Help - First Time Cash Buyer - Think agency is screwing me over?

firstflatproblems

I don't know much about the purchase of property. However have been reading on how to complete etc in the weeks leading up to finding a small pad.

Its a 1 bedroom flat outside of London so quite cheap. I have no children etc.

So here's the thing:

-  I went to view the property and when I got home after deciding I put in my Cash offers.

- the agent emailed the seller who accepted and the agent said they will not be accepting more viewing (as I told them I'd instruct my conveyancer / solicitors immediately which I have done and paid there fees)

- I supplied all documentation the estate agent owner who congratulated me, and I then provided her with my conveyance details for the deal to begin.

- a day later she leaves me a voicemail to say they had received a higher offer than mine - even though they stated mine had been accepted and that I'd now paid my solicitors.

- I phoned the agent and they said they received a higher cash offer from someone who viewed before me, which is why I'm confused as to why they would accept all my documentation and confirm that I can instruct my socitlr to complete.

- I feel like they are lying about this other person as the estate agents are saying they recieved a higher offer. Even though I was given the green light to pay and begin making legal aspect which is paid for and about to be underway.

- I have put in a slightly higher offer at this point, as I really want the place... My partner and family are so hurt we went out for celebrations etc based on all the green light go a heads, and it being in the hands of the solicitors.

Doea this seem shady, and should I call there bluff and not make any more offers?

:-(

MattMattMattUK

firstflatproblems said:

I don't know much about the purchase of property. However have been reading on how to complete etc in the weeks leading up to finding a small pad.

Its a 1 bedroom flat outside of London so quite cheap. I have no children etc.

So here's the thing:

-  I went to view the property and when I got home after deciding I put in my Cash offers.

- the agent emailed the seller who accepted and the agent said they will not be accepting more viewing (as I told them I'd instruct my conveyancer / solicitors immediately which I have done and paid there fees)

- I supplied all documentation the estate agent owner who congratulated me, and I then provided her with my conveyance details for the deal to begin.

- a day later she leaves me a voicemail to say they had received a higher offer than mine - even though they stated mine had been accepted and that I'd now paid my solicitors.

- I phoned the agent and they said they received a higher cash offer from someone who viewed before me, which is why I'm confused as to why they would accept all my documentation and confirm that I can instruct my socitlr to complete.

- I feel like they are lying about this other person as the estate agents are saying they recieved a higher offer. Even though I was given the green light to pay and begin making legal aspect which is paid for and about to be underway.

- I have put in a slightly higher offer at this point, as I really want the place... My partner and family are so hurt we went out for celebrations etc based on all the green light go a heads, and it being in the hands of the solicitors.

Doea this seem shady, and should I call there bluff and not make any more offers?

:-(

They could have a genuine offer, they could be trying to get more, your options are to agree the extra or call their bluff, it depends how much you want the property.

Tiglet2

The EA is acting in the best interests of the seller, as they have a contract.  As a buyer you have no contract with the EA.  If the vendor decided to accept a higher offer, then the EA has to follow the vendor's wishes.

I doubt very much you have paid the solicitor their fees.  It is more likely you have paid an amount of money to be held "on account" so that they can order the searches (which is a disbursement, not a solicitor fee).  They will order searches when they receive the draft contract pack from the vendor's solicitor.  Has your solicitor received the draft contract pack yet?  

You should telephone your solicitor, ask if they've ordered the searches and if they have not, then ask them to either reimburse you the money. or not to spend the money. until you can confirm that the transaction is or is not going ahead.

If you want to offer more money, then do so, but the vendor/the EA are under no obligation to sell to you, as until exchange of contracts takes place, there is no commitment on either side.

Incidentally a leasehold purchase will take several months from receipt of draft contracts to completion.

[Deleted User]

Even if they accept your original offer, do you want to deal with people like that? Well, most of them are like that, so... I'd stick to your original offer, if they don't want it move on and find something else.

Titus_Wadd

It sounds like house-buying in England and Wales, I'm afraid.  The seller can opt out of the selling process at any time up to exchange of contracts.  It's not really the agent being shady or acting outside the process that the law allows.

