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

[Duckstar]

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.

Let's hope they actually stick to that! I'd trust them as far as I could throw them.

Good luck.

Fingers crossed for you, I admire your hard ball game playing.

We didn't have this happen to us, but we had discussed the possibility as it seems to of happened to so many people. We were of the view, we would take the line that they could shove the offer where it doesn't shine and we would only sell for the agreed price. We also said the price would go up £100 for every hour they messed us around. Not sure if that is enforcable, but we liked the idea of having a plan, if we ever we needed it.

How's it going OP?

Stressful Choughed! We are meant to be exchanging today, but buyers raised more enquiries Tuesday night. We've been running round getting answers, also had to get extension on mortgage (which took a week, but we have got, phew). So we are waiting on our buyers to see if they are happy with answers and agree to exchange. Not sure will get done today - still waiting for them to do something. I just don't trust them.

OMW you need and lots of it!

Sadly, I can't drink as I'm pregnant with DC3 (don't make my life easy). I am however eating large amounts of chocolate!

Still no update on exchange so doubt will happen today. Solicitors have probably all gone home.

OP sounds stressful! Our buyer tried this but luckily I think the EA thought it was so ridiculous that it has been more or less dealt with before it came to us.

Basically young guy buying to let (but pretending to us he was going to live there) wants to bring 'his builder' round. When the buyer and the builder turn up, it's clear that they have never even met before which was weird.

They have a look round having whispered conversations.

Next day EA calls and tells us that 'his builder' reckons house needs a new roof as it's not done to today's standards and the driveway needs re-laying, cost £30k so could we split the difference?

I just laughed. Told them that yes the roof was old but it was not illegal or in disrepair. The driveway also did need re-doing but that had also been the case when he viewed the house the first 2 times. As far as I was concerned he had put an offer in based on the house I was selling. If he wanted to carry out home improvements then fine, he could do what he wanted once the house was his, but I certainly wasn't paying for it. I also pointed out that the market had risen since we accepted his offer so actually he was already getting a good deal as we could have probably got at least another £10k if we had re-listed.

EA said she agreed and had already told him as much, but had to pass it on. Buyer just said OK and progressed with the sale luckily. Clearly just wanted to try his luck and fair play to him he just took our 'no' on the chin and carried on.

I'd let the estate agents know today you intend to put the house back on the market on Monday. You already gave ground when you agreed to exchange on Friday rather than Tuesday (deliberately designed to give an extra two days' delay over the weekend?) - no more chances.

I second what tribpot said. They agreed 23rd then purposely raised more questions on Tuesday because they knew it would delay exchange for the 23rd. House would be back on on Monday if it was me, and if these buyers still wanted it I'd up the price by 5k just because of their pissing around. It may make them think twice about doing this to people if they lose out on the house they want to buy.

Its called gazundering isn't it. Massive wankers do it.

Not had experience of it yet (but a friend's uncle has), however if our buyers try it (due to exchange and complete on same day on 16 October) we will tell them to do one. This would cause us some short term financial headaches but is not impossible for us (we are completing on the property we intend to buy on 28 October having already exchanged...so we already have a period where we will own two houses...it would just extend that period)

The whole moving house thing is a PITA - we were gazumped earlier this year having shelled out on a survey, searches etc

God, what a bloody nightmare they are being!!! Why are people such arses?!?! Good luck OP, I think you're going to need it.

Seems to me it is not just the buyers that are messing you around, but the agents too!

I would tell the agents to take it off the market as you want to remarked with a different agent.

Thanks for all the advice and support. If this falls through we are just going to pull out of our purchase and take house off market (with a different agent). DC3 due in the New Year and DS2 was preemie so don't want the stress of trying to re-sell when potentially going into early labour. OB has told me to take it easy from beginning of December. It's been 6 months since we put house on market (and given we are in SE and in a seller's market) that is just a ridiculous amount of time.

I'm working on basis that it will fall through next week, and have come to terms with the fact. So if it does go through it will be a pleasant surprise. Will keep you all updated about what Monday brings. We have the packers coming in Tuesday, so we need an answer by Monday at 3pm, otherwise we are going to incur those charges (we have an insurance policy to cover having to cancel/change removal date), but have to give 24 hours notice.

Any news?

Update - I must have been very, very bad in a past life

Spent the day chasing. Problems with deposit at bottom being released (eventually was done). Our buyers sols had an "internal procedure" to deal with (who knows what they mean). Informed this afternoon everyone ready to go and then our vendor comes back and says they want a larger deposit.
Oh yes, our buyer, Friday night announces that they can't top up deposit coming up chain (no spare cash relying on mortgage and equity in property to pay for everything) and just wanted it to be passed up. Vendor initially said, ok, but top up to 5% (which we did). Now they've come back saying they need more (no information on how much). We've gone back and said we will top up to what we were expecting to top up (i.e difference between 10% of our sale price and 10% of our purchase price). We will see what tomorrow brings. I wish now I had just pulled out last week, this is just horrendous!

I don't understand, why does your vendor want more deposit from you???

Is this just because they don't trust your buyers and think the chain is going to collapse?

RandomMess don't know. I imagine they are thinking if the deposit goes up the chain then they effectively are getting smallest percentage deposit. May feel if we haven't put something in we may not actually feel at risk of breaking contract (although we would still be liable under contact for 10%).

They may feel if something goes wrong they want as much money as possible in deposit so they only have to pursue us for a small amount. If we don't have any "free cash" they would have to look at a charging order on our property; however, the reality is neither my husband and I can work with CCJs against us so if the chain did breakdown after exchange we would have to find money to pay our vendor and then would have to pursue our buyers - we are a safe bet in terms of entering a contract.

I think you need to keep the thumbscrews on your buyers tbh, just that they are doing this to you.

Any update??

Yikes! What a nightmare!

I don't get why the vendors needs a bigger deposit from you. Surely they will get exactly the same amount of money when you complete made up of their mortgage funds and your deposit, and how these are balanced makes no difference. Or have I missed something?

Any progress op? Hoping things are finally getting there for you xx

Update: Sorry for delay. We exchanged on the Tuesday and completed on Friday. The delay in updating is because I was admitted into hospital on Tuesday with meningitis. Still in now. Much better, but still can't look at bright lights on phone for long. Thank you all so much for your advice and help.

Bloody hell Duckstar, the house sale must be the last thing on your mind just now. Hope you are feeling better and will soon be out of hospital.

OMW I hope you and baby are ok x