How to avoid badly behaved house sellers

Our Founder, Jennie Hancock, was interviewed recently by The Times for protective measures on how buyers can deal with badly behaved house sellers. Following a strong few years for the housing market, the industry has reported that some vendors (not all) believe they now hold all the cards, and are bending the rules and changing the goalposts at the last minute, often causing deals to fall through – even as close to when it’s time to exchange. Moving house is one of the most stressful and expensive things one can do in life, so for purchasers who are ready to exchange having paid for surveys, solicitors and other associated costs, it can be devastating financially as well as emotionally when a sale collapses. Of course, there are occasions when a vendor may have to pull out, but when they’re changing their mind for no good reason, it’s generally considered poor behaviour.

So what can buyers do to protect themselves from such a situation? Here are Jennie’s top five self-protection measures…

Offer a quick exchange and a long completion

I have long said that being flexible with a vendor on completion dates can often act in a buyer’s favour, and this is even more applicable in a market with a lack of stock and huge demand. Sellers can panic that they won’t have time to find a new property so pull out. This is especially pertinent with those in their sixties and seventies, who may feel reluctant to let go of a much-loved family home. So what we’re doing more of is a quick exchange to secure the deal, then a delayed completion date of six to twelve months. The critical thing is that the delayed completion date can be moved forward by mutual consent if needed to.

Engage a good solicitor

Engage a good solicitor who is going to be proactive, communicative, and excellent at moving things forward quickly. There’s nothing more off putting to a vendor than a buyer’s solicitor taking a long time.

Suggest a ‘rent back’ agreement

‘Rent backs’ are another good option to give sellers time to find the property they want too. This is an agreement between the buyer and seller that allows the seller to continue to live in the house after completion in exchange for rental payments for a set period of time. A typical scenario would be that we present a cash buyer to Mr and Mrs X, the vendors. We would then say to them ‘They are in a very strong position to buy your house, so if you’re not ready to move yet why don’t they rent it back to you for a year?’ This is often an attractive option for “the older generation of vendors. It stops them having to do a double move. However, it really only works when the buyers are mortgage free, because most residential mortgage providers would not agree to it.

Be a cash buyer

If possible, buyers should try and be cash purchasers. A vendor is less likely to walk away from a cash buyer because they are like gold dust in their eyes. Such purchasers can proceed quickly, are chain free and are less risk of the sale falling through because there aren’t any mortgage affordability tests to go through.

Retain a buying agent

Finally, find a good local buying agent. They will do all the fighting talk on a buyer’s behalf and manage any complications with the seller. Buying agents also provide vendors with reassurance that their client is a serious buyer due to all of the due diligence checks they have to do for proof of funding. This can help minimise the chances of a vendor messing around or walking away, tremendously.

For more information about how Property Acquisitions can help you find your next home in West Sussex, contact Jennie Hancock at info@propertyacquisitions.co.uk.