Sale agreed on my house 7 months ago, but could get more now. What should I do?

potatosalad

Hi,

I put my house up for sale 7 months ago and sold it within a week. We got 3 offers and went to best and final, and it sold for £1k over asking price. Since then, house prices and demand in my area have climbed massively, and I'm confident I could get about £20-25k more if I were to sell it now. My buyer has been extremely patient during the process as we've still been unsuccessful in finding somewhere to buy (we have offered on 8 houses but lost out on all of them). However, I am now really conscious of the fact that I'm selling my house for substantially less than it's actually worth.

What are my options in this situation? I really don't want to proceed any further with selling my house for such a low value. Should I just speak with my estate agent and be honest with them about my predicament and see what they suggest? 

Thanks a lot in advance!

RelievedSheff

Your buyer has been very patient while you have tried to find a home. It is hardly their fault that you have taken so long and have still not found anywhere!

Of course the choice is yours and you can remarket the property for a higher price or ask the buyer to up their offer if you so wish.

Personally I think it is a sh**ty thing to do to someone.

molerat

So you are the one who has been holding up the sale and are now thinking of shafting your patient buyer ?

pinkshoes

Is it the case that houses you want to buy are now out of your price range due to a rise in prices?

It may be a sh*tty thing to do, but if you cannot buy another house with the money you have, then you really have no option but to tell your buyer that due to the rise in prices in the area, then you now cannot afford to move unless you sell for more.

I assume your buyer is being patient because they now know they would not be able to afford that property any more at the current prices?

Gavin83

I agree with the last poster. It is a !!!!!! thing to do to someone but none the less £20-25k is a lot of money. It's a moral decision more than anything else. Has the buyer already spent any money, for surveys, solicitors, etc?

The actual process is easy. You contact the estate agent and tell them you want to remarket. They'll likely try and talk you out of it as it's more work for them but ultimately it's your decision.

Countrysider

The £20 - 25k gain was probably a result of the stamp duty stimulus, which is now over for properties >£250K and shortly over for properties >£125K. Could you still get an extra £20 - £25K compared to similar properties that sold recently without stamp duty payable?

I'm not certain but I am confident that if you ask your buyers to make up the shortfall then you will lose them. Re-evaluating the price of long running sales to claw back additional uplift that has occurred in the interim is a feature of most booms it seems. 

TBG01

You have to do what's right for yourself.

On the other hand I hope you use yourself as an example of why transactions can take so long.

GDB2222

Gavin83 said:

I agree with the last poster. It is a !!!!!! thing to do to someone but none the less £20-25k is a lot of money. It's a moral decision more than anything else. Has the buyer already spent any money, for surveys, solicitors, etc?

The actual process is easy. You contact the estate agent and tell them you want to remarket. They'll likely try and talk you out of it as it's more work for them but ultimately it's your decision.

If the buyer has spent money on surveys etc, then a reasonable compromise would be to reimburse that.

When you accepted the offer all those months ago, neither you nor your buyer had in mind this change in value. Consequently, I don't think you have any moral obligation to continue at the old price.

There are loads of posters on this forum who are incredibly generous in giving away money - other people's money, that is.

Section62

potatosalad said:

...and I'm confident I could get about £20-25k more if I were to sell it now.

How confident are you that you'd still get that £20-25k if it takes you and any new buyer another 7 months to get sorted?

Next month your property could be worth £50k less.  How happy will you be if the new buyer (if you've found one) tells you to drop the agreed price by £50k or they walk?

It's a gamble..... and karma isn't kind and charitable.

dil1976

GDB2222 said:

Gavin83 said:

I agree with the last poster. It is a !!!!!! thing to do to someone but none the less £20-25k is a lot of money. It's a moral decision more than anything else. Has the buyer already spent any money, for surveys, solicitors, etc?

The actual process is easy. You contact the estate agent and tell them you want to remarket. They'll likely try and talk you out of it as it's more work for them but ultimately it's your decision.

If the buyer has spent money on surveys etc, then a reasonable compromise would be to reimburse that.


There are loads of posters on this forum who are incredibly generous in giving away money - other people's money, that is.

Do you include yourself in that final statement? Seeing as you have told them to offer to reimburse any fees already paid, when there is no obligation too.

m4x1ne

Something to bear in mind is that, even if your house could get more money in principle, the vendor's circumstances matter. If new prospective buyers catch wind of the fact that the vendor (1) hasn't found anywhere after 7 months and (2) pulled out of their sale to get more money, they may lose faith that the vendor is trustworthy and motivated to move. I'd be uncomfortable being in such a vulnerable position with a seller who'd previously kept a buyer waiting for 7 months then pulled out to get more money...

From what I understand (I might be wrong), EAs have to give an honest answer if they're asked why a previous sale fell through. Perhaps you'd be better off taking your house off the market, waiting until you see properties you like coming up, and then re-marketing?