Offer made on sale then buyer went quiet - Is this a scam?

neilio

My house has been on the market since late February 2021. I found a new build development I like and arranged through the developer to use a service whereby they provide an agent who markets my property with 3 agencies on condition that my sale funds the purchase of a specific house on the development.

I had a virtual viewing from someone based in Dubai on a WhatsApp video call in early March. Three days later he wanted a second virtual viewing but with 2 of his friends in the house in person so someone he knows could be present, they live locally. The 2 people and the virtual viewer were in my house for nearly an hour and it was very positive. The prospective buyer was looking for an investment property that his 3 teenage children could live in while attending an expensive private school nearby. The buyer’s reason for purchase was because it would be cheaper than paying the boarding fees for his children.

He made an offer, way too low. He made a second offer, still loo low. Then he made a third offer which was a big jump on his second offer, still under the asking price, but good enough for me so I accepted it. This was week commencing 15 March 2021. A few days later I went to the development I’m buying on to select finishes, make an initial holding deposit and officially reserve the house. I also appointed a solicitor to convey my sale and my purchase. I got my financials in order with my mortgage lender and spent the next couple of weeks progressing the paperwork and getting searches arranged etc.

By the week after Easter, 6 April 2021, I noticed there was not much progression with the buyer so I asked the agent for updates. The agent said they were having trouble contacting the buyer despite having spoken to him at offer stage and facilitating early queries, but now he was only responding to emails and WhatsApp messages but not phone calls. He claimed that he had appointed a solicitor but the solicitor claimed that even though he’d been in touch with them he hadn’t formally appointed them yet. My solicitor told me they’d been in touch with his solicitor but they also confirmed he hadn’t paid them to do any searches and therefore they could yet respond to enquiries or do searches. His mortgage broker told my agent that he did have a mortgage application pending but no survey yet.

The buyer insisted he had instructed his solicitor but this was not the case. By the end of Easter week he said he’d need another day or two before instructing his solicitor. The following week, 12 April he said he’d need another week before instructing his solicitor. The agent asked several questions but he barely responded with one word answers and not providing any details. His mortgage broker told the agent he had not instructed a survey of my house yet. We realised this was likely dead so I put my house back on the market and told the agent to inform the buyer it was for sale again unless he can speed up.

On 15 April the agent received the most thorough update so far from the buyer who acknowledged the house is back on the market, said he does still intend to buy the house but he needed one more week due to personal reasons and that there would be a noticeable change in his communication and commitment. That was a week ago. During this time the agent has continued to attempt to get updates from the buyer’s mortgage broker who refuses to say if or when a survey will be instructed. I asked the agent again today if they’d heard anything and they said no. I have zero confidence I’ll ever hear from this buyer again as it has been 5-and-a-half weeks since accepting his offer and he has done nothing to convey his purchase.

The agent only this week questioned why I thought he was based in Dubai. I told them because that’s what I was told, but they said they saw his mortgage AIP and other particulars and said all his documents show him to be UK-based. All his Know Your Customer particulars and financials were verified by the agent at offer stage.

I have accepted this is dead and I am moving on. I am having other viewings on my house but I am prepared to cancel the reservation on the house I’d reserved as I can only afford to complete within the stamp duty holiday and the offers I’m getting aren’t high enough, which makes me wonder if the offer I accepted was always too high and unrealistic and, therefore, fake? What I don’t understand is what has motivated this man to behave this way. He clearly does not want my house, so why would he have said a week ago that he does still want the house and he’d be more committed rather than just say he no longer wants it. I suspect he may have offers on other houses.

Is this some kind of scam? I don’t understand and I’d like to find out if this is a known trick of some kind so I can be aware in future. I have incurred costs and I'd rather he had been honest from the beginning if he couldn't buy it. I also realise the big red flags, such as overseas (or not?), virtual viewings only, his teenage children will live in it (unsupervised?), offer on house which is possibly more than my house is worth, zero communication but claims they still want to buy. What motivates someone to behave like this?

davidmcn

Some people just get cold feet.Or are indecisive, or could have some genuine (but personal) reason for not proceeding. What would the scam be?

I suppose somebody living in Dubai could still have UK residence and finances (I think in practice most "ex-pats" working there are only allowed to stay for as long as their jobs last, rather than emigrate there permanently)

neilio

Granted, probably not a scam. Yes, could be cold feet and indecisiveness, but this has dragged on for nearly 6 weeks. Is it a known tactic or, could it just be that I'm unlucky with this buyer?

Redwino222

You will probably never know what happened.  He discovered he couldn’t afford it, children didn’t like, school weren’t happy with children living alone (seems an odd story), going through a divorce, losing job, also bidding on other properties.

i have been messed around lots by people bidding on my house and not following through.

its not a scam though, what has he gained from This?

agree though the bid wasn’t real, forget about it and move on,

JJR45

We had similar buyer offered over asking price then never instructed anything. After a month of questioning they finally admitted they could not afford it!