Vendor went with the lower house offer!

ozwoz84

Hi,

Im hoping to get better understanding here - we viewed a house which was valued at a much lower price than the market value. We've viewed a couple more houses on this street, and had checked land registry prices and this was very low, more than £100K lower...

The agent called us and said this house hasn't gone on the market yet, would you like to view it and we happily agreed. This is what they call 'quiet' marketing. The first thing he said, was it'll basically boil down to price!
We made two offers which were rejected and we were told that the seller had decided to proceed with and offer that was asking price. Bare in mind the house needed significant work circa. £50k and we know this isn't most people's type of purchase.
We then decided to made an 'official' offer (they have this form for buyers to complete, where offers are openly seen by all agents) and raised our offer by £5K over the asking price and increased our deposit to 40% of our revised offer, leaving very little for mortgage.
A day later, we receive an email that says the vendor has decided to go with the lower offer.

So I'm wondering if there is any way we can check whether our offer had actually been forwarded to the vendor?
It is very frustrating because the property wasn't on the 'live' market and I have a feeling that this was a pre-empted purchase, perhaps by one the agents themselves and our time was wasted to make up numbers of offers.

Is there anyway we can ask for proof that our offer was forwarded and have the vendor's reply? We've been gazumped before, but we've never had a higher offer rejected. And we were told that the people who'd put in the asking price are in exactly the same situation as us!

I can't find anything that protects buyers from having a higher offer rejected or in fact checking whether procedures were respected.
Any clarification on what seems to be a pre-agreed strategy would be much appreciated.

[Deleted User]

There obviously wouldn't have been a 'pre agreed strategy' as that would make absolutely no sense.

It sounds as if they have demonstrated some principles and stuck with the agreed offer. It's not as rare as you might think.

Time to move on.

jonnygee2

I can't find anything that protects buyers from having a higher offer rejected

The sellers are free to sell to whoever they want to, at whatever price they want to. It's their house.

Doozergirl

It sounds like it was already agreed before you decided to up your offer.

Sounds like they aren't the sort for playing games. They had an asking price offer and stuck with it.

If the agent had set it up, they wouldn't have invited you to view in the first place!

AnotherJoe

ozwoz84 wrote: »

So I'm wondering if there is any way we can check whether our offer had actually been forwarded to the vendor?
Yes, you coudl ask them (If you have their details) or pop a letter through the door hoping they are still collecting post)

It is very frustrating because the property wasn't on the 'live' market and I have a feeling that this was a pre-empted purchase, perhaps by one the agents themselves and our time was wasted to make up numbers of offers.
Seems a bit pointless if you offered more unelss it really was absolute out and out fraud?


Is there anyway we can ask for proof that our offer was forwarded and have the vendor's reply?
Yes by talking direct to the vendors.
We've been gazumped before, but we've never had a higher offer rejected.
Always a first time
And we were told that the people who'd put in the asking price are in exactly the same situation as us!
Not exactly. Their offer may well have been agreed before yours came in.


I can't find anything that protects buyers from having a higher offer rejected

and if you think about it, how can there be? You are asking for vendors to be forced to sell to the highest bidder !

or in fact checking whether procedures were respected.

Asking the vendors is all you can do. As said it may be as simple as, for whatever reason they liked the other buyers or even agreed the other offer first and didnt want to break their agreement. I'm not seeing anything about a "last and final" or "sealed bids" round so the most likely thing is, your offer on their "official" form was too late after the vendors had already agreed to accept the other offer.
So your title "Vendor went with the lower house offer!" could also be "Vendor stuck to their word and wouldnt let me gazump!"

warby68

Your higher offer was made after the vendor had already accepted another offer.

That is different to still considering all offers.

Also, you only offered higher once they accepted another offer - they might not have confidence you will stick to it.

Obviously it depends on the value of the property, but £5k can be neither here nor there for a vendor compared to perceived confidence in their purchaser and their own principles for doing business.

In your case it is far more likely to be one of these reasons than your suspected conspiracy. Had you offered much higher before the vendor accepted an offer then perhaps you would have more cause to be suspicious but not with £5k more after hands had been shaken.

da_rule

As the agent is probably paid on commission, it would make no sense for them to not forward your offer on (as they stand to get paid more). It seems here that you had a seller who took the view that once they had agreed a sale they weren’t going to go back on it.

Also, ultimately, the estate agent works for the seller, they have no real duty to you. There is nothing you can do to actually check the offer was forwarded on.

Marvel1

They refused your 2 offers, assume lower than asking, someone offered asking they accepted.

Then you offer £5k more, they probably thought after first 2 offers you had your chance.

BrassicWoman

I'd have rejcted your offer as it took you three to get to where I wanted. That says to me you'll be messing about while I want to get on with it.

comeandgo

If you go in low there is always the chance the seller will dismiss you when you start upping your offer in dribs and drabs. It makes it look like you can't afford and have a higher risk of pulling out.

ognum

Your low offers may have made them feel you would renegotiate later. They may also have found a buyer that they ‘clicked’ with and felt would proceed quickly.

Chalk this down to experience, offer what you think a house is worth first time around. There will be another house.