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Seller demanding £33k extra on exchange day

999 replies

Firecat84 · 21/04/2021 05:01

After weeks of harassment from our sellers about the process going too slowly (it's been about 5/6 months due to us losing one set of buyers halfway through - we've been chasing solicitors like crazy trying to speed everything up) we were due to exchange yesterday. On the day however, we received a message via the vendors' solicitor saying that house prices had gone up so much in the time it had taken the deal to go through that they wanted an extra £33k (they gave a whole bunch of other vague reasons too, which I think boil down to they've had to pay for an extra term's private school fees?!!) Obviously we don't have this money and even if we did we don't want to give in to such horrible tactics. The vendors aren't in a chain going up - I don't know where they're moving after this.

The house had been on the market for a while when we made our offer and had been reduced twice. I believe we were the only offer (it has potential but needs quite a lot of work). We offered £8k under the lowest asking price. At the time there was plenty on the market in the area and now there is nothing we could afford. All the houses available are bigger and nicely finished, which does give the impression prices have gone up, but I think it's a bit misleading.

We are financially stretched to our limit as it is but are in a flat with a baby and desperately need more space. We've spent so much time and energy (and money) on this move and we're just exhausted and depressed by it all. My family want us to walk away and not give any money to such horrible sellers. What would you do?

OP posts:
Lassy1945 · 21/04/2021 09:30

@IdblowJonSnow

Walk away. Don't offer them an extra penny. They are likely chancing it. I can imagine how stressful this is and I'm sorry. Why shit like this isn't illegal, I've no idea.
It would be wrong to force people to sell their home

Rheas vendors have behaved abysmally
But the system makes sense - both parties can withdraw before exchange.
At exchange both legally financially have skin in the game
At completion both legally finally have skin in the game

CleverCatty · 21/04/2021 09:30

worked in conveyancing for 5 years as legal sec/PA - they're pulling a fast one and being really greedy nasty people.

your solicitor should advise you to walk away and I definitely would.

CleverCatty · 21/04/2021 09:32

there will be other houses/properties and would you really want to deal with these shitty moral lacking sellers/vendors even if house was still on market 6 months down the line?

I wouldn't.

GoodbyePorpoiseSpit · 21/04/2021 09:32

Accept truly that you have lost that house. But that it was taking up the space of the true house you can have. This is an awful thing and the sellers are absolute cunts to do this, but for the sake of your own sanity, remember it’s just a house . There ARE others.

Topseyt · 21/04/2021 09:33

Inform them in no uncertain terms that exchange takes place today at the agreed price or you will be walking away. Be prepared to do that and to start searching again.

They are cheeky fuckers. Their extra school fees are their problem.

Mildura · 21/04/2021 09:34

your solicitor should advise you to walk away

There is more than just a binary choice here, it's not "pay £33k or walk"

As has already been mentioned, decline their request and offer to exchnage and the originally agreed price.

Doris86 · 21/04/2021 09:35

@DeclineandFall

Agree with others that say they are wanting you to pull out so it doesn't cost them. Otherwise why would they wait until day of exchange and want enough of a sum that most people wouldn't have readily available. FS.
I disagree. It would be the vendor pulling out if they decide not to accept the already agreed price from the buyer, so it would cost them.

They have waited till the day of exchange when the buyer has invested a lot of time and money in the process, in the hope they can panic them into paying the extra cash. Even if not the £33k they are probably hoping the buyer will make a counter offer.

CleverCatty · 21/04/2021 09:35

@CovidCorvid

Could you offer them something in the middle, like an extra 15k?

I know it's really shit and you shouldn't have to but if you're saying there's nothing else you can afford what's the alternative?

You'll either not be able to buy, or end up with a house costing more than 33k extra or end up with a smaller house or in a worse area.

like most people can magic another 15K or want to overnight?!
OVienna · 21/04/2021 09:35

33K is a really odd number. Wonder if they've realised they've got a tax payment due which is much higher than they were expecting?

TokyoSushi · 21/04/2021 09:36

Agree, don't walk away as such, just agree to exchange at the original price and then say no more.

GelfBride · 21/04/2021 09:37

Don't be the one to pull out whatever you do.

CovidCorvid · 21/04/2021 09:38

like most people can magic another 15K or want to overnight?!

Obviously if they can't then they can't. But might be worth talking to the mortgage broker to see if they would agree a 15k increase in the loan. No idea if thats possible but I'd be asking. 🤷‍♀️

CleverCatty · 21/04/2021 09:39

@Topseyt

Inform them in no uncertain terms that exchange takes place today at the agreed price or you will be walking away. Be prepared to do that and to start searching again.

