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Interesting conundrum
pinklady21
Posts: 870 Forumite
Hello all
Mulling over pros and cons of this situation and interested in other points of view.
Our house had been on market for over a year. Lots of viewings, a few offers and 3 offers accepted in excess of home report value (Scotland). For different reasons, each of the buyers failed to complete.
The third "buyer" was a complete pain to deal with.
Initially offered below HR value, rejected. Increased their offer but not to level we wanted to sell at. Rejected again.
A few weeks later, our EA managed to talk them up to a price we were prepared to sell at (slightly below the previously accepted offers.)
Their solicitor prevaricated over silly nonsense and kept delaying signing the missives (similar to exchange). Despite them having sold their own house apparently.
They finally tried to gazunder us at the last minute, we refused to consider a lower price. They withdrew their offer.
About a week later, our EA got a call to say would we reopen negotiations as they had had to go into temporary accommodation? We declined.
In meantime, we had bought a doer-upper some distance away currently not habitable and rented a property nearby to live in while it is done up, with intention of renting out the unsold house.
Unsold house now vacant, no longer on market for sale, and on rental market. Receiving enquiries from potential tenants and viewings starting at weekend. Have spent around £1500 on improvements (carpets, decors etc) and electrical certs etc.
Just remortgaged to a BTL with a now large EPC which will cost about £10k if mortgage is repaid early.
EA come back today to say those "buyers" would like to know if we will still consider selling?
My first thought was they can take a running jump after the way they behaved last time...
Second thought was if we can get a decent deal, maybe try and go for it? Less hassle than renting it, and cash in pocket for us to spend elsewhere...
Would be looking to negotiate a premium on previously agreed price to cover additional costs of mortgage EPC, reflect better state of house now with new carpets and decor.
Also stipulate that they must conclude missives within 7 days with entry shortly thereafter.
Will also renegotiate the EA fee which was 1.25%.
To which either the EA or the "buyer" may also tell us to take the proverbial running jump of course!
If they don't bite, simply continue with current strategy of letting the place out.
Anything I am missing here?
TY all.
Mulling over pros and cons of this situation and interested in other points of view.
Our house had been on market for over a year. Lots of viewings, a few offers and 3 offers accepted in excess of home report value (Scotland). For different reasons, each of the buyers failed to complete.
The third "buyer" was a complete pain to deal with.
Initially offered below HR value, rejected. Increased their offer but not to level we wanted to sell at. Rejected again.
A few weeks later, our EA managed to talk them up to a price we were prepared to sell at (slightly below the previously accepted offers.)
Their solicitor prevaricated over silly nonsense and kept delaying signing the missives (similar to exchange). Despite them having sold their own house apparently.
They finally tried to gazunder us at the last minute, we refused to consider a lower price. They withdrew their offer.
About a week later, our EA got a call to say would we reopen negotiations as they had had to go into temporary accommodation? We declined.
In meantime, we had bought a doer-upper some distance away currently not habitable and rented a property nearby to live in while it is done up, with intention of renting out the unsold house.
Unsold house now vacant, no longer on market for sale, and on rental market. Receiving enquiries from potential tenants and viewings starting at weekend. Have spent around £1500 on improvements (carpets, decors etc) and electrical certs etc.
Just remortgaged to a BTL with a now large EPC which will cost about £10k if mortgage is repaid early.
EA come back today to say those "buyers" would like to know if we will still consider selling?
My first thought was they can take a running jump after the way they behaved last time...
Second thought was if we can get a decent deal, maybe try and go for it? Less hassle than renting it, and cash in pocket for us to spend elsewhere...
Would be looking to negotiate a premium on previously agreed price to cover additional costs of mortgage EPC, reflect better state of house now with new carpets and decor.
Also stipulate that they must conclude missives within 7 days with entry shortly thereafter.
Will also renegotiate the EA fee which was 1.25%.
To which either the EA or the "buyer" may also tell us to take the proverbial running jump of course!
