AIBU to refuse this offer?

[MelbourneWay]

Selling my parents house and surrounding land. We were due to exchange at the end of June, and complete this week. Prospective purchasers failed to exchange on time, citing mortgage issues. They also cited a planning issue relating to a covenant not to build on the surrounding land of low value. We set a deadline of exchanging by tomorrow. Mortgage valuation finally took place last week.

This evening they have contacted us asking for a price reduction of more than 10% because of the planning issues which prevent them from building on the land. They say they can exchange tomorrow and complete next week.

Obviously it is disappointing that they do this the day before exchange, my instinct is to say "no", but can anyone tell me what the market for selling houses is like at the moment so that I can take a more considered opinion?

I would say no, they may still go through with it!

They are taking the piss and know it. Whereabouts in the country are you and approximate value of property you are selling?

Sounds like they're trying to get out of the purchase....they wanted to build but didn't check before putting in an offer. Now they've found out they don't want the house.

How desperate are you to sell? If I were able to wait then I'd turn down the cheeky offer and wait for another offer

10% that’s a massive reduction to ask for this late on. If you’re not desperate to sell quickly I’d be tempted to say no.

How much interest did you have when it originally went up?

It sounds like they are trying to force your hand. Personally, I would say no. If they are stating that the house has been valued lower because of the covenant, I would request a copy of the valuation. If they are not willing to share - That would speak volumes!

I'd just say no anyway. I wouldn't put up with being messed around like that. I think you may find they do still want to go ahead.

Instruct your estate agent to remarket the property immediately.

They are taking the p.

10%!
I’d say no.
Due to lockdown, many people are rethinking their home life and are looking to buy property with more land or in a more rural location.
Your buyers sound like they wanted the extra land so that they could build and/or sell it on for a profit .

Given that they could have got planning advice (probably for a small fee) at any time in the process, I’d tell them to bog off.

I’d say no. The covenant isn’t new. Nothing has changed other than perhaps their understanding. If they’ve spent money on a survey etc they’ll have wasted it If they pull out.

I would say no. The housing market where I live seems to have picked up quite a lot, but that is London....
also they will be already saving money as the stamp duty will have gone down.

This is a perfect example of gazundering - get you to the point of exchange and then lower the price in the hope you'll accept rather than re-market and go through it all again.

If you can, hold your ground. Don't negotiate, if need be walk away with the higher (albeit low-value ) ground

I nthe current climate of job losses, impending recession and economic uncertainty how confident of getting another offer are you.

You could be kicking yourself in 12 months when you're accepting an offer of 15% less because of house price falls

There was quite a bit of interest, property went on the market in April, we had three viewings, three second viewings, three offers. We are in the home counties, about 80 minutes away from London by train. The current offer is 16% less than the original asking price.

That's really cheeky. Offer to buy them lunch after the closing instead.

I would call their bluff, OP. Houses with land are hard to find - if the land had been priced a an agricultural level then they knew damn well it would have been hard to get permission to build on it, even without the clause. I think they are taking the piss.

There was quite a bit of interest, property went on the market in April, we had three viewings, three second viewings, three offers

Tell them no and get it back on the market

Nope I think you will sell.

I'd say no, people are moving out to more rural areas and plots with land are sought after

If you can afford to hold on to the house for a bit longer, politely decline. EA can always go back to one of your other offers.
You may well find that when you decline, they still go through with it at agreed price

Textbook gazzundering. Say no.

Also, will they be saving money now with stamp duty waive?!

I'd refuse and say what you've told us in your update about offers from others, if they're not already aware.

Please keep us updated, keen (purely nosey to see how it works out!

No I wouldn’t accept that, given your within commuting distance of London and have a track record of interest. Call the estate agent tomorrow and ask them to get the property back on the market and to contact the other previous offers.

Nope!