Buyer tried gazunder before exchange

[PickNMixwe]

Selling a house but I've already moved, so though I'd like to complete sooner rather than later, there's no chain, just the buyer due to move from rented upon completion.

It is a very good house in a popular area. There were multiple offers back in June when it went on the market, it was priced low (my choice) as I wanted to get on with it. The buyer has a mortgage offer, survey with no known issues and all legal work completed.

We were due to exchange this week, but the buyer unexpectedly said they want to do some renovations due to parts being a bit dated and so they want a £10k reduction.

I have said no, the agent also advised me to say no, they've got a great house at a great price. Now I'm waiting to hear on Tues whether we're proceeding at the agreed price (which apparently they can easily afford). The agent is very decent and it won't cost me £10k to start again, he can easily get another buyer at this price, but the whole thing is very frustrating.

I think often buyers go ahead once a gazunder has been declined? They've spent a load on surveys and legal work. Feeling a bit fed up.

So many people on here getting worked up and emotional, it is a business transaction, be calm and unemotional and think realistically about do you want to go back to the market and risk lower offers or less interest?

@KeepPumping equally why would the buyer start all over again over £10k? They will already have spent on surveys etc. And if they have a mortgage might be looking at higher rates if they start again. The buyer would have to be in a very awkward position to give in to that kind of demand, like a chain collapse.

It’s a business transaction and the buyer is playing dirty, so can OP!

You can be calm and unemotional and call their bluff, yes, and refuse the reduction. Gazundering is not a normal part of a business transaction, like renegotiating after a survey. Obviously you also have to weigh up your chances of selling again when back on the market, and at what price, in your responses.

Fair point but there is subtle psychology involved IMO, the buyer is displaying doubt signals, it may be that they think they are overpaying but in that case they would pull out completely or ask for a bigger discount, this is almost subconscious, they are on the hook but the seller still has to land them, they are having nagging doubts and they just need convincing, the small discount could be enough to get them to commit.

Fair enough, that is why I am asking if 10k is worth going back to market for.

@KeepPumping the house had multiple offers, and OP isn’t a chain. There is no reason for her to give in. Suddenly deciding you need renovation money, at this point, is unreasonable, and the buyer isn’t in a position to demand it. Obvious renovations are taken into account in the initial offer.

24 hours after the weekend to confirm that are going ahead at previous price or it goes back on market

Sounds very good, but doesn't make any sense. Why not see if the buyer backs down and exchanges at the agreed price on Tuesday?

Yes, but as I pointed out earlier the bond market can pivot overnight in response to any number of global events, it just takes a few headlines about mortgage costs going up etc. to spook buyers, is it really worth the gamble for 10k is all I am saying, offers mean nothing, we don"t know if those people remained interested or had other properties in mind or if they could even get the funding, this buyer is nearly there, they just want one last bit of bait before they jump in the boat.

Agree they are being silly they’ll lose so much money by doing this ! Searches etc, solicitor fees all paid for. hold firm.

These buyers have had their mortgage offer for at least a month, so they most likely have secured their rate. The mortgage valuation was no problem, the survey was fine. The EA said at the start it's well within the buyers affordability and their plan is to do some renovations to their taste.

I've checked and I'd fairly easily get this price again if I need to remarket, it is v popular location with high demand. The issue with pricing it low was maybe that people think I'm desperate, but I'm not! I just wanted a simple transaction.

Stick to your guns.

DH was the executer on his aunt's will. He was selling her house and the buyers tried something similar. He said absolutely not and told the estate agent to contact the under bidder as the deal was off. The original buyer was back begging within the hour.

Yes, unless they really do have you over a barrel, my attitude would be the same. I would explain that I value and seek honesty in the transaction. The stage for offers and negotiation on the price was completed and the price was subsequently agreed on by both parties; so any buyer seeking to take advantage of any perceived vulnerability with the situation and reduce what they pay at the last minute is very clearly not an honest or honourable person, thus I would no longer wish to conduct any dealings whatsoever with this person, thank you - I will wait a little longer for an honourable buyer to come along instead.

I’d do the same. Had something similar years ago. I didn’t even communicate with them, I instructed the agent to place the house back on the market. When they explained this to the intended buyers they backed off and carried on with the purchase, cheeky shits.

Absolutely. I will not do a transaction with someone who behaves like this. I made it clear to my DS that he was not to do this, not that I thought that he or GF would actually have done so. I would have been disgusted with him.

@KeepPumping serious question, have you ever actually bought a house? Or are you one of those people who hang around forums trying to persuade others to sell cheaply as a crash is (interminably, every year) on the way?

Knocking 10k off isn"t "selling cheaply", posters are talking like it is still the bubble years with a line of people waiting to view at the garden gate, that is long gone, as I said viewers making offers is not a sale, this is nearly a sale.

Hopefully you told him to get a decent discount at the start so he has less debt to pay interest on, or more cash to deploy elsewhere? Obviously this buyer has stretched themselves and is trying to claw something back.

Gazumping is the seller accepting a buyer with a higher offer at the last minute, gazumping is the buyer reducing their offer at the last minute. Two different things. Equally annoying and should be barred.

People can be such snakes in these transactions. Say no and mean it. If they want to do renovations, they’ll have to save up, not rob the money off you

The first one is barred, the bond market barred it.

Eh?

Not in England and Wales until contracts are exchanged.

When this happened to me I gave them a weekend to come to their senses, remarketed at an increased price and accepted an offer 10% above the original offer within the week. Times are different now, but I would hold firm.