HELP! Due to exchange tomorrow. Buyers want to drop a further 25k. Is there anything we can do?

[MamaChris]

We accepted an offer 50k below asking price on our flat 3 months ago. Buyers have been awkward all the way, and now want to drop a further 25k, the day before we are due to exchange. We can't afford this, unless the next property in the chain takes the hit too, and we really don't think he will.

About to speak to agents, but does anyone have any advice? Is this likely to be a negotiating position or might they really pull out if we say no?

Scared.

There was something about this in the papers at the weekend News of the World I think (We get the Observer too, honestly )

basically the advice was that if what you have spent so far (on surveys, solicitors fees, mortgage costs) is more than or equal to the drop, than it might be better to grit your teeth and get on with it because no one knows when the next buyer will be along.

But if you lose more than you have already spent, refuse them or ask them to renegotiate.

It also says that "nerves of steel will win the day".

Does that help? I do hope so, as I have myself as a NOTW reader for you.

should read 'outed myself'. doh!

lol OFFS!

We're off to see house #2 first thing. Have a long list of questions, as we need to be really really really sure to take a big gamble with this. Hoping that, if we love the house (I did first time round, have yet to fully convince DP), the sellers are nicer/more honest than our buyers... otherwise we could really mess things up.

so you couldn't buy the house you wanted because the fuckers stitched you up? Is that right? I bloody well hope you have told them!

Don't worry, before you know it it will all be a memory and you will have a house you love. These things always happen for a reason

House #2.

No MamaC you've not given in you've made a very prgmatic decision and are getting on with your lives, sounds like it's all working out for the best. I hope house 2 is all you want it to be!

Quint am for you. Isn't this the tennant that was a 'problem' from the start

So we saw house #2 again today, both loved it, and had an offer accepted! We were so happy! But now there's another problem with the sale, and it'll be a week before we know if it'll finally go through or not (we were first supposed to exchange last Friday, and then today at 3pm - only heard about this latest problem at 3.30). So, back in limbo, trying desperately not to think about whether it'll work out.

Fingers crossed for you

Fingers crossed for you

I'd rent your place out as rents are rising fast, and camp in a smaller rental property, rather than be bullied. But at the end of the day, you may prefer to get the thing done and dusted.

Fingers crossed for you!

(Yes, it is the same. But I have so many things on at the moment that I am chosing to leave that on the backburner for the moment.)

Boffin had an article form douglas and gordon e-mailed to me ?yesterday rents are falling availability is rising. I will look up some figures for you!

Here
Average price of property sold up 7.8%
Number of properties sold down 42% year on year
Number of applicants registering to buy down 47% year on year
Number of new instructions to sell down 17% year on year
Number of new instructions to let up 40% year on year
Number of tenant applications up 15% year on year
Fall in average value 8.5% (11.1% August 2007 to August 2008)
Fall in average rental values 1.5% (August 2007 to August 2008 3% increase.

There was something about the av.price rise being a blip if I read it correctly ie due to the stats and about to show a fall.

Don't know where you are but they are a mid level London estate agent just checked web in quite posh areas it would seem:
chelsea, kensington, battersea, clapham ,putney, wandsworth, fulham and pimlico

I was going to query Boffin 'rents are rising' because we want to sell and rent and also thought rents were falling fast!

Quint am sorry
something to deal with when you feel stronger

1Dilemma could you please tell me where you found those statistics?

Douglas and Gordon S.London estate agent.
They e-mailed it to me, we were registered with them years ago occ they send stuff.
The e-mail contained their commentary on the property market it was called the wire.

If you can't find it and would like it I am happy to forward it

Thanks, I found it on the website. It looks like there is many more rental properties than there are interested tenants.

And I will go to bed happy that I have fired off an email to F blardy okstons.

Boffin - we had a look at renting, but could only find 2 properties that would take our dog, neither of which we liked. So that's still the fallback option, but hoping we don't have to resort to it.

Thanks for all the crossed fingers, together with my crossed toes, surely it will work out?

MamaC - I've just seen your question. Though it is probably irrelevant anyway at this point! I'd go for house two but try not to worry too much about the sale falling through. You should be able to find a rental at short notice in the event that did happen. There is a lot of wannabe sellers putting their properties up for rent and it really is pushing rents down.

However, I would not mention your dog to prospective landlords. It is none of their business. If your dog was to do any damage to their property they would deduct it from the deposit, otherwise how you choose to live in the home you rent from them is up to you. Mentioning the dog puts you in a weaker negotiating positon.

As far as the negotiation goes - it depends entirely on the property. If it seems to be below market value, fresh on the market with a decent landlord and other people interested, I would just pay the asking rent. But I've only ever felt I had to do this once. All of the above applied to one of the places I viewed last week and I did negotiate a discount - only about 10% but that still adds up to a lot of money over the course of a year. That property suited us perfectly and was immaculate, though I observed that the outgoing tenants had a dog.

If the flat is empty or has been on the market for a while you are in a strong negotiating position. If the landlord takes offence at you trying to negotiate - they are not behaving in a professional way and not treating being a landlord as a business so I would steer clear.

Really - you wouldn't mention the dog? Will I not have to sign a tenancy or something that says "no pets"?

I don't think I've ever had "no pets" on any of my tenancy agreements. Even if it was there it is not really enforcable.

If I was a landlord and someone asked if I would take tenants with pets I would probably be wary, nobody wants to rent to a mad cat woman or a dog breeder! Having met the prospective tenants, and talked to them, it might not be such a big deal.

oh. so we go see properties, talk to landlord (if available), then mention dog once tenancy almost agreed, or just move in without mentioning dog? What if you never meet the landlord, just the agents?

I disagree about not mentioning the dog. If there is a "No pets" clause in the tenancy agreement and you sign it, you have already broken the terms of your agreement.

I think if a Landlord really wants to let their property they will occasionally be open to the idea of a well-behaved dog.