Buyer is likely to ask for a discount shortly before exchange date

[Upset12345]

Hi,

We're selling our property in Birmingham at the moment and we're buying another house in Birmingham.

The owners of the house we want to purchase want a completion date of August 25th.

We agreed to do that, but our buyer is causing us massive problems.

He's already buying the propery 16k under asking price.

Initially he offered 15k under asking price, he's a cash buyer.

But after the home buyers service we agreed to a further 1k discount (although there was nothing wrong with our house).
It was just to get the sale over the finishing line.

He now says he is only willing to exchange contracts on the 21st of August.

When the estate agent asked if he could exchange a few days earlier because people have to book removal vans, he said "I don't care, I will exchange on August 21st".

On top of that he booked another viewing tomorrow at our house for a "3rd review".

He's already seen the house twice before.

He's also mentioned to our estate agent about house prices further dropping on the phone and he has sent links and articles to our estate agent describing how house prices are dropping.

Our estate agent pointed out to him that the articles are talking about the national average and can't be applied to Birmingham. They also said he's already buying the house very cheap at a good price.

What would you do in our situation?

He's in a very strong position, he's a cash buyer and doesn't intend to move into the property himself.

We on other hand have small children and I know that the other family, that's selling the house to us, also have young children.

In December our mortgage deal runs out and we would have to reapply at a higher rate :(

I'm feeling really exhausted and I've been crying a lot since we got the news yesterday.

On top of that I'm pregnant as well, so everything is a bit harder for me at the moment.

I have a bad conscience that the other family might not be able to move because of our buyer.

Other more experienced buyers than me will be along soon. What I'd want to dk is a warning shot - something the lines of 'there will be no renegotiation. Pull out now or lose the sale' and play hardball with him. But I have no idea whether that's suicidal!

What would you do in our situation?

What the PP said, play hardball. Don't budge. Don't even let him have a third viewing. Tell him 2 is standard and does he want to proceed or not.

Firstly, it won't be on your conscience if the deal falls through, it would be on this man's conscience if he had one.

I think you should agree to the Exchange on the 21st August if you possibly can. There will still be time to Complete on the 25th especially if you can book a removals firm that offer a full packing service.

I wouldn't allow a 3rd viewing tomorrow though. I would say he can have a final viewing a day or two before Exchange of contracts as is normal.

He's certainly showing all the signs that he's going to demand another price drop at the last minute. No wonder you're stressed. I'd be making plans to re-market and get advice from your agent.

Normally I’d say be pragmatic and take a hit to keep the cash buyer but it sounds like you have already done this and he’s being really unreasonable. Yes it’s a buyer’s market but it really sounds as if he’s taking it too far and thinks he has you over a barrel. If he’s genuinely getting a good deal already then his research will show him that he’s unlikely to benefit by pulling out and looking for something else. If he reduces his offer again I’d just say no and be prepared to stick to it.

The problem with people like this is that they will continue to take and take until they are told no.

You will end up saying no to them at some point, so the sooner you get used to that idea the better.

Re the 21st of August, that is only 10 days away.

It sounds harsh, but what happens to other people in the chain as a consequence of you and this buyer not coming to an agreement is not your problem.

We've already agreed to a 3rd viewing tomorrow as our estate agent said that many people want to see the house for another time.

My husband said however to the estate agent that there will be no further price reductions and that we won't be in when he comes tomorrow, as we're not interested in talking to him.

I really regret having accepted an offer on our house by this guy.

We've discussed renting our house out and renting in the new area, if the deal falls through.

But then I'm scared that renters are going to wreck the house/burn it down

:(

Your allowed to change your mind. In fact, that will show him you're serious. As another PP pointed out, they are just going to keep on and on and on till you say "no". So take control and say no now.

Why does he want to see the house again? He's seen it twice!

Just stay firm and stick to your guns on the price now.

If he drops out now he was never that serious, but it isn't your fault you believed he was genuine. It's different if a survey uncovers something nasty but just to reduce the price at this stage for no reason isn't reasonable.

