House selling - ethics - arghh!

[Ken Figenus]

Agreed price to sell house.

Buyers check out and a renter is buying theirs - again checks out with valid mortgage offers etc.

Suggested 1% deposit to take it off market immediately as requested - told no one keen on deposit these days.

House therefore left on market but agreed to take off after survey & confirming their intention to proceed. [Reminded them its a period house and will have a few issues with some obvs maintenance being required - hence asking price].

They booked survey yesterday.

Yesterday also get an offer for £10k more. No chain. No proof of mortgage yet. Intends to Air B&B the house in a rural community...

Do I:

A) Continue with original buyers as is - they did everything asked and are keen to get in with kids ready in good time for Sept school?
B) Risk losing them in asking them to match new offer but then promise to lock that in for good?
C) Take holiday home money higher offer and possibly quicker completion (and drive a small nail into the local community)?

?

[Dog Star]

Interesting dilemma.

I’d not be the sort of person to take the second offer just because it’s more money, however I would be looking at timeframes and which is best for me.

[CrgT16]

I would contact 1st buyer and check with solicitor if they are ready to move on. What you don’t want is to be messed about and the sale falls through and you end up loosing a good buyer (the 2nd).

I would also say to the 1st buyer you have an offer for £10k more and are they willing to match. If they don’t it might show how committed they are to your house.

[The jiffle king]

I'd be A and keeping the buyer who has done what was asked and you now have another option if they try to chip the price down.
For me if you have made the deal and were happy with it then you should stick with it.

[Ken Figenus]

I tend to agree mate - its just the timeframe - it all happened in a couple of days with the house legitimately still on the market...

Value these opinions though - the original buyer seem very very keen and very solid so that is likely worth more and also aligns with the more emotive stuff.

[sherman]

You have a gentlemens agreement on the table.
I would honour it.

Think about what your neighbours would think of an AirB&B moving in.

[V8OW]

What was the rationale for leaving the house on the market? When I've bought houses my offers have always been on the basis that the house is marked as SSTC, but that offer was subject to survey. (And the same has been true for houses I've sold).

If your first buyers are committed and keen then I would proceed with them, rather than going with another buyer who for all you know may also want a survey, or could chip you on price further down the line.

[JQ]

The jiffle king said:

I'd be A and keeping the buyer who has done what was asked and you now have another option if they try to chip the price down.
For me if you have made the deal and were happy with it then you should stick with it.

Absolutely this.

Also - in 30 years of buying and selling in England I've never heard of a 1% deposit to take a property off the market, are you in Scotland?

[ARHarh]

I would double check with the first buyers to check if they are still wanting to go ahead. Wait till the survey is complete. Tell the second buyer you are waiting for the survey and first buyers before deciding to accept the second offer or not.

In my books be honest and let each buyer know what the situation is and an approximate timeline before you will be answering them. Let the first buyers have first call on whether they want it or not, but if they piss about offering less as it needs work etc bin them off for the second buyer.

Going for a faster timeline is pointless as it will still take far too long whatever the circumstances are.

[Ken Figenus]

V8OW said:

What was the rationale for leaving the house on the market? When I've bought houses my offers have always been on the basis that the house is marked as SSTC, but that offer was subject to survey. (And the same has been true for houses I've sold).

Just that it seemed premature to bin the house immediately off the market based on a verbal offer - albeit a qualified one with mortgage offer. I'd then also be at the mercy of their buyer down the line etc Seems far more logical to do that once they agree to continue after survey - this shows proper commitment - and I now have a 2nd useful offer...

[Ken Figenus]

ARHarh said:

I would double check with the first buyers to check if they are still wanting to go ahead. Wait till the survey is complete. Tell the second buyer you are waiting for the survey and first buyers before deciding to accept the second offer or not.

In my books be honest and let each buyer know what the situation is and an approximate timeline before you will be answering them. Let the first buyers have first call on whether they want it or not, but if they piss about offering less as it needs work etc bin them off for the second buyer.

Going for a faster timeline is pointless as it will still take far too long whatever the circumstances are.

This is GREAT advice. Glad I posted - my head was spinning a bit.

[Camoradi]

I would stick with the original purchaser.

5 years ago we had a cash buyer at asking price for our house. They were a retired couple who had sold their property and moved in with their daughter who lived just down the road from us. The elderly lady had dementia and they needed to be near to their family. We got know them when they came round to measure for curtains etc prior to moving in. Genuinely lovely people.

Whilst staying with their daughter the elderly gentleman had a conversation with their daughter's next door neighbours about their new house to be, and the neighbours promptly tried to gazump them by offering £10k more without even viewing our house. The agents were obliged to refer it to us, but we didn't hesitate to tell them to reject the offer and then told our buyers what had happened. We have received a Christmas card from them every year since

[PhilboSE]

sherman said:

You have a gentlemens agreement on the table.
I would honour it.

