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 make sure the agent is making it clear to all prospective purchasers that you cannot build on the land so you don’t go through this repeatedly.

It's horrid when this happens. If land meant that much to them to build on, they'd have pulled out by now. They are likely trying it on. Given stamp duty at the moment, they may also not really want to go back to house hunting in case they miss deadline. I would tell them no and that you'll be remarketing it if they don't want to go ahead. They may also be looking for some reduction and used 10% as a starter for negotiating. I guess you need to work out whether you'd be comfortable accepting any less and if so, what that figure would be. Good luck.

Personally I would say no and let them walk away, they sound like chancers to me!

Get it back on the market and get your EA working and phoning up other people!!

I would rather sell at the same price to someone else tbh.

News stories today from a rightmove survey indicate a market revival.

I would immediate remarket for 2.5% additional asking. 😉

Nope! Twats

They should have explored the planning issue sooner

They'd hardly need to - the solicitor will have told them about the covenant already, and offering less immediately before exchange is the oldest try-on in the book

In view of the three offers you've had I don't know why you'd even consider this, OP - just tell them no and contact the others who wanted it

OP Covenants and Planning are completely separate matters. If the land is in a green belt or in a conservative area which restricts potential development on the surrounding land then this shouldn’t have been a sudden ‘last minute’ revelation that emerged from the searches. These searches should have been done weeks ago!
If it’s a covenant that is restricting future new development, then you need to consider a few things. How old is the covenant? Can the beneficiaries be traced or are they ancient history? Has the covenant ever been breached in the past....if it has been breached without recourse, this could be good news as your buyer may be able to purchase an indemnity policy via their own solicitor and at their own expense to protect themselves against future risk of anyone claiming a breach....these Policies are normally not crazy expensive - less than £1k but at least please the solicitors and leaders and give peace of mind.

Unless you're desperate to sell I would tell them no, they may still buy.

With regards the covenant. Who knows about it? Were you aware before the house went up for sale? Does it apply to other local houses? Who is the beneficiary?

Covenants are often not enforceable depending on some of your answers or even if they are enforceable it is possible sometimes to get insurance against the enforcement, depending on the situation.

Every situation is different but it is worth talking about it to a specialist solicitor if your buyers pull out.

Restrictions on planning immediately adjacent is a huge selling plus - guarantees privacy and peace. Remarket and increase the price by 5% for these idiots. As executor (presumably?) you have an obligation to secure the best possible price and any other beneficiaries might be very unhappy at this. But mainly, they’re blatantly taking the mickey. Blatantly.

Huge housing bounce going on currently - and at the absolute forefront of this are rural house with land within commutable distance of a London. Sack the fuckers off and get it back on the market. I reckon you’ll sell in days.

And if they come back with a higher offer I’d tell them where to shove it. Nothing to stop them doing this again.

I'd say no.

Say no, they are being CFs.

Another here who would say no.

What they are trying to do is known as gazundering, google it!
It's a cheeky tactic to save a few quid, if your not desperate I'd tell them to ram it, just think they have already incurred solicitors fees, surveys etc. They were obviously serious about buying it.
To be honest I'd cut my nose off to spite my face just to know I'm not being taken the p**s out of.

Nah, they're just being cheeky. Tell them no and have your realtor put the place back on the market.

Say no and get it put back on the market.

The housing market has massively picked up.... well, it has in my area anyway. Houses are selling before they even get on to Rightmove and Zoopla etc.

I agree! Say no!

This is a classic strategy. Stall until the last minute and then go in with a demand for price reduction. Don't fall for it.

Please say no, if you're not desperate for the money.

Day before exchange and they've already held it up? I'd tell them to get lost. What where the other offers like?

No.

Tell them, settle tomorrow at agreed price, or it will go back on the market at the original price (that was 16% I think you said). Their choice, no discussion.

If your not desperate for the money then say no.
Out of principle I wouldn't go ahead as they are using the exchange as leverage.
I'd rather sell to someone else who was nice at a lower price then someone who has already messed me around loads.