What Will You Do If the House Doesnt Sell
Oct 13th 2007, 3:29 am
#31
Retired
Joined: Apr 2004
Posts: 34,649
Re: What Will You Do If the House Doesnt Sell
A week later another arseole came along, the estate agent kindly told him that we were desparate and emmigrating. he offered us 80k under and again we accepted in desparation. By this time the 6 week holidays had finished, and I asked school if they could take them back and they said no there were no places!. The paperwork was going well, we booked the flights, the day before he was due to sign we had a phone call saying can we reduce by another 15k cos the driveway need retarmacing otherwise he is quite prepared to pull out. FFS
There is often the fall-back of keeping the house and renting it out.
Oct 13th 2007, 3:30 am
#32
Retired
Joined: Apr 2004
Posts: 34,649
Re: What Will You Do If the House Doesnt Sell
If you accept an offer you should make it conditional on exchange within 1-month, and survey within 1 week. Once a buyer has had a survey he at least has some skin in the game - it might only be a few hundred quid but he will have wasted it if he pulls out. This cuts out the time wasters. If its a buyer claiming to be a cash buyer or who has a buyer for their place already etc., ask your estate agent to obtain proof before you accept.
Oct 13th 2007, 8:52 am
#33
BE Forum Addict
Joined: Aug 2005
Posts: 2,322
Re: What Will You Do If the House Doesnt Sell
a lot of people seem to 'count their chickens before they've hatched' it appears!
A property can not be deemed as sold until 'exchange of contracts'....yes, it's crap but it's the system and that is how it is!!
Oct 13th 2007, 3:12 pm
#34
Forum Regular
Joined: Jan 2007
Location: London
Posts: 31
Re: What Will You Do If the House Doesnt Sell
A quick Google:
To avoid being Gazumped:
Ask that the property is taken off the market. If they know you're ready ie you have a mortgage in principle and are serious then the seller should agree to this.
But there's no real guarantee that competitors will be kept away, especially if the house is in demand.
You must get this in writing - or it really is meaningless.
A lock in agreement (aka a lock out or preliminary agreement or exclusivity agreement) could be made at this stage. This commits both parties to exchanging in a certain time.
Here's how it works:
The buyer and seller agree to pay a deposit - often 2% of the house price.
If either side changes their minds about the sale during an agreed period or, say, tries to change the price without good reason then they lose their deposit - usually to the other party, or perhaps a charity.
(Each possible reason should be pre-agreed eg if problems are found with the survey and so on.)
The "lock out" name derives from the sellers agreeing not to offer it to anyone else for a defined period.
These agreements can cost more money in legal fees but should give invaluable peace of mind at what is a very stressful time.
Note that if your solicitor doesn't like the idea then it might be an idea to look elsewhere for legal advice.
Their reluctance might only be because these agreements are relatively uncommon and your solicitor may not know how to write one. They may not admit this so, unless they can give you good reasons why not to do one, think about shopping around for someone who is willing and able.
These agreements usually last for 10 days. They should start from when you receive the contract, not from when the offer is accepted.
The sellers could worm out of the agreement by delaying sending you paperwork, but this could also be dealt with in the agreement.
Insurance can be bought to pay you an agreed sum to cover your lost costs if you're gazumped.
...so its not all negative.
To avoid being Gazumped:
Ask that the property is taken off the market. If they know you're ready ie you have a mortgage in principle and are serious then the seller should agree to this.
But there's no real guarantee that competitors will be kept away, especially if the house is in demand.
You must get this in writing - or it really is meaningless.
A lock in agreement (aka a lock out or preliminary agreement or exclusivity agreement) could be made at this stage. This commits both parties to exchanging in a certain time.
Here's how it works:
The buyer and seller agree to pay a deposit - often 2% of the house price.
If either side changes their minds about the sale during an agreed period or, say, tries to change the price without good reason then they lose their deposit - usually to the other party, or perhaps a charity.
(Each possible reason should be pre-agreed eg if problems are found with the survey and so on.)
The "lock out" name derives from the sellers agreeing not to offer it to anyone else for a defined period.
These agreements can cost more money in legal fees but should give invaluable peace of mind at what is a very stressful time.
Note that if your solicitor doesn't like the idea then it might be an idea to look elsewhere for legal advice.
Their reluctance might only be because these agreements are relatively uncommon and your solicitor may not know how to write one. They may not admit this so, unless they can give you good reasons why not to do one, think about shopping around for someone who is willing and able.
These agreements usually last for 10 days. They should start from when you receive the contract, not from when the offer is accepted.
The sellers could worm out of the agreement by delaying sending you paperwork, but this could also be dealt with in the agreement.
Insurance can be bought to pay you an agreed sum to cover your lost costs if you're gazumped.
...so its not all negative.
