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Original poster

Buyer dropping asking price on day meant to exchange - any experience?

81 replies

Duckstar · 12/10/2015 21:04

I had a thread end of August. Buyer, who was an "investor", was messing us around, refusing to agree date to aim to exchange/complete. We had accepted lower offer as they were cash buyers and wanted to move quickly, but just delayed and delayed (6 weeks to instruct sols). Got great advice here and gave ultimatum (agree a date or deal off). Buyers ignored us so we put house back on market. Fortunately, our vendors gave us a couple of weeks to find new buyer (in SE, shortage of property in area). We are ready to exchange on property we want to buy.

Found new buyer in 6 days. Same lower offer, but thought worth taking hit rather then lose property we were purchasing. They are selling 2 bed house to an investor (who has several other properties in street). We made it very clear to EA we wanted to move quickly (DC3 due Jan 2015 want to get a move on). Everyone was happy to proceed quickly.

Plan was to exchange today, complete in one further week. I have been getting a bad feeling last few weeks, little things, but for example, I was contacting removal companies and realising that we would pay a massive cancellation charge if we booked and changed date within 7 days, so was really pressing was everyone ready to go. I also asked if our buyers had booked movers because surely they were facing similar charges?

This morning EA contacts and says the buyers won't agree date to complete as problems with spelling of names in contract (which they have had for over a week). I tell EA they need to stop messing around. This evening we get told they are dropping their offer by 20K because surveyor has classified as our property as end of terrace rather then semi-detached (its a house attached to some apartments), apparently they have sufficient funds, but feel this "devalues property". Survey was done 3 weeks ago.

We've told them to take a hike. We can't afford a 20K drop. We can't afford 10K. They have till 3pm to confirm purchase at original asking price or deal is off.

Anyone any experience of something similar? Have we done the right thing? Are we doomed to never be able to sell our house. We are looking at losing 6 K on fees etc and have nothing to show for this.

OP posts:

CrapBag · 12/10/2015 21:11

I remember your previous thread.

Don't drop the price. They are seriously trying it on. I hate it when people dick about like this. My guess is they won't be willing to lose the house for this. They knew the price, survey was done weeks ago, they know you are in a hurry and are banking on you doing anything to keep the deal together.

I know you can't but if I had a buyer do this I'd say "thanks for messing us around, house back on the market, goodbye."

Ours is end of terrace. Some insurance companies etc class it as semi detached. I don't think there is a great deal of difference in terms of value. Mid terraced yes but not end. Why would that matter.

lalalonglegs · 12/10/2015 21:12

I haven't got similar experience but, I'm really sorry, from the sounds of it, they have got cold feet and are now only prepared to buy if they get some ridiculous bargain. They're effectively getting you to dump them like a really cowardly boyfriend - let's be honest it's not as if you have been disguising the status of the house. I could well be wrong but I think it may be worth preparing yourself for the worst

BigGreenOlives · 12/10/2015 21:17

My dad had this & told them to get lost. We put the house back on the market & they came back 3 weeks later & paid the previously agreed price. Our next door neighbours did it to the previous neighbour & she gave up £20K 10'years ago, we know another family who did it & cost the owners £20k. All three instances were lawyers. My recently widowed dad would have been down £200k.

MargoReadbetter · 12/10/2015 21:18

What dickheads. I'm sorry you're having this hassle. Good luck tomorrow. I hope they get back to being decent ppl (of sorts).

Original poster

Duckstar · 12/10/2015 21:22

CrapBag I was sorely tempted to tell them deal off there and then, but managed to restrain myself.

Lalalonglegs, as you say, its not like we've hidden the property type. We specifically checked with EA if the issue was if the mortgage offer had come back lower because of this (and if so why was this not flagged up weeks ago), and they have said no, they have sufficient funds. We remortgaged a year ago and the valuation was only 5K under the price we were planning to sell for House prices, and house prices have gone up in area by 10% in the interim!

Lalalonglegs am preparing myself for worse. It's so gutting because you spend all this money on purchase and have no protection what so ever.

OP posts:

Toughasoldboots · 12/10/2015 21:30

This reply has been deleted

Message withdrawn at poster's request.

Original poster

Duckstar · 12/10/2015 21:37

Thank you for all the supportive messages, sounds like it's a common problem. We will wait to see what tomorrow brings - I am expecting them to come back saying they will come up a bit more.

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Original poster

Duckstar · 12/10/2015 21:38

Pressed return too soon…

They will come up a bit, but that they still want to knock something off asking price.

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poorbuthappy · 12/10/2015 21:47

An acquaintance of ours does this everyone time he buys a house. (I say acquaintance because I can't be friends with someone who does this). He saves tens of thousands of pound each time, but causes untold stress on the chain and is basically a twat.

They do it because society tells them they can. Walk away.

CrapBag · 12/10/2015 21:49

I wouldn't knock a single penny off but I've got no time for dick heads. Good luck.

mandy214 · 12/10/2015 21:49

Not really us but when we bought a house in 2004, it was as a result of the vendor putting the house back on the market after her buyers tried to this on the day of exchange. She said no and re-marketed.

I think it's fairly common unfortunately . And biggreenolives the people who messed our vendor about weren't lawyers. We were though, but had integrity and never messed her about.

lalalonglegs · 12/10/2015 21:54

If you can't afford to drop the price, then it makes the decision easier at least. Just say no and get the estate agent to start ringing round other people who are in a position to move quickly. Good luck .

wannaBe · 12/10/2015 21:56

I wouldn't give them the time of day. I've been in a position where we had to accept a lower offer after a buyer pulled out but we were moving counties and had to be in by the beginning of the school term so they had us over a barrel

But in your position I would actually just tell them that you're no longer prepared to sell to them and re-market the property. If your vendors won't hold out then something else will come up - frustrating as that is. But the reason why these people do it is because people feel cornered and give in to them.

