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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:
EL8888 · 23/05/2020 11:33

It’s a buyers market and not a sellers market especially for FTB. What they’re are doing is reasonable, especially as you have ultimately done the same! I would tread and negotiate carefully they might end up thinking you and the house are too much trouble. Then walk away, leaving you exposed and most likely getting lots of joke offers

Buccanarab · 23/05/2020 12:12

I don't understand why you should be quids in on this given you've negotiated a reduced price. It's not very moral imo.

I don't understand this viewpoint. They're two unrelated transactions. If I managed to negotiate buying a new car for £5k less than sticker price would I be morally obliged to sell my old car for £5k less? No. If I buy a laptop from Currys for £1000 and Argos have the sameone for £800 are Currys aren't obliged to give me £200 back? No. So why would the OP be amoral not to pass on a discount to her buyers? Is it because it's a house?

Mummyshark2018 · 23/05/2020 12:20

@Buccanarab
No it's not because it's a house it's because she's moaning about others wanting what she's got - a reduced price.

AuntyRigsby · 23/05/2020 12:31

morally I feel like I should pass more discount on to them

It's not a moral transaction.

AuntyRigsby · 23/05/2020 12:36

And incidentally I'd be pulling out of the transaction. Standing on the precipice of the biggest financial calamity in modern history is no time to be buying assets!

ineedto · 23/05/2020 12:40

Essentially a percentage is relevant... say 12.5%of a 200k house is 25k But that’s only 8% of a 312.5k house. I would wholeheartedly negotiate it down to between 5-8% still saving your buyers 10-16k but leaving you with 9-15k to improve abs add value to your new property. Surely a win win all round.

Sindragosan · 23/05/2020 13:17

Its not necessarily a buyer's market, around here 'first time buyer' houses go pretty quickly, the larger, more expensive houses can sit around. I know several people just waiting for lockdown to finish so they can move, and several others getting ready to move etc. Its not to say things won't drop, but I'd expect more of a drop at the higher end than the lower, so if you're getting 8% off a bigger house, 4-5% off a smaller house seems more likely.

You need to know your own area, is it heavily tourist related and mass redundancy likely, or near a large hospital etc with plenty of secure jobs?

Hagisonthehill · 23/05/2020 13:37

Offer a 5% reduction and also get your estate agent to check if they still have a mortgage offer in place.It wouldn't be unusual for their circumstances to have changed the way thing are at the moment.

UncleHarry · 23/05/2020 13:44

Ridiculous. It is actually similar to buying a car.
If you was looking at buying a new Range Rover in early March and then couldn’t buy it as the show room closed due to Corona you would be looking at a much cheaper price now. New car sales are at all time lows and bargains are to be had. Let’s say the car you’re replacing is an Audi A3. A famous website that buys any car thought your A3 was worth £12000 in February. Used car prices also plummeted though so now it’s only worth £9000.
Do you come on here and sulk that the saving you negotiated on your RR is now being wiped out by the loss in value of your A3 or do you just suck it up and just do what’s right for you. Either buy the discounted RR and accept you’re also getting less for your A3 or just stick with your A3. But looking for advice/sympathy/help on mumsnet about something so simple when you’re sounding so selfish is just a bit stupid IMHO.

HannaYeah · 23/05/2020 13:50

I don’t understand why this has so gotten under the skin of people.

You’re not required to pass your own savings along to someone else. There’s nothing saying any time you’re buying something if you end up with extra you’re required to give it away. 12.5% is a try on. They probably expect you to counter at 6.

CoRhona · 23/05/2020 14:20

Op, you do realise that you stand to lose so much more than they do?

You're in the middle of a chain. If you stand your ground and the buyers pull out, there won't be any 8% discount or home improvements or proving a point or whatever the hell it is you think you're doing.

Sodamncold · 23/05/2020 14:25

I don’t understand why this has so gotten under the skin of people.

