Paying for searches for the new house but my buyer pulled out

Davesnave

dinerodinero wrote: »

Right, so we have been twice on your step 3, but our buyers have been on your step 2, without our knowledge, which know we know that it is legal and a normal practice.
What we will do is for our buyer to be on your step 3 and then as we have got a mortgage in place already we will make sure that we buy a property.

The average time to buy a property is 3.5 months. It can be longer if problems with paperwork are encountered.

Do you think a gap at least that long between exchange and completion will be acceptable to your buyers?

What would happen if you found you needed much longer?

AdrianC

dinerodinero wrote: »

Right, so we have been twice on your step 3, but our buyers have been on your step 2

Which means YOU aren't on "step 3". You cannot be on different steps.

What we will do is for our buyer to be on your step 3 and then as we have got a mortgage in place already we will make sure that we buy a property.

Lovely. In a fortnight...?

Ain't happening.

If you try that one, then I predict an extended stay in a Premier Inn in your future.

And that's before we consider what happens if the people you're buying from pull a similar trick on you. And then the people they're buying from pull it on them. And so on up the chain...

dinerodinero

AdrianC wrote: »

Which means YOU aren't on "step 3". You cannot be on different steps.


Lovely. In a fortnight...?

Ain't happening.

If you try that one, then I predict an extended stay in a Premier Inn in your future.

And that's before we consider what happens if the people you're buying from pull a similar trick on you. And then the people they're buying from pull it on them. And so on up the chain...

Our problem has been that we had done everything while the buyer, have not done half of the work that we have done.
It is our first time buying so know we are learning how to follow the steps.
I understand the time scale but I do not think the system helps with the process as many people lose a lot of money. I am not sure if my 'buyer' have paid for the searches of my property and I think that needs to be transparent so it is easier for every party to carry on doing what they need to do

Durham_andrew

So what will you do if you exchange and complete on the same day it’s happened to me twice

eddddy

Durham_andrew wrote: »

So what will you do if you exchange and complete on the same day it’s happened to me twice

It doubt it 'happened to you' - more likely, you chose to do it.

Nobody can force anyone to exchange and complete on the same day.

(I guess somebody could threaten to walk away if you don't, but those kind of threats tend to be fairly hollow.)

HampshireH

OP you have said a few times this is your 1st time buying. Do you mean selling?

lisyloo

dinerodinero wrote: »

Our problem has been that we had done everything while the buyer, have not done half of the work that we have done.
It is our first time buying so know we are learning how to follow the steps.
I understand the time scale but I do not think the system helps with the process as many people lose a lot of money. I am not sure if my 'buyer' have paid for the searches of my property and I think that needs to be transparent so it is easier for every party to carry on doing what they need to do

Firstly as has been advised use a proper estate agent and not PB.
A traditional estate agent is motivated for the sale to complete becuase they don’t get paid until it does.
They will make sure everyone in the chain is doing what they should but also try to find solutions, so on a devaluation there would usually be some negotiation, so you might have to drop your price for others to be able to proceed (if this has happened twice it indicates the price is too high), but either way the estate agent will try to sort it.

Also you cannot wait like you are suggesting. You buyer will not tolerate you doing nothing whilst they are committing money and won’t be prepared to wait after exchange for you to looks for somewhere.

One solution is to break the chain.
Could you sell and then find temporary accommodation for a while?
You cou”d put your stuff into storage and rent somewhere cheap or stay with family if that’s possible.
This puts you in a great position of being a cash buyer and chain free when you buy.

What you are suggesting (that buyer waits for you to buy) simply will not work as no one will be prepared to do that.

middleclassbutpoor

I would never buy a house being sold via Purple Bricks or a 'non-bricks and mortar' based agency until the legal and conveyancing process equally come into the modern age.

My advice would be that next time you get a buyer, do not do anything on the conveyancing side until the mortgage valuation has taken place and that your estate agent has confirmed that a mortgage offer is now in place.

A mortgage offer typically lasts 6 months so time for the legals to be completed still at this stage.

Also consider what else you can do to protect yourself from these pitfalls.

As an example...

I was a buyer who has pulled out of a purchase following paying for searches myself because of other things that came to light which made me feel very uncomfortable to proceed.

However, I decided to use a solicitor recommended by the bricks and mortar Estate Agent (which typically goes against all advice you will get on here.... ) but they offered a good quote (not so cheap you knew the service would be affected because there was no money in it for them) and they also included a free set of searches should the purchase not go ahead and no sale, no fee guarantee.

We have now found another property and had the searches done - yet I have only paid 1 set of search fees out and should anything go wrong with our sale then we won't have any costs to pay for either other than the first set of searches.

I couldn't be any happier with the service we have received because I can see updates through their dashboard, can communicate with them easily and the fact that going to a local solicitor now would have cost me about £300 more as a result and other costs involved with time etc, I believe we have done about as much as possible to minimise the financial risk in going through this transaction.

You are mad if you think you can get your sale to a point where they can't pull out before you start looking because no solicitor will allow you do exchange if you cannot confirm you will be providing vacant possession on completion date and no buyer or their solicitor will allow their client to allow completion and exchange to be 2-3-4 months in the waiting.

3card

Let me get this clear in my head

Is the OP expecting a buyer of their house to pay for the house without any date in the future that they can move into it??

Am i missing something?

babyblade41

My advice is not to use PB ..

Secondly what you are proposing is not going to happen and if I was buying off you I'd probably pull out if you were going to try and delay things, I'd think you weren't a committed seller

Buying and selling is very stressful and expensive , people don't pull out lightly unless it's an investor buying as they aren't as emotionally attached.

From what you have said and my interpretation of PB they always overprice and not by a small amount.

My BIL is using them (God knows why but he has been told but he thinks he knows best) His house is at least 50k over priced and possibly even more considering location

He put his house up for sale before me by about a month, we have gone through a really difficult purchase and complete tomorrow.

I notice he has now dropped 25k ... I doubt that will be the first reduction in the coming months

Quite simply I think the mortgage valuations have valued a lot lower than than you have it on the market for and are a lot more realistic valuation and as much as you probably won't want to you will have to re-think on price considerably