At what point do I pull out?

SephirothX

I was on here about four weeks ago talking about a case of gazumping that forced me to up my offer by £5k. I decided to stick with it, but last week the chain (of 2) collapsed. Getting increasingly annoyed and knowing I am paying more than I feel it's worth (despite the valuation coming in at the offer price) I have been looking at what else is on the market.

I have found a property which I feel offers more value for money. Semi detached, with a garage, better parking, slightly bigger rooms, tiled kitchen floor and a dishwasher vs the property I'm buying which has none of those and is end terrace rather than a semi and no parking for more than one car. The difference in price is £10k - 160k vs 150k, and that's before attempting to negotiate anything off the new property. (I've not made an offer yet) The original one has a better upstairs view and a better boiler than the other one but I still feel the other one offers more.

I haven't decided whether to make an offer yet - second viewing tomorrow. But let's say I do. At what point should I pull out of the other one? Should it be as soon as I have an offer accepted on the new one, or a bit later in the process, IE after a valuation? I obviously don't want to lose the first if I don't succeed with the second.

Rambosmum

Personally, I'd probably leave it until after you've had your survey report back, just ask your solicitor to go slow.

da_rule

It's up to you really as long as you don't get to the point of exchanging contracts. Obviously the later you leave it, the more costs you may incur with your solicitor (unless you let them know to hold off).

Obviously, the person you're currently looking at buying from will be starting to plan for things based on your offer and will also be incurring legal costs, so it would be nice to let them know as soon as possible.

SephirothX

I haven't started searches on the first one yet. I held back as the chain collapsed the day I was meant to be paying for them and since then the solicitor is waiting for my call to continue as I told him I was having second thoughts. This was a week ago.

Trying to move quickly with the second one so that I can pull out of the first if need be. But waiting until after a valuation/survey could be another week or two if I make an offer. Won't my solicitor flag up if I have two estate agents contacting him?

da_rule

They'll flag it up to you (which is why you should warn them). They won't flag it up to the other side as it's confidential. I assume it's not with the same estate agency.

warby68

From your list of pros and cons, I suspect you'll probably find very soon that you've actually gone off the first one even if the second one doesn't work out so no point delaying.

getmore4less

The first was never right in the first place.

Put it on hold and don't bother with it(including pulling out) till there is an indication there is a new chain.

In the mean time keep looking and if keen of this new one start proceeding but decide how much you want to pay.

How much could you afford?
Have you been looking with your full purchasing power.

getmore4less

has this new one you are looking at been on a while or is it new to the market?
Has it had any reductions or woolly words like offers over.


This may impact how much you can negotiate and how quickly they will accept.

When you said chain of 2 was that you and is it your vendor that has lost their buy or one above them?

SephirothX

160k is about the max I'd go up to. My DIP allows a bit more but any higher and I will need to increase my LTV which would be a product switch and higher interest rate.

The first property they were talking about renting so I can still buy it but saying that may still take a couple of months. I'm reluctant to hold back too long on it incase they sign any tenancy agreements. Although they'd be stupid to do that before exchange.

Edit: Just saw your second post. Chain of 2 as in the vendor's purchase fell through - that was the end of the chain. This property has been on the market four weeks and was reduced from 170k a few days ago. Currently listed as "offers over" so I suspect they may not accept anything less than the new asking price. That said 170k is over priced, these normally start on the market at 160k and that's why they reduced it as another similar property came on and sold during that time.

getmore4less

Don't worry about what they might do, look after yourself.

They have at least one other buyer in the wings or so they told you so they are fine if you find something else better.

Are you sure they even had a place they were looking to buy?

if they are "thinking" about rental when they come back with a place to buy or rent THEN you think about spending more money on this one in the mean time everything is on hold.

SephirothX

I would think their other buyer will have found another property by now but that's not my problem. Their story is that they had a survey done and it was down valued by a lot and their vendor wouldn't negotiate so they pulled out.