EA/vendors want offer NOT subject to survey...?

greenappleandmilk

Hi -

Sorry for lengthy post...advice appreciated if anyone has encountered similar.

Have been bidding for a house locally against one other interested party. It is a detached that needs a lot of work done to it, and this is obvious from walking through the property - complete rewire, update heating, double glazing, etc. But it's a great location where properties rarely arise and so I've been keen to get it. The price has risen to 10,000 above asking (my offer is top bid by £2000) and I think won't rise any more.

I'm a first-time buyer. The other buyers have a house to sell and this was a drawback at the beginning as they weren't proceedable - however this changed as their mortgage advisor told them they could apply for a mortgage not subject to sale (not sure if this means bridging loan or second residential mortgage). This is info I'm getting from the estate agents.

My issue is that I'm not sure the estate agents are playing ball, they seem to be favouring the other bidder for an unknown reason. Firstly, they (other buyers) put in a bid above mine earlier in the process. I asked for time to consider, and suggested that I would be unlikely to go above that price. Within the TWO hours I was off the phone, the property was marked sale agreed and the sign was changed on the house. I obviously called the estate agents up and increased my offer as I had planned. They did so as they said they were legally obliged. Bidding has continued over the past week (though house remains sold on website/sign outside).

On the most recent bid (other bidder going up in increments of 500-1000, me in 2000), the estate agent seemed almost aggrieved over the phone that I was topping their bid again and snappishly told me she'd get back to me.
She rang back the next day and asked me if I have evidence of a DIP or affordability (I did and agreed to email this to her). I have just received an email this evening - I've cut and pasted below, identifying features removed.

Hi GreenApple. Thank you for your email. I have discussed the offer situation with the family and would like clarification from yourself that you are prepared to pay £x regardless of what value the surveyor puts on it. Can you just clarify your position so u can recommend closure on sale. Many thanks Estate Agent

Ridiculous, right? Who on earth would ever do this, I'm certainly not planning to make an offer not subject to valuation and survey, that would be insane. However, I would only reduce my offer if a) the house was valued by the mortgage company as lower or b) if the survey threw up unseen issues i.e. roof.

The vendors are a large family who are selling their later mother's home. Don't think this can be coming from them - one of them is a solicitor, the other is a housing advisor (I live locally so my family knows the family though I don't, personally). I'm reluctant to contact them directly via my family member who knows them best as I don't want to put her in an awkward position should things go wrong with the sale later.

The estate agents have also taken a fair amount of time to get back to me to update me on the process - though I appreciate this could be because the family are big and it is decisions by committee, etc.

So am I mad? Is this a common thing?

G_M

Just agree.

You're not legally commited till you exchange contracts so can always amend your offer later for whatever reason. Or withdraw.

mrginge

Sounds like they think you're a green RTB who's just bid up with the intention of gazundering. They don't want you messing them around so they're telling you that they are not negotiating if you try it on.

you can say yes, then try it on anyway, but you'll have zero credibility left.

KRB2725

Agree with G_M, if you find out it's falling down withdraw.

We were in a similar position, old house, in great need of modernisation. Agreed that price would not be renegotiated after survey. If we'd found anything too severe, we would have reduced the offer or withdrawn, as would any other buyer.

Keely_lewis

We were the other side of the deal. We took an offer £1000 under asking even though the house had been on market less than 24 hours so we stipulated that we would not negotiate again after a survey. BUT we would have done because we wanted to sell. Thankfully everything was fine with survey and the original offer still stands as we are on our way to exchange. I agree with other posts - just agree to their terms but if anything comes up survey that is worrying renegotiate. Good luck.

Rambosmum

Realistically, of all my friends who have bought houses, none have successfully renegotiated following survey, several have pulled out though due to survey issues.

We pulled out of two purchases due to survey issues and the vendor wouldn't renegotiate, both houses sold for much less than we were renegotiating for!

Dird

greenappleandmilk wrote: »

However, I would only reduce my offer if a) the house was valued by the mortgage company as lower

The whole point of offering over the asking price is you're supposed to be willing to pay more than the survey's valuation. My survey was done by an EA...there's a good chance they're going to value it similar to the other EA

tlc678910

They are not asking you to agree to buy it not subject to the survey - which you could not do anyway if you are using a mortgage as if the bank is not happy with the house structurally they won't put the money up.

They think that there is now a good chance you are offering more than the house will be valued at by an independent person (someone ruled by their head not their heart) and they want to know if you have the money and the stomach to pay over the valuation.

Tlc

martindow

Is it possible that the agent's small print obliges the seller to pay fees when the find a willing buyer whether the sale proceeds or not? Getting you to sign or agree to buy as you describe gives them ammunition to demand the fee even though, as has been said, you could still pull out at any time before exchange.

Nobbie1967

martindow wrote: »

Is it possible that the agent's small print obliges the seller to pay fees when the find a willing buyer whether the sale proceeds or not? Getting you to sign or agree to buy as you describe gives them ammunition to demand the fee even though, as has been said, you could still pull out at any time before exchange.

No, those only apply when the seller pulls out rather than the buyer. I suspect the other potential purchaser is using the EAs financial adviser, unless the OP has come across as a bit naive to the EA and expect them to freak when the mortgage valuation comes back lower than the purchase price.

OP,

Are you happy to pay the agreed price if the valuation come back £10k under your offer with no major new issues in the survey? Do you have the finance to bridge this gap?

Dan-Dan

FTB but well aware how to gazump

nice