Ideas - chain collapses on day of house exchange

JMK2 · 30-01-2007, 14:55

Well they said it couldn't be worse than 2006 - it is.

Was supposed to exchange on my house yesterday - only to be told the buyer at the bottom of the chain had pulled out. A new buyer is in place but no one seems to know what is happening. My solicitor isn't returning calls and to say the least I am well and truely something off.

I suspect this means another 5 - 6 weeks sitting on my hands at least. And then it may fall through again.

The seller at the one I'm buying is now threatening to pull out - so looks like I'll be left with a 700 - 800 legal bill. Have found another property but weary of putting an offer in in case this happens again.

Has anyone got an idea how to resolve this quickly.

1. Idea of taking a mortgage on the new place is now out (won't bore you with the reasons)
2. Bridge loan would be too expensive - and may be stuck with 2 places.
3. Came across a company called 'A Quick Sale'. They buy places but a. I don't want to let my buyer down and b. They will only offer 70 - 85% of the value. I am selling at 88% so when agents fees are not taken into account it won't bee too great a loss (I hope) but has anyone heard of them.
4. Looked at P/X but no builder will do this AFAIK because I am moving from Cambridgeshire to the North West. Anyone know differently?
5. Auctioning could take up to 2 months - so ideally not keen.

Why can't we have the same scheme as Scotland. Sellers packs are not the answer - what is needed is to a system where 1. Offer is made, mortgage in place and survey done - max 2 weeks. 2. Once done deposit made which is binding. If buyer pulls out he/she loses deposit

Sorry for ranting - since yesterday lets say it hasn't been a good time.

ScoobyChris · 30-01-2007, 15:02

Sorry to hear about this. I think you hit the nail on the head in your penultimate paragraph

In this country, people can pull out without penalty right up until the contracts are exchanged and it's a gamble you have to take. I personally wouldn't bother trying to stretch myself financially because if that falls through again you'll potentially end up with bigger fees.

Much as it pains me to say, I think the best way is to get onto your estate agent to kick some butt (that's what they're paid for after all) and also keep hassling your solicitor.

Chris

heresmo · 30-01-2007, 16:46

I guess you need to do a decision tree or table of all your options, with at least two columns, e.g. the "Good" rating of 1 to 10 for e.g. "speed/guaranteed sale" and "net money gain" if you are trying to sell quickly. If you are able to stay put for longer, then you might give a higher rating for "quality of new home" for example. Add the two (or more) "Good" ratings for each option and see which is highest.

Try to put costs you have incurred already out of your mind for the moment and concentrate on the bigger picture, as they say. Those costs will have to be paid, but will perhaps be easier to live with once the property is sold.

Possible options (as suit you) would be:

Stay put
Move into rented property and let yours
Stick with same chain (whether to get your desired property or another)
Insist your estate agent keeps the property advertised until contracts are exchanged
Instruct additional estate agents
Advertise with "house shops" or local papers
Consider selling to a company.

As regards the latter, they normally only buy properties which are desirable and even then at a much lower than value price. They have an advantage over people wanting a quick sale as they can afford to sit on them until the "buying season" (usually when it gets sunny, e.g. May onwards until the lull around end July/Aug/Sept). I'd get a firm quote "valid for 30 days" or whatever before assuming you will get the price that's bandied around in sales speak. Auctions similarly don't bring in top dollar, though you can put a reserve on the price.

Good luck with whatever you decide.

Best
Mo

KenONeill · 30-01-2007, 17:03

You really don't want to hear this, but the Scottish system is not the perfect protection some people claim. One of my friends had their buyer pull out after exchanging contracts, and lost most of their savings covering the resultant bridging loan, cos they really wanted the bigger house.

jec · 30-01-2007, 18:33

feel sorry for you, been there a few years ago and have now just got on the rollercoaster of housebuying again

we put our house on market last Thursday, first couple to view on Saturday have offered full asking price and they are first-time buyers, we have found a house and had our offer accepted and they are going to live in a relatives house so do not need to find anywhere, so VERY short chain, but why can I not relax? Keep thinking somethings going to go wrong, was lying awake most of night stressing

wouldn't know what to do in your position, probably swear a lot and get very, very drunk

JPreston · 30-01-2007, 18:55

By 'house exchange' do you mean 'completion' or 'exchange of contracts'?

