Regretting selling

Discussion in 'The Buying & Selling Process' started by AngelicaS, 29th May, 2020.

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  1. AngelicaS

    AngelicaS Member

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    Hi all
    Just wondering if anyone has regretted a sale while a property was under unconditional contract but yet to settle.
    We have recently agreed to an offer to sell our property with a significant loss. We did so because my partner was advised his hours would be cut to 3 days a week while I am on unpaid maternity leave. My husbands situation has since changed and his workplace has advised they will keep him full time.
    As our situation has changed we can now afford to keep the property however we understand that the buyer is entitled to sue us should we not settle.
    Anyone has any experience with this sort of situation?
     
  2. Trainee

    Trainee Well-Known Member

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    Generally you cant get out of an unconditional contract.

    Learn from the experience. Was it a knee jerk reaction? Did you have buffers to, say, hold on for longer than you did? Was it a good decisions, without benefit of hindsight, based on all the information you had at the time?
     
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  3. The Y-man

    The Y-man Moderator Staff Member

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    We are still in uncertain times - I think you would have still felt the stress if you held.

    The Y-man
     
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  4. The Y-man

    The Y-man Moderator Staff Member

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    ...and if you are absolutely certain things are ok, buy something better at a bargain price ;)
     
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  5. MTR

    MTR Material Girl Premium Member

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    Very good point
     
  6. ellejay

    ellejay Well-Known Member

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    I agree with @Y-man % . Instead of putting energy into regret, work out how you can position yourself to buy a similar bargain that may have more upside for you than the one you sold.
     
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  7. spludgey

    spludgey Well-Known Member

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    Not likely a possibility though, given that I assume all properties were bought when they were both working, potentially without any dependants.
     
  8. ellejay

    ellejay Well-Known Member

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    If you assume something isn't likely you won't look for it and you won't find it. There are likely to be distressed sales anywhere, at any point in time and ways to profit from them. It just depends on your imagination and determination.

     
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  9. spludgey

    spludgey Well-Known Member

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    By all means, confirm whether I'm right or wrong. But it's my expectation that they would not be able to borrow any significant amount of money.
     
  10. ellejay

    ellejay Well-Known Member

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    I can't confirm anything, I don't know anything about them other than they thought one of them had lost their full time hours and now hasn't. You suggested they now have kids so their situation is now worse than when they originally bought? I don't know, maybe there are other positive factors?
    Look, in any case not everyone picks out a house for sale on realestate.com.au , gets a mortgage and negatively gears. Their finances may be more positive than you're assuming, or they may find another way to skin a cat. I'm just saying.

     
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  11. spludgey

    spludgey Well-Known Member

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    I meant for them to confirm it.
    I do agree with you that they should still check though.
     
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  12. TMNT

    TMNT Well-Known Member

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    Tell the purchaser that you are regretting it, and explain to them its not because they got a screaming bargain (if this is the case), and its family reasons
    and in the 1% chance they are also looking/wanting to pull out, you can both get a win and cancel the contract
     
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  13. PropDir

    PropDir Well-Known Member Business Member

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    Yep, that's right.

    Angelica, maybe think about the objective reasons you wanted to sell in the first place. There were probably very good reasons and I am sure you did think it through. Ultimately we can just learn the lesson and no point beating ourself up about it... it may be for the best in the end. As Y-Man said you will probably be feeling this way regardless of whether you sold or didn't sell.
     
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  14. Perp

    Perp Well-Known Member

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    Worth a try, but do bear in mind liability for stamp duty has already been incurred. Maybe offer to split it if they also want out?
     
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  15. luckyone

    luckyone Well-Known Member

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    Yeah see if you can talk to the buyer about it. Worst case scenario they say no and you've lost nothing. Just be aware that if you had an agent, you'll most likely still have to pay their fees
     
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  16. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    What happens if your husband's position changes again in a few weeks / months? Do you need to sell again?
     
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  17. MTR

    MTR Material Girl Premium Member

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    ouch
    Dependent on amount, may be best just to move on
     
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  18. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    That's certainly true, however, if you put yourselves in the buyer's shoes for a moment, most buyers would not launch a legal action to enforce settlement due to the cost (which I've been advised can be in the order of $40K in legal fees to get a judgement).
    If you really, really want to keep your house you'd need to:
    1. Ask if the buyer can change their mind - and have your agent refund their 10% deposit
    2. Pay your selling agent his/her commission
    3. Dig your heels in - in the understanding that most buyers will go buy something else rather than go through the hassle of attempting to enforce the contract - emotionally, financially etc.
    4. Stamp duty, if paid by the buyer at this stage, can be refunded if the contract does not proceed (although it takes a loooooong time).
    I say this from the perspective of knowing a buyer who found themselves in this same position.
     
    Last edited: 29th May, 2020
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  19. AngelicaS

    AngelicaS Member

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    Thanks for your replies

    It seems there is no way out unless the other party also wants out. If we are to pay for the agents commission, buyers legal fees and stamp duty it’s really not worth cancelling the contract.

    We are unfortunately losing 40k on selling the property but I guess you live and learn and it could certainly have been worse.
    Our situation has changed and we wouldn’t be able to borrow again until I go back to work in 8 months time. I guess it might be a good time to buy then but I think most of all we will take a step back and reassess our situation and future goals.

    just to clarify - the property is neutrally geared but we had a lot of bad luck with tenants destroying the property numerous times and repairs costs being significant despite insurance.
    Due to the property being interstate and causing a great deal of stress we felt selling would be the right move. Unfortunately Covid happened a week after the property went on the market. When we finally received an offer, even though it was 40k lower than market pre Covid, we felt relieved that there was finally on offer on the table and accepted without really thinking the situation through. I guess our fear was that even though the property is neutrally geared it might get destroyed by tenants again and wouldn’t be able to afford repairs if my partner had his hours reduced.
     
  20. Gockie

    Gockie Unicycle - get exhausted but never two tired Premium Member

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    Initally thought it was a PPOR, and it was an emotional issue.

    I don't mean to be harsh but it's an IP. Sell and be done with it. Just like shares. Just think, the next tenants could be bad as well. Maybe the area attracts bad tenants.

    Edit: Though, if the buyers want to pull out, you've got a win-win. Otherwise, just proceed with it.
     
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