Buyer wants £8k off parents' London flat just before exchange

[LondonSeller]

Parents flat for sale as they passed away in london - Took 18 months to get probate sorted out but finally got it - Property listed with agents and it is in dated ocndition and needs work - Also has a 70 year lease. EA told us not an easy market

After five weeks advertising price agreed at 500K which was a bit lower then we had hope for but EA told us buyer is known to them and this would be very quick sale

Was meant to exchange on Friday and EA has come back and said buyer is ready to exchange, has sent deposit monies to his solicitors but wants a reduction of 8K. EA has said this is less than a 2% drop so not massive and believes we wont get better if we reject the offer

Buyer is cash purchaser investor so quite rare and I worry that if I dont accept property will be stuck for months for anothr cash buyer who might offer lower.

I live in Scotland and the flat is in London so I am miles away - Paid to have the place emptied and solicitor fees so am already down. By contrast buyer has not paid anything other than a few hundred for solicitor fees - No mortgage, no survey fees nothing

Whats the best angle here - Call buyers bluff and risk losing the sale or take the money and run. Feel quite cross as this money was going to be used for real stuff and to clear debts

Whilst I said earlier that the East Dulwich branch of Winkworth has got a good local reputation, the information thst has now come to light about their second listing for the entire house, including the OP’s flag, has made me think very differently. However, if she has signed a sole agency agreement, she won’t be able to change agents yet, or she would be liable for two lots of estate agents fees if another agent sells it before the sole agency agreement ends

Winkworth are known for inflating the asking price way above what the property's really worth, which gives the seller a false sense of what they might get for it. Then forcing the seller to accept a much lower offer. And they are ALWAYS on the side of the buyer, rather than the seller. We had a horrendous time selling our flat through them that I would never use them again and tell everyone I know to run a mile.

If you really can't afford to re-list it with another agent and wait for another buyer, I'd call this one's bluff and refuse the reduction.

You are not down, as you are set to inherit nearly £500k, I would take the offer and get it all over and done with.

The arse is drop out of the market
flats are very difficult to sell in London
with that short lease it going to be a cash buyer
gran it with both hands

you could soon recoup the 8k invest the money
where as it’s costing you now stop empty

Prices are falling. Take the money and run, few buyers will touch a 70 yr lease.

The house prices are decreasing and this is expected to continue. Just accept the offer of £8k less and get ti done.

The stress of trying to haggle or resell or risk losing this sale- with a difficult property to sell as well- is not worth it.

As someone who’s hoping to buy a two bed flat in London this year, and who’s been following the market extremely closely for months - that flat was never ever going to sell for £600k. Winkworths told you that to get you to go with them.

I’ve seen flats in much better condition, in more central areas and - crucially - with long leases, for less. Take the money and walk away.

Are flats listed for 675 or actually selling at that?

Be wary of looking at sold prices from a couple of years ago - prices have really dropped off .

A flat is "worth" what a buyer offers you. Its that simple. Did you have other promising viewers?

Are you the estate agent?!

I'd want to know exactly what's being sold, your flat is part of the whole house so is the upper flat also for sale separately.

I am minded to say £4k off AND only if they exchange on Monday 8th.
if they come back & say £6k off to get Monday exchange, agree to that & completely revoke if they don't exchange on Monday.

Get something for your agreement to the price drop.

Cheeky bastards.

2nd choice is to give them no reply for days, simply leave them hanging. Tell your solicitor that you'll answer when you feel like it.

Bite their hand off for only an £8000 reduction, or wait 3 years for it to sell at a £30,000 reduction with the market the way it is. Your choice.

When you say the buyer is known to the estate agent did you ask them to clarify this?

Its exactly the kind of sum to cause the dilemma you are now in. Is this actually a connection of the agent looking for a bargain using extra info?

Its a tough call - its a hassle managing a property from a distance but I would be concerned about the trustworthiness of the agent who seems to be acting for the buyer.

I think she would be able to change agents because it would appear there is a conflict of interests. OP placed her house on the market and Winkworths should be solely acting for her / the estate and their best interests, but it appears they have placed the whole house for sale, including OP’s flat, before they have sold the flat and they hadn’t made her aware of this. Whether it is worth changing agents is another matter, perhaps she would be best agreeing Winkworths don’t get a commission and they negotiate the sale price upwards given the house will be worth more. In exchange OP doesn’t complain to the ombudsman. OP maybe discuss with your solicitor.

The upstairs flat is also listed on winkworth, 625k under offer

And it was listed on RightMove on the same day as OP's, whilst the full house was listed before either of them. Very very weird.

The £20k costs you’ve accrued so far won’t stop though will they?
let’s say you relist it and it takes 6 months to go through (which is conservative in this market)
That will cost you £6667 in extra costs. Plus the interest you will be paying on your debt
Pulling out and re listing will cost more than sucking up the £8K reduction / annoying though it is

So cheeky, I wish there was legislation to stop this behaviour

OP’s flat is listed as 600, she agreed 500 and they are coming back pressuring her to accept 492. If they have done the same with the flat above, they may make a profit of approx. 200K.

Either they've not updated their listing's or something strange is going on. I'd hold off until I'd spoken to the senior partner

I believe there is a code of conduct and an ombudsman.

I'd be very annoyed. But would go forward with it in your situ (and they know it which makes it more annoying). Sooner you get the cash the better and e.g. put into an index fund investment account (you choose risk level) (assuming you've no ISA allowance left if so do that first x2 40,000).

I think what you need to consider is that your property is unmortgageable so only cash buyers will be able to purchase. I feel like that makes your buyers pool a hell of a lot smaller as its rare for people to have 500k cash for the purchase plus the cash needed for solicitors, lease extension and renovations i.e. over 600k in cash

You may be better off extending the lease yourself so that buyers with mortgages can consider it and perhaps then you can achieve the circa 600k you are looking for. (Although with the work required I still feel that would be overpriced and certainly wouldn't expect above 550k...)

You’re not ‘losing’ anything as it’s only worth what some will pay, and I’ll bet your parents paid a lot less that £500k for it. If it’s a short lease flat your pool of potential buyers is limited and a property investor will want it at a price they can make a profit on. Personally I’d give them the £8k off, take the money and walk away happy.

As someone who has been trying to sell an inherited house for over a year, is having to find double council tax, pay utility bills and insurance, I would say just take the money and run.

Its been in the news that London flats aren't selling and your buyer knows this. Our house is costing us £8k a year, I would take an £8 reduction in a flash.