If it's the latter, then oh well such is life.

If it's the former, then everyone can sue the party who breached the contract to the extent that in 1000 years time his descendents will still be your slaves

JMK2 · 31-01-2007, 09:51

Quote:

Originally Posted by JPreston

If it's the former, then everyone can sue the party who breached the contract to the extent that in 1000 years time his descendents will still be your slaves

I wish it was the latter - it was the former

At the moment a new buyer has come in at the bottom - there is a glimmer of hope there (but been here before).

If the house I'm buying falls through may just go and rent for a while - not what I wanted to do but at least it'll give me a breather until this is all cleaned up.

ScoobyChris · 31-01-2007, 12:43

Quote:

Originally Posted by JMK2

I wish it was the latter - it was the former

Then get your solicitor on the case to recover any costs incurred (plus a bit of compensation for mental anguish, etc, etc)

Chris

lfc958 · 31-01-2007, 12:56

John

I'm with Chris on that one

the idea of very short term rent is a good one as it gets you out of the chain, so you can start another .

mluton · 29-10-2007, 20:54

Quote:

Originally Posted by jec

why can I not relax? Keep thinking somethings going to go wrong, was lying awake most of night stressing

Thought id search Brisokda for advice

. An old thread, but this statement is just how i feel. I wish i could switch off for just 5 minutes.

Been house hunting for a bit, found the perfect property on saturday, just what we are after. Offer accepted today and i feel so stressed out now its untrue. I physically feel sick.

1st time buyer only 12 hours into having the offer accepted

Am i buying the right property ?
What are the neighbours like ?
Is it going to fll down when i move in ?
etc, Blah, Blah, Blah.................................

Any 1 question i think off is now combined with another question, which creates an extra question i ask myself.

ScoobyChris · 29-10-2007, 21:10

Quote:

Originally Posted by mluton

1. Am i buying the right property ?
2. What are the neighbours like ?
3. Is it going to fll down when i move in ?
etc, Blah, Blah, Blah.................................

1. Does your gut instinct tell you it's the right place?
2. Go and knock on their doors and say you're looking to buy the house that's up for sale and have a few questions for them about the area, etc.
3. Survey will confirm whether the mortgage company think it's a good buy so I wouldn't worry too much about that.

It can be a stressful experience (and you're just at the offer stage

), but as a first time buyer you're in a strong position and if it does fall through it's not the end of the world and there will be other houses. Just remember that it's ok to keep badgering estate agents and solicitors - it's what they're being paid for after all

Chris

**VRStu** · 29-10-2007, 21:30

Similar situation myself. Not a first time buyer, in fact it'll be my 4th but it doesn't make it any easier.

Took an offer on ours yesterday after only 3 days on the market and put a deposit on a new house today. All parties are looking for a 4 to 5 week complettion so the pressure is on.

Make sure you do your research in the area you want to buy, spend a bit of time there at various times of the day. Check out the parking, the access to the street and the main commuter routes in and out.

Neighbours can be your best friends and also your worst enemies. Good ones are of untold worth.

Depending on property age do not try to take shorcuts on surveys, a little expense now will pay dividends in the future.

Make sure you can afford the payments and still live a comfortable life.

Take firm control of the agent and your solicitor, use them for advise and get them to work for you - thats what they are paid to do.

Remember to start making a list of people you need to notify of your new address, every time you get a letter ask yourself if the sender is on your list and if not - add them.

mluton · 29-10-2007, 21:50

The house is perfect, but there is a but......

There is an alley at the side, we have asked around and some of the neighbors. They all say no trouble has ever come from it. SWMBO loves the house and so do I. It has a nice driveway so car in tucked away.

I think I'm just thinking the worse about it all. need to take time out.

Been parked up evey night for the past 5 days, 15 minutes a time scoping out the hood.

only 2 minutes down the road from where I am now.

