Pretending to not be in a chain

custardly

youth_leader said:

Both of my buyers lied that they were proceedable and were found out within weeks of their offers.  It caused me a lot of angst - especially as I found, and lost, my dream home.

Thanks for this. How did they get found out? 

custardly

silvercar said:

Not uncommon to say that you can buy without selling your property and then in a few weeks time "decide" that it would be easier to sell first.

Yes, I understand that it is not uncommon in a hot market. This will essentially be our strategy. But trying to understand at what point we would get found out.

jimbog

custardly said:

silvercar said:

Not uncommon to say that you can buy without selling your property and then in a few weeks time "decide" that it would be easier to sell first.

Yes, I understand that it is not uncommon in a hot market. This will essentially be our strategy. But trying to understand at what point we would get found out.

Probably early on. The estate agent will likely Google your address to establish when you had bought it and how much you had paid to find out where you likely stood financially. Then they'll find that it hadn't sold since you moved in. Also, once you list it (with a different EA) you'll be found out 

YoungBlueEyes

custardly said: But trying to understand at what point we would get found out.

Well right at the start, hopefully. 

YoungBlueEyes

I bought my last house with cash. The EA wanted to see proof of funds after viewing but before I could submit an offer. That was about 4 years ago. 

housebuyer143

You really risk losing a lot of your own money. You spend for a survey and mortgage etc and then the seller finds out you are in a chain, which they 100% will, and they will probably relist it. 
Going into the sale in bad faith like this isn't really a great way to maintain good relations. I would expect the seller to do you 0 favours when you are found out. 

custardly

jimbog said:

custardly said:

silvercar said:

Not uncommon to say that you can buy without selling your property and then in a few weeks time "decide" that it would be easier to sell first.

Yes, I understand that it is not uncommon in a hot market. This will essentially be our strategy. But trying to understand at what point we would get found out.

Probably early on. The estate agent will likely Google your address to establish when you had bought it and how much you had paid to find out where you likely stood financially. Then they'll find that it hadn't sold since you moved in. Also, once you list it (with a different EA) you'll be found out 

That shouldn't be an issue as on paper we don't need to sell the house as we have AIP and cash deposit. The point is that in reality we do need to sell it to raise the funds.

custardly

housebuyer143 said:

You really risk losing a lot of your own money. You spend for a survey and mortgage etc and then the seller finds out you are in a chain, which they 100% will, and they will probably relist it. 
Going into the sale in bad faith like this isn't really a great way to maintain good relations. I would expect the seller to do you 0 favours when you are found out. 

I don't understand why we will lose a lot of money? Surely a maximum of 1 or 2 thousand no? 

custardly

YoungBlueEyes said:

custardly said: But trying to understand at what point we would get found out.

Well right at the start, hopefully. 

Why at the start? This is the bit I really don't understand. How would they know? Surely they won't find out until much later on in the process. At a guess when we are agreeing on a date for exchange. 

YoungBlueEyes

As I said, I couldn’t put an offer in ‘til I’d shown proof of having lots of actual cash. In the bank. Ready to go. 

So, at the very start.