As I understand it, the "gentlemans agreement" was that the property would remain on the market until the first buyer had their survey done etc and was proceeding - because the buyer declined a deposit to take it off the market. (As it happens, I've bought quite a few houses and not come across a "holding deposit" as such, so I think the OP's 1% request was slightly unusual and I'm not surprised it was declined).

As such the OP would still be honouring the "gentlemans agreement" as the house is still on the market.

I work slightly differently:

When buying, I state my offer is subject to the house coming off the market at that point. The buyer can accept that, or not, but if they accept it, the house is notionally off the market. I say "notionally" because in my experience the f***ing agents don't take it off the portals, at best they put a "sold STC" stamp on it, but they very much don't remove it from the market and I've been told various times that improved offers have been made that trump mine. I have no qualms about pulling out of the purchase when that happens - if it suits me.

When selling, I accept offers on a similar basis and if someone tells me they want it off the market I agree a timeline with deliverables for the seller (survey done etc.) and I tell the agents not to entertain any further offers on that basis. They can of course keep any other interested parties "warmed up" in case the original buyer falls through, but if I accept an offer my word is my bond and it's down to the buyer to follow through (or not), I won't be party to gazumping.

[JQ]

PhilboSE said:

I work slightly differently:

When buying, I state my offer is subject to the house coming off the market at that point. The buyer can accept that, or not, but if they accept it, the house is notionally off the market. I say "notionally" because in my experience the f***ing agents don't take it off the portals, at best they put a "sold STC" stamp on it, but they very much don't remove it from the market and I've been told various times that improved offers have been made that trump mine. I have no qualms about pulling out of the purchase when that happens - if it suits me.

When selling, I accept offers on a similar basis and if someone tells me they want it off the market I agree a timeline with deliverables for the seller (survey done etc.) and I tell the agents not to entertain any further offers on that basis. They can of course keep any other interested parties "warmed up" in case the original buyer falls through, but if I accept an offer my word is my bond and it's down to the buyer to follow through (or not), I won't be party to gazumping.

Nope, it's the OP that's working slightly differently, what you've stated above is how most people sell / buy a house in England.

[Ken Figenus]

Haven't sold a house for 20 years but taking deposits were more common then I think?

I see a deposit as of benefit to securing the house for the buyer - lock it in at that price - and also showing serious commitment to the seller so as they have no qualms in taking it off the market and turning down all and any offers.

Its quite usual with less valuable purchases like a car and makes sure the car isn't sold to another buyer as you arrange finance etc

Clearly not the done housey thing these days mind!

I just told the original couple they could have it for the agreed price I think its a good balance as their price remains the same as they continue to lock in a timeline and get their survey done. Should they decline post survey, or tell me I need to rewire the house for them then I may have a couple of warm leads to fall back on. Balanced.

Thanks for the input.

[normalbloke]

Where’s C70R when you need him….?

[Sheepshanks]

PhilboSE said:

I work slightly differently:

When buying, I state my offer is subject to the house coming off the market at that point. The buyer can accept that, or not, but if they accept it, the house is notionally off the market. I say "notionally" because in my experience the f***ing agents don't take it off the portals, at best they put a "sold STC" stamp on it, but they very much don't remove it from the market and I've been told various times that improved offers have been made that trump mine. I have no qualms about pulling out of the purchase when that happens - if it suits me.

I've never known the house be taken off Rightmove etc. However, even when we've told EAs keep accepting enquiries, it's seemed that all enquiries are stonewalled with "it's sold". We've had people knock on the door as the EA wouldn't talk to them.

On at least two occasions it would have been useful to have had a backup buyer, but the EA has rebuffed enquiries to the extent that all leads have gone cold.

[essayer]

No guarantee the second lot won’t chip you for £10k later on

[Sheepshanks]

Ken Figenus said:

Haven't sold a house for 20 years but taking deposits were more common then I think?

Don't think so - in timescales either side of that I did it with a house purchase 30yrs ago directly with the seller and our solicitor was not amused. Daughter wanted to do it selling her first house maybe 10yrs ago as she suspected (correctly) she was being messed about but her solicitor wouldn't hear of it - he said it's impossible to draw up rules that make it stick without it ending up in a dispute.

essayer said:

No guarantee the second lot won’t chip you for £10k later on

That's exactly what happened with daughter's sale above, only it was £20K. "Cash" buyer dragged things out for months asking increasingly daft questions. Then dropped her offer £20K.

Edited by Sheepshanks on Wednesday 3rd April 17:12

[PhilboSE]

Sheepshanks said:

I've never known the house be taken off Rightmove etc.

Oh it can easily be done. It’s part of my offer in writing, off market and removed from portals. If it’s not taken down within 24 hours of the buyer accepting those terms I’m onto the EA.

EAs love to keep properties on the portals for as long as possible as it makes them look like they have a larger part of the market. A flat I completed on in December last year is still up as “under offer”, 4 months after completion and more than a year after offer accepted!