FTB decision - vendor wants more than asking price

roastduck · 23 July 2006 at 10:53AM

We have been looking for a house for three months. We have found a few houses that we like but we were unlucky with the purchase.

The 1st house we put in an offer the vendor would not accept our offer but asked us to go ahead with the application. It was first come first serve. We didnt go ahead because it wa a bit risky.

2nd house was a bit of a learning experience as well. We put in the full asking price and offer was accepted. Being the first time buyer we were very excited. but within the same say the estate agent informed us that the vendor turned us down because we made him nervous??!! being the 1st time buyer, we was not too sure about quick exchange so we ask to think and research about it. Because previous buyer fell through and he wanted to sell the house as soon as possible (exchange in 4 weeks). so we lost the house again and we learn.

3rd house proved that we have good taste. This house is in need of decoration but it is in a very good location. Big house, laarge garden and asking price was within our budget (£285000). Put in full asking price offer, accepted. Within 24 hours the vendor decided not to sell within giving any reason to the estate agent. Because we have nothing to loose, we knocked on her door and try to do a deal. Apparantly the house was under valued. she didnt tell me what price exactly but we will have to watch out for it. Surprisingly it is on the market again for £380000.

NOW we have put our offer for ou 4th house. We NEED some advice please. I know at the end of the day, it depends on whether we like the house or not. We put an full asking price offer. The vendor was considering our offer and the answer we got back was the neighbour knew that the house is for sale and offer the vendor £10k more for the house. We have been told that he will sell the house for only £7k extra from the full asking price. What should we do? It is a 1930s build house in a good location near to our work place. He is living in the 2nd reception room and the three bedrooms are rented out unofficially. The house is advertised as no chain because i have been told all of them can move out immediately.

Thanks.

ginger_nuts · 23 July 2006 at 11:16AM

depends how desperate you are to get it .
how do you no the neighbour put any offer in .i wouldnt offer an extra £10,000 when I could offer 1,2 or £5,000 .But then thats me .

he could be just looking an extra £7,000 .
Is the house worth the extra £7,000 to you .
Do you trust the seller ,if not walk away .

MortgageMamma · 23 July 2006 at 11:17AM

I wouldnt buy it. If you are buying it for more than market value it doesn't leave much room for manouvre and I don't like the idea of the tenants being there. What if he had difficulty getting rid of them?

roastduck · 23 July 2006 at 7:13PM

The sellet told the EA that his neighbour asked him to sell the house to him for £310k. Whether it is the truth I have no idea.

After the house veiwing, our gut feeling told us that we dont trust the seller. He was not forth coming with information such as how long has be been staying there (A: several years), and "informally" renting out the rooms to "friends" (all three rooms); and now the neighbour wanting to buy the house

.we have doubts on the person but not the house.

It is a mixed feeling. Our head said dont buy it buy our heart say yes. If the house was on the market for £310k we would have offer the this price. But we feel uneasy to cough up extra £7k for no apparent reason??? Is he going to do this neighbour trick again? What if he did this again before exchanging contract?

libitina_2 · 23 July 2006 at 7:21PM

If you're having major doubts this early, then just walk away.

Arch-Angel · 23 July 2006 at 8:08PM

I have to agree. It almost strikes me that the seller is thinking "Well, if this buyer is offering the full asking price, maybe the houseis worth more than I thought." The point you made about "informal renting" - how does that work? (I mean how does it work for the renters - it sounds very "iffy"!!)

Too many questions on this deal in my opinion....

As an aside, have you read the threads covering FTB'ers? I'm an FTB myself and there's lots of useful ideas in there (such as offering less - 10%+ - than the asking price as an opening offer).

HTH

itsakidsworld · 23 July 2006 at 8:15PM

Roastduck,

Fom your information given please walk away from the property.

You said your head says no but your heart says yes?

When you break your heart, over time you can fix it. When you break your head you cannot fix it!! Follow your head and find something that ticks all your boxes.

The very best of luck

Snippy30 · 23 July 2006 at 9:34PM

Yep roast duck (very tasty! yum!)

I would walk away the owner sounds odd to say the least. If you do decide to go ahead ask as many questions as you can of the seller, cross question gentle if you can, then ask the estate agent many of the same questions and see if they match up. If you can. get a friend to view the property and ask similar questions. see what he says, get friends opinion on the seller.

From my experience someone who comes across as shifty and dishonest usually is. If there are alarm bells going off in your head now I would walk away.

BOL whatever you do!

clutton_2 · 24 July 2006 at 12:20AM

it sounds as if this person is running an illegal HMO (house in multiple occupation), and he could be fined £20,000 for not have registered it with the local council housing department. IF there are 3 other single people living there in addition to him, he certainly has a HMO, and is no position to bargain over the asking price. IF you want this house, offer him less, and put a time limit on your offer (say 1 week). if he refuses leave the offer on the table and walk away, he could come back to you later on.

having said all that, i spoke to Bristol city Council environmental health dept today (who monitor HMO's) and they are only enforcing Compulsory Licensing if there are 5 individuals or more !!!

Each council i have spoken to, seems to be interpreting the Act in their own sweet way !!

So, if this is an issue for anyone, ring your local EHO and ask for the information you need - you don't necessarily have to give the address.

roastduck · 24 July 2006 at 11:33AM

The house market in london is seller's market at the moment. We did offer less than the asking price @ £294000. I have been told by the EA that he didnt want to loose £4000 for nothing. We thought about it and current market is that there would definitely be more offers for the house. Since we can afford it and we like the house (not the seller) we put in a full offer.

The EA did say there are a few offers on the table but they are in chain. The EA recommended that he should sell the house to us coz we are FTB.

We can sense that the EA is not that happy with the seller. he was asked to put the house back on the market for £310k unless we put in another offer for £307k. more work for him...The ea did say to us the house is worth £300k and that the valuation may not match the £310k seller's own valuation.

So no deal. dont want to deal with this seller anymore becoz he might do that same anytime up to exchanging contract. Interesting though about the HMO...hmmm where is the council's phone number

We need to start looking again....house market is dead queit around my patch....i wonder is this because of summer holiday????

thanks to all of you for your advice...:beer:

JennyW_2 · 24 July 2006 at 11:59AM

Roastduck - from what you've said about this seller, you've done the right thing. If he's dodgy and you're having issues/doubts now, it'll only get worse. I dont think you can trust him.

The right house will come along....

FTB decision - vendor wants more than asking price

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