Outbid by underbidder??

Paddytheman

Placed a bid on a property which was several thousand over the previous bid only to be told within 24 hours that the vendor had chosen to sell to the other party. At this stage I stated that we had just entered the bidding and were willing to increase our bid but was told this was not an option.

We are first time buyers and have been approved for almost a year now, nearly purchasing with this EA on 2 previous occasions.

The other party are in a chain, apparently sale agreed but nonetheless a risk.

Is there any viable reason why the vendor would turn down a larger offer to deal with someone in a chain. The property was also a run down building that was refurbished to sell having never been habited by the vendor so I would have expected profit was of importance to him.

Just very confused here and looking for a reason??

LirW

Can have many reasons, maybe they aren't in a chain like the EA stated, maybe they are in a chain and buy in cash which would allow to close very fast if all the documents are in order. Maybe they can move a lot faster and the vendor wants a quick sale.

MAJJ

Have seen this when the underbidder's sale agent/company is the same as the house they/you are buying.

antoinolachtnai

The other thing is that there may be an 'insider' purchaser, a purchaser who has the option to buy the property at market value, and the purpose of putting it on the market was to resolve a dispute over market value.

You could write to the vendor if you think the estate agent is playing silly games. The estate agent is putting himself in peril by the way, because if he fails to disclose a higher bid and the vendor later finds out, the estate agent is going to be liable for the difference between what was paid and what was bid.

Mrs OBumble

Or maybe the vendor doesn't like you or your family or the side of the tracks you come from.

It happens.

1641

Paddytheman wrote: »

We are first time buyers and have been approved for almost a year now, nearly purchasing with this EA on 2 previous occasions.


What happened on these occasions ? What stage did it get to ? Were you outbid or did you change your minds ?

Tow

Drop a letter in the house, inquiring as to why they have turned down your offer. It would not be the first time a seller is totally unaware of another bidder.

spaceHopper

Are they paying some cash too? Maybe the owner is getting separated and wants cash they can hide from the OH

1641

spaceHopper wrote: »

Are they paying some cash too? Maybe the owner is getting separated and wants cash they can hide from the OH

Nah - this is too simple. Maybe Mr Vendor fancied Mrs.Purchaser, and Mr Purchaser noticed this and offered to throw in a few swingers' parties as part of the deal ?:)

jimmycrackcorm

Paddytheman wrote:

We are first time buyers and have been approved for almost a year now, nearly purchasing with this EA on 2 previous occasions.

Maybe the EA thinks you're just messing about.

Paddytheman

Doubt it, top bidder and ready to deal on the first until their vendors chain fell through and sale agreed until a damning surveyors report on the second, its since been dropped by 10% and still hasnt sold so theres obviously an issue.

They quickly moved to offer us another property when they gave us the news so dont think were considered messers...

1641

Paddytheman - is this the old property you were talking about in another thread (Ber F) ? If so, the Vendor may well have been concerned that some issues would arise in the Survey on this old cottage (and most old properties will have some issues) and decided that the risk of you pulling out again was too high. Most likely the Estate Agent would have informed him that you pulled out of the previous deal because of a survey issue (as was perfectly your right). If so, the Vendor's decision may have been unreasonable or mistaken in this instance but that is his/her prerogative.

Paddytheman

Yep the same one, thats the only reason I could come up with tbh, was just trying to get any opinions on what else it could have been for future reference.

Was just strange that the other bid was on the property 4 weeks and when I asked the EA last Friday they said the vendor was in no rush to close. Then we bid and within 24 hours its gone sale agreed. Cheers for the reply.

Samuel T. Cogley

EA is on boards and saw your other thread :pac: