Selling property

[shininglight16]

I'm in the process of selling my flat to a buyer who's an investor and is trying her level best to knock the price down even further. We're midway conveyancing and she's been playing pressure tactics to knock off another £10k.

Asking price was £300k, we got down to £290k and said that is it, no more negotiation. They agreed at £290k but since the valuation has come to £275k they want us to come down to that or £280k max. We would be losing money and are not ready to sell at that price since we bought for £260k and spent roughly £25k in doing it up (got burnt by the builder).

Now the thing is, a comparable has gone for £285k just opposite our block of flats and does not come with a private garage or a 900+ lease. We thought of putting our property up with the same agent who sold the flat in the opposite building and he came for a valuation today. He mentioned that someone from Connell's surveyors had called him last month and asked for the sold price of that price. It doesn't appear on the land registry yet since it was recently sold and I believe it takes about 6 months for the price to be updated.

Despite having that information, the surveyor from Connell's has undervalued our property which has additional features/benefits. Can we contest this? The buyer hasn't shared her valuation report. She's only been bargaining and using excuses such as 'I won't be living for 900 years', 'I don't need a private garage ' and other nonsense.

She's switched stories, changed solicitors, mortgage companies and wasted a lot of our time.

I just want to know what would be a sensible thing to do and tactical as well going forward, to contest that look a variable with lesser features, smaller size has gone for 285k recently and you're asking me to sell mine for 280k. Should I ask her to show me the valuation report, speak to Connell's directly and make an appeal? I don't know what's the best way to do this and for us to stand firm and complete this at £290k.

We don't have a like for like comparable to compare with in the history of sold prices within the last 6 months.

We need to close this and get on with our next purchase asap.

Many thanks in advance!

I'd probably ditch these buyers rather than trying to negotiate. They don't want to pay the price you want.

I'd get a couple of agents who have actually sold something comparable around and ask their opinion if you haven't already. Yes ask the agent that sold the one you are thinking of and see whether there are any key differences

The buyers may just be trying their luck - they may not have had a valuation of 275k! Could offer 285 if you need to sell quickly and see whether they accept that?

Ask for the valuation report. Or just stand firm at £290k and tell her to take it or leave it.

I would call her bluff. When she says she doesn’t need the garage, point out that it adds value to the property and ask sweetly whether she is sure this is the right property for her? Etc.

I say ‘call her bluff’ but this does sound like
someone who is preparing to issue an ultimatum. Only do this if you are prepared to lose her. I despise this behaviour, so I would be unless it was a financial emergency

Good luck

We're not in a financial emergency but would like to use the extra cash we get from our property to renovate our new home.

It's a very unlikely a surveyor will change their figure without evidence so if it's not showing on LR it'll be hard to prove.

If you're not urgently needing to sell stand firm on your price, they will soon back down, or, if they don't, I'm sure you'll find another buyer who won't mess you around. As they're an investor they will just keep asking for more off, you need to stand up for yourself.

How do I bluff back at her, do I say we're going to look into the survey and contact a surveyor? How do I point out that her surveyor has intentionally undervalued our property? Do I tell her upfront that the estate agent who sold the opposite house mentioned he received a call from your surveyor? I just don't want her to think I've gone to this length because I'm desperate to sell...

I get what you mean. But it's funny how he arrived at that value, when we have the private garage and 900+ year lease and comparables in the area don't.

If she's an investor she's probably got Connells in her pocket.

if she's an investor she's not going to be living in it at all, so maybe you should give it to her for free by that logic! The garage & the long lease make it more valuable to her & more profitable. she thinks you'regreen.

what did the agent say today, does he have anyone in his books who would want to view.

i think the woman is going to be a nightmare. & will probably try to price drop at the 11th hour. I'd call it off not & when you can put it on with todays agent.

but I can't stand people who treat me like I'm stupid & I wouldn't trust her to go through with the sake.

but just my opinion!

Nope. Don't get into any of that.

You mean they can pay them to get the valuation down? Is that even possible?
The agent says he has a couple who are first time buyers and other people who saw the opposite building's flat so he could potentially contact them. He was trying to be the typical agent though, sweet talking and telling me he could definitely get £285k-290k so should we try him out or do we tell this lady we can drop to £285k and that's it.

I've looked at her background on Linkedin, she's a Director at a very big housing association. Wondering what her plans are with this property.

No you can’t pay them to get the valuation down. Don’t get sucked into speculation about conspiracy theories it just muddies the water.

Looking at it factually, the flat has a valuation of 275k and your buyer is willing to pay 280k - that does not seem unreasonable on a property originally listed at 300k. It’s not your buyer’s fault you got burned by a builder and if you do improvement works to a property you don’t always get that money back when you sell, especially where a builder has overcharged.

I would want to see proof of the valuation- either to you or the EA - but assuming it’s legitimate, don’t be in too much of a hurry to throw away a decent offer. If 285k is your bottom line then simply say that, no point talking about conspiracies. But you have to be prepared for the buyer to walk away if you get tough because from their point of view, they won’t want to pay much over the official valuation.