Because many mumsnetters seem to think a house sale should be some kind of gentlemen’s agreement where There is nothing so vulgar as negotiation.

Ridiculous.

Biggest purchase of you life. So makes absolute sense to secure the most you can.

Op I’d go back and say that you have secured a reduction on your property and you feel fair that you pass that % on to your vendors. No more. No less. Offer to show evidence of the agreement so they don’t think you’re underplaying the %

ConcreteUnderpants · 23/05/2020 14:34

You’ve saved the same amount as what the buyers want, so you aren’t losing any money, just not making any money.
Basically a cheeky fucker is cross that another cheeky fucker wants a discount.

sst1234 · 23/05/2020 14:47

The fact that there are so many so called moral house buyers and sellers who think that negotiating for your own benefit (and not someone else’s) is a bad thing, means that you are losing out. Suckers.

Alsohuman · 23/05/2020 14:50

If I were a ftb now there’s no way I’d be pursuing a purchase. You’re very lucky they haven’t just walked away, OP. I would have done.

HannaYeah · 23/05/2020 14:57

@ConcreteUnderpants

I always felt the main benefit to owning real estate is increasing the property value and making money.

I just don’t understand why that makes anyone a cheeky fucker.

I’m in the midst of selling and buying. I didn’t base my selling price Or offering prices on one another.

When my buyers offered less than I asked (in the form of sellers assistance) I didn’t think they were cheeky.

When they asked that I throw in an appliance I want to keep I just said no.

We also didn’t think when the people selling our house came back and asked for more money that he was being cheeky. I thought he was smart for realizing the house was worth more to both him and to us.

S0upertrooper · 23/05/2020 15:20

Just out of interest, why did you ask for a reduction for the house you are buying? Has your mortgage rate increased? Has your income reduced?

I ask because my house is currently on the market and I'm not getting a refund on the money I have invested in it, so why should I loose out but the buyer gain? I won't be buying another property so don't have the opportunity to pass that loss to someone else.

I feel it's immoral to renege on a price once it's agreed and greed is one of the reasons why the housing market is such a shambles.

bilabongg · 23/05/2020 15:23

@S0upertrooper can you not see the irony of your post?! 🤦🏼‍♀️

bilabongg · 23/05/2020 15:24

I ask because my house is currently on the market and I'm not getting a refund on the money I have invested in it, so why should I loose out but the buyer gain?

greed is one of the reasons why the housing market is such a shambles.

🤣🤣

HollowTalk · 23/05/2020 15:27

I would think if they are locked up with their parents for months they will definitely want to move.

Alsohuman · 23/05/2020 15:45

I would think if they are locked up with their parents for months they will definitely want to move

I’m sure they will. They will also want to maximise their deposit and minimise their mortgage, both of which are compatible with waiting a few more months.

krispycreme · 23/05/2020 16:03

I would offer them 8% reduction. Yes it would of been nice for you to have a little bit of cash from the sale but initially you were happy without it so I personally wouldn't risk loosing a buyer for the sake of them having a slightly lower reduction than you.
We had a vendor who really pushed hard for an extra £500 we didn't want to but said yes on the understanding the sale would be quite quick. About a month down the line they pulled out of the house they were buying with no good reason. We ended up buying a different house but probably would of stuck with them had they not tried to squeeze every last penny out of us initially. I do believe that if you act reasonably things are more likely to go to plan.

theBounder · 23/05/2020 16:48

Asking for a 12.5% reduction is insane.

They should be asking for 40%.

Or, more wisely, withdrawing entirely as it is entirely possible the crash could be 50% or more.

S0upertrooper · 23/05/2020 16:54

@bilabongg, so you think because I don't want to loose money on a house I've put a lot of money into, I'm being greedy? I'm guessing because your point isn't clear.

I'm not sure why that is a problem but I've always bought and sold with integrity, maybe something to do with the Scottish system.

harriethoyle · 23/05/2020 17:13

You are a massive hypocrite.