House sold for below our offer

Carlowgirl

Carlowgirl wrote: »

it was between just less than 25 % drop... (will have to calculate again)
We didn't have a survey carried out.. we were applying again for the extra amount... when they refused first offer... the rumour was from the neighbours.. regarding structural damage.. it didn't appear to have any from viewings or from looking at the house from the outside..

Figure is correct

valleyoftheunos

The most likely explanation going from all the information Carlowgirl has given is that the rumors are true and there was a structural problem (which might only show up on an engineer's report). It would then be unlikely that a bank would lend on the property. That would mean that a cash buyer would be the only option for the seller and at a significant discount to cover the cost of putting the defect right which would account for the difference between Carlowgirl's offer and the accepted amount.

Carlowgirl

valleyoftheunos wrote: »

The most likely explanation going from all the information Carlowgirl has given is that the rumors are true and there was a structural problem (which might only show up on an engineer's report). It would then be unlikely that a bank would lend on the property. That would mean that a cash buyer would be the only option for the seller and at a significant discount to cover the cost of putting the defect right which would account for the difference between Carlowgirl's offer and the accepted amount.

Just remembered also the estate saying that a couple offered our initial offer but they refused.. so obviously they were not desperate to sell..

witchgirl26

I know this might sound controversial but could it be that they weren't under pressure to sell & didn't need the extra amount you were offering but really liked the other people who bought it? More than they liked you?

I know someone who got a house that way. Offer was a fair bit less than the others on the table (they didn't know about them when they offered) but the couple who were selling really liked them & thought they'd "look after the house well" so were willing to let it go for less as they weren't under financial pressure.

pippip

witchgirl26 wrote: »

I know this might sound controversial but could it be that they weren't under pressure to sell & didn't need the extra amount you were offering but really liked the other people who bought it? More than they liked you?

I know someone who got a house that way. Offer was a fair bit less than the others on the table (they didn't know about them when they offered) but the couple who were selling really liked them & thought they'd "look after the house well" so were willing to let it go for less as they weren't under financial pressure.

Maybe, if it was a a few hundred and you really liked your old neighbours.

In this case you'd want to be a right idiot for close to 50k.

witchgirl26

Fair enough maybe but there is no law saying that the seller must accept the highest offer. That's only if it was at auction which it wasn't. At the end of the day, whatever the reasons, the seller choose to accept an offer that wasn't the OP's. As harsh as it sounds, I really think the OP needs to move on from this house. They have only conjecture about the sellers circumstances and the structural issues. What is actually going to come of the constant wondering as to why? Sometimes things don't go your way, sometimes they do.

pippip

witchgirl26 wrote: »

Fair enough maybe but there is no law saying that the seller must accept the highest offer. That's only if it was at auction which it wasn't. At the end of the day, whatever the reasons, the seller choose to accept an offer that wasn't the OP's. As harsh as it sounds, I really think the OP needs to move on from this house. They have only conjecture about the sellers circumstances and the structural issues. What is actually going to come of the constant wondering as to why? Sometimes things don't go your way, sometimes they do.

Definitely true, if its ment to be.

I really feel the estate agent should have given an explanation. I know they probably don't have to but don't see why they wouldn't if asked.

The_Conductor

pippip wrote: »

Maybe, if it was a a few hundred and you really liked your old neighbours.

In this case you'd want to be a right idiot for close to 50k.

However- it was cash- and the other offers were subject to mortgage approvals etc. The OP had to go back to the bank for reapproval, albeit for a very small amount- this would be enough to scare the beejesus out of most sellers. 50k or not- the fact that it was cold hard cash into their hands- is a mighty powerful persuader........

Carlowgirl

witchgirl26 wrote: »

I know this might sound controversial but could it be that they weren't under pressure to sell & didn't need the extra amount you were offering but really liked the other people who bought it? More than they liked you?

I know someone who got a house that way. Offer was a fair bit less than the others on the table (they didn't know about them when they offered) but the couple who were selling really liked them & thought they'd "look after the house well" so were willing to let it go for less as they weren't under financial pressure.

We never met the couple only dealt with EA.

pippip

The_Conductor wrote: »

However- it was cash- and the other offers were subject to mortgage approvals etc. The OP had to go back to the bank for reapproval, albeit for a very small amount- this would be enough to scare the beejesus out of most sellers. 50k or not- the fact that it was cold hard cash into their hands- is a mighty powerful persuader........