My sister had a situation where their buyer knocked on their door a week before exchange and dropped the price by an amount - can't remember how much it was. She told them to do one. IMO once people show their true colours like that it becomes a matter of principle not to sell to them.

Original poster

Duckstar · 12/10/2015 22:02

Mandy214 I am a lawyer as well (but inquests/PI/Clin neg not land law) and would never do this. It's one thing if a survey comes back with problems and there is a reason to discount, but this is blatant trying to take advantage of the situation.

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BigGreenOlives · 12/10/2015 22:10

The fact you are pg with dc3 probably makes you look like a soft target to someone ruthless Duckstar. I do know lots of nice lawyers, just have come across some who play hardball when it comes to property transactions. Good luck & stick to your guns.

Original poster

Duckstar · 12/10/2015 22:17

BigGreenOlives, I agree about the pregnancy. It's the first thing my DSis said.

I agree about the lawyers as well, I have some lovely colleagues, and some who I know would absolutely do something similar - they bring the profession's reputation down (and it's not like we are particularly popular in the first place!)

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RaphaellaTheSpanishWaterDog · 12/10/2015 22:50

Sorry this has happened to you OP.....

When we sold our house last year our buyers were selling to an investor. She also happened to work for a charity overseas, but that didn't make her a charitable person did the same thing to them days before we were all due to exchange. Our buyers were so desperate not to lose our house they agreed the price drop, but had it been me I'd have told her to get lost.

As it was they had accepted her original offer before their house hit RM etc and imho they could have achieved considerably more had they waited and not sold to such a bitch either.....

Good luck

Needmoresleep · 13/10/2015 11:42

I saw this being done by an expat senior City banker type. Unfortunately I knew both buyer and seller. They had won a sealed bids process by bidding over the odds, then tried to recoup the extra money they had bid. I think the guy just wanted to "win" the negotiation.

In this case it was a great house in a popular area, and the agent could go back to the disappointed bidders and they had a new offer within a day. It may have cost the vendor some money but at least any saving did not go to the original purchaser (who probably lived to regret their action, not least inevitably people kept a bit of distance from the wife who had similar aged young children, but also because house prices then rose sharply.)

Soooo....speak to the agent. Does he think he can find another buyer quickly at a similar price. Ask him to do an Open House as soon as possible. I would also speak to a couple of other agents and, assuming you find an honest one, take their advice on whether to offer a last and final reduction (£5K?) and then stick to it and have it dependent on exchange within a set period. Or simply walk.

ChunkyPickle · 13/10/2015 12:03

I know lots of people this has happened to.

My favourite one in the other direction, was that an acquaintance was buying a house, just before exchange, the seller decided to put the price up 15k, so the lady I knew said that yes, but it was an under the table deal, and she'd bring the cheque round once completed.

Once it was all done and dusted, she just never took a cheque - what was the seller going to do?

CocktailQueen · 13/10/2015 12:05

Bastards! They're just trying it on,. Very crap - rude, brass-necked, to cause maximum stress. Stand firm, OP!

Original poster

Duckstar · 13/10/2015 14:53

Update - they have backed down say they will pay the 580k.

Said they will aim for completion on the 30th October, but won't exchange until all outstanding issues resolved (which is fine, but concerns me that they are just dragging the matter out). EA is establishing what issues are outstanding.

They have been speaking to surveyor today, I still think they are trying to get their surveyor to say the property is an end of terrace, not a semi, and as such they can justify knocking price down. I have told EA, if they do that, don't even bother coming back to me, the deal is off.

If I ever move I am never moving ever again…

OP posts:

lalalonglegs · 13/10/2015 17:29

Hurrah! I'm very pleased to be wrong .

MargoReadbetter · 13/10/2015 18:22

Sounds like they know you mean business now. As for the EOT vs semi, it's nit exactly a hidden 'issue'. Good luck with it all.

do11y · 13/10/2015 19:40

OP, I had a similar situation when my buyer for my overseas townhouse started messing me about. The market is somewhat different there, for instance the buyer cannot withdraw unexpectedly from her binding offer to buy. However at the last minute she started saying that various things in the home were broken and therefore I was in breach of contract. I stood firm and was able to see them and their nasty little threats off.

It got me thinking about what I would do if something like this happened in the UK. Because buyers are so easily able to break their commitment to buy with very few consequences, I wondered if it might be possible for a seller to draw up a contract of sorts which stipulates that the buyer is liable for any of your costs should they ever pull out to he deal unexpectedly? Similarly if the seller pulls out unexpectedly, they should be responsible for the buyers' incurred costs. I am not sure if this is possible, but it certainly should be!

Original poster

Duckstar · 14/10/2015 13:28

Further update, buyers want to come and view the property on Monday regarding decoration purposes, but bring someone to "check" the boiler. A boiler which is only 4 years old and was serviced in July.

I said to EA that they are clearly trying to get price down (who threatens to drop price 20K on Monday, changes mind and decides to enquire about curtains on Wednesday) and I will not budge a penny. I've told them unless the engineer is Corgi registered he is not touching my boiler.

I just want to pull out now. I mentally prepared myself on Monday it was all going to fall through and now I just feel we are being messed around. DH wants to carry on and speak to them face to face on Monday.

Thoughts?

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