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  • FIRST POST
    • GrumpyDil
    • By GrumpyDil 13th Jan 18, 10:14 AM
    • 176Posts
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    GrumpyDil
    A selling conundrum
    • #1
    • 13th Jan 18, 10:14 AM
    A selling conundrum 13th Jan 18 at 10:14 AM
    Hi all.

    Just wanted to get some views on a conundrum that has come up with my house sale.

    We've recently accepted an offer on a property for X amount and the prospective purchaser has had a mortgage valuation and started legals. A previous viewer has came back and firstly offered 5000 more which we turned down and now come back with 10000 more than the existing buyers.

    They are both in a good position insofar as the current purchaser has sold their house to an FTB and our house is not in a chain so chain complete. The second purchaser is buying without selling any existing property so no chain involved. Our hearts say not to accept the new offer but brains say it's 10000 which is a reasonable sum of money.

    Just wondered what people would do in these circumstances?
    Last edited by GrumpyDil; 13-01-2018 at 10:27 AM. Reason: Spelling
Page 1
    • robatwork
    • By robatwork 13th Jan 18, 10:22 AM
    • 4,409 Posts
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    robatwork
    • #2
    • 13th Jan 18, 10:22 AM
    • #2
    • 13th Jan 18, 10:22 AM
    Most on here will say stick to your word - and I am in that camp too.

    However my answer may be different if your house price was 100,000 as opposed to 400,000.

    Oh and it's conundrum. Boo boo, boo boo, boo boo boo boo. Boop.
    • GrumpyDil
    • By GrumpyDil 13th Jan 18, 10:25 AM
    • 176 Posts
    • 137 Thanks
    GrumpyDil
    • #3
    • 13th Jan 18, 10:25 AM
    • #3
    • 13th Jan 18, 10:25 AM
    Yup that was my starting position as well but when I mentioned it at work all my colleagues said we'd be foolish not to accept the higher offer.

    And thanks for the spelling correction.
    • CommitedToChange
    • By CommitedToChange 13th Jan 18, 10:27 AM
    • 1,289 Posts
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    CommitedToChange
    • #4
    • 13th Jan 18, 10:27 AM
    • #4
    • 13th Jan 18, 10:27 AM
    Stick to your word and current buyer - the new people have offered 10,000 now, but may well then reduce their offer near the exchange date. Is it actually worth 10,000 more? Seems to good to be true.

    Binning your buyer when they have paid out money is pretty low and you may find karma bites you in the !!!.
    Attempting to buy a house
    • Aylesbury Duck
    • By Aylesbury Duck 13th Jan 18, 10:27 AM
    • 2,000 Posts
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    Aylesbury Duck
    • #5
    • 13th Jan 18, 10:27 AM
    • #5
    • 13th Jan 18, 10:27 AM
    It depends upon three things:

    1. What the extra 10k is in the context of the house value.
    2. What you could do that you need to do with the extra if you had it.
    3. Your conscience.
    • GrumpyDil
    • By GrumpyDil 13th Jan 18, 10:31 AM
    • 176 Posts
    • 137 Thanks
    GrumpyDil
    • #6
    • 13th Jan 18, 10:31 AM
    • #6
    • 13th Jan 18, 10:31 AM
    Who knows. As everyone says a house is worth what someone will pay for it, subject of course to mortgage valuations.

    Based on recent sale prices it's certainly within the range of what we would expect the value to be.
    • GrumpyDil
    • By GrumpyDil 13th Jan 18, 10:38 AM
    • 176 Posts
    • 137 Thanks
    GrumpyDil
    • #7
    • 13th Jan 18, 10:38 AM
    • #7
    • 13th Jan 18, 10:38 AM
    It depends upon three things:

