Buyers trying to reduce price 1 week before exchange.

[J6765]

Hi,

I am just after some advice please? We're selling our home and 1 week before completion our buyer have asked us to lower the price of the house by 2,500k. What would you do? We've currently told them no because we feel like they have had ample time to bring this up. They offered on our house late February and we had our offer accepted on new property at beginning of April.

Their communication has been poor throughout and will leave it weeks to come back with anything each time which has meant the process has gone on far longer than needed. We went with them because they are first time buyers so thought it would be fast.

They had a survey completed 5 weeks ago, still late in the day tbh. I asked the surveyor if there was anything that I needed to be worried about and he pointed out a problem with woodworm but said all other things were small. We have since paid to have this problem sorted.

A week after the surgery was completed buyers asked if they could send a family friend around to check gas and electrics which we told them no and said would have an independent person to look at them if needed. This went no further.

We are due to complete next week and yesterday I received an email with a list of demands and the proposed reduction. They stated survey had thrown up problems with chimney needing repointed, flat roof which needed refelted. They also asked about a peice of wood in the loft which has been cut. The wood in loft was cut long before we moved in and has been that way for at least 15 years. Neither of our roofs are leaking or in bad condition so we do not see this as urgent work.

Estate agents is trying to get us to compromise. I'm going to say no and send timeline if sale and explain that they need to give us a definite answer by tomorrow or we will relist.

I'm just a bit nervous they will walk away and we will lose our onward sale. Any help, advice would be greatly appreciated.

Are they just trying it on?

They’re taking the piss. What’s your solicitor said?

We don't need to assume, the data is there and they have. The OP doesn't say she was downvalued either, so logically the value of her house was correct and has therefore increased in line with everything else.

Good properties are still sold within a week where I am and very few seem to reappear.

Oh god I had this with first time buyers as well. Nothing but trouble with the pair of them, wanted all sorts of stuff left including my furniture and every little thing in the survey was a massive panic. The day they came round with her dad and he stuck a massive screwdriver through my windowsill repeatedly to prove it was ‘rotten’ was the last straw. I threw them all out and told them the house was no longer for sale. Sold again within 24 hours and all went through without issue.

Anything and everything is amendable before exchange.

Either call their bluff and stick to your price or give in and agree.

The market is cooling for sure and therefore if you’re house price is inflated, they are probably just accounting for that.

Whilst it’s annoying for any seller when this happens, it is a business transaction and therefore leverage is the key word here. They are leveraging that they have you in a corner which they do at this stage of the process.

You need to work out if losing 2.5k is more or less than losing out on what your buying.

It's very doom & gloom economy wise so people are more likely to try it on I think.

Personally I would suck it up as it's not a huge sum

We had this years ago I was fuming as they had been round 4 times looking at the house taking up my time . I refused and they walked , no problem getting other buyers .

I have no advice but being fro. australia it baffles me how it can take so long after offer acceptance for a place to exchange. Here it's usually 4-12 weeks.

Just say no. If it's not as the result of a survey or whatever they are just chancing it. Say that prices are rising and that you are prepared to put it back on the market if they are not prepared to exchange contracts at the agreed price.

What data?
House prices don’t increase in line with ‘everything else’. The ‘everything else’ is due to a shortage of natural resources and war.
Because of which interest rates are rising, which will drive house prices in the opposite direction.

Mortgage offers are valid for a few months. At the time at which it was given people were still optimistic about the war ending, either way . But it’s now become clear that it’s going to drag on, cost of living is spiralling which has forced banks to increase interest rates. Over the last 3 weeks interest rates have risen significantly. There’s no guarantee that the same house, in this climate will sell for the same price unless the OP has specific local knowledge which she hasn’t posted.

As PP have said it’s a market and it all depends on the relative strengths of buying and selling positions. Nobody can comment generically

We had exactly this op - week before exchange, FTB who had the survey for 6 weeks before asking for £25k off!

It was fucking unbelievable!

We allowed them another look round with family and a builder who quoted £50K for the work they wanted to do (things like convert the garage, refit bathroom etc) and thought they were being very nice by offering the split the cost of it with us

Such cheeky fuckery!

We said no and they withdrew.

Also to add I do think your buyers are trying it on. I personally have been in close communication with mine, even when i e been away on holiday never left any silences etc. Any issues will be addressed straight after survey and I’m not going to go in last min.

The fact still remains that whether to concede depends on your unique situation

*with my sellers

Because of which interest rates are rising, which will drive house prices in the opposite direction

House prices won't fall significantly. People's perception of wealth are too much tied up in the rising value of their homes. Whatever government is in power they will make sure that the market does not crash.

Just had a thought OP if they had their mortgage offer in Feb or March time they normally last 6 months so they could be getting close to the offer expiring. If they lose that deal they will probably have to pay a higher interest rate for any new offer. So you do hold a lot more cards than you think! They won't want to pay higher interest for the sake of 2.5k.

It's in the title!!
Buyers trying to reduce price 1 week before exchange.

It's crashed before in times of high inflation, and a lot of people ended up with negative equity. Long term the market has always recovered.

But @Nanny0gg the first line of the OP is confusing because it says:

We're selling our home and 1 week before completion our buyer have asked us to lower the price

It’s called gazundering - they were probably planning on doing it all along, regardless of survey results etc. If you’re ok with losing them as a buyer I’d flat out refuse and drop them for being such dicks.

Speak to the EA about getting an up to date valuation and some new photos taken to remarket the property and ignore them. Hopefully the EA will relay that you're making enquiries about relisting the property and they will back off from trying for a reduction andrhey could loose the property.
If they've had the survey for a long time then this is just tactics to put the wind up you and get a discount.
If they pull out pass the name of their solicitors to the next purchasers as the searches will have been done and this will speed up the next process.

Exchange can even take place on the day of completion

it’s very clear to me and others

contracts have not been exchanged

Not sure who it's clear to. The title clearly says one thing, and the body of the post something else.

And it makes a very big difference whether they're trying to change the contract after exchange and transferring the deposit, or before.

Key bit of info missing here- how much is the house? If it's 2500 on 500k, I would let it go. If it's on 75k, then that is a different matter...

Absolutely common place for exchange to take place just a week or even on the day of completion!!