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

gettingtheresometime

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.

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. 

Seriously hope you're wrong as I've just sent a letter of interest for a property. I say a letter of interest as the seller knows the house will sell within the week and is trying to avoid estate agent fees. 

As a cash buyer I'm hoping I'm a more attractive offer than someone who has to have a mortgage 

_Penny_Dreadful

Your celebrations were very premature. Have a read at this house buying guide for England and Wales and then decide what to do. I don’t think the estate agent is bluffing, I think someone else has put in a higher offer. 

https://www.moneyhelper.org.uk/en/homes/buying-a-home/money-timeline-when-buying-property-england-wales-n-ireland

_Penny_Dreadful

Sarah1Mitty2 said:

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?

Do you have any direct experience of buying or selling property in England or Wales, or in fact anywhere? 

ThisIsWeird

Hi FFP.

It's very frustrating, but chances are the EA is doing nothing wrong, or even unethical in your case.

They can certainly 'take it off the market' once an offer has been accepted, if this is agreed or requested by the seller. And, once they do, most EAs are quite firm in putting off any further interest from new potential buyers. The seller has to make it clear that this is what they want, tho'. The EA largely just wants to make the sale, as quickly and easily as possible, so they'll try and nurture the first 'good' buyer.

However, if someone actually insists on making a further offer on the place, I understand the EA is duty-bound - 'must' - pass this new offer on to the seller for their consideration - unless the seller is really adamant that they have no intention of entertaining this, and have made that clear. In practice, usually only those who have previously viewed the property would put in an offer on an 'under offer' property, so it could be argued that their offer has some legitimacy - they have always been 'interested' in it, but have been slower than you in making their offer.

I'd imagine, then, that the other buyer has either viewed before (as the EA claims), or is taking a chance from the sales partics (not unheard of, but an EA would treat such a person with some caution - unless desperate for the sale, but the EA already knows that they have you in this case).

I think, therefore, you should accept the EA's word here. They are only doing what they have to, and the decision to accept a higher offer (call it gazumping if you like) is the seller's, so aim your mistrust at them.

Another way to consider this is to look at who benefits from this increased offer? The EA? Hardly. They will gain a tiny bit of extra commission, around 1% of the increase. Work it out - it won't be much - less than £100 in most cases. This is minor when compared with their core commission, which will likely be in the £ks? And EAs generally hate this sort of mucking about; they'd much rather nail down a reliable buyer like you, and close the deal. And it's been reported that some EAs may even have feelings, and genuinely don't like letting folk down, or them being considered pariahs. (Only kidding! )

(Yes, the EA can benefit in other ways, such as league tables - what %-age of the asking price they achieved or exceeded, that sort of smelly stuff.)

The seller benefits? Yup, to the tune of the higher offer - so £ks - and they need to shelve their principles to some degree to do this. Some highly principled folk just wouldn't do this, but most, I suspect, would, especially if the originally-accepted offer was below asking or their expectation. So, understand you are dealing with a seller who is open to doing this.

What difference should this make to you? Try not to let it make any. You will look back on this - hopefully from within this, or a better, home - and it'll just be an anecdote for Christmas time. Make your decision on whether to meet or exceed the other offer based purely on how much you want this place, and what it's worth to you.

You could perhaps start by asking the EA if 'simply' matching the other offer is enough, with you being a good buyer and clearly keen to move quickly. They will give you, most likely, an 'honest' answer, and I'd be guided by it. Whatever you do - give a matching or increased offer - you may also wish to be prepared to walk away if it happens again. 

Try and get all this clear in your head first - what your absolute max will be, and to tell the EA that you will not enter a 'price war'. And, through gritted teeth if you must, try and treat the EA as being either impartial or even on your side; you can even acknowledge that you understand that they must hate these gazumping things happening too, but that you understand they are obliged to pass on new offers - you know it's the seller's call whether to allow this.

"Given that the vendor knows we are ready to move quickly, will a matching offer clinch it for us, do you think? And, could you persuade the vendor to stick with this offer this time, as we are feeling unsettled by what's going on, and I bet the other buyer is too..."

"No? Ok, what would? With your persuasive powers, what would we have to find to clinch it? Bear in mind that we are ready to walk if we sense the vendor is going to allow this 'playing-off' to continue, so they may be left with just one interested party, and one that may feel they've been 'played' too..."

Oh, and obviously keep on looking; this is obviously NOT the only good place for you out there, and - given a little time - not even the best :-)

This has happened to us once - a full-on gazump. We declined to match or exceed, and found a far superior property a couple of weeks later. The icing on the cake is that the EA called us up later, and asked if we were still interested - the other buyer had pulled out.

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?

:-(

What did you decide to do?