How to deal with greedy seller wanting more money?

[ChompStomp]

Hello

Currently trying to buy a property. It's been a complicated purchase because the vendors (a divorcing couple at loggerheads) have been as difficult as it is possible to be.

We were proceeding at asking price but now the vendor has come back (after a month) and said he wants an extra 10% as he feels the house is worth it although has no basis for that. The house next door sold at a the same price we have agreed to purchase at in early 2022 and is pretty much identical but with a much bigger plot as it has a small field with it, so arguably we are already overpaying. The Estate Agent has said that he is completely unrealistic, and told us that if we agree we will be paying too much for the property. It's over £500k so an extra 10% is a considerable sum, but we could stretch to it (just).

We really love the property and there is nothing else similar on the market. It has been on the market 10 months without a single offer and only a handful of viewings in all that time (because as the agents said to us, it started off overpriced and we are the only people to have shown any interest). He has said he will pull out the sale if we don't agree and the EA said he is totally serious about that and doesn't really want to sell it anyway.

We don't know what to do but would be gutted to lose it when we could stretch to it but it feels so silly to be held to ransom like this. We don't want to mess our own buyer around, and it is perfect for us. We will probably stay there 10-15 years. Over that amount of time does an extra £50k make a massive difference?

I would recommend asking the EA for evidence the seller has asked this. We went through a load of stress from the seller on our current property and in retrospect I believe the EA was actually doing it to push the sale through quicker for his own commission. Don't forget s/he'll get a cut of an extra 50K...

Buying a property is stressful enough without the added complication of the vendors divorcing. I'd be telling him that I was willing to proceed at the asking price, otherwise I would walk away. It may be a perfect house for you, but there will be others. Good luck!

What do they say about assumptions? Don't advise anyone on financial matters on the basis of your assumptions and guesses, unless you are a financial professional with a high level of indemnity coverage!

I’m suspicious. Either the EA is playing you, or the seller doesn’t actually want to sell.

I would stay firm. Because, I suspect if it’s the latter, the seller will throw a spanner in the works just before completion when you e already spent a shed load of money. It will be financially and emotionally stressful.
IF it’s the former, and the EA is playing for more, then, you’ll have been had to the tune of £50,000.
Personally, that would eat me up inside, living in the house. I also think, given how interest rates and the house market has been more turbulent since 2013, I would never want to over-pay. You never know what’s round the corner. Your own health can change at any second as I recently found out.

Pull out. He will no doubt come back saying he will accept your original offer - I would be tempted to reduce this for the hassle. It’s been on for 10 months so not worth what they have it on for.

There are other houses.

I agree with PP , if sale isn't completed by x date, you will be reducing offer by 10%.

What do they say about looking at house prices? Oh yes, look back 15 years and decide whether the equivalent of £50,000 then would have made much of a difference now!

It is clear the seller won't sell without the extra money, it's now up to the OP to decide what having that house is worth to her.

Honestly I would be worried it won't be enough. 50k now but what about exchange day? Will he want more?

There’s no such thing as an ideal, dream home. There is always another house. I’d pull out now, he will be a nightmare to deal with.

@Geebray what are you talking about? Why would it double in value over 15 years?

Fwiw my london home has only grown 10% in 7 years and that's with some work!

A house is only worth what someone is prepared to pay for it. In ten months he hadn't got a sale. Its irrelevant if house prices have gone up 5 or 10 percent in your area. It's what a BUYER is prepared to pay.

This is a relationship mess to get involved in. I would walk away.

Say "no thanks, and exchange must happen before date dd/mm". That's it. And by the way I sold a property on London 10 years ago that the buyer has been trying to shift now for over 6 months even at a substantial discount (over 10% less than they paid for it way back then). It happens.

And what was it worth, proportionately, 15 years ago?

@Geebray - my London house certainly hasn't doubled in value over the past 15 years. It has barely increased in value at all over the past 5 years.

And of course OP's circumstances may change and they may need to sell earlier than the 10-15 years currently planned.

Say no and be prepared to walk away

Agree

Would I though. 15 years ago was 2009 and lots of properties round here only just back to those levels after the crash.

Not 100% less @Geebray. And even if it had been, that doesn't mean prices double every 15 years. That's not how the market works. Prices have risen a lot in 15 years because that's the time since the e financial crash. Not because that's the right number of years

@LaurieFairyCake exactly.
This is a wasted cause. They won’t sell it. Walk away now.

Personally I’d just walk away. If they’ve had few viewings and no interest seems a dangerous game to play.

His EX needs to take it back to court and get the judge to sign off on the house sale.

@Geebray don't be so silly. Such dangerous advice.
OP - run don't walk, don't play their silly games.

The seller won't sell, except for the £50,000 raise. The OP has to decide. There really isn't any room for negotiation because the seller has a line they are happy not to cross.

He doesn’t want to sell. Does the estate agent understand the vendors situation? Is the wife paying the mortgage and he is living there saving his money? The agent needs to get it moving by advising the cooperative owner.

Ask the agent if the other person is looking to force a sale via her solicitor? If mr is playing games that will be her only option. Then ask for time frames. You may find you and her are wanting the same thing.