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BearShaped

Seller Pulls Out On Exchange Day

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I was due to exchange contracts yesterday. I'm a cash buyer having STR'd in 2005.

I chaps the 10% deposit across and took in the contracts to my solicitor only to get a call later in the day to say the seller had decided to pull out as they think the market is on the up and they are going to rent it out in the meantime. We agreed to pay 250k, it will probably rent for £700 a month.

I am amazed, the price we agreed to pay was the surveyors valuation, it wasn't below the current perceived valuation. I'll get over it, I was just shocked someone would pull out at such a late stage. Interesting?

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I was due to exchange contracts yesterday. I'm a cash buyer having STR'd in 2005.

I chaps the 10% deposit across and took in the contracts to my solicitor only to get a call later in the day to say the seller had decided to pull out as they think the market is on the up and they are going to rent it out in the meantime. We agreed to pay 250k, it will probably rent for £700 a month.

I am amazed, the price we agreed to pay was the surveyors valuation, it wasn't below the current perceived valuation. I'll get over it, I was just shocked someone would pull out at such a late stage. Interesting?

Tw*ts.

On a positive note, it'll probably still be around in 6 months, and you should be able to get away with offering much less, say, 175K.

They've made the classic mistake of "seeing a new bull market" where none (IMO) exists and screwing a good buyer at the last minute. Should be of some consolation to watch them chasing the market down.

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I was due to exchange contracts yesterday. I'm a cash buyer having STR'd in 2005.

I chaps the 10% deposit across and took in the contracts to my solicitor only to get a call later in the day to say the seller had decided to pull out as they think the market is on the up and they are going to rent it out in the meantime. We agreed to pay 250k, it will probably rent for £700 a month.

I am amazed, the price we agreed to pay was the surveyors valuation, it wasn't below the current perceived valuation. I'll get over it, I was just shocked someone would pull out at such a late stage. Interesting?

Boy, are they going to regret this decision in 2010...

However, regardless of whether or not chickens come home to roost, what sort of tw@t strings you along until the last moment, wasting all your solicitor and survey fees in the process?!

Edited by D'oh

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What goes around comes around. Well, I'd say fair chance of them finding a renter who dosen't actually pay the rent & um maybe damages their place too. Amazing - some people!

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You are quite calm considering the inconvenience they/he/she have put you too. However I honestly believe that the market will perform as badly as it did the last time and they may well end up back knocking at your door.

Any future offer must have costs deducted but if what goes around comes around, you will find a better cheaper place and will feel well pleased you did not buy this place.

(Apologies for the MSE ishness of this post)

EDIT: MSE ishness referring to the karma side of the post and not the bearish side obviously.

Edited by Driver

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Must be something in the air. I made an appointment today to view a property. Like you I am a cash buyer. Agent called me an hour later and said the vendor had decided to take it off the market and rent it out instead. The rental market in that area is saturated so good luck to them.

Sorry you had got further down the line and paid out money.

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Tw*ts.

On a positive note, it'll probably still be around in 6 months, and you should be able to get away with offering much less, say, 175K.

A drop from £250k to £175k in 6 months is somewhat optimistic!

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I suppose what this demonstrates is as often as not it's the sellers who are t***s as much as the agents.

Even 'no sale no fee' agents are able to charge a fee in this situation.

I would charge them a fee, then withdraw the property from my books and then find the OP a better house.

In my (long) experience if people can play such a dirty trick then something bad will happen to them. Greed is very destructive. They should at least have the decency to refund your fees. Surely they can cover £1000 if they are going to make so much more (not)!!

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I suppose what this demonstrates is as often as not it's the sellers who are t***s as much as the agents.

I've gotten to know the agent pretty well during the last 8 weeks, he's a decent type of chap running a one man operation and we've had many conversations about the state of the market, he's fairly realistic. Although he's totally stunned by this. He suspects the seller has taken all the equity and spent it on renovation on this and other property and so it was the bank that pulled the plug on the sale at the level we'd agreed. The place was originally on for 295k and we agreed a sale at 250k. I know from the documentation she had regularly had it valued throughout the past 3-4 years, MEW MEW MEW MEW methinks!

I'm pretty calm, my views on the market are still pretty bearish. Its my wife and kids who are really distressed about it all.

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I was due to exchange contracts yesterday. I'm a cash buyer having STR'd in 2005.

I chaps the 10% deposit across and took in the contracts to my solicitor only to get a call later in the day to say the seller had decided to pull out as they think the market is on the up and they are going to rent it out in the meantime. We agreed to pay 250k, it will probably rent for £700 a month.