The agent may contact you again for a higher offer, at some stage you have to decide what your absolute highest offer would be and be prepared to walk away and offer for somewhere else.  This can happen whether you have the cash in the bank or need a mortgage to purchase.

Be aware that flat-buying can take longer than buying a free-hold house as your solicitor will be checking all the aspects of the lease, service charges etc.  Also as a two-way process the vendor may not be as motivated to move forward the selling process as you are as the buyer.  Not trying to rain on your parade, just want you to understand the process has steps outside your control, to help manage your expectations.

The good part is that once you get the keys and move in the painful part of the process of reaching that point fades into distant memory.

Grizebeck

Welcome to house buying

london21

Happens all the time.

If you really want it then increase or leave it and they might come back to you,

TheJP

[Deleted User] said:

Even if they accept your original offer, do you want to deal with people like that? Well, most of them are like that, so... I'd stick to your original offer, if they don't want it move on and find something else.

At this stage of the process you would be daft not to accept a higher offer. Tough titties as my grandad would say. If you want it increase your offer.

OP for further reference it is irrelevant that you are a) FTB and b) cash buyer you have no more power than Joe Bloggs, money is money. Unless the seller is selling something that they a) need to shift sharpish or b) a property that a lender would decline either way they are the same in essence. 

DullGreyGuy

Assuming you are in England or Wales then nothing is set in stone until you have exchanged contracts and up until that point either side can pull out owing the other side nothing. Depending on who feels they have the power in the relationship you can find that one side or the other decides to try and adjust the deal to their favour after offer/acceptance... this can be them saying they've got a higher bidder or you saying the surveyors report points out X when it was clear from the outset and had been factored in already.

In reality no excuse is required, they could simply say they want £10k more having had time to think about it just you are more likely to tell them no if you dont think its in any way justified... hence the plausible story etc.

Sarah1Mitty2

firstflatproblems said:

I don't know much about the purchase of property. However have been reading on how to complete etc in the weeks leading up to finding a small pad.

Its a 1 bedroom flat outside of London so quite cheap. I have no children etc.

So here's the thing:

-  I went to view the property and when I got home after deciding I put in my Cash offers.

- the agent emailed the seller who accepted and the agent said they will not be accepting more viewing (as I told them I'd instruct my conveyancer / solicitors immediately which I have done and paid there fees)

- I supplied all documentation the estate agent owner who congratulated me, and I then provided her with my conveyance details for the deal to begin.

- a day later she leaves me a voicemail to say they had received a higher offer than mine - even though they stated mine had been accepted and that I'd now paid my solicitors.

- I phoned the agent and they said they received a higher cash offer from someone who viewed before me, which is why I'm confused as to why they would accept all my documentation and confirm that I can instruct my socitlr to complete.

- I feel like they are lying about this other person as the estate agents are saying they recieved a higher offer. Even though I was given the green light to pay and begin making legal aspect which is paid for and about to be underway.

- I have put in a slightly higher offer at this point, as I really want the place... My partner and family are so hurt we went out for celebrations etc based on all the green light go a heads, and it being in the hands of the solicitors.

Doea this seem shady, and should I call there bluff and not make any more offers?

:-(

With mortgage rates rising you are in a VERY strong position, I would definitely call their bluff, and even make a lower offer in future, are you using PropertyLog to monitor what is going on in your area with asking prices?

Sarah1Mitty2

TheJP said:

[Deleted User] said:

Even if they accept your original offer, do you want to deal with people like that? Well, most of them are like that, so... I'd stick to your original offer, if they don't want it move on and find something else.

At this stage of the process you would be daft not to accept a higher offer. Tough titties as my grandad would say. If you want it increase your offer.

OP for further reference it is irrelevant that you are a) FTB and b) cash buyer you have no more power than Joe Bloggs, money is money. Unless the seller is selling something that they a) need to shift sharpish or b) a property that a lender would decline either way they are the same in essence. 

Very relevant, with mortgage prices rising and less people able to get one, or even wanting one in this climate, a cash buyer is most certainly in the driving seat, if the seller actually wants to sell that is.