I know cash can be a big decider but in some cases it can be irrelevant.

If the sellers were in negative equity and forced to sell I don't think their bank would be too happy to hear they sold for 50k below market value just because of cash. Although I can't see that being the case here. If your financial situation is bad 50k could almost be life changing.

If it was structural would the estate agent not have mentioned this when first taking viewers, why would they let someone see the house knowing they couldn't possibly get approval on it.

pippip

Carlowgirl wrote: »

We never met the couple only dealt with EA.

Did you ever ask the EA?

witchgirl26

Carlowgirl wrote: »

We never met the couple only dealt with EA.

Did you ever ask to meet the sellers? I know most things would go through the EA but if I was that serious about buying a place, I'd ask to meet the current owners if even just to ask some of the stupid small questions the EA wouldn't know (what are the bills for heating/electricity generally like? Are there particular rooms that are roasting at certain points of the day? Does the grass need cutting often or does it take a while to grow?). Also it allows the sellers to put a face to the offer - that it's not just a faceless amount of money but "ah sure that's Carlowgirl & her partner - they were nice" kinda thing.

djimi

The_Conductor wrote: »

However- it was cash- and the other offers were subject to mortgage approvals etc. The OP had to go back to the bank for reapproval, albeit for a very small amount- this would be enough to scare the beejesus out of most sellers. 50k or not- the fact that it was cold hard cash into their hands- is a mighty powerful persuader........

I think most people would wait it out for the sake of making an extra €50k in fairness. Its not small change that we are talking about.

Plus from what I can make out the OP had mortgage approval for a few grand less than the asking price, so if they were worried about money they would have accepted the OPs initial offer of just below asking, not a cash offer of €50k less.

djimi

Of course, we dont know the actual figures involved, so its all just speculation. For all we know, the asking price was utter nonsense and the cash offer was still above market value, which is why the sellers were happy to accept.

The Spider

witchgirl26 wrote: »

Did you ever ask to meet the sellers? I know most things would go through the EA but if I was that serious about buying a place, I'd ask to meet the current owners if even just to ask some of the stupid small questions the EA wouldn't know (what are the bills for heating/electricity generally like? Are there particular rooms that are roasting at certain points of the day? Does the grass need cutting often or does it take a while to grow?). Also it allows the sellers to put a face to the offer - that it's not just a faceless amount of money but "ah sure that's Carlowgirl & her partner - they were nice" kinda thing.

Nonsense, I'd never want to meet the sellers, buying and selling is about leaving emotions at the door, if you meet them you may be more inclined not to be so hard about your offer, especially if they're in financial difficulty. The above is more in line with what you'd do if you were renting a place.

Nothing wrong with being faceless and regardless, no one is going to knock 50 grand off the price because you were nice.

Only time this happens is if it's to a family member or to a friend, they'll get preferential treatment, some couple who you've known for a couple of weeks not a chance.

StillWaters

I've never met or wanted to meet anyone who bought a property from me, and if a buyer asked me some of those questions I'd be wierded out and not take their offer seriously.

valleyoftheunos

an EA is unlikely to let you cut them out of the process by putting you in touch with the sellers and if the Sellers wanted to met buyers they wouldn't have hired the EA in the first place.

Carlowgirl

pippip wrote: »

Did you ever ask the EA?

Yes firstly he tried to deny that the house was sold and secondly I rang him left a message to discuss it.. no reply . Very cloak and dagger !

okiss

It sounds odd but you don't know the sellers circumstances. Also the house may have some structural problems that you don't know about.
The banks will look at the house but not do a full survey. The banks will only lend a certain amount so if a survey shows problems you need your own cash to pay for these to be sorted out.

From what you have told us this house was not the house for you.
If you want a rural house they are still falling in value. Today's so called bargain could end up being a very expensive mistake for you.
My advice to you is keep looking for a house when you have full mortgage approval and pay for a full survey on the house. Also if you know some one local in the area ask them about the house.
Also contact the local council offices and find out the plans for the area.
If some one has a house with structural problems or know that there is a road/factory ect being build near them they may be glad to take a hit on the price before they spend more money or are trying to sell a place with a factory next door.

Henry Ford III

Carlowgirl wrote: »

Yes firstly he tried to deny that the house was sold and secondly I rang him left a message to discuss it.. no reply . Very cloak and dagger !

Time to forget it and move on.