**VRStu** · 29-10-2007, 22:21

Sounds like you've just gotten a bit jittery Matt.

heresmo · 29-10-2007, 22:50

Well... I can understand being generally nervous about house buying, but if you're sitting outside every night after you've placed an offer, are you absolutely sure it's the right place for you both? Doesn't make sense to me, since, if you are nervous now, what is going to change after you've moved in? Meaning that you have some sort of nagging doubt that might well be unfounded, but will you always remember that nagging doubt? Have you expended money on surveys etc yet?

Take no notice of me. Just that whenever I've bought a house, I couldn't wait to move in, is all.

Best regards
Mo

mluton · 29-10-2007, 22:59

The sitting outside was more before viewing, but went there tonight also.

Can't wait to move in, the house is perfect.

Because our budget is not massive, its a downgrade of area. Just area worries.

Nothing more than having the offer accepted. So no financial commitment yet.

anonymouse · 30-10-2007, 00:50

Quote:

Originally Posted by mluton

The house is perfect, but there is a but......

There is an alley at the side, we have asked around and some of the neighbors. They all say no trouble has ever come from it. SWMBO loves the house and so do I. It has a nice driveway so car in tucked away.

We have a 'right of way' beside our house.
Have lived there 19 yrs, very little trouble
Plus have set up security lights (some 17 yrs ago) to make sure it stays that way. Anyone comes down the 'right of way' / anywhere near the house gets blitzed with lights

mluton · 30-10-2007, 01:32

Quote:

Originally Posted by anonymouse

We have a 'right of way' beside our house.
Have lived there 19 yrs, very little trouble
Plus have set up security lights (some 17 yrs ago) to make sure it stays that way. Anyone comes down the 'right of way' / anywhere near the house gets blitzed with lights

That's what I need to hear. Something positive.

anonymouse · 30-10-2007, 02:05

Quote:

Originally Posted by mluton

That's what I need to hear. Something positive.

Stop worrying - get a bank of the cheap security lights up with PIRs, 150 watt will do fine to save on electricity bills. About £10 each nowadays - ours cost around £40 (if not more) way back when.
Alarm the house - if it isn't already.

Sit back and enjoy

ScoobyChris · 30-10-2007, 10:31

Quote:

Originally Posted by mluton

Because our budget is not massive, its a downgrade of area. Just area worries.

Also don't forget that there'll be a lot of people in a similar position to yourself moving to similar areas. Hey presto, in 5-10 years the area has become desirable to live in and your house is worth a tidy sum

Chris

JMK2 · 30-10-2007, 23:43

My my an old thread.

Outcome was new person came in at bottom of chain - outcome moved in 2 months late. So moved in March 2007.

With hindsight we should not have bought the place but hey. at least it will do if we cannot sell it in a few years.

Most important can you afford the place? If not walk away.

If you can afford it ask if you can live with the place should you have difficulty selling it?

Finally if you cannot sell, can you let it out?

mluton · 31-10-2007, 09:38

Feel so much better about it all now. I think it was just first time buyer jitters, putting in the offer that day.

Just getting solicitor quotes now.............Arghhhhhhhhhhhhhhh!

**VRStu** · 31-10-2007, 09:39

Are you being quoted silly prices then??

30-01-2007, 14:55	#1
JMK2 Briskodian Join Date: Oct 2005 Location: Cheshire Near the Cat Posts: 867 Members Car: New Fabia 1 60 BHP Thanks: 23 Thanked 3 Times in 3 Posts	Ideas - chain collapses on day of house exchange Well they said it couldn't be worse than 2006 - it is. Was supposed to exchange on my house yesterday - only to be told the buyer at the bottom of the chain had pulled out. A new buyer is in place but no one seems to know what is happening. My solicitor isn't returning calls and to say the least I am well and truely something off. I suspect this means another 5 - 6 weeks sitting on my hands at least. And then it may fall through again. The seller at the one I'm buying is now threatening to pull out - so looks like I'll be left with a 700 - 800 legal bill. Have found another property but weary of putting an offer in in case this happens again. Has anyone got an idea how to resolve this quickly. 1. Idea of taking a mortgage on the new place is now out (won't bore you with the reasons) 2. Bridge loan would be too expensive - and may be stuck with 2 places. 3. Came across a company called 'A Quick Sale'. They buy places but a. I don't want to let my buyer down and b. They will only offer 70 - 85% of the value. I am selling at 88% so when agents fees are not taken into account it won't bee too great a loss (I hope) but has anyone heard of them. 4. Looked at P/X but no builder will do this AFAIK because I am moving from Cambridgeshire to the North West. Anyone know differently? 5. Auctioning could take up to 2 months - so ideally not keen. Why can't we have the same scheme as Scotland. Sellers packs are not the answer - what is needed is to a system where 1. Offer is made, mortgage in place and survey done - max 2 weeks. 2. Once done deposit made which is binding. If buyer pulls out he/she loses deposit Sorry for ranting - since yesterday lets say it hasn't been a good time. __________________ I would like to put something here, but just can't think what

