Stalemate - what would you do?

[itstheyearzero]

Will try and keep this brief, but would appreciate some advice. My Mum and Dad died a few years ago, and my brother and I were left the house. It was on the market for a while just before the crash, but it didn't budge so we rented it out. The tenants moved out and wrecked the place, so I decided to put it on the market again rather than go through the whole nightmare again. Anyway, a couple of weeks ago I received an offer! After some negotiation, I accepted an offer of £12.5k under the asking price, because I jsut want rid of it (its costing me c£200 a month to keep the place going - council tax and insurance).

The survey came back and said that it needs rewiring as it's 'not up to current standards'. Fair enough, I'm not sure when it was last rewired so it probably could do with updating. Potential buyers can only get a mortgage for the offer price (surveyor valued it at offer price) and they say they can't afford £2k to have the rewiring done. Initially they asked me if I would pay for the rewire after completion, I said no.

Now we have reached stalemate. I don't see why I should lose £2k when I have already reduced the price by £12.5k, plus the report does not say that the wiring is dangerous, its just not up to current standards. Obviously they are thinking well if we want to decorate etc we need to get the wiring done before that, but that's their problem.

I don't want to lose the sale obviously, but then again, my inheritance is being chipped away at....but then I keep thinking 'well its costing me £200 a month so should I just cut my losses and reduce the price by another £2k.

What would you do?

surveyor is doing usual arse-covering - if wiring isn't dangerous, it's fine. Certainly you don't do anything after completion!

£2k is 10 months further delay in the sale. Your call as to whether you want to chance it - but if the place is still wrecked then this sounds like a bird in the hand situation. What does your agent think - if you have one?

Can you have an electrical report that will say whether the wiring is safe or not? 99% of houses in UK will have wiring that doesn't meet current standards (that includes things such as having sockets and switches at a certain height to help people with disabilities) but that doesn't mean the house needs rewiring as such.

I agree with specialsubject though, if it didn't shift when it wasn't wrecked, I might be tempted to let it go to people who are willing to take on a project.

Would they be prepared to meet you half way? If it were me though I would rather the sale went through than not. You may lose that again if you can't find another buyer for a while. Previous purchasers of a house we sold played a dirty trick on us and wouldn't complete unless we dropped by 2k (this was very last minute after months of conveyencing) we were so fed up by this point we let them have it. I resented them for ages but in the end we got the house we loved.

Thanks youa ll make some good points. lala - the report said it would 'benefit from a rewire' so there's no suggestion of it being dangerous - therefore I'm loathe to shell out any cash for another report. Flossie - not sure if they will meet me halfway - the ball is in their court at the moment, I assume they will discuss it tonight and decide what they want to do. It would be a shame to lose the sale - the house could stand empty again for months, I don't live close by so it would be a worry if it were left empty all winter - risk of frozen pipes, house getting cold and musty etc etc. Special - the agent thinks they won't pull out, they are just trying it on, but if they haven't got the money for the rewire they may just pull out . If push comes to shove, I think I will suggest we meet halfway. Aaagh it's all so stressful, I just want it all to be over!

I'm so sorry about your parents, and about the hassle you've had with your property.

I would do the following:

1. tell your estate agent to pass on the following to your prospective buyers: you would very much like to get the deal done, but as you have already given a substantial price cut, you feel there needs to be a bit of understanding from both sides. They can't afford a higher price, you can't afford to cut. Whilst the situation is so uncertain, you would prefer to continue marketing the property. You will definitely get back to them if there are no further offers, and perhaps the delay will give the buyers an opportunity to find or save the extra money.

2. tell the EA to put the property back on Rightmove with a new asking price equal - or at least much closer - to the price that is currently on the table.

My guess is that the buyers are being cheeky (this is why you should never exchange close to Christmas). Faced with losing the house, they will pay up fast.

If not, you'll have a flying chance of an offer from someone else with a much lower price.

Worst case scenario, you go back to the buyers after Christmas and either split the difference or drop the £2k. They're unlikely to find something else in the 2 weeks before Christmas, and the uncertainty will ruin their holiday break. It works both ways

I'm pretty sure that if the house is empty you don't have to pay council tax - I don't know if this varies by council, but I certainly didn't in a similar situation. Worth checking out, if you're thinking about ditching this buyer?

I think they're trying it on. They won't be getting a 100% mortgage, ie borrowing the whole of the purchase price, they'll have a deposit and will be borrowing 75% / 80% whatever. They might have to find an alternative deal which is potentially less attractive for them, but I very much doubt that they can't find a way to fund the purchase. If the electrics had been condemned, the mortgage would be conditional on having the work. If its just a case of the electrics benefitting from being updated, then this is something they can do as and when they can afford it. If money is tight for them, they are not going to walk away having had a survey done, gone an electrical report etc - they're already committed financially to the purchase.

I would stand your ground - perhaps offer them a contribution (of upto £500 or something as a "goodwill gesture" to keep the peace if it really looks like the sale will fall through) but I anticipate that if you play hardball, they will proceed in any event. Good luck

Unless your house is virtually new or has been completely rewired in the last few years the wiring won't be up to current standards. That doesn't mean it's not safe. The buyers are trying it on and I would go with 1605's advice.