    1. What the extra 10k is in the context of the house value.
    2. What you could do that you need to do with the extra if you had it.
    3. Your conscience.
    Originally posted by Aylesbury Duck
    1) About 5% of the value.
    2) The extra would certainly be helpful and would probably end up going into a later onward purchase.
    3) That's the kicker. We've been on the other side of this before and ended up costing us a couple of grand so my conscience says it's not a nice thing to do.
    • JoJo1978
    • By JoJo1978 13th Jan 18, 10:38 AM
    • 356 Posts
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    JoJo1978
    • #8
    • 13th Jan 18, 10:38 AM
    • #8
    • 13th Jan 18, 10:38 AM
    We were gazumped a few months ago enabled by a greedy vendor. It didn't work out so well for him as that sale fell through and he lost us as prospects by treating us that way. The market is now cooling in that area and it's still on the market with its third agent at 10% lower asking.

    So even if you can live with your conscience/decide to reimburse your current buyers from your (as yet only pledged 10k extra) depends whether you want a surer thing for a lower payoff now or a riskier higher reward.
    Hamster in the wheel (London) 1999-2017
    Mortgage free since 2015; Pension pot sorted 2017
    Part-time gigger and charity volunteer 2018
    • Davesnave
    • By Davesnave 13th Jan 18, 10:52 AM
    • 25,312 Posts
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    Davesnave
    • #9
    • 13th Jan 18, 10:52 AM
    • #9
    • 13th Jan 18, 10:52 AM
    I tend to think it depends on how long the property has been on the market. Has it had plenty of exposure?

    People on here are always trotting-out "a house is worth what someone is willing to pay for it," so many newly-advertised houses need time to find their true level. There's nothing set magic about an agent valuation.

    I'm minded of a place we missed just after deciding to buy the one we're in. With perfect timing, one of our adult children had a major crisis, so for about 4 days I was totally out of the Rightmove loop. Within those days, something amazingly rare and perfect came up, and to add insult to injury, the agents having agreed a deal in about 24hrs, failed to flag it up as sale agreed.

    I rang to arrange a viewing and was told, "No, register interest." I did as I was told then, but I'm b*ggered if I would now. I'd have been there knocking on the door.

    As I see it, the owners of that property, which I had prior knowledge of, were short changed. It had no direct comparables and never found it's level. We'd have gone up another 20k. Maybe we'd still have lost out, but at least it would have felt like a fair loss all round.
    If you are finding huge gaps between your paragraphs and use Firefox, MSE know about the problem. However, they aren't necessarily doing anything about it yet....
    https://forums.moneysavingexpert.com/showthread.php?t=5844460
    • GrumpyDil
    • By GrumpyDil 13th Jan 18, 10:56 AM
    • 176 Posts
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    GrumpyDil
    That was really unfortunate for you but from your other posts gather you've now got a property which rather suits you.

    I genuinely think the figures are in the ballpark of it's 'value' but as you say it's really difficult to get to a house's true value as such a concept doesn't really exist.

    Will speak to the agent again today and then sleep on it over the weekend.
    • CommitedToChange
    • By CommitedToChange 13th Jan 18, 10:56 AM
    • 1,289 Posts
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    CommitedToChange
    Davesnave - I think it's a bit different if the offer has just been accepted. This buyer had had their mortgage valuation and started legals - they will lose money now if GrumpyDil ditches them.
    Attempting to buy a house
    • Davesnave
    • By Davesnave 13th Jan 18, 11:36 AM
    • 25,312 Posts
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    Davesnave
    Davesnave - I think it's a bit different if the offer has just been accepted. This buyer had had their mortgage valuation and started legals - they will lose money now if GrumpyDil ditches them.
    Originally posted by CommitedToChange
    This is why I said the length of time on the market is a factor to weigh.

    I suppose something like 2 weeks is the sort of figure I'd call fair exposure. My first house, long pre-internet, was on for a week. Then, due to the interest, it went to sealed bids. All done and dusted in a fortnight.

    Nothing's stopping Dil from offering an amount for genuine expenses.