Be very clear with him now it’s either the agreed price or no sale and you want to exchange on 15th, he’s a cash buyer who won’t be living there so I can’t see a valid reason for him to be pushing back completion. If you don’t be firm he will drag this out and keep wasting your time hoping you are desperate enough to accept an even lower price. If he walks then at least you know he was never intending to pay what he offered anyway, I would rather know now than waste even more time with him dicking you around.

I would go with 21st. I’ve completed and exchanged simultaneous so I don’t think the small gap is a problem. He may gazunder you, in which case the people further up the chain may be prepared to share the reduction in order to keep the chain together. You are so close I would wait to see how things panned out. I don’t really think this is a market where you should take the moral high ground and given it’s not going to be a home for him I doubt there is much emotional leverage. I’m in the same area and I think prices are dropping in Birmingham just as they are everywhere else.

It's only 10 days to his prefered exchange date.
As a buyer, I'd have had serious concerns about what had been done to the house in the 3/4/more months since I'd last seen it if a pre exchange viewing wasnt allowed. I think you are right to let that go ahead, but not be in, and make it clear to the agent before hand that there will be no further negotiations.

Good luck.

No, don't let him view before Exchange as one pp suggests. As the exchange date gets closer, the more disastrous any of his attempts to renegotiate the price will be - imagine letting him view the day before! he can withdraw at any moment up to exchange.
As other pops have said, go with the 21st and complete on the 25th, at least that gives you the bank holiday weekend to sort out a bit.
Offer him a look around on 22/23 once he's laid his deposit down. Say you are away or something.

How long has it been since you accepted his offer and today, 11th August?

He has telegraphed to you that he will try to force a further reduction in price. Work out what is the lowest price you will accept because he will force the issue. If I were you I might preemptively offer a reduction of 1000 pounds to get the move date you want. That way he feels he is getting something. This kind of person is an aggressive, selfish, game player. He may pull out because he believes he can get the same quality house for less. He may pull out to punish you for not giving in to his demands. You can’t really manage this person the safest thing is to try to get to completion faster because he is not acting in good faith.

I actually would make sure I'm in when he comes to view, because without you there he might go poking and prodding all over the place trying to find a fault. You don't need to talk to him much, just be civil (so difficult I know!) But keep an eye on what he's doing - the estate agent should do that of course, but I'd want to see what he's doing for myself. Terrible, but some people sink very low in this situation.

You can't really stop someone viewing just before Exchange as solicitors normally advise their clients to do it. My fear for OP is that he will want this viewing and then a 4th one just before Exchange.

Then again, if @Upset12345 sticks to her guns re the price then he won't be gaining anything by being such a pain in the arse.

Yeah, sounds like he's going to try and take the piss here. This is exactly why I tell people to be cautious regarding cash buyers.

Id agree to the exchange date as a 'big concession' but be firm on price. People didn't jack their prices up when the market was booming between offer and exchange, and back then things were taking months.

It’s not unreasonable of a buyer to want a final viewing of a house before exchange. It would be unreasonable of him to use this as a way of reducing his offer. Whatever he sees at the viewing would have been able to he seen at the first viewing and he has made his offer on this basis.
Ask the estate agent to let him know that there will be no more viewings after this one, no further reduction in price will be discussed and he will be expected to exchange on 21st as agreed.
Good luck

I play hardball. Let them view it. Then insist on exchange on Monday 14th. Or walk-away. Don't get them time to concoct some scheme to reduce the price again.

If he's buying as a business investment, he's into this deal by more than £1k by now with searches, survey, solicitors fees, I would assume he's trying it on and stand my ground.

I'd have agreed to the viewing - we went back to view our place two or three times because we lived in a furnished rental and needed to measure for essential furniture. But not being in is very sensible. Wait and see if he asks for a further reduction and what it is. It might be that you'd take the reduction to get the deal home, but you could make it clear that if you're taking a further reduction you expect to exchange on your chosen date to give you time to book removals etc.

You had my sympathy 'til you wrote this, why on earth would you think renters will wreck the house/burn it down.