Oct 13th 2007, 4:19 pm
#35
Forum Regular
Joined: Aug 2007
Location: Bridgend, South Wales
Posts: 142
Re: What Will You Do If the House Doesnt Sell
Mate, just keep fingers and toes crossed, and opt for the motto SHIT OR BUST !
We hadnt got a buyer, when our visa was granted, and we said fuggit, lets book the tickets, and I am sure itll be right...
As sods law goes, a buyer came along 2 mins before we were due to leave, 2 americans, a fat fella and his fat bitch of a wife.. they ran an alternate christian church..
Dodgiest weffin bleeders i ever met... strung us along for 6 months, turned out neither were legal in uk !!!
We in all this time were in OZ.
So we foned debs mum, said do what ya gotta do, and sell it...
She found a buyer in 2 weeks , for 80k under asking price, bless her..
By this time, I really didnt give a shit lol
So we took it.
So some fat ginger haired prick called Philip with one L is living in my ex, 350 grand house having got it for 270 grand...
Mate whatever you do, my advice, dont sell at a distance !!
Oh and the 2 fat yanks, took out a restraining order against me, something about , kneecapping being illegal !!! and thats a fact
Steve
We hadnt got a buyer, when our visa was granted, and we said fuggit, lets book the tickets, and I am sure itll be right...
As sods law goes, a buyer came along 2 mins before we were due to leave, 2 americans, a fat fella and his fat bitch of a wife.. they ran an alternate christian church..
Dodgiest weffin bleeders i ever met... strung us along for 6 months, turned out neither were legal in uk !!!
We in all this time were in OZ.
So we foned debs mum, said do what ya gotta do, and sell it...
She found a buyer in 2 weeks , for 80k under asking price, bless her..
By this time, I really didnt give a shit lol
So we took it.
So some fat ginger haired prick called Philip with one L is living in my ex, 350 grand house having got it for 270 grand...
Mate whatever you do, my advice, dont sell at a distance !!
Oh and the 2 fat yanks, took out a restraining order against me, something about , kneecapping being illegal !!! and thats a fact
Steve
Oct 18th 2007, 5:04 pm
#36
Forum Regular
Joined: Feb 2007
Posts: 93
Re: What Will You Do If the House Doesnt Sell
Getting the jitters reading this !
We accepted an offer on our house about 3 weeks ago.
There is only us, our buyer and a first time buyer in the chain.
Our buyer seems serious enough. He had survey done straight away and all was fine with this.
We have both appointed solicitor and I have requested a 3 week gap between exchange and completion as hubby and I daren't give up our jobs till exchange has been done.
I want to keep geeing solicitor up as we are eager to be in Aus December so hubby can start his job.
Shall I e mail solicitor and ask whether we can agree an exchange date of say 3 weeks from now ? We will than at least have dates for all parties to work towards ??
We accepted an offer on our house about 3 weeks ago.
There is only us, our buyer and a first time buyer in the chain.
Our buyer seems serious enough. He had survey done straight away and all was fine with this.
We have both appointed solicitor and I have requested a 3 week gap between exchange and completion as hubby and I daren't give up our jobs till exchange has been done.
I want to keep geeing solicitor up as we are eager to be in Aus December so hubby can start his job.
Shall I e mail solicitor and ask whether we can agree an exchange date of say 3 weeks from now ? We will than at least have dates for all parties to work towards ??
Oct 18th 2007, 8:16 pm
#37
South Yarra Sheila
Joined: Apr 2007
Posts: 1,078
Re: What Will You Do If the House Doesnt Sell
Getting the jitters reading this !
We accepted an offer on our house about 3 weeks ago.
There is only us, our buyer and a first time buyer in the chain.
Our buyer seems serious enough. He had survey done straight away and all was fine with this.
We have both appointed solicitor and I have requested a 3 week gap between exchange and completion as hubby and I daren't give up our jobs till exchange has been done.
I want to keep geeing solicitor up as we are eager to be in Aus December so hubby can start his job.
Shall I e mail solicitor and ask whether we can agree an exchange date of say 3 weeks from now ? We will than at least have dates for all parties to work towards ??
We accepted an offer on our house about 3 weeks ago.
There is only us, our buyer and a first time buyer in the chain.
Our buyer seems serious enough. He had survey done straight away and all was fine with this.
We have both appointed solicitor and I have requested a 3 week gap between exchange and completion as hubby and I daren't give up our jobs till exchange has been done.
I want to keep geeing solicitor up as we are eager to be in Aus December so hubby can start his job.
Shall I e mail solicitor and ask whether we can agree an exchange date of say 3 weeks from now ? We will than at least have dates for all parties to work towards ??
Having worked in the property industry & sold and bought a number of times myself I have found it is often the solicitors that hold things up even when the buyers/sellers are all doing their bit. It is important to keep on at them to make sure things are done as near as poss to the speed you want them. Obviously unforeseen things such as one of the buyers pulling are out of your control tho'. Best of luck
