Gone Sale Agreed 5 months now - stalled

Hi
I have had a property for sale since last autumn which went sale agreed last february. The buyers are having difficulty selling their own property and have been told by their solicitors not to sign contracts as they have not gone sale agreed themselves. This has been dragging on to the extent that I am deciding whether to put the house back on the market or sign contacts on the basis that the buyers may buy the house as an "investment" property with a longer closing date (up to six months) to give them time to sell their own. This is not without its own pitfalls in that months may drag on to closing date and then buyers may try to get out of sale if they have still not sold - but probably will lose their deposit.

If I put the house back on the market it may possibly not get selling price (I have already dropped price by about 10%).

The dilemma I have is whether to go with the devil I know who still seem interested or just put it back on the market and chance selling it but possible at a further loss (in reality, a reduced gain)?

DB1 said:

The buyers are having difficulty selling their own property and have been told by their solicitors not to sign contracts as they have not gone sale agreed themselves.

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This has been dragging on to the extent that I am deciding whether to put the house back on the market or sign contacts on the basis that the buyers may buy the house as an "investment" property with a longer closing date (up to six months) to give them time to sell their own. This is not without its own pitfalls in that months may drag on to closing date and then buyers may try to get out of sale if they have still not sold - but probably will lose their deposit.

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Isn't this option a moot point since the buyers have been advised by their solicitor not to sign contracts?

yeah ur solicitor won't let you sign if they haven't gone sale agreed and either will there's. with the market the way it is it could take them longer than 6 months to sell. also with prices dropping them may spot another property in a month or two that they can get cheaper than urs and pull out...

i'd be putting it back on the market...

In the same position myself. I instrcuted my EA agent to put the house back on the market yesterday and have viewings organised for wed. He explained the situation to our buyers and in fairness they could see that we have been more than patient with them. At the end of the day we are just keeping our options open.

100% of nothing is still nothing.

If you readvertise you'll probably get less, and even if still interested, if it doesn't sell your orignal buyer will offer you less if they come back at a later date aswell.

So your choice is hold out and possibly not sell. Or drop your asking. IMO its a falling market and buyers are prepared to wait. If you drop your asking and your original buyer does the same maybe they'll move their property. But you'll have lost out, and they won't. At the right place anything will sell. It depends on how long your are prepared to wait and low you are prepared to drop to. After 5 months I wouldn't wait for the original buyer I'd put it back on the market. Theres still a chance someone else will offer the asking, or close to it.

ClubMan said:

Isn't this option a moot point since the buyers have been advised by their solicitor not to sign contracts?

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Buyers have now agreed to sign contracts based on loan approval to buy the property as an investment not based on selling their own property. If they haven't sold their property within six months they will buy my property as an investment and possibly rent it until they have sold their own. This was proposed to try and maintain the sale as they appear to want the property. If they can sell their own place within that time they will reapply to get a standard PPR mortgage.

Just to add: Does this seem a reasonable option. Worse case is a wait of 6 months, possible pull out unless contracts are watertight and back to square one or go sale agreed sooner if they finally manage to sell their own before then?

Does anyone see any hidden problems with going the former route?