My situation is the following. I found a house in Leeds (UK) that I liked that was advertised for 160k asking price in May 2021. I viewed the house and liked it so I entered into a biding war with some other guy that drove the price to 175k (even thought I told the seller that the house is probably not worth that much money and the bank will not value that house at that much money, hence bidding more was pointless as the final verdict will be decided by the banks valuation of the property when they analyse the mortgage).
Both me and the other potential buyer are using loans from the bank to purchase the house hence we can't give much more money that what the bank can value the house at. So I told the seller pick one of us and decide as ultimately the price will be the same for both of us as this is not an auction.
The seller picked me as a potential buyer and we started to involve the solicitors to get the documents ready. In June my bank made an evaluation on the property and valued the house at 165k. I told the seller that I can not give much more than that and reminded him what I told him in May that ultimately the bank will decide the value of the house. We spent 2 weeks renegotiation the price and eventually settled at 166,300.
From that point we waited for the solicitors to get their work done and by October we were finally ready to exchange.
At this point I receive a message from the seller telling me he feels the price is not right for him and he feels the house is undervalued and wants me to give more money. My solicitor can't do anything about it as legally we still haven't exchanged contracts and the seller can pull from the deal at any time.
What should I do?
This feels like extortion at the last moment but looking at house prices in that neighbourhood I cant see a house like that under 190k. So he must be using this moment in the market as a opportunity to squeeze more money from me.