Having a moan about the property system **sigh**

[Bluehorn]

Just having a moan... if I don't, I'll take a shot of vodka and jump off a building (joke)... So frustrated.

 

We've put an offer on a house. Owners have accepted 'in principle' but have now set a closing date for offers. They're entitled to do that... it's frustrating but we can wait the extra 2 weeks.

 

What's incredibly annoying is that, if another offer comes in, we won't know what it'll be because it is a 'sealed bid' system. We are able to increase our offer but we don't want to by very much if we can get away with it, because the house needs some work. I just wish that we could know the offers others put in, so we could counter-offer. Hopefully no-one will put an offer in on the house over the next 2 weeks... but we can only hope. *sigh*

 

GRRRR.

 

Rant over.

[Ghostrider]

Its a foolish seller that sells using such a system (assuming its not something sellers are legally obliged to abide by), they're not maximising their chances of getting top dollar in a bidding war. Its a poison chalice for buyers, as while it does offer the possibility of whoever eventually does get it, getting a bargain, as you say it also leaves them playing darts in the dark making offers.

Edited September 13, 2016 by Ghostrider

[shetlandcars]

We've put an offer on a house. Owners have accepted 'in principle' but have now set a closing date for offers. 

 

When submitting the original offer I'd have set a deadline for the seller to formally accept your offer, 2 days perhaps.

Stops them from going to a closing date.

[shetlandcars]

Its a foolish seller that sells using such a system (assuming its not something sellers are legally obliged to abide by), they're not maximising their chances of getting top dollar in a bidding war. Its a poison chalice for buyers, as while it does offer the possibility of whoever eventually does get it, getting a bargain, as you say it also leaves them playing darts in the dark making offers.

 

Not sure I'd agree entirely, what I think happens is a buyer finds their ideal house and feels pressured into bidding as much as they can, not necessarily what they think its worth or would have offered as the first bid on a 'normal' offer system.  Simply because they have no second chance to increase should another buyer offer more, they offer above and beyond the valuation.

 

I cant say I blame the sellers, it's an accepted process and IMO gets them a price a good percentage above the valuation, but what comes around goes around, as they are also probably then looking to buy where they then also pay too much.

 

Process should be outlawed IMO, along with offers through a solicitor (some at a cost per offer) - whats wrong with viewing house, speak with seller, suggest a price, seller says yes or no, once agreed then you submit a formal offer via a solicitor.

[Selkie]

Just having a moan... if I don't, I'll take a shot of vodka and jump off a building (joke)... So frustrated.

 

We've put an offer on a house. Owners have accepted 'in principle' but have now set a closing date for offers. They're entitled to do that... it's frustrating but we can wait the extra 2 weeks.

 

<snip>

 

Have you spoken to your solicitor to explain what this actually means?

 

I am not a lawyer - or solicitor - and I've only bought a house once so I have very limited experience of house buying, however you might want to check before you start to panic.  I always thought that once an offer had been accepted then it was binding.  Yes, they have set a closing date but I think they have to do that.  The 'in principle' bit might just be giving them a bit of leeway to negotiate fixtures and fittings, date of entry etc? Anyway, I would get your solicitor to clarify this phrase for you before you start hitting the vodka

Edited September 13, 2016 by Selkie

[shetlandcars]

Yes, they have set a closing date but I think they have to do that

 

Thats not my understanding or experience.  If a seller wants to close immediately upon accepting an offer, they can.

Edited September 13, 2016 by shetlandcars

[Selkie]

Ok, like I said, my house buying experience is very limited (private sale) so I'm not surprised that I'm wrong.

 

Either way, I hope it all goes smoothly for Bluehorn.

[Suffererof1crankymofo]

I suspect that the "in principle" refers to the fact they accept that a valid Note of Interest has been received.

[tooney1]

As mentioned a time limited offer helps here or have a clause that the offer is withdrawn if put to a closing date. I always do this and stick to it. Time limit is a condition you could still add.

Edited September 13, 2016 by tooney1

[brian.smith]

withdraw your offer

[Rasmie]

Not bought for a while, but sound like the offer meets the  "reserve" and the lawyer will have suggested a closing date to enable any other interested parties to put in a counter offer,, Think thats the standard way of encouraging competition. At least its better than the system in England where an offer is not binding.

[turningright]

jesus wept, you have come to the wrong place.

disregard almost everything above.

going to a close is not legally required but is general practice, you can assume there are other notes of interest in and the seller wants to wait and give all interested parties notice enough to submit an offer if that is their intent.

An offer regardless of any conditions on either part is not legally binding until the missives are sent.

if you want to upset a seller by all means put a deadline for acceptance on it, most sellers will see through this bravado and think you are an amateur, or plain cheeky unless it is an incredible offer or a house they think won't sell.

can you imagine negotiating verbally and agreeing without formal offers, you can't sell a plant pot in shetland without an ordeal never mind a house.