Deposit Paid - Vendor is now out

G

gotsomenow

Registered User
Messages
160
Hello all,

Myself and my OH paid a 5k deposit on the 26th of May after our dream house came back on the market.

Basically this is what happened
February 2006
Two agents have the property
Agent 1 Has Bidders
Agent 2 Has Us bidding

Vendor accepts Agents 1 bidders offer just before we got in with one.

Agents 1's bidders are having trouble getting a mortage, and keep messing around. So Vendors asks Agent 2 our position. We are mortgage ready and FTB's. He says we can have the house, but then quickly reverts back to saying No actually Agent 1's bidder have there mortgage now.

Fast forward to May 2006
I get a call from Agent 2 who says the house is back on the market, are we interested. Yes! (232k accepted)We pay our deposit and engage a solicitor and organise with the bank for the valuation.

Today
Get an email from the Agent 2 who says Agent 1's client has come back with an offer of 240k.

I can't believe it, and I know in my heart that in a couple of weeks we will get a call to say Agents 1's bidder can't get a mortage, but we can't keep going through this. It been 3 months of 'Yes, have you dream', then taking it all away again.

So what is the point of paying a deposit if the Vendor can turn around a take another higher offer in a couple of weeks time. A jump of 8k is massive at this stage.

:-(
 
If I were you I would tell the vendor that you are not willing to increase your offer and request back your booking deposit.

The vendor in this case is trying to keep all their options open - by accepting an offer from you, allowing you to pay a booking deposit and arrange your mortgage, while at the same time seeing if they can get a better offer (which they say they have). They may just be calling your bluff to see if you will up your bid.

Either way I would just give up on this house. I know you say its your dream house but is it worth the hassle of dealing with a greedy vendor?
 
Maybe make a final bid of 242 if you think it is worth that and tell them that you will leave that bid on the table for 48 hours and after that you want your deposit back.

Is it worth going over 240 for?
 
You have been gazumped. Greedy vendors. I would pull out and ask for deposit back asap.

It has been said many times here on AAM and I know it's hard when you fall in love with a property but you have to stay level headed about these things. These people are just messing you about and will probably continue to do so if you proceed with the sale under their conditions. There are plenty more houses out there and you will find another that you like.
 
There are a few different ways you could handle this, but the one I would suggest is that if you are sure that the other bidder is the one who you suspect will not get a mortgage (not sure how you know this but that's the not the point) then match their offer or beat it by 1k

Tell the agent that you are already bidding on another property (even if your not) and you have no more time for the vendors messing - he either wants to sell the house or he doesn't. remind the agent that you are a Mortgage ready FTB.

Being a FTB with Mtg approval is a powerful bargaining chip. Indeed, I would jot been able to buy my current home without this being the case.
But as Helen says, ultimately you need to be ready to walk.
 
If its definitely the same bidder then dont up your offer. You would be losing 8k atleast. Just take your deposit back and wait for the call. If it doesnt happen you would feel less screwed than giving away 8k.
 
Why can't you ring agent 1 and ask what the latest offer is?? It may be Agent 2 who is stringing you along
 
Hi Guys, thanks so much for the replies. I actually met up with the other agent (Agent 1) and looked at other houses with him back in Feb/Mar, he was the one that told me the first time that their bidder couldn't get a mortgage, he spilled a lot of things out to us. We didn't let on we were 'the other bidders from Agent 2'.

We put in a bid of 242k as it is definitely worth it, it was valued at 255k last week by our bank/broker. Our agent (2) was supposed to ring us back with a decision, but obviously the builder hasn't made up his mind.

Agent 1 actually told us that his original bidder (the one that is back again) had never actually received his deposit back. So there was both of us with deposits on it, making plans whilst the greedy vendor still hadn't made any decisions. It really is heartbreaking, but as you say, there is plenty more bricks on the land!

Thanks again
 
Update! Told builder to get stuffed. Strangly enough, a house we had looked at before and were interested in is back on the market due to a buyer being slow. We're taking a look tonight!
 
It was a guy with a site and a beautiful house. Should have heard the warning bells from the start. They were two brothers, the original 'owner' and 'builder' did a sub-sale to his brother in order to dodge some certain tax. Alot of stuff came out in the open today. Really annoying, but good annoying because I am glad the house is gone!
 
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