… to ask your help deciding on how to respond to our buyer’s request

[Northerngirl1969]

So, we’re part of a four person chain with four houses being bought/sold. Our buyer’s house has been surveyed and an issue has been found. Their buyers (the FTBs) are requesting a £20k reduction as a result. The estate agents representing our buyers (and the house with the issue) are suggesting we help out our buyer by taking £10k off our price and that our sellers should take off £5k. Thus we would be worse off by £5k, our sellers worse off by £5k and our buyers (and the owner of the house with an issue) £10k. The first time buyer will be better off by £20k. The issue is not major. Our estate agent believes the quotes for the work don’t come anywhere near the £20k but of course there’s inconvenience etc. Lastly the FTBs got the survey done on the house very late. So we’ve already 3 months in and several thousands of solicitor fees in. Your thoughts are very welcome!

I agree with this. From what you’ve said, OP, the figure of £20K sounds inflated. Why should the whole chain, or indeed the sellers to the FTBs, pay for the FTBs inconvenience or possible cold feet?

Like a PP I wonder how much the FTBs are using the boilerplate about the house they wish to purchase not being up to the electrical code, whether or not they realise that no house lacking recent updating is ‘up to code’, and other such phrases to obtain a late discount. It could be manipulation, nervousness, or tight finances. But it isn’t your problem.

Thanks everyone for your replies. I am swinging between thinking it’s bonkers to go along with the reduction and bonkers not to given the amount we’ll lose.

Our buyer didn’t have a survey on our house.

Although the house may not be at 18th edition part 2, no house needs to be unless it was built or rewired since 18th part 2 came out. It's no risk on insurance and 20k is a massive p take unless the wire in the house is vulcanised rubber, and you need a new incomer (or the house is big)

OP we were in a similar situation 8yrs ago. We broke the chain and remained in our home for another 3 years. No way were we getting involved in those shenanigans.

Just to add incase it’s relevant (and apologies if so) the issue is damp related

Absolutely would not be taking a hit on your sale in response to an issue on your buyer's house. No way Josè. And I think the estate agent is a CF for asking (but then no surprises there re estate agents).

To be clear, I’m not 100% sure whether it’s our buyers asking or the estate agents

That does make a difference to if they are taking the piss with 20k. But if they have a mortgage agreed (I.e. not in principal) so the mortgage company is aware of the damp then it's not your problem. My first had a damp issue, mortgage was fine with it.

If you do decide to pay then demand to see the 3 estimates they have and give them a deadline of 24 hours for you to receive them.

It doesn't matter that it's not the OPs link in the chain that's broken. Without the FTB, no one is going anywhere. So they all have to wait until vendor 1 finds another buyer, surveys etc. By which time someone's mortgage offer could expire...its really not that simple as to say its not OPs problem.

I wouldn’t be chucking any money into the pot. But I’d suggest that maybe the estate agent who came up with the idea might like to throw some of their commission at the problem to keep the deal together. No sale no fee

Only you can determine how important that £5k is.

If you bought your house in the 1980’s for £30k and are now selling for £400k I’d probably take the hit

On the other hand you could be in negative equity where a small sum makes a huge difference to your profit/repayment

My stepson has something similar in that the buyers of his house couldn’t get his money without losing a few k in interest and wanted to pass his stupidity up the chain

they all said no and the sales went through within a few weeks

It’s a relatively new purchase so we’re pretty much selling at what we paid for it. I feel like £5k is alot of money to give away but it’d be feasible.

I think the issue is that in this scenario, you have no control over the quote, the reasonableness or the decision on whether the work is necessary. You also, frankly, don't know if the damp was blindingly obvious at the time they put in the offer.

I would want to know if those above me in the chain were even contemplating going along with this, or similarly what their position was if they are the top of the chain and whether they are able to wait for those below you to get their act together if the FTB pulls out and your buyer needs to find a new buyer.

At least you are being informed! When we last bought, we were not informed that the delay was because the top part of the chain collapsed until we went for a further viewing to measure up and our sellers told us themselves!

It's not uncommon, they need to push back on £20k though. They Get some quotes and counter offer.

You can say you'll take a £2k hit, people above you £2k.

Up to the ones below how much they can take in addition to that £4k.

I would say no. It’s not just about the money. For the rest of my life I’d feel like I let someone get away with taking the piss out of me! Even if I ended up worse off, it’s the principle. Not your problem, tell them to get lost.

Pretty much guarantee a damp meters was used and the survey says there is damp, a damp proof course should be installed or further investigations should be done etc etc.

Damp meters are useless and surveyors cover their backsides.

Just as an aside if there are price changes throughout the chains then mortgages will need to be repplied for if applicable. I wuold guess if everyone agrees the next suggestion is it is cash given to each party so as to not affect the mortgages - that is not good.

if there is work to be done the sellers of the house with the issue should cover the cost

Are your sellers happy to pay the extra £5k?

We don’t know yet, we have asked.

It depends how much your making on the sale really.

How much did you pay for the house, and how much are you now selling it for?

The details of the situation aren’t important. All that matters is whether the house sale is worth 5k to you. Will you be cutting your nose off to spite your face just because people on here are telling you to?

Do what feels right to you. Usually if something feels really difficult, it’s because it’s the wrong decision.

my response is as follows

1. no
2. hell no.

basically I think it stinks and is up there with gazumping. I might consider if it were my perfect live there forever dream home and the amount was a very small percentage of the money involved.