30-01-2007, 15:02	#2
ScoobyChris Briskodian Join Date: Mar 2003 Location: Andover Posts: 18,195 Members Car: Fiat Panda Thanks: 15 Thanked 336 Times in 290 Posts	Re: Ideas - chain colapses on day of house exchange Sorry to hear about this. I think you hit the nail on the head in your penultimate paragraph In this country, people can pull out without penalty right up until the contracts are exchanged and it's a gamble you have to take. I personally wouldn't bother trying to stretch myself financially because if that falls through again you'll potentially end up with bigger fees. Much as it pains me to say, I think the best way is to get onto your estate agent to kick some butt (that's what they're paid for after all) and also keep hassling your solicitor. Chris __________________ Holding up the traffic in a little Italian..........

30-01-2007, 16:46	#3
heresmo Briskodian Join Date: Jan 2005 Posts: 12,554 Members Car: Thanks: 50 Thanked 143 Times in 123 Posts	Re: Ideas - chain colapses on day of house exchange I guess you need to do a decision tree or table of all your options, with at least two columns, e.g. the "Good" rating of 1 to 10 for e.g. "speed/guaranteed sale" and "net money gain" if you are trying to sell quickly. If you are able to stay put for longer, then you might give a higher rating for "quality of new home" for example. Add the two (or more) "Good" ratings for each option and see which is highest. Try to put costs you have incurred already out of your mind for the moment and concentrate on the bigger picture, as they say. Those costs will have to be paid, but will perhaps be easier to live with once the property is sold. Possible options (as suit you) would be: Stay put Move into rented property and let yours Stick with same chain (whether to get your desired property or another) Insist your estate agent keeps the property advertised until contracts are exchanged Instruct additional estate agents Advertise with "house shops" or local papers Consider selling to a company. As regards the latter, they normally only buy properties which are desirable and even then at a much lower than value price. They have an advantage over people wanting a quick sale as they can afford to sit on them until the "buying season" (usually when it gets sunny, e.g. May onwards until the lull around end July/Aug/Sept). I'd get a firm quote "valid for 30 days" or whatever before assuming you will get the price that's bandied around in sales speak. Auctions similarly don't bring in top dollar, though you can put a reserve on the price. Good luck with whatever you decide. Best Mo __________________

30-01-2007, 17:03	#4
KenONeill Briskodian Join Date: May 2006 Location: Normally in Scotland! Posts: 11,165 Members Car: Octavia TDi110 Thanks: 63 Thanked 557 Times in 545 Posts	Re: Ideas - chain colapses on day of house exchange You really don't want to hear this, but the Scottish system is not the perfect protection some people claim. One of my friends had their buyer pull out after exchanging contracts, and lost most of their savings covering the resultant bridging loan, cos they really wanted the bigger house.

