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Sale agreed before i can put my name for new house development

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  • 24-07-2017 2:59pm
    #1
    thebourke
    Registered Users Posts: 1,317 ✭✭✭


    I went to see a new house development a few weeks back in Dublin.
    I told the estate agent that i was interested in one of the houses.I also told the agent that I own my own house with no mortgage.
    The new house development won't be ready/built  until next year.
    Thes estate agent then told me that i would need to get a sale agreed on my house before they would entertain to put me on the list to buy one of the new houses.This seems quite crazy considering the house won't be built/fit to move into for another year.My house is based in Dublin 12 and is in turn key condition.Houses around the area are selling very fast
    So if i got to sell my house now and get sale agreed?,what prospecive buyer is going to wait a year before i can move my own new house?
    Has anybody else had a similar expericence?


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    #2
    mikeybrennan
    Closed Accounts Posts: 869 ✭✭✭mikeybrennan


    Seems logical enough to me


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    #3
    Ri_Nollaig
    Registered Users Posts: 2,297 ✭✭✭Ri_Nollaig


    You are in a chain.

    I am sure you can see this from both sides easily. Developer/Estate agent don't care about the source of the money [mortgage/cash] they just want to ensure it is there.
    So you will have to attempt to sell your house and perhaps have the closing date long enough to stay there, this could suit the new owner, after all they could be in a chain too or rent somewhere else in the mean time.


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    #4
    .......
    Closed Accounts Posts: 9,057 ✭✭✭.......


    This post has been deleted.


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    #5
    Woodenframe
    Closed Accounts Posts: 112 ✭✭Woodenframe


    we have been told this in several new developments over the past few months. Completely ridiculous. A few months ago, we couldn't put a booking deposit on a development we were interested in as we weren't sale agreed. Two weeks later we were sale agreed, all the houses were gone. They are only issuing contracts on these houses at the moment.. so we could easily have put down booking deposit and now been in a position to sign contracts. It's infuriating.


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    #6
    C3PO
    Registered Users Posts: 3,760 ✭✭✭C3PO


    Woodenframe wrote: »
    we have been told this in several new developments over the past few months. Completely ridiculous. A few months ago, we couldn't put a booking deposit on a development we were interested in as we weren't sale agreed. Two weeks later we were sale agreed, all the houses were gone. They are only issuing contracts on these houses at the moment.. so we could easily have put down booking deposit and now been in a position to sign contracts. It's infuriating.

    I can understand why you would be frustrated but don't see why you think it is ridiculous? From the developers point of view, in the current market, they are pretty well guaranteed selling their houses to ready to go buyers - why would they take a chance on someone who has yet to go sale agreed on their current home?


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    #7
    Ri_Nollaig
    Registered Users Posts: 2,297 ✭✭✭Ri_Nollaig


    Woodenframe wrote: »
    we have been told this in several new developments over the past few months. Completely ridiculous. A few months ago, we couldn't put a booking deposit on a development we were interested in as we weren't sale agreed. Two weeks later we were sale agreed, all the houses were gone. They are only issuing contracts on these houses at the moment.. so we could easily have put down booking deposit and now been in a position to sign contracts. It's infuriating.

    The house you were selling;
    if two people came along one said "I have the money and ready to go" while the other side "I am waiting for a few things to come through but I am good for it, I swear".
    Who would you sell it too?

    I can understand it might be infuriating but its driven by the current market, why take a risk when there is a sure bet on the table as well.


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    #8
    Woodenframe
    Closed Accounts Posts: 112 ✭✭Woodenframe


    Ri_Nollaig wrote: »
    The house you were selling;
    if two people came along one said "I have the money and ready to go" while the other side "I am waiting for a few things to come through but I am good for it, I swear".
    Who would you sell it too?

    I can understand it might be infuriating but its driven by the current market, why take a risk when there is a sure bet on the table as well.


    To be honest, if the house I was selling wasn't going to be ready for sale for at least 12 months, then it wouldn't really matter who I sold to- either buyer could pull out because they found a better deal, or circumstances might change which might negate their mortgage approval, even if they currently 'have the money and are ready to go'. Who's to say they will be in a few months time? We spoke to a couple at a housing launch a while back who had AIP for X amount but had recently found out they were expecting and would have to declare this when they renewed their AIP. They didn't know that they would be reapproved for the same amount. Their case is no different from our own- something might prevent them from completing but yet they are allowed to book property and we are not.

    Indeed, I know you are both right, but as we missed out on quite a few housing developments, by a matter of a few weeks/days in some cases, its been quite a stressful and frustrating experience. Walk the road and then tell me how you would view the situation.


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    #9
    awec
    Administrators Posts: 53,839 Admin ✭✭✭✭✭awec


    Woodenframe wrote: »
    To be honest, if the house I was selling wasn't going to be ready for sale for at least 12 months, then it wouldn't really matter who I sold to- either buyer could pull out because they found a better deal, or circumstances might change which might negate their mortgage approval, even if they currently 'have the money and are ready to go'. Who's to say they will be in a few months time? We spoke to a couple at a housing launch a while back who had AIP for X amount but had recently found out they were expecting and would have to declare this when they renewed their AIP. They didn't know that they would be reapproved for the same amount. Their case is no different from our own- something might prevent them from completing but yet they are allowed to book property and we are not.

    Indeed, I know you are both right, but as we missed out on quite a few housing developments, by a matter of a few weeks/days in some cases, its been quite a stressful and frustrating experience. Walk the road and then tell me how you would view the situation.

    Any chance you could sell your current house and temporarily rent? Not ideal but at least you'd be out of the chain.


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    #10
    Ri_Nollaig
    Registered Users Posts: 2,297 ✭✭✭Ri_Nollaig


    Woodenframe wrote: »
    To be honest, if the house I was selling wasn't going to be ready for sale for at least 12 months, then it wouldn't really matter who I sold to- either buyer could pull out because they found a better deal, or circumstances might change which might negate their mortgage approval, even if they currently 'have the money and are ready to go'. Who's to say they will be in a few months time? We spoke to a couple at a housing launch a while back who had AIP for X amount but had recently found out they were expecting and would have to declare this when they renewed their AIP. They didn't know that they would be reapproved for the same amount. Their case is no different from our own- something might prevent them from completing but yet they are allowed to book property and we are not.

    Indeed, I know you are both right, but as we missed out on quite a few housing developments, by a matter of a few weeks/days in some cases, its been quite a stressful and frustrating experience. Walk the road and then tell me how you would view the situation.

    Its not really the same thought. If you bought one of these houses you would have contract to pay for it, either with the bank via a mortgage or cash. I am not sure how it works for buying from the plans but I know when its a one off build you pay in stages payments over the course of the build. So you certainly couldn't pull out if you found a better deal. Thats exactly why the developer would not entertain the idea of you only being able to pay if you sell your current house.

    "sale agreed" is different, as both parties can back out of the sale until the day it closes and keys have exchanged hands.

    It all comes down to risk in the end, and its exactly why a bank gives mortgage approval for a given amount for a set time limit. As, in the exact example you just gave, happens often and once they can get their house before needing to get approval again it wont matter. Banks aren't stupid, they give approval based off a given salary/dependants but over the course of a mortgage they know circumstance will clearly change.


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