Negotiation Q: How to deal with our buyers playing us?

[sellotape12]

We’ve been under offer a few months and have finally found our next house we’d like to offer on. As soon as our buyers knew this, they’ve tried to undercut their offer to us by a long way. The price they want would make it now impossible for us to move. I know that lots do this and some may argue it’s savvy of them but it’s such a dramatic drop we are left unable to offer elsewhere.

We are all well aware of falling house prices which is why I’d be happy to meet in the middle, but for info, they’re tying to negotiate a further 12% off agreed price (we already knocked 8% off for them) it’s a popular suburb of London

And here’s what’s annoyed me: they are FTB using BOMAD and have a 50% deposit. They claim they want to achieve a monthly repayment that’s equivalent of last year’s interest rates. Wouldn’t we all! So I did the maths on that, and found that a negotiated price somewhere in the middle would pretty much achieve that. But the price they’re now asking for is so ridiculously a mick-take. Even the agent knocked them back.

So do we call their bluff and try find a new buyer? Or are they trying their luck and it’s up to our agent to get them up?

Just tell them no and put it back on the market. The reality is you can't afford to drop so wouldn't be able to buy any way

Have they had surveys done? I would call their bluff, if they have all the paperwork and surveys sorted then it's as much a pain for them to pull out. Set your line in the sand and stick to it.

They've got a 50% deposit from parents. They don't care about a £500 survey.

Wow.

Tell them to toddle off and put it straight back on the market.

If you negotiate any more with these arseholes you are at grave risk of being gazundered at the final hour anyway.

Yeah that’s what I thought! If they’ve tried it now surely they will do it again further down the line. My nervousness is that we won’t find a buyer in this freezing cold market. We live in a desirable, family friendly neighbourhood which is always popular, and we know what else is available at our price point. Ours is definitely the nicest out there! Just a risk to find another buyer maybe?

Yes they had surveys done on our place and there were no issues. Our house is also renovated to a high standard and we have paperwork for everything. They chose ours because they like the hip style and fully finished garden. It is simply not worth the price they’re suggesting - even in a cooling market. I want the agent to go back to their books and find an alt buyer but reality it is we probably have a few days left to offer elsewhere on this other house 😢

Call their bluff. If they really want the house they will capitulate.
If not they would have walked away later in the process and you'd need to remarket anyway

Do you think it would be cheeky to pretend to accept their low offer just whilst we get offer-accepted ourselves, and then go back and tell them we need more £? Or we’ll find another buyer?
I just don’t want to lose out on the next house but I know it has multiple second viewings today. Can’t believe it. We’ve been in a great, proceedable position for so long and now they’re pulling the rug out from underneath us.

@sellotape12 is your agent good, do you trust her? If not, find another agent, don't agree to a contract longer than four weeks.

Put it back on for 10% less than the last advertised asking price. In the advert it should say 'unexpectedly returned to market due to chain collapse.' If the area is desirable you should get a lot of interest, enough to hopefully get close to the amount you need.

If the market is cold, you might be able to negotiate a decent discount off houses you want to buy.

Did your EA do an affordability check for these people? I would want to know if it's greed or if they could never afford it at -8% in the first place. If it's the latter, I would definitely can that agent.

Thanks @KievLoverTwo that’s really helpful. Yes, they did an affordability check and it was also stressed tested if interest rates climb above 6%. So I know they can afford it. They just don’t want to pay the extra few hundred quid per month that the interest rates increase has dealt them. And they’re so far unwilling to meet us in the middle so that we can both shoulder the burden of the increase.

I do trust my agents to an extent. But I also know all agents are panicking right now with the cooling markets so they just want to get anything through. A few days ago, I asked them to go back to everyone on their list who showed interest in our house, which was quite a few people to be fair. But they sort of suggested that there isn’t going to be anyone and buyers are disappearing from the market. Could be true, or could be them not wanting to make more work.

I could do go back to them today and threaten that we are going to cross-sell with another agent for a higher price maybe? Or we just go back on rightmove at a smaller discount like you say.

I’d relist. If they want it they’ll swiftly drop their demands. If they don’t it doesn’t sound like you can proceed anyway.

