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AIBU?

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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:
EdwinaMay · 23/05/2020 06:12

House prices move by percentages - I don't think you take off a certain amount because 100,000 off a 2 bed 1950s terrace is very different to 100,000 off a 4 bed detached in the home counties.
I would go by percentage - I think they are being cheeky and chancing their arm. With first time buyers it is a biiiiiig deal and they have probably fallen for your house. So I would think the odds are against them going elsewhere. Also you could let them know you have another buyer who offered a lower price. So I would certainly not want to give them as much as a 12.5% droop - seems too much.

BeltaneBride · 23/05/2020 06:38

8%! You squeezed that out of your sellers? I hope they leave a rotten fish under the floorboards!

Redwinestillfine · 23/05/2020 06:45

They are first time buyers living at home and will be desperate to move out. Let them feel like they have a bargain. Offer them 5% take it or leave it.

eeehbyegum · 23/05/2020 07:10

It’s a negotiation, that’s their highest expectation In reality so a starting point. Offer back.

pussycatinboots · 23/05/2020 08:00

We had our house on a few yrs ago at £215k.
We were offered £205 and accepted...4 wks later they dropped their offer to £180k. (10yo house, pristine, no kids, 1 cat)
Needless to say they were told to do one mainly because the survey for the house we were buying came back with loads of issues inc new roof, so we were backing off anyway
It really depends on your circs.
I wouldn't drop by more 5% initially - offer that as your compromise and get them to do the survey/valuation, then be prepared (if you still want your new house) to drop a bit further.

GruffaIo · 23/05/2020 08:51

Has the survey come back? Have they had their mortgage offer reduced?

We had our offer accepted (but hadn't exchanged) prior to lockdown. We're waiting for the survey and valuation to come back to see if we need to offer less. If it's valued at what we agreed, we'll have a long hard think before reducing our offer - we're buying for the long term and only need to make sure that when it comes time to remortgage there won't be any issues with the valuation at that time.

I don't think you can think of percentages in the abstract as different types of properties in different locations are subject to different risks. It's more likely that the FTB property you're selling is at greater risk than the one you're buying so, if you need the money to move, I'd think very carefully about being too inflexible. No-one wants to feel they're getting screwed over and FTBs are generally much more emotional and inexperienced, hence more likely to feel that way if you don't give ground.

Kez200 · 23/05/2020 08:58

First time buyers also have more leverage as they are the start of a chain. They are also more likely to need a higher percentage of borrowing and so the survey value may put a spanner in the works too.

Good luck negotiating. A lot will depend on who is most desparate and how quickly prices actually drop.

In the early 90s we waited a year watching prices fall. It became a self fulfilling prophecy once it started. We bought after a year and still lost another 10 percent when we sold 3 years later and the market had fits and starts.

HermanHermit · 23/05/2020 09:06

You know that woman who drove 2 hours to the beach in Dorset and then complained it was full of people who had driven there?
That’s how you’re behaving

CeeceeBloomingdale · 23/05/2020 09:17

Loving the double standards, I think you've done it backwards personally OP. You should have waited to negotiate your buying price rather than being greedy, then you would have know your buyer's position and could have renegotiated it with that in mind.

user1487194234 · 23/05/2020 09:21

It is not a moral issue (fortunately!)
You should go back with a counter offer always bearing in mind that you don't want to lose the sale

Grumpyoldpersonwithcats · 23/05/2020 09:30

If I have read this correctly, you will be in exactly the same financial position (in terms of cash in and out) as before the discounting (but you will have the advantage of a lower mortgage). The only person losing anything is at the top of the chain.

sst1234 · 23/05/2020 10:02

OP ignore the self righteous do gooders pretending that a negotiation on a house has anything to do with morality, when they would take exactly the same position as you are doing.
It’s a market, and in a supply chain not everyone gets an equal cut, it depends on people’s business acumen, negotiating skills, desirability of product and individual circumstances. You should give as little of your 8% away as possible, but i would give the same price to your buyers that they should hold out for as much from you as they can. They should capitalize on your desire to move and get the 12.5% or walk away if they have other options to buy.
Either way both vendor and buyer should try and save as much as they possibly can in as hard nosed way as they can - anyone who doesn’t is stupid.

user1487194234 · 23/05/2020 10:08

sstc
Agreed
But it always worth keeping your eye on the prize
If someone in this overplays their hand they risk the buyer walking away
I would rather''lose' a few grand than lose the sale and accordingly the new house

bilabongg · 23/05/2020 10:09

You should give as little of your 8% away as possible, but i would give the same advice to your buyers that they should hold out for as much from you as they can. They should capitalize on your desire to move and get the 12.5% or walk away if they have other options to buy.

Yep

Either way both vendor and buyer should try and save as much as they possibly can in as hard nosed way as they can - anyone who doesn’t is stupid.

and yep

bilabongg · 23/05/2020 10:10

If someone in this overplays their hand they risk the buyer walking away
I would rather''lose' a few grand than lose the sale and accordingly the new house

The OP has more to lose

user1487194234 · 23/05/2020 10:12

That is what I said:meant to say
Sorry not clear

Nosurveysneeded · 23/05/2020 10:16

8% of a higher price is a lot more so even if they have the same reduction you will still be better off so what is the problem? You both then benefit don't you...

Since they live with parents they could easily look for other properties and might find one with a better price reduction.... then you lose the property you want to buy. It makes sense to give them the reduction you received otherwise double standards?

bilabongg · 23/05/2020 10:16

I was agreeing with you

user1487194234 · 23/05/2020 10:18
Smile Am a bit hungover!
BumpBundle · 23/05/2020 10:19

Mortgage providers at the moment are valuing properties very low on the basis that the market might crash and they don't want to risk a negative equity situation - if you don't accept to reduce the amount then they might have no choice but to pull out.
If you were perfectly happy before with the money you were making then it seems strange to be unhappy now to give them the 12.5% when you're getting 8% and it amounts to the same amount as before.

Nosurveysneeded · 23/05/2020 10:20

My son is a FTB and looking around and a couple of his friends are in a position to look to buy and naturally they will be offering lower than asking price. The sellers can say no or if they are keen to move can say yes and then be in a position to offer a bit less for the property they want... it's the way things are.

Personally I would rather take a bit less and make sure the transaction goes ahead than stick out for more and lose the sale....

bilabongg · 23/05/2020 10:35

@user 😁

sawollya · 23/05/2020 10:39

If I was buying my second house, I'd be just as particular as I was when I bought this house (my first).
I wouldn't shrug over boilers with at best 6 months left in them, issues that cropped up in the survey...

I liked the power that came from being a first time buyer and it's stupid to ignore that being the first link in your own chain you have some power, I think I would sell my house first before I moved. next time.

vixxo · 23/05/2020 11:08

How much do you want the new house? Base your decision on that. Then it depends on the location, then the property itself. Pre-covid in my area most of the properties were gone within a week or two of being on the market with several bidders usually, sometimes more than 10 bidders, on average offering 10-15% above asking price up to 20% over. That hasn't really changed except there are far fewer properties. So if you think yours is easy to sell, don't worry about losing your current buyers. Otherwise I would take their new offer.

Standupthisisnotateaparty · 23/05/2020 11:19

I would counter with the same % reduction and you are in no worse a position.