I am amazed, the price we agreed to pay was the surveyors valuation, it wasn't below the current perceived valuation. I'll get over it, I was just shocked someone would pull out at such a late stage. Interesting?

Relax, you've just had a very lucky escape ;).

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Most EA contracts include the phrase "ready, willing and able buyer" upon the obtaining of which the agent's fees become payable.

Your vendor is likely to owe the agent between £2,000 and £5,000. He'd have been much better off offering you £1,000 to pull out...

Edit to add http://www.guardian.co.uk/money/2008/may/28/property

Edited by Telometer

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Tell them you really want to live in the property and offer to rent it. Offer an extra £50 off the rent if they take it off the market immediately.

Then string the f***ers along...

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Tell them you really want to live in the property and offer to rent it. Offer an extra £50 off the rent if they take it off the market immediately.

Then string the f***ers along...

this was my game plan but mrs bearshaped won't let me

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this was my game plan but mrs bearshaped won't let me

I admire people like that; people that are too nice.

You are a lucky man to have found one.

Though I still think it would have been fun... :P

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Most EA contracts include the phrase "ready, willing and able buyer" upon the obtaining of which the agent's fees become payable.

Your vendor is likely to owe the agent between £2,000 and £5,000. He'd have been much better off offering you £1,000 to pull out...

Edit to add http://www.guardian.co.uk/money/2008/may/28/property

This is absolutely not the case in most areas. Very few agents include 'ready willing and able purchaser' in their contracts these days. The press/authorities have over time ensured that this clause has been hounded out of agents agreements thus giving more vendors the ability to shaft buyers without any penalty.

If you read up on this you will see that this clause was deemed to be unfair, unreasonable, and even potentially ripping off clients.

Shame.

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I am amazed that people in Britain tolerate a system that allwos this to happen

WITH NO FINANCIAL PENALTY to the seller.

Wake up people, you need to fight that nonsense

Agreed - when we bought we had to put down a 10% deposit on exchange (much the same as the OP). If we pulled out before completion we would forfeit the deposit but there was no such financial sword of Damocles hanging over the seller's head.

Q

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I was due to exchange contracts yesterday. I'm a cash buyer having STR'd in 2005.

I chaps the 10% deposit across and took in the contracts to my solicitor only to get a call later in the day to say the seller had decided to pull out as they think the market is on the up and they are going to rent it out in the meantime. We agreed to pay 250k, it will probably rent for £700 a month.

I am amazed, the price we agreed to pay was the surveyors valuation, it wasn't below the current perceived valuation. I'll get over it, I was just shocked someone would pull out at such a late stage. Interesting?

That works out at a gross rental yield of 3.36%. You were about to pay way over the odds for that place, ie almost double 2007 valuation.

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That works out at a gross rental yield of 3.36%. You were about to pay way over the odds for that place, ie almost double 2007 valuation.

Yes I just worked that out. :blink: You'll get a better return than that in a safe savings account once you take into account maintenance & other costs.

You really didn't have your business head on the day you bought that did you? A flat yielding £700pm should be priced £70-100K.

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You really didn't have your business head on the day you bought that did you? A flat yielding £700pm should be priced £70-100K.

I challenge you to find us such a flat...

I'm currently paying £800pcm for a house worth at least £280k, even taking into account a 20% fall from peak - Zoopla estimates £320k. There's no way I could afford to buy this house..!

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I challenge you to find us such a flat...

I'm currently paying £800pcm for a house worth at least £280k, even taking into account a 20% fall from peak - Zoopla estimates £320k. There's no way I could afford to buy this house..!

Great isn't it, the beauty is most people have been brainwashed into thinking renting is dead money, it is pretty ironic given renting has been cheaper for most of this decade. You can not always rely on capital appreciation which can so easily become capital depreciations making it a doubly good time to rent. :rolleyes:

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You really didn't have your business head on the day you bought that did you? A flat yielding £700pm should be priced £70-100K.

You think the market yield is 12%? Put the crackpipe down.

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You think the market yield is 12%? Put the crackpipe down.

But it probably is (should be, if you're careful) 6%, making it 140k which is about half what OP was planning on paying.

On the basis that yields have dropped because people anticipated capital growth, yields should now rise.

Of course, some properties don't rent well, but do sell for a premium (big estates/family country houses), so buck the trend.

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But it probably is (should be, if you're careful) 6%, making it 140k which is about half what OP was planning on paying.

On the basis that yields have dropped because people anticipated capital growth, yields should now rise.

Of course, some properties don't rent well, but do sell for a premium (big estates/family country houses), so buck the trend.

I agree, although rates are low is the argument people will throw back.

Sadly I've not seen anything with that sort of yield in London in a long time.

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