Property Chain

[Dusty Bin]

I've found a house I want to buy and the vendor has accepted my offer.

My current house is on the market, but it hasn't sold yet.

Now the vendor of the house I'm looking to purchase is being pressured by the vendors of the house they in turn are looking to buy, for a completion of the sale as they're currently renting property.

What should I do? How can I demonstrate to the vendor of the house I'm wanting to purchase that I'm serious about buying it.

I don't want to drop the price of my current house as I've already budgeted for the mortgage, solicitors' fees, stamp duty etc, and know that I cannot drop below the figure for which my house is on the market at present.

How can I show a commitment to the proposed sale and buy myself some more time?

[Bev2007]

Hi Dusty
I was recently in this position as a vendor when someone really wanted my house but hadnt sold theirs; the estate agent came up with the idea of the buyer (you) paying a non-returnbale deposit that the agent would hold. In the event of you dropping out the vendor would keep the money.
In a rising market there are more advantages for you than the vendor though, as he is essentially fixing his price but not realising any cash whilst watching properties he wants to buy rise in value.
So unless he has a difficult house to sell this is unlikely to be a goer (but maybe worth a try). Whatever you tell him about how keen you are, the property will inevitably be actively marketed until you've completed your chain.
Time to distance yourself emotionally. Dont drop your price.
Good luck

[Dusty Bin]

Thanks to you both.

Firstly I'm not desperate, but have found the house I want. The vendor has also found a house and in turn that vendor is now pushing the vendor of the house I want to complete the sale. He can't do that until I buy his and I can't do that until I've sold mine! As yet, I've received no offers.

As for a non-returnable deposit, I'm not looking to drop out. I'm more fearful that who I'm buying from is going say to me in the next few days that he's waited long enough for me to come up with the funds and that he's now open to equivalent offers from other prospective buyers.

It is this that I'm trying to stave off.

Our estage agent hasn't disclosed the telephone number of the vendor I'm looking to purchase from so RoaldoM, I can't phone him!

Am I going to lose the house I want?

[buildersmate]

You've kind of answered your own question. You don't want to lose the house but you're not prepared to put money up to demonstrate your commitment? Look at it from the vendors point of view - they have no control over the length of time it might take for you to sell, they only have your word for it (that you are taking all steps possible). One way to demonstrate commitment is to put a deposit up, non-refundable that commits them to selling to you provided you proceed in, say, 2 months. Its probably a cheaper option than dropping the price on your house. Only you and your agent can jdge whether you are asking an over-optimistic price on your property - in which case it may take a long time to sell. Again, nothing that the vendor has any control over.

[parkesquay]

From my experience( and I have moved over 20 times in as many years) a perfect property is a transitory thing depending on what stage one is at in ones life. Don't be in a hurry to commit to purchase. Sell your house first and your position will be so strong that you will have sellers welcoming you with open arms.
Daft though it may seem there is a sort of fate in these things. Look at the negatives in this property you think is your ideal and it will give you a better perspective.
There are so many things that you haven't said e.g. how long is the chain above you!! By offering a deposit you may severely dent your bank balance.
I have a friend of mine who has had countless people state that they want his property so much so that he even rented because he thought he had a confirmed sale(twice)however his purchasers failed to sell. Currently he has seven prospective purchasers who have all made offers and all have properties to sell. There is only one sure way to get what you want and that is to become a cash purchaser. Don't believe all that the others in your chain tell you cos a lot of it will not be the strict truth.

[Dusty Bin]

buildersmate,

Thanks for your comments and, yes, I am considering the idea of a deposit, but don't want to offer it...yet.

parkesquay,

Thanks for your fresh approach. Some very good thoughts. I guess cash is king and if we I the cash through selling my house it would indeed put me in a much stronger position, but where would I live in the meantime?

[scotchollie]

Suggest that you lodge your deposit with your solicitor - as an act of good faith.

That way the other side know that the cash is visibly there, already in the 'system' and not likely to be squandered by you from one of your own accounts.

[parkesquay]

Depending on circumstances renting should not pose too great a problem. I don't know where you live but in my area there are caravan/chalet sites let alone houses/flats. Don't forget that that the real bonus is that the interest earned on the cash invested from your sale will(probably) more than cover any rental costs plus furniture storage fees. There are also plenty of self-storage units which means that 24 hours a day you can get at/change any of the more urgent items should you need them. After all one is probably only talking about a period of 6 months tops. Granted if you have pets the equation is a little more complicated but not insurmountable. You could even incorporate holiday time with the rental period. There are many options.
We have used self-storage container option. Just got a small removals company to put the stuff into the container site and during this period also incorporated our hols. We even flitted between a couple of Travel Lodges for a week in between coming back from Spain and moving into a new place. Options do exist but just need the will to do it.

[Dusty Bin]

I have 5 cats and 3 children.

What sized storage container should I get or can I get a good deal at the Travel Lodge over here in Belfast?