If they don't bite, simply continue with current strategy of letting the place out.
Anything I am missing here?
TY all.
0
Comments
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I agree with your appraoch to the buyer, but why penalise the EA.
It's not the EA's fault that the buyer was a pain in fact they have had to work hard.
Why do you feel the EA should accept a drop?0 -
No reason why not, though is 7 days reasonable e.g. if they need a mortgage then they're unlikely to have a mortgage offer at a newly-agreed price in time? Chucking £10k onto the price just because that happens to be your early redemption penalty is probably pushing your luck too.0
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Re the EA - the going rate around here is 1%. I agreed an additional 0.25% in the hope they would sell it quickly..... which they didn't.
It is now no longer on the market, and our relationship has effectively ended so seems to me it is reasonable to renegotiate the contract.
They did introduce this buyer originally, so it is fair for them to get a fee.
Was thinking about suggesting a round figure of around 1% of the final deal price for their fee, take it or leave it, given that they are not currently marketing it, and have not been for a few months now.0 -
No reason why not, though is 7 days reasonable e.g. if they need a mortgage then they're unlikely to have a mortgage offer at a newly-agreed price in time? Chucking £10k onto the price just because that happens to be your early redemption penalty is probably pushing your luck too.
Good point - although most of the legal work was done previously, and they said they had a mortgage offer before. It could be they are coming back at this stage because their offer is about to expire.0 -
Possibly - but renewal of offer shouldn't be taken for granted, and in any event it would need amended if the price is going up (even if the loan is for the same amount).pinklady21 wrote: »Good point - although most of the legal work was done previously, and they said they had a mortgage offer before. It could be they are coming back at this stage because their offer is about to expire.0 -
Hi,
You have already gone to the trouble of getting all your finances in place to get your new property while keeping the old one and putting it on buy to let finance. You have already done up the house for letting. I would now let it out as planned.
Your unreliable buyers are unlikely to want to cover your ERC - they will just start messing you around again and you are wasting time that the property could be let. It might even be the estate agent driving this after their commission rather than the buyers themselves who did not behave like it was a house they couldn't live without.
The numbers must stack up else you would not have been able to get your buy to let mortgage and it sounds like you have plenty of interest from tenants.
Tlc0 -
Hi,
Your unreliable buyers are unlikely to want to cover your ERC - they will just start messing you around again and you are wasting time that the property could be let. It might even be the estate agent driving this after their commission rather than the buyers themselves who did not behave like it was a house they couldn't live without.
Tlc
It did occur to me too that it could be the EA who is driving this rather than the buyers. They will of course be chasing for some sort of payback given that they tried to sell the place for months and would have incurred expenses in that time.
I have had no contact with the buyers at all. It seemed odd to me that they never even asked to come and do another viewing before they re-offered last time. So many of the "issues" being raised by their solicitor that were purportedly holding up the sale could have been dealt with in a conversation with us.
They don't seem to be behaving like people who are super keen to buy my house! (which of course could be their rather misguided strategy!)0 -
pinklady21 wrote: »So many of the "issues" being raised by their solicitor that were purportedly holding up the sale could have been dealt with in a conversation with us.
Solicitors act on behalf of their clients. Like anyone else they would prefer matters to be resolved promtly and efficiently. Their time costs money too.0 -
Thrugelmir wrote: »Solicitors act on behalf of their clients. Like anyone else they would prefer matters to be resolved promtly and efficiently. Their time costs money too.
I agree, and this one seemed particularly pernickety. I did wonder why on earth they did not simply suggest that the buyers came to talk to us, I know that is what my solicitor would have done, if only to save me money on fees.
Quite possibly it was their client who was being so difficult, and the truth was that they were actually not terribly keen on buying my house after all.
Which does not bode well this time....0 -
Dont cut your nose off to spite your face. Sell it to them, with some conditions as you propose, though 7 days seems to quick for more mortgage companies to act. Make it clear to the EA that you will (again) have zero tolerance to any last minute gazumps.0
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