Sale Agreed / Selling House

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Room101

Registered User
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Hi, (Sorry in advance for LONG post!!!)

I'm just looking for some other opinions of this situation.

I made an offer on a house back in June, paid a 10K holding fee. I had a buyer for my house & was sorting contracts etc.

The buyer for my house bailed the end of July just before signing contracts.

I did not inform the people I'm buying off as I thought I'd get another buyer on board.

The market in August tends to slow down so interest is low (I know all the debate about the bubble bursting so please do not hi-jack this post to make points which have been made in other areas :) )

We are approaching the stage where contracts are going to be sent to me for signing, should I just come clean & hope the vendor does not put the house back on the market or keep my head down & try & get another purchaser for my house on board ASAP?

The other option is to attempt to get open bridging & RISK signing + paying the 10% deposit based on the HOPE that I will sell my house in 2-3 months? I know this is extremely risky & we are talking about a VERY large sum of money.

I have been looking for a house with a particular spec. for over a year in a particular area and I do not want this one to slip away + I plan on living there until I kick the bucket!!!

I'm not asking for anybody to make my mind up I'm old enough & ugly enough to do that myself, I'm just interested in what other's think?

Thanks in advance

Room101
 
Room101 said:
The other option is to attempt to get open bridging & RISK signing + paying the 10% deposit based on the HOPE that I will sell my house in 2-3 months? I know this is extremely risky & we are talking about a VERY large sum of money.
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Are you comfortable paying the extra costs associated with this? I suppose the big risk is you are not able to sell your current house or you get substantially less for it than you expect/need.

I know you don't want a big debate on whether the market will crash but that is something that needs to enter into your thinking if you are going to go for bridging. Even if you believe it will is it likely this will happen in the next few months? I think even many of the bears on the mega thread over on Great Financial Debates which I asssume you've seen don't see it happening right away (i.e the next 2-3 months which is your timeframe).

If the market is softening you might need to be prepared to drop your price slightly to shift it, will this leave you short or can it absorbed into your new mortgage?
 
Room101 said:
I did not inform the people I'm buying off as I thought I'd get another buyer on board.
Room101
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If your house is back on myhome, will they not see it anyway?

Personally I would not sign without a signed contract for the sale of my property. Has your estate agent contacted all parties previously interested in your property? Will any new buyer be chain-free?

Also if you were involved in a bidding war for the house of your dreams I presume it went well above the asking price - are there any guarantees they would get the same price if they had to go back to the market?
 
Dam099,

Thanks for your reply.

I have some flexibility on the selling price of my house. It is on the market just below the 'normal' asking price in the area.

To be or not to be!, the risk of a large bridging loan (apart from the cost!!) might put me off. I won't know until it comes to that moment when a decision needs to be made. My solicitor has made themselves VERY clear, they cannot recommend that I take out bridging without having my house signed for first.

I don't want to mess around the vendor of the house I want to purchase but at the same time I don't want to risk loosing this house (I've got a headache!!!)

I know a few people have posted about being the seller & being messed around by a purchaser. I'm a genuine guy, I want the house, I have ALL my funding in place, I just need some more time to sell my house. If you where the seller would you drop me or hang on in there?

As a seller would you accept a contract, which stated that on successful completion of the sale of my house I will close on your house. I'd then be willing to give a non-refundable 10% to the seller?

I know this leaves the contract open-ended & my own solicitor said they would not recommend a client of theirs to sign such a contract!

My head hurts!!!! :-(
 
Unless your income is sufficient to cover the repayments on the existing mortgage, the new mortgage AND the bridging on an indefinite basis you'll find open bridging very difficult to source. Given that the market is slow I would guess that the agents for the house you are buying would be relunctant for it to go back on the market and start all over again. Would it be feasible to put your house on with the same agency thus giving them a big incentive to get yours sold?

Sarah

www.rea.ie
 
frazzled said:
If your house is back on myhome, will they not see it anyway?

Personally I would not sign without a signed contract for the sale of my property. Has your estate agent contacted all parties previously interested in your property? Will any new buyer be chain-free?

Also if you were involved in a bidding war for the house of your dreams I presume it went well above the asking price - are there any guarantees they would get the same price if they had to go back to the market?
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Frazzled, thanks for the reply.

EA did contact previous interested parties, some already had deposits on other houses, one person wants our house but has only just put their own house on the market.

Yes there was a bidding war & I'm unsure if they would get the same price, but then again who would know this!!!


Room101
 
Sarah W said:
Unless your income is sufficient to cover the repayments on the existing mortgage, the new mortgage AND the bridging on an indefinite basis you'll find open bridging very difficult to source. Given that the market is slow I would guess that the agents for the house you are buying would be relunctant for it to go back on the market and start all over again. Would it be feasible to put your house on with the same agency thus giving them a big incentive to get yours sold?

Sarah

www.rea.ie
Click to expand...


Sarah, thanks for your reply.

I have my mortgage paid off on the house I'm selling.

I could JUST afford bridging + new mortgage but it would be beans on toast, no, it would be beans, no, it would be a slice of toast every 2nd day!!!!

Never thought of asking the other EA to represent my house?? At the beginning I was told this was an extremely bad idea, as the person would know your financial situation & how much you could spend.

Now that we have a sale agreed price it might be worth considering but it obviously means putting all your cards face up on the table & hoping for the best!!

Room101
 
Tarquin said:
Hi, I have previously posted about being messed around as a seller but I will say, if you had been my buyer and had approached me directly and explained your situation, I would have definitely waited. What maddened and really stressed me, were the lies, messing around and time wasting by both the buyer and my estate agent to such an extent that I had no option but to pull out of the sale, ie, I would never have trusted both parties again, even if the funds had eventually been produced.

Having also bought in the last six months, I had difficulties with my mortgage broker which was delaying contracts being issued. The vendor could have been rightly very annoyed but I was able to meet him and explain the situation and there were absolutely no problems after that with the sale going ahead.

I don't know if this is any help, these are just my experiences and I hope it works out for you.
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Hi Tarquin,

That has been extremly useful. I do not want to mess around the vendors & get them stressed & annoyed.

I might ask their EA can we meet the vendors for a quick chat & explain our situation.

Many thanks for your reply.

Room101
 
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