Been gazundered!(70 Posts)
We're due to exchange this week and our buyer has suddenly dropped their offer from £110,000 to £100,000. They're saying it's because the survey threw up issues around damp, the flat roof and the chimney. But they had the survey for several weeks before starting to seek quotes for this work, plus the new offer bears no relation to the quotes - the reduction she's proposing is almost twice what the quotes come to (not that she told us that to start with but our EA worked this out for us and we then asked to see the quotes).
Also, she was adamant she also needed an electrical survey but has never got one (saying she was struggling to find an electrician - even though our EA offered her the electrician they use for the lettings side of their business) and this morning changed her mind about needing one. I now suspect she never intended to get one but has used this to delay things til the last minute.
Our buyer's buyer is the bottom of the chain and has to complete by 24th March or their mortgage offer expires and they can't get it renewed. So I feel this is in our favour - if she sticks to her guns re her new offer and we tell her where to go then she doesn't just lose our house she also loses her buyer.
But we do really want the house we're buying and don't want to risk losing it. Although if we accepted her new stupidly low offer we wouldn't be able to buy our new house anyway.
What would others do?
I held firm. Ended up selling to someone else at the gazunder price but there was no way I was letting the original buyers have it after pulling a stunt like that (shamelessly demanding a £10k discount the day before exchange ).
Fuck that shit.
Out if principle I'd tell her to shove it and remarket as of NOW.
She will be expecting you to cave. Don't you dare be a doormat!
Hold firm. Just say that at her new price you can't afford to move so will have to stay where you are.
She's spent a lot of money to get this far so she's just trying it on
So you can't buy the house you want at a sale price of 100k? In which case you've got nothing to lose if you play hardball. Do you need to move or is this a choice? Unless you really need to move I'd instruct the EA to put it back on the market tomorrow morning.
There is no point caving if you can't have your new lhouse at that price anyway. Hold your ground.
She's taking the piss. 10k under is just a random figure she's chosen. I suppose you could come up with a smaller discount?
Even if your buyer agreed to buy at £100k, they would need a new mortgage offer (assuming they are getting a mortgage), the contract and transfer would have to be amended and contract (at least) signed and returned in time for exchange, so attempting to reduce the price at this point would cause delays in any case and their buyer's mortgage would expire, resulting in no-one moving and you are all back to square one.
Hold firm - this buyer is trying it on.
When my buyer tried to gazunder me the day before exchange, I told them to do one and walked away. They didn't try to increase their offer again, but if they had I wouldn't have accepted it on principle. I'd been very clear with them that I didn't need to sell and they chose to try and fuck about so their lookout.
I'd say hold your ground, especially if (as you say) you have the advantage.
the last 4 times we have moved we have told the EA right from accepting the offer that we won't consider a lower revised offer, we will withdraw and re-market, just on principle really. (Unless obviously a giant sink hole suddenly opens in the garden or similar).
I have very short shrift for these people. Happened to me once a few years ago, had accepted a low offer for a quick sale. It was a Friday and I told the agent to get it back on the market that day. 2 viewings on the Saturday and an offer for MUCH closer to the asking price by the Monday, which was coincidentally the day the original buyer rang back to say it was ok and he'd pay the original price. I would have LOVED to be the EA who broke the news he wasn't getting it.
I'd do the legwork for your purchaser. Get an electrical survey. Get some new, independent quotes for the other work. Add them up. Offer to meet halfway- this is what worked for us.
Survey had thrown up windows needed to be painted, damp patch in cellar and flat roof needed re-felting.
Purchaser offered 25k less to cover 12 x new sash windows!!!(they only needed painting!) , a damp treatment in the cellar and new felt on flat roof.
I got an independent quote for each of the three things (the window painting, damp proofing and flat roof), which together came to 7k. (This was worth doing as we had one ridiculous quote for the damp issue and could just tear it up and get a more sensible one)
We sent the estimates to the estate agent and told them we would meet buyer halfway and knock 3.5k off the asking price, or put the flat back on the market. Estate agent advised it was risky as we could lose the sale, but we figured this way we would figure out whether the survey had worried them into thinking they couldn't afford to do stuff or if they were just chancing their arm.
Fortunately in our case these quotes reassured the purchaser that the could afford the necessary work and agreed to a 50|% split of the 7k.
Gazundering is despicable behaviour unless you have an extremely valid reason for reducing your offer.
The market has changed and falling in many parts of the country. See if you can get a reduction in the property you are buying.
Be prepared if you put it bavk on the market to get less as the downturn continues.
Were you guys not around in the last property slump?
I'm dreading this happening to us!
OP, if you don't need to sell, call her bluff and see what happens.
Labitina, can I ask what happened in this regards with the last property slump? (All feels a bit irrelevant where we are, as prices continue to rise - EA reckons the house we are buying, marketed at end of January, would not go to market for £15-20k more!).
Sorry for selfish questions on your thread OP.
Having looked at her original survey, we've decided to offer to go halves on the damp proofing but not budge on anything else. We'll offer that via our EA in the morning and present it as our final offer. If she hasn't signed paperwork with her solicitor by COP Wednesday it's going back on the market.
I really wouldn't. Really.
You're obviously too nice, you need to put on your big girls pants and stick to your price.
I'm not sure there is a downturn. Certainly not round here. If we do need to put it back on the market I'm tempted to raise the asking price slightly.
I agree with monkeyfacegrace, if she was reducing her offer due to the survey the time for that was on receipt of the survey, not at exchange. She is trying it on and you need to stand your ground.
Why would you offer half for the damp proofing? You said yourself that they've known about it for ages and have provided an inflated quote.
Stick to your guns. They are chancers.
Whatever the issues are, her survey will have valued the house at the agreed price so the rest is just trying it on. I would just say you can't complete the transaction at that price, which is a shame, however should she wish to reinstate the agreed offer by x time tomorrow, you'll proceed as if this hadn't happened. If you haven't heard by then, the house is going back on the market.
Should have explained re damp proofing. She didn't faff about so much on this. After the survey she asked us, via solicitors, if we had a valid guarantee for it. Then after we replied that we didn't she got a quote. And if I was the buyer I would ask for a reduction re damp - it's sometimes hard to tell when you're viewing a house of it's damp.
But everything else is ongoing maintenance that was visible when she viewed. And for everything else she left a big gap between getting the survey done and then deciding she needed quotes for all these things.
Am tempted to put it back on market first thing tomorrow though. At the same time we left her know what we're willing to accept. And only take it off when we hear she's signed paperwork with her solicitor.
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