But that can still be the case after having successfully obtained the mortgage offer? At what point in the process can the seller not walk away from the deal?

sk123_3

stator wrote: »

Have you paid the solicitors to start the searches yet?

I would say that once the mortgage offer comes through you are in a strong position to demand the property is taken off the market. If it isn't then I wouldn't spend any more money on it

Yes I have already paid starter fee to the solicitors to start the searches. It is another matter that my solicitor is incommunicado and I can't find out what he has done so far.

Annie1960

sk123 wrote: »

At what point in the process can the seller not walk away from the deal?

Once you have exchanged. Until that point, any vendor or buyer can walk away (assuming England/Wales).

fairy_lights

sk123 wrote: »

It's unusual for the property in that area and in that condition (being chain free etc.) not to have sold yet after 3/4 months. If the seller/EA is hiding anything it will come out anyway (except that I would have lost some money and time in the process, and will now be forced to look at rental options for the lack of time).

Maybe the reason it hasn't sold is because the agent/sellers attitude is putting people off? Other people might have offered on the house but withdrawn because of their refusal to take it off the market.

kingstreet

sk123 wrote: »

Yes I have already paid starter fee to the solicitors to start the searches. It is another matter that my solicitor is incommunicado and I can't find out what he has done so far.

Until the vendor's solicitor sends a draft contract to your solicitor, the searches can't be done.

Has the agent issued a Memorandum of Sale to the four parties yet? If not, there's no way that draft contract is going out, as the vendor's solicitor won't know who to send it to...