30-01-2007, 18:33	#5
jec Briskodian Join Date: Aug 2006 Location: * Posts: 1,192 Members Car: * Thanks: 2 Thanked 11 Times in 11 Posts	Re: Ideas - chain colapses on day of house exchange feel sorry for you, been there a few years ago and have now just got on the rollercoaster of housebuying again we put our house on market last Thursday, first couple to view on Saturday have offered full asking price and they are first-time buyers, we have found a house and had our offer accepted and they are going to live in a relatives house so do not need to find anywhere, so VERY short chain, but why can I not relax? Keep thinking somethings going to go wrong, was lying awake most of night stressing wouldn't know what to do in your position, probably swear a lot and get very, very drunk

30-01-2007, 18:55	#6
JPreston Briskodian Join Date: Oct 2003 Location: Hertfordshi-yer Posts: 944 Members Car: Octavia vRS Thanks: 0 Thanked 0 Times in 0 Posts	Re: Ideas - chain colapses on day of house exchange By 'house exchange' do you mean 'completion' or 'exchange of contracts'? If it's the latter, then oh well such is life. If it's the former, then everyone can sue the party who breached the contract to the extent that in 1000 years time his descendents will still be your slaves

31-01-2007, 12:56	#9
lfc958 500 Power Join Date: Mar 2004 Location: Kent Posts: 4,069 Members Car: Fiat 500 Thanks: 14 Thanked 25 Times in 25 Posts	Re: Ideas - chain colapses on day of house exchange John I'm with Chris on that one the idea of very short term rent is a good one as it gets you out of the chain, so you can start another . __________________ Steve Man-Bag ? Girlie Car ? - You Decide ( I have - it's neither )

29-10-2007, 21:30	#12
VRStu Txt Spk Police Join Date: Dec 2004 Location: Hampshire Posts: 20,847 Members Car: Audi S3 Thanks: 145 Thanked 999 Times in 895 Posts	Re: Ideas - chain colapses on day of house exchange Similar situation myself. Not a first time buyer, in fact it'll be my 4th but it doesn't make it any easier. Took an offer on ours yesterday after only 3 days on the market and put a deposit on a new house today. All parties are looking for a 4 to 5 week complettion so the pressure is on. Make sure you do your research in the area you want to buy, spend a bit of time there at various times of the day. Check out the parking, the access to the street and the main commuter routes in and out. Neighbours can be your best friends and also your worst enemies. Good ones are of untold worth. Depending on property age do not try to take shorcuts on surveys, a little expense now will pay dividends in the future. Make sure you can afford the payments and still live a comfortable life. Take firm control of the agent and your solicitor, use them for advise and get them to work for you - thats what they are paid to do. Remember to start making a list of people you need to notify of your new address, every time you get a letter ask yourself if the sender is on your list and if not - add them. __________________ Stu Stu's Websites - http://www.fabia-vrs.com & http://www.octavia-vrs.com Stu's Car - 2008 Audi S3 - Ibis White, Black Optics Pack, Privacy Glass, Auto Bi Xenon Headlights, Rain Sensing Wipers, Bose Sound System, Ipod Prep, GSM Phone Prep, Flat Bottom Multi Function Steering Wheel, Electric Folding Mirrors, Acoustic Parking, Cruise Control, Interior Light Pack, Non Smokers Pack. SWMBO's Car - 2008 Seat LEON TDi Stylance, Black Magic, Sports Pack, Rear Parking Sensors. Something for Weekend - A Patio

29-10-2007, 21:50	#13
mluton Briskodian Join Date: Jul 2006 Location: South Birmingham Posts: 6,400 Members Car: Red Octavia vRS 1.8T (20v) Thanks: 46 Thanked 226 Times in 201 Posts	Re: Ideas - chain collapses on day of house exchange The house is perfect, but there is a but...... There is an alley at the side, we have asked around and some of the neighbors. They all say no trouble has ever come from it. SWMBO loves the house and so do I. It has a nice driveway so car in tucked away. I think I'm just thinking the worse about it all. need to take time out. Been parked up evey night for the past 5 days, 15 minutes a time scoping out the hood. only 2 minutes down the road from where I am now. __________________ Support Briskoda----------------------> Red Skoda Octavia V//RS Mods to date: Carbonio CAI Forge 007 DV Aero Wipers Briskoda Stickers KVW100 GB Wheel Inserts RS Tuning Remap Delocked Piper Cat Back Kenwood KDC-W6541U Fli Twin 12" Active Sub Parrot CK3100 *------------------------------------------------*

