Long gap between agreeing price and today - losing value.

smudge2013

Hi. I sold my house last October in the hope of finding a new property within a month or so. As I suppose is expected at that time of year, the market went very quiet in the run up to Christmas and over the holiday period and only started to pick up again in mid January. I have bid on a couple of places, but in such a strong sellers market prices seem to have rocketed and properties are going massively over the asking price.

My concern in the 5 months since I sold my property, the property values in my area have shot up which makes my potential new house more expensive, but I'm tied to a price set last Autumn and not feeling the benefit of my property price rising. Since I purchased my current property its value has on average raised £1100 per month (scary).

I suppose my options are to :
- Sell at current price - taking the financial hit by not selling at todays prices and thus not being able to afford the kind of house we could have afforded when we went up for sale.
- Ask for an adjustment to the sale price to take into account the property price inflation.
- Just come off the market until I get an offer accepted on a property and then sell at the right time.

Any advice be very much appreciated.

dc197

Yes.
The last option is called gazanging: https://en.wikipedia.org/wiki/Gazanging

After asking your buyers for more money, option 2 can then result in either option 1 or option 3 (or an increased price). The buyers could also effect option 3 for you by saying "screw you, we're not buying at all".

Probably best to try option 2, with the understanding that you still might end up with no sale or no increase.

Browntoa

Had this done to me , was basically pay xxxxxx or we pull out and relist

G_M

jamesl85 wrote: »

Hi. I sold my house last October
o. You didn't. You made an informal agreement to sell in the future at a certain price
......

My concern in the 5 months since I sold my property, the property values in my area have shot up which makes my potential new house more expensive, but I'm tied to a price set last Autumn
No you are not
and not feeling the benefit of my property price rising. Since I purchased my current property its value has on average raised £1100 per month (scary).

I suppose my options are to :
- Sell at current price - taking the financial hit by not selling at todays prices and thus not being able to afford the kind of house we could have afforded when we went up for sale.
- Ask for an adjustment to the sale price to take into account the property price inflation.
- Just come off the market until I get an offer accepted on a property and then sell at the right time.

Yes, those are your options. You could explain about the price increases (with evidence), explain you now cannot afford to buy due to increased prices, and tell your buyer you'll have to either
* stay put or
* increase your selling price

Buyer will decide what they want to do, but remember if they start looking again they'll face the same increased prices.

Check your estate agent contract carefully - some say that f they find you a 'ready & willing' buyer, you have to pay their fee, so pulling out could cost you.........after all, they did do their job and find you a buyer.

[Deleted User]

I am currently buying my first house so am probably a bit biased towards the buyers point of view, but to me it seems a little unfair to go asking for more money now. You agreed a price. Its not their fault you haven't been able to find anything.

pinkteapot

Deleted_User wrote: »

I am currently buying my first house so am probably a bit biased towards the buyers point of view, but to me it seems a little unfair to go asking for more money now. You agreed a price. Its not their fault you haven't been able to find anything.

"Your poor buyers" was exactly my first thought too!!

gazter

five months seems to be a long time from acceptance on your house, was the delay your fault or theirs?

moneyistooshorttomention

Deleted_User wrote: »

I am currently buying my first house so am probably a bit biased towards the buyers point of view, but to me it seems a little unfair to go asking for more money now. You agreed a price. Its not their fault you haven't been able to find anything.

That's what I was thinking. From their pov they will be thinking "It's all agreed as to what the price is and we have patiently waited all that time for OP to find another place - and then they turn round and try and get more money out of us because they took so long to find somewhere. That's not down to us - so why should we pay for it?"

I can sympathise with the buyer because I was in a not too dissimilar situation 30 years ago - and haven't either forgiven or forgotten... (that particular seller cost me an awful lot - not just in financial terms).

[Deleted User]

jamesl85 wrote: »

Just come off the market until I get an offer accepted on a property and then sell at the right time.

If you decide to relist once you have found a property, are you sure that you will be able to sell yours? You might find yourself in the same position as your current buyers ... what goes round comes around ...

marksoton

jamesl85 wrote: »

- Just come off the market until I get an offer accepted on a property and then sell at the right time.

And if i were a seller i'd tell you to do one until your place was being sold.

Why have you dragged your feet finding a new place? And why should your buyers compensate you for it?

smudge2013

Thanks for your comments.