They are cheeky fuckers. Their extra school fees are their problem.

seen there has been an update - they're being v unprofessional to mention (probably a lie) about extra school fees! never have I heard that used as an excuse (and not many tried) at exchange.

yes, exchange you can barter and go back and forwards but my boss always tried not to do that with his clients or let that happen from otherside sols as it meant toing and froing and put pressure on everyone all round, estate agents would try to do that though to get more commission.

shockthemonkey · 21/04/2021 09:40

"Call their bluff, exchange at the original price or they pull out. I'm an ex mortgage advisor and used to work in an Estate Agent too. Don't pull out yourself, there will be a clause in their Estate Agent's contract that means they will be liable for their fees provided they have introduced a buyer in a position to proceed. If they pull out, they will still be liable for the Estate Agent's fees "

Masterstroke from FruitBadger!

Technically, how does OP do this? Do they continue stallling, saying we're applying for a loan for the additional amount? (Then don't bother applying, but make the sellers wait, and wait, and wait...?)

CleverCatty · 21/04/2021 09:40

@CovidCorvid

like most people can magic another 15K or want to overnight?!

Obviously if they can't then they can't. But might be worth talking to the mortgage broker to see if they would agree a 15k increase in the loan. No idea if thats possible but I'd be asking. 🤷‍♀️

sounds like buyers are stretched enough as it is though so extra 15K on the loan would be hard for them.
CleverCatty · 21/04/2021 09:44

@Mildura

your solicitor should advise you to walk away

There is more than just a binary choice here, it's not "pay £33k or walk"

As has already been mentioned, decline their request and offer to exchnage and the originally agreed price.

or withdraw.

We had this a few times where people offered to walk away rather than decline the request and often people either lost sales/purchases rather than get into exchanges. different sols firms may vary and clients same.

Notaroadrunner · 21/04/2021 09:45

Walk. And don't get into a situation where you offer another 5/10k. Do not give into giving them one penny more than already agreed. Bloody chancers.

Lemoncheesecake20 · 21/04/2021 09:45

I would walk away. I wouldn’t want to give these horrible people any of my money. However, if there really isn’t anything else on the market and you don’t want to incur extra costs/waste time looking for something else then agree to purchase this house at the previously agreed price. Good luck and may karma follow them!

LondonJax · 21/04/2021 09:46

I agree with everyone else. I've had buyers try to hold me to ransom in the past and stood firm - they exchanged at the agreed price (because they've also put a lot of money into solicitors fees etc - FTB so no sellers fees for them).

Personally, if your buyers are still going strong, I'd carry on with the sale and rent somewhere. We did this a few years ago when a house sale fell through but our flat was still going strong. Best thing we ever did as we took out a 6 month lease, started looking about 3 months in. Then got a rolling lease - one month's notice either side. It took a year to the day to finally move into our current house but sellers were eager to negotiate with us because we were in a position of funds in the bank and equal to FTB in our ability to move fast/no chain.

We'd sell and rent again if we ever move - it's a cost but we see it as a cost of moving and it gives breathing space.

But as far as the threats go - call their bluff but be prepared to lose the house. They can sit and wait. We put in a full asking price offer on a house when we were looking and they came back and said they'd been offered a lot more could we match it (so over the asking price). We walked away - people like that always fail to work fairly in my experience. Their sale fell through and their EA called to ask if we were still interested. We'd found this one (a fixer upper in comparison) but didn't want the hassle so said no. They waited 10 months to sell - I will admit I did give myself a little hug, I know it's nasty but they deserved it for sheer greed.

Lassy1945 · 21/04/2021 09:46

@CleverCatty

worked in conveyancing for 5 years as legal sec/PA - they're pulling a fast one and being really greedy nasty people.

your solicitor should advise you to walk away and I definitely would.

That would be a shit solicitor
PastMyBestBeforeDate · 21/04/2021 09:47

You need to go back and say you are willing to proceed with the agreed price. You will not and cannot increase your offer and the decision is theirs and needs to be made today.
As a pp said, get on to the EA and start showing interest in anything vaguely suitable.
If they do pull out, remarket and it sits around I'd be tempted to offer immediate exchange with a lower price if you do want the house.

Bells3032 · 21/04/2021 09:48

unfortunately completely legal it's just usually the buyer rather than the seller that pull this.

Currently 5-6 months is about average for a chain these days. My chain free flat took 8 months to sell to a FTB cos of crappy lawyers so it's not an unreasonable time frame.

Unfortunately if you can't afford it you have to tell them it's either the price you agreed or nothing. they're chancing their luck. just say no. 90% certain they'll give in

Mildura · 21/04/2021 09:49

or withdraw. We had this a few times where people offered to walk away rather than decline the request and often people either lost sales/purchases rather than get into exchanges. different sols firms may vary and clients same

As I said - not just a binary choice.

The OP has 3 options

  1. Pay extra £33k.
  2. Walk away from the purchase entirely.
  3. Make clear there will be no additional payment, and continue at agreed price.
Mildura · 21/04/2021 09:50

Or 4th option - negotiate an increase to purchase price, but less than £33k.

Alonelonelyloner · 21/04/2021 09:50

wow. people can be bastards.
Walk away

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