    And yes, our property suits us very well now, but it was 100k cheaper than the other one, so we've had to graft very hard and spend that to make it comparable.
    If you are finding huge gaps between your paragraphs and use Firefox, MSE know about the problem. However, they aren't necessarily doing anything about it yet....
    https://forums.moneysavingexpert.com/showthread.php?t=5844460
    • GrumpyDil
    • By GrumpyDil 13th Jan 18, 11:37 AM
    • 176 Posts
    • 137 Thanks
    GrumpyDil
    Davesnave - I think it's a bit different if the offer has just been accepted. This buyer had had their mortgage valuation and started legals - they will lose money now if GrumpyDil ditches them.
    Originally posted by CommitedToChange
    99% will go with conscience and stick with them but even if we didn't would most likely reimburse them their valuation fee and any legal costs related to their current purchase.

    Really only asked as was quite surprised that 100% response in my office yesterday was to go with higher offer!
    • KTD10
    • By KTD10 13th Jan 18, 11:46 AM
    • 29 Posts
    • 8 Thanks
    KTD10
    Could you go back to your current buyers and explain what's happened? A bit of honestly wouldn't hurt and they may up their offer if they think they might lose it. We are in the process of buying our first house as a couple and would be absolutely devastated if this happened to us as we waited ages to find this house and have spent over 1k in surveys so far. Whilst I appreciate 10K is a lot of money and would be hard to turn down, maybe being straight with your current buyer might lead to more money without any guilt?
    • GrumpyDil
    • By GrumpyDil 13th Jan 18, 1:07 PM
    • 176 Posts
    • 137 Thanks
    GrumpyDil
    To be honest they have already upped their offer quite a bit already and think that they have probably reached close to their limit.

    Anyway we've decided that we will 99% stick with them at the agreed price as although it's a fair bit of extra cash they have progressed things from their side very quickly so are obviously keen. They did tell me that it would be their forever home which is kind of nice as we're selling because of circumstances and both really liked the house.
    • katebl
    • By katebl 13th Jan 18, 1:15 PM
    • 624 Posts
    • 314 Thanks
    katebl
    How long ago did the new offerers view the property? What has made them suddenly think your property is worth more than they were willing to pay x weeks/months ago? Were they holding out for better that never materialised, and are they not likely to have their heads turned if that does come on the market? I don't think I'd trust their loyalty
    • GrumpyDil
    • By GrumpyDil 13th Jan 18, 1:28 PM
    • 176 Posts
    • 137 Thanks
    GrumpyDil
    How long ago did the new offerers view the property? What has made them suddenly think your property is worth more than they were willing to pay x weeks/months ago? Were they holding out for better that never materialised, and are they not likely to have their heads turned if that does come on the market? I don't think I'd trust their loyalty
    Originally posted by katebl
    I think the reason for the increased offer is because they want to live in the area and there are very few houses for sale there (four last time I checked) so I'd guess that they haven't been able to find anything else suitable.

    Yes worry would be that they might try and reduce offer later down the process.

    Although that's irrelevant musing really as very very unlikely we'll accept. Just would have been nice to have some extra money.
    Last edited by GrumpyDil; 13-01-2018 at 1:32 PM.
    • katebl
    • By katebl 13th Jan 18, 1:45 PM
    • 624 Posts
    • 314 Thanks
    katebl
    So although committed to the area they're not necessarily committed to your house... I think you're doing the right thing sticking with the first buyer, as the new one may have their head turned easily and use that to change/withdraw their offer down the line. Wishing you luck and a smooth sale from hereon
    • parkrunner
    • By parkrunner 13th Jan 18, 4:24 PM
    • 1,154 Posts
    • 1,814 Thanks
    parkrunner
    Personally I'd take the extra 10,000 but would offer to pay the other buyers reasonable expenses they have already incurred. I'd also give them the opportunity to increase their offer if they preferred that way.
    • Aspiration
    • By Aspiration 13th Jan 18, 6:30 PM
    • 166 Posts
    • 55 Thanks
    Aspiration
    Always an argument for both sides, however I think your conscience is the one thing to always be guided by. Great idea taking the weekend to think about it and make the right decision though
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