To think the buyer’s risk in house prices is not my problem?

[Eeksteek]

I’m selling a buy to let house to an investor. They offered below the asking price back in August, and so far as I can see, no progress has been made on the sale (I thought we were waiting for a survey, but last week they moved to a cash offer and now they are deciding if they want a survey)

The buyer emailed me yesterday to ask for a ten percent reduction on their offer, citing a potential 10-20 percent decrease in property prices and asking me to view it as ‘splitting the risk evenly between buyer and seller’

Firstly, the risk is not my problem. As an investor, it’s hers to take, or not, as she feels comfortable. Why should I share it? If I wanted to take risks like that, I’d be keeping the house. Secondly a ten percent reduction on the asking price is not a ten percent reduction on the offer, lady. And thirdly, a ten percent reduction in agreed price is an ACTUAL HIT to me, not a potential one. It’s not a even comparison!

She has also said that if I accept she will instruct her solicitors to proceed ‘as expeditiously as possible’. Well, why hasn’t she done that already? I’ve instructed mine, and paid them, and completed all the paperwork. She also smugly reminded me that she is a cash buyer, and not affected by interest rates.

I feel like writing back and saying:

1. The risk is hers to take or not. It’s neither my business or my problem.

1. If she wants to reduce her offer by ten percent then say so. The asking price is neither her nor there, as she didn’t offer it.

1. Inflation is running at around ten percent and forecast to rise. Her cash is already losing 10%. She swapping an actual 10 percent depreciation rate which will always be a depreciation, for a potential one which will likely be a gain over time. I am doing the reverse. (Although I suppose she could counter that with interest rates)

1. She is also benefitting from a (I think) five percent reduction in stamp duty. Shouldn’t we be sharing that, as well?

Obviously, I can choose whether to accept or not, and ultimately is doesn’t really matter why she’s reducing her offer. I do have some bargaining power. I bloody hate this sort of game, but I really, REALLY need to sell this house. God knows if I’d get another offer. It’s making an ever increasing loss, and is on a variable rate (couldn’t fix, as selling). Should I just suck it up, negotiate, or continue being silently indignant (which is obviously not very productive!). I really do need this money. I’m widowed and this business supports me and my child. It’s not paper money. Or just not having a holiday or a new Range Rover!

My instinct is to say "No" - get solicitors to act on agreed price, or withdraw. I wouldn't get in to listing reasons and trying to persuade her.

However, as with every purchase - some people desperately need to sell, and others don't. Only you know if a sale at a reduction from the already reduced price is more valuable to you than not selling for a while longer.

Selling to an investor sounds appealing in the first place, but ultimately you are then dealing with someone wanting to maximise profits rather than someone with an emotional investment in making the house their home. So they also walk away more easily.

Personally I would put it back on the market as you cannittrust them an inch. They are the sort to ask for another 10k off the day before exchange. The process is stressful enough, you don't need that fear on top.

As always, you have to figure out whether your buyer will walk away, and what price a replacement buyer would pay. I agree with you that house prices haven't fallen yet - and may not fall at all - so you shouldn't be taking a reduction.

It's going to be a difficult time for sales now. My buyer pulled out a year ago citing uncertainty around prices / the economy and the chain collapsed.

Even more so I can see this being something that happens time and time again.

How desperate are you to sell?
If you aren't then I'd say no. She buys at the agreed price or she doesn't buy.

Instruct your EA to remarket and tell the woman if she is renegotiating her offer, you’ll be reconsidering your options.
prices have not fallen. She’s trying it on. Buy or don’t buy. Piss or get off the pot etc

Annoying as it is, I'd probably accept her offer as 10% lower to get ball moving, but I'd also put it back on market and hope for any other buyer to swap to. I hate the renegotiating after agreeing price, such poor form. Fingers crossed you can sell to someone else at same or better price, as she's dicked you around so much. Good luck.

Unfortunately, you own the asset and you're trying to sell it, the asset is worth less now than it was in August and (due to recent events) will likely be worth even less soon. The buyer is under no obligation to purchase it.

I do feel your frustration. I'm currently selling my home and very concerned that my buyer will pull out and collapse the chain. We can't exchange yet because the vendor for the property I'm purchasing has been fuck-arsing around for the last two months doing nothing and won't respond to anyone.

If they pull out, you are unlikely to find anyone else willing to pay the August price. Your best bet is to negotiate down. Find appropriate, professional predictions on how much the market is looking to dip and split the difference with them - provide those sources and that reasoning to them.

I’d check with your EA on what currently they’d market your flat at.

If still the same value as when you accepted her lower offer tell her no, and give her 24hrs to get on with it or you’ll re market - and be prepared to do so.

She sounds like a time waster.

Not clear - did she want reduction of 10% of offer price or asking price?

Whatever, assuming there is potential drop in prices of 10-20% she wants you to take 10% hit and her to take a hit of somewhere between 0 and 10%.

I think you need to consider the possiblity of prices falling by more than 10% if you don't sell now and that is what the buyer means by splitting the risk.

What she's said about splitting the risk evenly is bollocks - you're selling it, why would you care about future value. However, if she no longer wants to pay the initial offer then it doesn't really matter how she's phrased it to you, you need to consider how likely you are to find someone else to pay the higher price. Accepting her lower offer may be your best bet. Or you could say you'll meet her in the middle of the original price and her new offer.

Don't take her opening offer, she’s pushing all her risk on to you, but I’d be willing to compromise a little (dependent on your agents advice on local market conditions) if you need to sell soon.
An investment buyer is going to be a bit less risk than someone dependent on a mortgage in current climate, hence she’s using that as her bargaining chip. Having renegotiated the price, i’d want evidence of concerted action to get to exchange over the next week or so, and make it clear you won’t be mucked around further.

I wouldn't get into a debate about it.

If you don't want to stop the price, then just say so. Be as honest with her as you'd expect in return.

"having already dropped below the original asking price, I'm unable to offer any further reduction. Please confirm whether you will be proceeding with the purchase so that I can re-list if necessary. Otherwise, I'm sure we both want the transaction to be completed as soon as possible"

Agree with pp. No debates, just that the price is already lower than asking so let you know whether she wants to proceed at the agreed price or not.

I'd put it back on the market. She is messing you about.

She has cash, she’ll be able to rent it out with no trouble. She isn’t taking any risk at all. remember that there is a major housing shortage - people need to live somewhere so I think many will still be buying

I mean so she’s taking the piss

I wouldn't get into a discussion with your points 2 and 3. just the first bit - The risk is hers to take or not. It’s neither my business or my problem. - is relevant. Just say that.

Just say no, or give your buyer a deadline. The agreed price is not going to change, you have until Monday to let me know if you want to go ahead and if you don't the house is going back on the market. Her message would annoy me, too.

Tell her it goes back on the market Monday?

easy for me to say, it’s not my money, or my house….

And so it begins.

Re 1. It is your problem surely if you want to sell it ?

FTR, investors aren't generally known for giving money away readily. If they do, they don't tend to be investors for very long.

Talk to your solicitor...I would calculate what she's going to save on stamp duty and point that out to her but as you are desperate to sell, say that you are willing to reduce the agreed sale price by say 5% with no further negotiations otherwise the house is going back on the market.

Nah tell her you are putting it back on the market. I agree that she is messing you around

I'd put it back on the market, but Im known for cutting my nose off to spite my face. But, she's messing you around at this point, she'll carry on at every point down the line. I wouldn't trust her.