Is it appropriate to let our buyer know how much we need the money

[InaBitofaHurry]

I've NC'd for this as it could be a bit outing.

We're currently in the process of selling a second home to a cash buyer. Her solicitor was emailed all the contract papers last Tuesday and will apparently be coming back with any enquiries by the end of the week, so it's all ticking along ok it seems.

However, our tenant is subsequently moving out very soon which will give us a third of the rent for his final month. We rely on this rent to pay all the bills and the mortgage on our main home. In addition we have some very large and necessary outgoings coming up which we've put off for months (nothing to do with Christmas).

I've been in email contact with the buyer since she viewed as she's had a lot of questions, and she's also viewed three times, latterly with her builder, so we're quite familiar with each other.

She seems very keen and enthusiastic, and my DH thinks we should just be upfront about our financial situation so she also does her best at her end to close the sale as quickly as possible.

I'm concerned it would be inappropriate to do this and might backfire and make her start bargaining with us, or at least take the lustre off her current excitement (we were one of three properties she was considering).

So looking for opinions - is this perfectly acceptable considering our situation, or just inappropriate?

What date is the tenant moving out and who gave notice?

100% wouldn't tell them. Say you want to complete asap but no need to tell them why.

I can understand why it's good to tell in some situations, this isn't one of them. Here they would know you're desperate and could reduce offer.

Comparatively I've seen it where FTB using help to buy have offered £250K on a house up for £255K for example. Sellers countered with £253K, supposedly had buyers in a chain offer that amount, buyers tell them zero movement from £250K, thats the limit on the help to buy ISA house purchase price to get the bonus, sellers can look that up themselves. Sellers didn't want a chain, eventually accepted.

@InaBitofaHurry I would speak to your solicitors . Whilst searches etc can be quick , sometimes aren't and depends on turnaround from the solicitors on both sides as well. , I would ask if they could agree a completion date of 22/12 , that's not an unreasonable request but don't be surprised if all papers etc and completion things aren't done in time for a (usually normal ) 4 week before change and completion . At the moment you have an enthusiastic buyer , I would ask your solicitor to ask hers where all the paperwork is at the moment & what she would agree to as a completion date. At the moment you should be working towards exchange I think & she may be prepared to have a shorter time between change and completion.

Unfortunately if she is going ahead in a proper fashion , you needing that rent is not indeed her problem and perhaps a plan B given you assumed a quick sale might have been in order.

I wouldn't, being neighbours isn't enough of a reason to try and get a better deal. I would personally see this a sign that I could knock a chunk off of my offer because you're 100% committed to this sale now, and really need it to happen. I doubt it'll benefit you at all.

Our tenant has said he'll be out by 10th December at the latest, and the required notice has been served.

Just wanted to be sure - as our tenants said they'd move out on x date too, then decided against it.....

Id never tell anyone you're desperate when it comes to money. I'd find a short term solution for a short term problem and pay it off when it's sold.

Say you are keen to complete soon but do not mention finances. If buyer thinks you are desperate may try to gazunder!

Just to be clear, I agree with almost all the responses on here, it's just my DH didn't agree and thinks it's a perfectly reasonable way to proceed!

Tell him he's basically telling the buyer "we are broke, we really need the cash because we didn't anticipate costs, we are desperate, so would potentially settle for a lot less that your initial offer if you want to save a few quid, on us, of course"

Is he always this naive??

@Jztbrzd Yes quite!

I would hate this if I was your buyer. Just no.

I also think your timeframe is unrealistic - I’ve just received enquiries back on the property I’m selling and we’re at the booking in surveys phase. I’m anticipating late January at the earliest given holiday season and things that may come up during the survey etc. Usual timeframe is 3 months for a property sale.

your tenant can stillrefuse to move doesnt matter if youve served the notice

@ibelieveinmirrorballs if you Google timeframes for cash buyers/no chain it's 8 to 12 weeks.

This year I have sold a house in 8 weeks. Cash buyer, same solicitor.

But a flat with two different solicitors offices, no, the mgt company take ages to answer question, searches took ages, additional queries. Your timescales may be pre-covid too, it's much longer now. Way longer. It's cost a fortune.

It’s generally not the mortgage that takes time. In my experience if you both have grown up proper solicitors that makes the whole thing much slicker.

I have been in a similar situation to you (was selling an empty rental flat and also really struggling with expenses without the rental income) and the pressure was horrendous so I have sympathy. I think in your shoes I would make it clear you’re keen to move quickly but not be explicit about the reason.

I wouldn't tell her your financial position but I would suggest a date for exchange and completion.

If I were buying the flat, I would view it after the tenant has left before confirming my solicitor could exchange contracts. I'd need to be sure the tenant was gone and they didn't destroy the place before leaving.

Tell the buyer when your tenant is leaving and suggest a date for exchange and completion. If you suggest 12th December for exchange you could offer a viewing on 11th. The more notice the better so her solicitor can start chasing up anything else that is still outstanding in the meantime.

When we bought our flat it took four and a half months from accepting the offer to completion day. We and our vendor were chain free (we were renting and she was moving with her partner). The biggest time suck was getting the management pack and the back and forth on questions that arose from it.

Agree. My daughter bought a flat with a tenant living there during viewings. Her solicitor told her to view it again just before Exchange to make sure the tenant had definitely gone & the flat was empty (vacant possession)before going ahead with the Exchange.

Tenants have been known to change their minds about the date they want to move out & legally it takes months to evict them.

@Twiglets1 totally agree. Told our tenants earlier this year that relative had died and the house would be sold but we’d give formal notice once probate was nearer being granted (which we knew would take 6 months or so, although house was pretty much only asset, and no IHT liability). At the time of giving notice, they’d already known over 4 months it was being sold, and had accommodated viewings.

Notice was given, they kept telling the agent who managed the property they were looking, but then said in the last week of notice period they had no intention of private renting and were expecting the council to house them. Now 3.5 months on from end of notice we finally have an eviction date.

With solicitor fees and loss of the original sale, we’re down about £25k on if they’d vacated.

So I’d be nervous about the OP assuming the tenant will play ball!

It's a fairly daft negotiating technique

I'm also surprised you think there can be nearly no gap between tenant vacating and Sale. It's very optimistic

For a business person, your DH doesn't have much nous

If you don't sell before Christmas, is it AirBnB-able to rent for the Christmas period to someone/a family with other family nearby? I'm thinking offer via a local FB group perhaps? That would off-set the lack of tenant and could be rented out at a higher rate to recoup more?

No you can’t tell her that, the fact you’re skint isn’t her problem.

you can request a realistic close date, you need to confer with your solicitor on what’s reasonable and they need to agree with the other sides.

but if you put this in, you need to be willing to walk away if the timescale isn’t met.

I’ve bought a home for cash in 4 weeks - depends on your solicitor and how motivated you are. I got an excellent surveyor in immediately and they processed the report within 48 hours. The searches only took 2-3 days.

The crunch for the buyer is that estate agents, solicitors and removal companies shut over Christmas until after new year, so I think it’s reasonable and in the buyer’s interest to complete before Christmas. I would suggest that.