Vendor has two properties for sale and won't proceed until both sold

mcmart

Hi all - wanted to get an opinion. Had an offer on a flat accepted (I'm chain free) however the sale is dependent on the vendor selling another property. They need both sales prior to purchasing their onward property. Initially I thought this was fine, however they don't want me to start anything in terms of mortgage application/solicitors until the other property is sold.... and now I think this is a little odd as surely they would want one done and dusted if they were serious? Offer was accepted 4 months ago pre lockdown  and now just worried that I've attached myself to a complicated chain. Anyone else had experience of such a situation and does it seem reasonable that they would want to effectively co-ordinate both sales at the same time rather than get mine out of the way and have the money in the bank?

eddddy

Yep - it does seem strange, for the reasons you say.

Plus, if there are problems with the sale of the other property (e.g. survey, buyer failing credit check etc), your purchase will be further delayed.

What does the EA say about this? Normally, they'd be trying to persuade the seller not to do something like this -  because it increases the delay until they get their fee (and increases the risk of them not getting a fee).

greatcrested

Seems strange. They could sell one and bank the money pending the sale of the other and purchase of the new one.

Keep looking.

onwards&upwards

Presumably, they want to either keep both or sell both, and keeping just one is a situation they want to avoid. 

So you won't be getting this house unless the other one sells, does it look like a good buy? Do you think they have a good chance of finding a buyer for it?

mcmart

eddddy said:

Yep - it does seem strange, for the reasons you say.

Plus, if there are problems with the sale of the other property (e.g. survey, buyer failing credit check etc), your purchase will be further delayed.

What does the EA say about this? Normally, they'd be trying to persuade the seller not to do something like this -  because it increases the delay until they get their fee (and increases the risk of them not getting a fee).

exactly it becomes a very complicated chain and no guarantee the buyer for the other property is serious. the agent is also selling both properties so maybe they are just confident that both will go through eventually? You never know with estate agents although they are a pretty reputable local agent  

mcmart

greatcrested said:

Seems strange. They could sell one and bank the money pending the sale of the other and purchase of the new one.

Keep looking.

that's what I thought it would surely make sense for their own purchase if they can show they have one in the bag so to speak.

thanks :-)

oystercatcher

Unless this is a unique and wonderful property or a real bargain, I would be looking elsewhere. It would probably got through eventually but you will be waiting for two potentially long complicated chains to form and co ordinate and settle on a date . I reckon this will take much longer than a regular chain.

mcmart

onwards&upwards said:

Presumably, they want to either keep both or sell both, and keeping just one is a situation they want to avoid. 

So you won't be getting this house unless the other one sells, does it look like a good buy? Do you think they have a good chance of finding a buyer for it?

yea I'm not sure of the reasons for the both or none approach and it's none of my business, just seems a bit odd. the other house they're selling? not sure how it will pan out.... have a feeling it might sit on the market for a while. I also want to make sure I can take advantage of the stamp duty freeze so there isn't an enormous amount of time and don't want to be left in limbo heading into Xmas. 

mcmart

oystercatcher said:

Unless this is a unique and wonderful property or a real bargain, I would be looking elsewhere. It would probably got through eventually but you will be waiting for two potentially long complicated chains to form and co ordinate and settle on a date . I reckon this will take much longer than a regular chain.

I think you're right... want to make sure that I can take advantage of the stamp duty situation also :-)

steampowered

It's very odd. Trying to sell two properties at the same time will greatly increase the chances of something going wrong or there being a long delay.

The vendor is not proceedable right now. I'd keep the offer on the table just in case - but I'd keep looking !!!

diggingdude

Keep the offer on the table (I hope you have negotiated a discount to wait and the estate agent is keeping you up to date on the sale of other house - perhaps weekly email with viewings)

At the same time, I would start looking for another property which is genuinely likely to complete in 2020