Ray Palmer

Could have been sold to a family member. This could be to trick the bank or just the way the family decided an inheritance split

The_Conductor

Ray Palmer wrote: »

Could have been sold to a family member. This could be to trick the bank or just the way the family decided an inheritance split

Plausible.
Often if a few siblings are left a property- its put on the open market to determine fair market value- and they agree among themselves to allow one (or more) to buy out the others in cash, at a discount on the OMSP.

Far from unusual.

Who knows though. Its time to move on, one way or the other.

Carlowgirl

The_Conductor wrote: »

Plausible.
Often if a few siblings are left a property- its put on the open market to determine fair market value- and they agree among themselves to allow one (or more) to buy out the others in cash, at a discount on the OMSP.

Far from unusual.

Who knows though. Its time to move on, one way or the other.

ya ive moved on from it now was just wondering if anyone would know why.. the new owners are definitely not related and definitely not friends.. for the record... Someone asked the price of the house. I stated above that the price drop was 25 % approx.

valleyoftheunos

Carlowgirl wrote: »

Yes firstly he tried to deny that the house was sold and secondly I rang him left a message to discuss it.. no reply . Very cloak and dagger !

Its always worth remembering that the EA doesn't work for you and is under no obligation to explain or discuss anything (and has very little reason to) to do with a clients property or sale once its been agreed. The EA's duties lie with the seller not the buyer so even if you believe the EA has your best interests at heart they don't!

Carlowgirl

Carlowgirl wrote: »

i nearly died when i saw the property price register.. it stated that the house sold for 43k below our offer (without the extra 5 k) so basically 48 k below what we were going to giv

Is this all based on the price you saw in the Property Price Register?

As someone already mentioned, prices in the PPR are not always the full sale price:

† - Denotes Price is Ex. VAT
* - Denotes Not Full Market Price

Carlowgirl

Deleted User wrote: »

Is this all based on the price you saw in the Property Price Register?

As someone already mentioned, prices in the PPR are not always the full sale price:

† - Denotes Price is Ex. VAT
* - Denotes Not Full Market Price

I must check it again.. I thought not full market price meant not the asking price or can you clarify what it does mean ?

pippip

Carlowgirl wrote: »

I must check it again.. I thought not full market price meant not the asking price or can you clarify what it does mean ?

Definition from register website:


Prices Given Not Full Market Price

In a small number of transactions included in the Register the price shown does not represent the full market price of the property concerned for a variety of reasons. For example, the price declared may reflect the retention of an interest in the property by the previous owner, or the fact that a part or fraction only of the property is being purchased; alternatively, the property may have been purchased at a reduced price under the Affordable Homes Scheme. In addition, in a very small number of cases, properties may be declared as purchased in exchange for other property, stocks and shares, etc. All such properties are marked **.

Carlowgirl

pippip wrote: »

Definition from register website:


Prices Given Not Full Market Price

In a small number of transactions included in the Register the price shown does not represent the full market price of the property concerned for a variety of reasons. For example, the price declared may reflect the retention of an interest in the property by the previous owner, or the fact that a part or fraction only of the property is being purchased; alternatively, the property may have been purchased at a reduced price under the Affordable Homes Scheme. In addition, in a very small number of cases, properties may be declared as purchased in exchange for other property, stocks and shares, etc. All such properties are marked **.

reflect the retention of an interest in the property by the previous ownerWhat does this mean. Thanks for your reply?

Carlowgirl

Carlowgirl wrote: »

reflect the retention of an interest in the property by the previous ownerWhat does this mean. Thanks for your reply?

Just for the record I checked the property register and it is inclusive of vat and full market price.. ! It pains me to see it:cool:

uberalles

bigroad wrote: »

Sounds to me like the estate agent sold the house to his mate.He just tried to fob you off.I would be surprised if the house owner ever heard about your offer.I f you come accross another house ,try to deal direct with the owner.Estate agents are not to be trusted.

Something similar happened to a friend.

Ive heard a tip:

All of your offers are to be in writing so you can prove you made the offer of X amount.

You can request the EA gives you all their offers in writing also.

Carlowgirl

uberalles wrote: »

Something similar happened to a friend.

Ive heard a tip:

All of your offers are to be in writing so you can prove you made the offer of X amount.

You can request the EA gives you all their offers in writing also.

Whats to stop them making up offers tho? is it the buyer or the seller can ask to see them in writing? What about confidentiality ?

valleyoftheunos

From a legal perspective written offers are a potential minefield so both buyers and sellers are usually advised to avoid them.