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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Help, my buyers have reduced their offer!

176 replies

LemonadeFromLemons · 22/05/2020 20:22

This week I negotiated a new asking price on my next house (I’d agreed the original price before lockdown and the market has changed quite a bit with the economic outlook).

The buyers of my house have today lowered their offer. I was kind of expecting this and would have thought they would be a bit silly not to! My issue is the amount they are asking for! They’re asking for a 12.5% reduction 😐). Obviously I’ll be negotiating them down from that! My question is by how much? I got a 8% reduction on my next house, I was hoping to keep some of that!

So
YABU - you should give them the same reduction as you’re getting

YANBU - this is a business transaction you should counter with a lower reduction, say 5%?

For context, they are first time buyers living with parents. I’m concerned they might pull out altogether.

OP posts:
Original poster
LemonadeFromLemons · 22/05/2020 22:58

@ChicCroissant

I agree, I’m concerned that it’s not just coincidental and concerned that my agent has said or intimated something to my buyers which makes it a bit harder to decide what to do.

I think I’ve got to decide whether to go in at 8% and say absolutely final offer or go in at 5% and hope they don’t ask for more. I’m really thinking that a decisive 8%, especially if they know this is what I’m getting, might be best?

OP posts:
DontStandSoCloseToMe · 22/05/2020 22:58

If you offer them the same/similar £ reduction you are getting, you end up in exactly the same financial position you would've been if Covid didn't exist, except with a slightly smaller mortgage. If you want that house and this could jeopardise it. Take it, I don't see what difference it makes to you other than you temporarily thought you'd be quids in having negotiated a reduction on the one you're buying

Original poster
LemonadeFromLemons · 22/05/2020 23:04

@HeyHoLetsGoAgain
My agent has said that he thinks that they are serious and might pull altogether but has not suggested a percentage I should go in at.

@ButtWormHole
No, it is absolutely fair for them to offer a lower amount, I never said it wasn’t. I just don’t want to try to remain objective and get the best price for my property that I can.

OP posts:
Ineedflour · 22/05/2020 23:06

I think selling houses is going to become very difficult as people lose their jobs and banks lend more tightly. Whether this leaves to large falls, or just no one selling unless they have to, who knows.

If you can get away with a rough break even on your guzundering and that of your buyers, then I think you are very lucky.

Original poster
LemonadeFromLemons · 22/05/2020 23:07

@DontStandSoCloseToMe
I know this is going to make me incredibly unpopular but after talking to a friend they have basically said i shouldn’t give in to their first lower offer and so I’m trying to decide what to do next. Again, not going to make me popular but there are a few things I’d like to do to my new house and not accepting the full 12.5% would mean I can do them sooner rather than later.

OP posts:
beebeeduck · 22/05/2020 23:27

Do you want to move or not? If you want to move then you'll have to accept it. Prices are going to fall and they'll be able to find a better house than yours for less money. As FTB they are in a stronger position than you are.

Cantbelievethiss · 22/05/2020 23:46

I’d be very surprised if they didn’t hold out.
They’re in a stronger position than you are. Everyone will be telling them to pull out.

Coffeecak3 · 22/05/2020 23:47

I agree with your friend. It’s a business transaction and there’s no harm in stating what you’re prepared to accept. If they really want your house they’ll compromise.

SunflowerSeedsForever · 22/05/2020 23:49

In my town over 50 properties have come back for sale (so fallen through) including next door to us

HeckyPeck · 22/05/2020 23:51

I’d never accept the first offer. People usually go in high and expect to be negotiated down.

Judiwench · 22/05/2020 23:58

Negotiate down, but dont be a dick about it.

Toomuchtrouble4me · 23/05/2020 00:05

It's a business transaction - get the best deal you can.

MadameMeursault · 23/05/2020 00:08

Karma! Serves you right. I hope they pull out. My elderly mum’s buyers tried to do this to her. Bastards. I told them to fuck off and they backed down.

Inkpaperstars · 23/05/2020 00:17

I know nothing about 'making deals' as Trump calls it but is there anything to lose by going in with 8 or 5, or 6.25? If they say no are they like to pull out or give you a chance to come back?

If you go in at 8 then you'll have to sound very sure it's your final offer, but is it? If it is, be prepared for them to walk. Unless houses that meet their needs are very rare to market.

Boulshired · 23/05/2020 00:26

Anyone who has bought or sold a house when there has been a sudden shock to the market knows that there maybe a revaluation. It’s not karma or anything to do with morals its ensuring that the investment you are making is still viable. The bank will not give a shit is you end up in negative equity and need to sell because you have an overpriced mortgage on how not worth the loan.

UncleHarry · 23/05/2020 00:52

You seem foolish and naive if you’ve been talking about (bragging?) your negotiated discount on your next house to the point where your EA is possibly telling these FTB’s they can get away with getting you down as much. You also sound greedy. It’s sounds to me that no matter what people say on here you’ll continue to be greedy and you’ll mess up this chain. I feel sorry for the sellers of your next property as you’ve already gazundered them and now you’re gonna have to pull out altogether.
I’d personally offer the FTB’s a 10% discount on the condition contracts are exchanged by next Friday and then pray and cross your fingers it all works.
Stop being greedy, foolish and selfish and just do your best to get this deal done. Or you will regret it when that discounted price you’re not wanting to take will need be your next asking price before further discounts when no one else wants to buy it and you’ve had to drop it 10 or 20%.

andyoldlabour · 23/05/2020 00:54

We are in a crisis, house prices are falling.

Qgardens · 23/05/2020 01:06

It's a risky game saying no too often in this climate.

Drpeppered · 23/05/2020 01:07

Try to negotiate with them, but remember as they’re bottom of your chain, and you depend on your house being sold to buy the house you have an offer on, they are in a much stronger position than you and lose a lot less by walking away

cabbageking · 23/05/2020 01:21

They are expecting only a reduction of 4% possibly over the year why are you considering such a large reduction?

Your reduction of 8% should not be part of any negotiation consideration.

Muh2020 · 23/05/2020 01:22

They'll probably pull out.
You're looking a gift horse in the mouth.
Good luck.

HannaYeah · 23/05/2020 01:32

I’d calmly offer 6-7% off. They won’t walk if they want the house. They may counter. Figure out what your bottom line will be. They are just trying things out and being told they’d be foolish if they pay full price.

What you’ve offered on the house you are buying is not related to this. Put that out of your mind.

Sugartitss · 23/05/2020 04:49

Greedy

TazSyd · 23/05/2020 05:46

It’s not a flat is it OP? If it’s a flat, I’d take what you can get. Flat prices are the first to drop like a stone.

ZaraW · 23/05/2020 05:56

My friend is a surveyor with over 40 years experience. He's advised me to wait 12-18 months before buying a house as prices will crash.

Not sure OP why you are so upset they are doing exactly what you have done.