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?

It's the estate agent who is driving this I am afraid. They have recommended in writing that the executors accept, and it looks like that is what they are going to do despite my objections.

What about suggesting to the other executors that you get the place valued now by a different estate agent, and if the result is similar to what is being offered then you will go with the rest of them?

Why would anyone accept a lower offer based on an EA’s recommendation, written or not? They’re after their commission: it’s easiest for them to get that by selling more houses more cheaply.

Remind the executors that the estate agents are merely after their commission especially after the market stagnated over the lockdown period. The Exectuors should be acting in the best interest of the beneficiairies.

i'm sorry you're going through this, the buyers are taking full advantage of this being an executors sale and counting on everyone wanting the ££££
i'd be sticking to my guns and even going so far as to change agents. anecdotally going off facebook the property market seems very active at the moment. i'd be confident that if they don't want it someone else will. could you get another agent round to value it etc?

Market here in Scotland is buzzing; neighbour and friend both just sold in under a week from putting properties on market; and both had competitive bids fighting to get it.

I'd tell your buyers that

A) the price remains as before, if they fail to pay up on agreed closing date

B) it goes back on the public market and

C) when it goes back on market , they are excluded. You will instruct agent to refuse any further offers from them.

D) it's now or never. This is your very last chance to buy our property.

Well done OP on sticking to your guns. Stay firm and strong! Sending you anti-bully vibes.

I am going to make sure my kids know when they sell the family home to take no bullshit from anyone. Get the maximum money, ideally from the nicest people. I'm not slogging my guts out paying a mortgage in order that some fecking cheeky twat gazunders my children.

OP, I appreciate that it is difficult because you are not one of the executors and they have control over this. Did they ask for the letter from the EA to cover themselves on this, do you know?

Yes, ChicCroissant, I think that is the case.

I would put in writing to the executors that the Estate Agents are not acting in the best interests of the estate. The market is buoyant and the EA are only acting in their own interests to protect the chain and get their commission due to their cash flow position due to Covid...

I suspect that is the real issue going on!

I agree with random. However hard they might try to be objective, the EA is not a disinterested party.

Houses with land are going to become even more sought after in the next year or so. It is a pity the executors cannot see this and re-market it in the Spring. That would require ongoing maintenance of course but holding out for a better price feels logical. What about getting one or two second opinions? If your siblings want some money now, is there a way in which they could take some of the free money on account to give them something now?

It is ridiculous of them to not push the EA to get marketing the property for full asking for 2-3 weeks...

Why isn't the EA pushing the buyer to pay the agreed price? Has anyone asked them that? Tell them to put pressure on the chain to find the missing money... make them work for their commission!

Excellent advice from Random. I wonder if the executors are experienced and wise or are they kind of naive?

I'd check what the commission structure the EA is earning is. If it's capped, then it's in their interests to get a sale and not worth fighting for a higher price as they don't get the benefit.

Even if it's a percentage of the sale, work out what the EA would get from the market price vs the price the buyers are offering. They might feel they just want to commission and it's worth taking a couple of hundred hit, or however much it is.

Either way, I think if you can hold your ground, you'll get a better deal.

Did the house sell?