29-10-2007, 22:21	#14
VRStu Txt Spk Police Join Date: Dec 2004 Location: Hampshire Posts: 20,847 Members Car: Audi S3 Thanks: 145 Thanked 999 Times in 895 Posts	Re: Ideas - chain collapses on day of house exchange Sounds like you've just gotten a bit jittery Matt. __________________ Stu Stu's Websites - http://www.fabia-vrs.com & http://www.octavia-vrs.com Stu's Car - 2008 Audi S3 - Ibis White, Black Optics Pack, Privacy Glass, Auto Bi Xenon Headlights, Rain Sensing Wipers, Bose Sound System, Ipod Prep, GSM Phone Prep, Flat Bottom Multi Function Steering Wheel, Electric Folding Mirrors, Acoustic Parking, Cruise Control, Interior Light Pack, Non Smokers Pack. SWMBO's Car - 2008 Seat LEON TDi Stylance, Black Magic, Sports Pack, Rear Parking Sensors. Something for Weekend - A Patio

29-10-2007, 22:50	#15
heresmo Briskodian Join Date: Jan 2005 Posts: 12,554 Members Car: Thanks: 50 Thanked 143 Times in 123 Posts	Re: Ideas - chain collapses on day of house exchange Well... I can understand being generally nervous about house buying, but if you're sitting outside every night after you've placed an offer, are you absolutely sure it's the right place for you both? Doesn't make sense to me, since, if you are nervous now, what is going to change after you've moved in? Meaning that you have some sort of nagging doubt that might well be unfounded, but will you always remember that nagging doubt? Have you expended money on surveys etc yet? Take no notice of me. Just that whenever I've bought a house, I couldn't wait to move in, is all. Best regards Mo __________________

29-10-2007, 22:59	#16
mluton Briskodian Join Date: Jul 2006 Location: South Birmingham Posts: 6,400 Members Car: Red Octavia vRS 1.8T (20v) Thanks: 46 Thanked 226 Times in 201 Posts	Re: Ideas - chain collapses on day of house exchange The sitting outside was more before viewing, but went there tonight also. Can't wait to move in, the house is perfect. Because our budget is not massive, its a downgrade of area. Just area worries. Nothing more than having the offer accepted. So no financial commitment yet. __________________ Support Briskoda----------------------> Red Skoda Octavia V//RS Mods to date: Carbonio CAI Forge 007 DV Aero Wipers Briskoda Stickers KVW100 GB Wheel Inserts RS Tuning Remap Delocked Piper Cat Back Kenwood KDC-W6541U Fli Twin 12" Active Sub Parrot CK3100 *------------------------------------------------*

30-10-2007, 23:43	#21
JMK2 Briskodian Join Date: Oct 2005 Location: Cheshire Near the Cat Posts: 867 Members Car: New Fabia 1 60 BHP Thanks: 23 Thanked 3 Times in 3 Posts	Re: Ideas - chain collapses on day of house exchange My my an old thread. Outcome was new person came in at bottom of chain - outcome moved in 2 months late. So moved in March 2007. With hindsight we should not have bought the place but hey. at least it will do if we cannot sell it in a few years. Most important can you afford the place? If not walk away. If you can afford it ask if you can live with the place should you have difficulty selling it? Finally if you cannot sell, can you let it out? __________________ I would like to put something here, but just can't think what Last edited by JMK2; 30-10-2007 at 23:58.

31-10-2007, 09:38	#22
mluton Briskodian Join Date: Jul 2006 Location: South Birmingham Posts: 6,400 Members Car: Red Octavia vRS 1.8T (20v) Thanks: 46 Thanked 226 Times in 201 Posts	Re: Ideas - chain collapses on day of house exchange Feel so much better about it all now. I think it was just first time buyer jitters, putting in the offer that day. Just getting solicitor quotes now.............Arghhhhhhhhhhhhhhh! __________________ Support Briskoda----------------------> Red Skoda Octavia V//RS Mods to date: Carbonio CAI Forge 007 DV Aero Wipers Briskoda Stickers KVW100 GB Wheel Inserts RS Tuning Remap Delocked Piper Cat Back Kenwood KDC-W6541U Fli Twin 12" Active Sub Parrot CK3100 *------------------------------------------------*