Selling and buying - WWYD?

[stevieknicks]

Just been reading the property slump thread with great interest. We are having a real confidence crisis about making the right (or best in the circumstances) decision about our sale, so I thought i might throw it open for honest opinions!

We are selling a two bed flat in a very very popular part of London where prices have continued to rise despite the recession. We want to buy here too which is a problem!

We put the flat on the market in June and within a few days had offers, we accepted about 5% under asking price for a chain free buyer.

Since then, have had DC2 so desperate for space and a little garden for DS to run off his toddler energy...

To cut a long story short, buyers' bank undervalued the property (they are apparently notorious for undervaluing) and they have now twice cut their asking price as we approach exchange - I am so fed up with them and don't trust them any more, we are now another 10k down and will struggle to afford a house here as we were at our mortgage limit and using all our savings already.

So our choices are:

1. Accept their offer as estate agent is pushing us to do (commission-hungry?) as he says that we may not even get that much if back on market
2. Ignore him and tell them to sod off and put back on market straight away
3. Take off market and wait a few months, maybe finding a mythical affordable part of London with good schools, villagey, safe and clean, blah blah

We may have an offer accepted tomorrow on a house here, which is within budget but pretty small, and I am worried that we in desperation buy it and spend stupid money on an 'ok' rather than dream family house...

Sorry for long ranty post, just can't get my head around right thing to do - only gave birth a few weeks ago so not firing on all cylinders anyhow

So their first cut was after the low valuation, and the second one was them trying it on?

2. with a view to shaking them up: tell the agent your bottom price and tell him that if he can't get that out of them you will put the property back on the market. He wants a sale so should galvanise him into some action. BUT be prepared for them to pull out so have to put it back on the market straight away. If they pull out get other agents round to revalue it to see what you really could expect, then decide whether to give in and stay put or put it back and revise expectations.

vesela, the valuation was 15k under the agreed price, so they are still offering above the valuation - just. I do completely see their point of view, they are spooked by a low valuation and the threat of a property slump again - but they had given their word (means bugger all I know) that they were not going to reduce their offer based on the valuation given the advice of other agents in the area....
oldenough, was thinking of getting another agent out tomorrow regardless as I do feel like we are flummoxed about what our property is really worth - were we/agent being greedy last time round, or is it still worth our original asking price?

I think you'd be nuts to turn down an offer even slightly above valuation in a falling market. (I also think they're nuts to offer you above valuation.)

I'm pretty intolerant of people dropping their offers so I'd tell them to stick it and get the flat back on the market asap. Ignore any pressure from the agent to accept a lower offer as estate agents are lying scumbags who would sell their grandparents if the price was right.

I would find out what your flat is actually worth (not necessarily what an agent would market it for but what a bank would value it at) to see if this bank has under valued. If they have then I wouldn't hesitate to dump the buyers and re-market it.

Accept it!

I am with you on that one MisterW, DH thinks because we know EA a bit he has our best interests at heart - but £10k to us is £100 commission to him. So, lose £100 or lose the entire sale and full commission?

You know you local area better than others here on netmums who don't know where you live. Some people don't believe there are areas that are still holding their value. Are you in East Dulwich by any chance? As you say, £100 is nothing compared to losing the whole commission worth thousands, and EAs have been quiet during August and will be getting desperate for it. If you are going to be limited in your budget buying your next place don't accept these buyers playing games with you. Go get a valuation from another agent or 2. (BTW, if you want a nicely done up 3 bed in SE London near a good school and a park behind PM me, I have one for sale )

Ah, in East London! Sounds lovely though!

Definitely get a couple more valuations - if you don't you will always wonder.
Also, don't offer on a house that is too small when you have just had another DC.
Definitely better to wait and get it right, it is a costly regret to fix...