@sellotape12 no, don't cross sell, only use one agent only. It makes sellers look desperate using more than one.

They need to pull their finger out. Are you out of contract with them? Tell them to make the calls anyway, imply that you hope they can find you a sale from the previously interested parties otherwise you might have to change agent.

Kinda annoying that they haven't just got on with the calls without making excuses. It sounds like they want you just to accept the -12% for an easy sale.

I think that’s exactly it. They have really tried to encourage us to accept a lower offer. Yes we are out of contract with them. I may also CC the area manager 😬

If you can't afford the 12% drop, then you instruct your agents to tell the buyers exactly that.

Give a figure you're prepared to accept with the emphasis that any further attempt to drop will be met with you pulling out of the sale and re-listing.

Give a decline if midday Tuesday to confirm their agreement on price. It gets relisted Tuesday afternoon.

You can't afford to do anything else.

I wouldn’t drop a penny. They want the house, but are playing a game.

Yes @AliceOlive and @Gazelda a deadline is a good idea actually. I’m probably being middle-aged about this but I wouldn’t be surprised if they’ve watched some YouTuber or something telling them about negotiation and they’ve believed the whole thing of “Go in with a really silly price! You may be surprised.”
Well you may be surprised indeed because we are going to call your bluff.

it sucks for you, but your house is depreciating as you write comments on MN and they know it. they haven't done this because you found a house, they're doing it because they saved and worked hard for this opportunity. it's you who needs them, not the other way around. it's a buyers market, esp if they have money with a huge deposit.. they are hot buyers. you will have to ask the sellers of your home for a reduced price if you can't accept it, and see if that helps. tbf to your buyers, your house was probably overpriced as many are.

please explain why they have to pay an extra hundreds of pounds so you can buy your house l🤔? seriously, please explain why anyone has to do that for you

@whyisitallsohard i think they have to pay as if the seller doesn't find a house they want and can afford they won't move. so therefore they have to pay if they want this particular house

the seller has to be prepared to stick to their guns and loose the other house though. otherwise they could call the bluff and have it called back.

best advice i recieved was to take emotion out of the deal. be clear what you will accept and below that be prepared to stay put.

I honestly wouldn't drop the price. I'd also find it really hard to trust them not to play games right before exchange.

You could always still offer on the other house, as there's no guarantee your offer will be accepted anyway. Then depending on what price is agreed with your vendors, you could reassess if it's worth offering a small discount or not to your buyers.

Erm… because they already offered the price which included the “extra hundred of pounds” which the OP agreed to but have now decided to backtrack 🤷‍♀️

I don't think they are playing a game really. The market is sinking quite quickly in some areas and if they offered on your house at X price months ago - then they know that in todays market, and even more so in tomorrow's - they are overpaying. Add in to that the fact that the debt has rapidly become more expensive over a short period.
I would try to find an acceptable balance by negotiation. If you relist your almost certainly going to get that kind of low offer again, possibly even lower. Your agent knows this. Your buyer knows this. It's a really crappy time to try and move and it may get worse before it gets better.

Thanks, i understand that. what i'm saying is, these are strong buyers. they have 50% deposit and already thinking about savings on month by month basis, they can walk away, still in good position to get another house. for them, there is always another house.

OP is a seller locked in a chain, they do not have as much influence as they think. FTB have a right to say no, especially theyve said up for years and don't owe anyone anything.

it's not a bluff. they are literally being honest, OP just doesn't see that. they're saying we don't want to spend more on interest, because we know this housing market is depreciating as we speak. OP needs to see that.

the only way forward is OP pulls out (doesn't sound like they can if they're in a chain that affects them more), or ask their seller to reduce and split the remaining amount the FTB want reduced. that's fair. the house prices need to come down anyway. OP is saying that is their problem - the house they want is too expensive for them. Their FTB are saying, we have money and will do what's best for us. they owe OP nothing.

nope they're not in a contract. it's verbal. the situation has changed. FTB decided they don't want to pay that much every month because why should they? to help OP? Tough shit to OP. They need to ask their seller to reduce. that's the way the market is heading anyway.

good on these FTB 🙌

I think is correct.