The valuation does seem on the low side compared to the other flat but some valuers will be more conservative on price, and the other flat may have had benefits yours doesn’t or be better presented, we don’t know. Also, the market isn’t good for sellers at the moment, especially of leasehold flats.

I agree with @@Twiglets1 , don’t get involved in negotiations and justification, that’s your EA’s job to get the best price. Offer your lowest price, 285, and that’s that. It will be cheaper than going back on the market, and less stress. Or did you have other offers?

Have you seen the actual valuation? You've only got the buyer's word it's £275k and unless you get confirmation direct from the surveyor I wouldn't believe a word of what the buyer says.

If you're not comfortable selling at that figure give her an ultimatum and be prepared to find another buyer.

Also don’t forget, the other sold flat may have been over valued, or someone paid more than it’s worth. None of this is an exact science.
How much per month is it costing you to keep the flat? Do you have to pay next year’s service charge in full on Jan? Or is that monthly/refundable?

Bottom line is that you want to sell at a price you are comfortable with - and all the manipulative detail she's using about the 900 years and not needing a garage are irrelevant to you. I recently had an offer £30k less than asking price which both I and the Estate Agent laughed at - the would-be buyer justified it in terms of "but there's so much we want to do to the house"... not my problem, and also insulting.

Don't waste any more energy, or time, on this buyer - tell her the price is £X and she either wants it at that or you'll sell it to someone else.

The rational about garage not needed and long lease is nonsense. Of course they are massive benefits.

We sold a flat to an investor some years ago. It was only a couple of years old from new build at the time. Just before exchange she said she wanted us to have it decorated throughout so she could let it straight away! We said not a chance, and if exchange didn’t go ahead on schedule we were pulling it. It went through.

Investors are transactional buyers which in our case translated as piss-taking bastard. I would hold your ground if you can OP.

Whether she really has a lower valuation on it or not is a red herring. You can sell your property for whatever price you want, as long as someone is prepared pay it. I’d say the price is £290k so if you aren’t willing to pay this, jog on and find somewhere else to buy. Then it’s up to her to either pay that or pull out. If she does pull out, you can take the property off the market over Xmas (giving Connell’s whatever notice period you signed up to) then relist with another agent at a higher starting price in the New Year if you want to. Don’t be railroaded into dropping the price if it doesn’t work for you. Your property, your choice. She can either pay that or piss off.

Sorry, I read that as Connells being your estate agent rather than the surveyor. Advice is the same, it’s up to you what price you are prepared to sell for. I would also say it depends if you have another property in mind that you are desperate to buy. That’s the leverage cheeky buyers use to pressure people to accept a lower sum, the chain collapsing and you lose your onward purchase. If you don’t have another property already lined up, the pressure is off.

Not quite sure why you shouldn't be losing money or why your buyer would be responsible for paying more because you got burned by a builder. That's your problem not theirs.

At the end of the day you are either prepared to sell the place for that amount of money or not. If you aren't then probably best to remarket.

And yes as an investor your buyer is likely to try to find any means possible to get the price down as low as possible which might include last minute negotiation.

Of course if you do decide to remarket getting the price you want might be difficult too. I guess you know by now from how many people showed interest at the initial viewings what the state of the market is and whether you are likely to find a buyer quickly at the price you want. I am guessing that you did not get a lot of initial interest, otherwise you wouldn't be even considering the discounts you have given to the current buyer.

You yourself know what the property across the road sold for, and its limitations.

Incurring the price of a survey sounds cheap, comparatively. Her comments about the garage or other features she claims are if no personal use to her can be met by the comment that they are valuable features but perhaps if she doesn’t need them the property is not right for her.

Sounds very stressful and you have my sympathy

I asked the buyer if we could speak this evening, she said she's unavailable and only available tomorrow evening between 6.30-7.00 pm. She's playing games knowing we're looking to move before Xmas. She knows we enter December this weekend. Crucial days, I'm really pissed off with her games.

I want to tell her it's £290k or we pull out. I just don't know how to word it in a way where she agrees to it. She's a tough cookie.

We got burned by 5-8k. We want to stick to £290k, assuming she really likes it if she got 2 surveys done. How much does a survey cost?

290k is the price you agreed before she got a valuation of 275k.

It is your right to say you won't sell for a penny less than 290k. But I would worry about the deal falling apart if you don't compromise at all on price.

I would definitely expect to have to make at least a small reduction following a 15k down valuation. So I would counter offer at 285k so she can feel that she got at least a small reduction as a result of the down valuation.

I can't tell you the cost of a survey although I'm sure Google has some suggestions. It will vary hugely depending on your area, type of survey, size of property etc.

It's your estate agents job to help support the valuation so I would get them to pull the evidence including stuff contracted but not yet on land registry and challenge the valuation. This is where they really earn their commission.

Ultimately you may have to decide if you are willing to risk a higher price but a later buyer Vs the one you have and what they are willing to pay.