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Original poster

Potential buyer dropped offer due to "market"

34 replies

DareDevil223 · 23/03/2020 16:09

DP is selling his late mum's house. We had a full asking price cash offer which we accepted over other, lower offers. Buyer has now dropped his offer by 15k because of the current pandemic and its likely effect on the market.

Any advice? I'm concerned that he'll keep dropping it because he thinks he's got us over a barrel. Should we counter offer or explore one of the other offers? Neither of us are experienced sellers Sad

OP posts:
TheMerryWidow1 · 23/03/2020 16:12

if you can hold on, personally i'd tell him where to go, he is trying it on.

AgentProvocateur · 23/03/2020 16:13

I presume it’s empty with no desperate need to sell. In which case, I’d tell your buyer to stick his new offer where the sun doesn’t shine, and put it back on the market.

Original poster
DareDevil223 · 23/03/2020 16:17

No desperate need. Probate hasn't even been granted yet but if the current situation drags on then the market may get even worse. The house needs modernisation and is priced to reflect this so it wasn't overpriced. Thanks both. I'll talk to DP again.

OP posts:
VivaLeBeaver · 23/03/2020 16:18

What percentage is the 15k drop. If house is worth 100k it’s a big drop, not so much if it’s 500k. How long did it take to get that offer? How quickly do you need the money?

No right or wrong answer. Market hasn’t dropped yet but I imagine it will so I kind of see his point. If he pulls out who will be house hunting at the minute?

Original poster
DareDevil223 · 23/03/2020 16:24

Asking price was 250k. Property went on Market last Friday and we had 3 offers by last Tuesday. The money from this sale will be put towards our new home so no huge rush.

OP posts:
Original poster
DareDevil223 · 23/03/2020 16:25

Friday before last rather.

OP posts:
8by8 · 23/03/2020 16:28

A lot of potential buyers are pulling out completely.

Tbh I think everybody expects prices to go down now, so it seems reasonable.

Ariela · 23/03/2020 16:33

Just say 'that's fine we have others interested' .

KoalasandRabbit · 23/03/2020 16:34

Ask EA advice. Ours has just told me the market has collapsed with viewings at below 10% of average so may still be worth doing the deal. Might be worth going back to others first. I would also favour anyone who could complete quickly and no chain.

KoalasandRabbit · 23/03/2020 16:37

Our EA advised us not to put house on market now, that's how bad it is.

TeaForTara · 23/03/2020 16:46

If you haven't got grant of probate yet then you're not in a position to sell, are you? When do you expect that to be issued? I'm in a similar situation myself although the house isn't on the market yet. I don't need the money urgently so I'm going to wait a while.

If your other offers are over £235k then I would refuse his reduced offer and go back to the others. Ideally you want someone desperate to move quickly, but again that depends on when probate is granted.

Original poster
DareDevil223 · 23/03/2020 16:46

We wouldn't have chosen it obviously but even a week and a half ago I don't think we realised how bad it would be.

OP posts:
BeijingBikini · 23/03/2020 17:01

I would take it. I don't know who would else would be buying rn. We had an offer accepted which is now like a millstone over my neck - I think we will pull out next week. Everything seems to indicate recession and house prices dropping. I've lost half my job so taking on a huge mortgage is looking unappealing.

littlecontis · 23/03/2020 17:37

I would just go back to others who have offered asking price before considering taking the lower offer. It might be quite hard to sell if you don't take up one of these offers now.

Inextremis · 23/03/2020 17:41

I am in almost exactly the same position - selling late father's flat (same price as you, too!) - first buyer dropped out due to 'the market', but luckily we already had another offer - actually for a whole £20 more - we said 'fine' to the first buyer and are currently awaiting documents to sign for the second buyer. If I were you I'd put it back on the market at the original price and see what happens - you need to wait for probate anyway. Best of luck!

ChiaraRimini · 23/03/2020 17:56

Depending where you are in the probate process then it could take ages. What were the other offers?

Barkingfuckingdogs · 23/03/2020 18:15

God, I'd snatch their hand off.

Original poster
DareDevil223 · 23/03/2020 18:48

Thanks everyone. I'll talk to DP later and we'll decide what to do. The EA think it is still a good offer and as long as he doesn't take the piss and keep dropping it we'd be okay.

I'll update when I have more news.

OP posts:
mumsy27 · 24/03/2020 02:39

hardly any houses on the market, house price will hold just like brexit no one wants to sell now.
they will lose more in rent+cost lost already than any equity lost in yours if any.
stick to your offer.

everythingcrossed · 24/03/2020 08:15

I think £15k drop in current/likely future market is nothing. A cash buyer? I would absolutely take their offer.

There are several large property auctions due to take place today and in coming few days (Savills, Allsop, Auction House etc). It might be worth looking at how many of those properties sell and at what level - especially in London, the hammer comes down well in excess of the guide price usually - to give you an idea of confidence in the market from professional buyers.

ChicCroissant · 24/03/2020 08:19

I'd go back to the other viewers, someone who drops their offer in less than a week is going to be a pain to deal with going forward. Avoid!

slipperywhensparticus · 24/03/2020 08:21

Could you not stay there yourselves

AniAfri · 25/03/2020 13:50

Coming from someone who has reduced an offer recently (and had it accepted), I wouldn’t assume the buyer was taking the piss. It’s clear why he has made the decision to revise he offer, and has reduced his offer, in my opinion by a reasonable amount

Despite having already reduced my original offer by 5k on a house that was on the market for 325k. I will be going back to the seller at some point to request a further reduction, or to put everything on hold for 3-6 months. If the sellers aren’t happy to do either one, I’ll be pulling out. Now just isn’t the time to be buying, especially as a first time buyer

jimmyjammy001 · 25/03/2020 20:00

Barclays has just today withdrawn almost all mortgage products above 60% LTV, I suspect others will follow due to the state of the economy, people will need to some how stump up a 40% deposit for a house now, should have a major effect on prices.I would accept what you can.

www.financialreporter.co.uk/mortgages/barclays-withdraws-almost-all-mortgage-products-above-60-ltv.html

BeijingBikini · 25/03/2020 21:14

Yeeeeesh, that's going to lower house prices if nothing else does!

FTBs can barely stump up 10% let alone 40% - we saved up 50k over about 4 years, which would get us a 15% deposit on a nice 2 bed flat around here. We are both professionals on good salaries, who rent a small flat, drive an old banger and have 5 year old phones. We save half of our salary a month, yet can only afford 15% of some vastly overpriced flat. I have no idea how people on minimum wage could save for a home. Most of my friends have had to rely on relatives dying or parental bank for their deposit. A correction is definitely needed.

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