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.

It is happening a lot in our area. It is completely unacceptable just before completion. I would call their bluff-they stand to lose a considerable amount of money if you pull out at the last minute. We had the same with gazumping in the boom time and pulled out-we were not playing the game. It is unethical.

We are completing tomorrow and deliberately negotiated hard at the beginning to avoid this.I think its terrible at the last minute.Call their bluff and just say no.Unless prices really have plummeted in your area.The thing is you go with the price you are happy with when you offer not what might happen.How much reduction have you taken overall off the asking?

MamaChris
The 25% drop sounds like them assessing where the market is going and putting their price on it! I've read that 25% down by Christmas is the percentage currently being quoted by economists etc.

If the daughter doesn't want to speak to the EA's, then it sounds like she's not too good a negotiator (or doesn't feel able to justify their position). Alternatively, it could be that the EA doesn't want to get into an argument with them (they are cash buyers after all!), in case it does all fall through, and he can interest them in another one of his properties! So he's pushing it all through to the solicitors.

I suppose you could just say no, but as others have mentioned, you could find yourself having to accept a very similar offer after Christmas, if you do.

I would rather have the same lower offer from new buyers than give into blackmail. It is a dreadful practice, they have you over a barrel and I wouldn't give in! (unless desperate). If no one gave in they wouldn't try it on-they do it because they know that they have a good chance of getting away with it.

Noddy "25% down by christmas" - 25% down from now or from when property was at its highest about a year ago? We have already seen property valuues fall by 15-20%.

yes swedes i heard an economist on the radio yesterday saying the total fall was going to be 25% and we have already seen at least half of that... obviously he is only estimating the total fall.

swedes i didn't say that although it sounds right

25% down from peak! Houses are apparently down already by 12/13%, and the remaining fall (to make up the 25% total) will be by Christmas. With all that's gone on in the past few weeks, it actually sounds quite conservative! And there's no confirmation that it will stop there!

But the point is that you can't negotiate a price based on what the item's value will be in x or y months/years' time. After all the OP could insist on a higher price on the basis that it will be worth that in 5 years' time.

If they'd come back and asked for a £5K reduction, I'd have thought they were taking the piss, but would probably have sucked it up and agreed. But £25K is a seriously eff off piss-take.

Also, I bet the daughter really wants this flat and will be seriously cross if Mumsy and Dadsy balls it up. If you pull out now, it's unlikely they will find something else and have it all sorted before Christmas, so I shouldn't think Miss Princess will be very happy.

I really wouldn't drop the price. They've deliberately waited until the last minute to increase the pressure on you to agree. If they really thought that they had a stronger position, they could have come to you earlier. I'd tell your agent to pass on the message that you are not dropping the price- your agent cares about the sale more than the price, so I wouldn't accept their advice that you have to settle. I would seriously look at renting your property instead.

Noddy - I'm not sure where I got that from! Sorry. perhaps I was reading another thread. But yes would not be surprised if they fell 25% from their peak but doubt they will fall 25% by Christmas (if they mean between now and Christmas) - who's going to own up to having said that?

We have managed to get 30% off last price in the road and 25% off asking and wouldn't dream of asking for more at that stage.

Things have changed in three months, get the flat sold because they are falling fastest, who wants a flat when you'll be able to buy a house for the same price soon.

Ps Not many people were crying it's not fair/done thing when gazumping was going on in 2004.

so. buyer's solicitors have been spoken to and say the 25k off is their final offer. sellers' agent has been spoken to and says clients will not drop their price at all.

so we're stuck between a rock and a hard place.

I've told our agent that that means the sale will be off and we'll have to rent this out if he can't do better. I've told their agent that we will buy one of the other properties which was priced higher than this one when we offered, but has since come down.

but that's just to keep them on their toes. we must move, and I don't want this flat hanging round our necks any longer, so we will have to sell this for whatever we can get, and rent where we want to go while we look for somewhere else. who has experience renting with a dog? how hard is it to get landlords to accept you? (she's an old dog, fully house trained, not smelly).

what a horrible day

What a horrible situation. But I think it might still be worth considering renting a flat out in Finsbury Park. Ok it's not the grandest area but there's probably still a strong rental market, or at least a better one than selling market. Where are you moving to? Are both bedrooms a decent size in the flat you're moving from?

Difficult with a dog - I don't allow it in my house full stop.

Try weekending for a bit if you can;don't give in to the buyer - walk away and see what happens. They made an offer, and it should stand unless they can prove there's a problem with the survey. I agree with Combustible Lemon.

When I sold a house in 1992, the buyers tried to keep dropping the price and I told the EA that even though it might just be another £50 per month on the mortgage - I did want to be able to eat when I moved, and not starve because I had to increase the mortgage because the buyers were playing silly buggers. They either paid what they'd offered, or they could find another house, as although I wanted to move, the world wasn't going to end if I didn't, and I'd rather stay where I was than screw up my finances. They paid what they'd offered.

Tell the EA the sale is off and then wait to see what happens, and ask him to put it back on the market; you know what your bottom line is and how much you can afford to drop - if you can't don't. They're playing chicken with you and waiting to see who blinks first. Don't you blink!

but if we let it, will we get any more for it in the near/medium future? I don't see it. Also, we will be in a stronger buying position if we have nothing to sell. But, most of all, emotionally, I just couldn't face going through this all again. I want rid. Which is a horrible thing to say about a place I've loved living in, and where my ds was born

Of course people were crying unfair when gazumping was going on. We had cash buyers for our house and were buying another one locally. We hadn't gone very far before the sellers told us that they had had a higher offer, of course we could still buy but we had to appreciate that we would have to go higher. They were an older couple who wanted to be seen as nice people! We told the agent to tell them exactly what we thought of them and that we were not going to give into blackmail. We lost the house, but the thing that made me really happy was that their new buyers dropped out later on!! We luckily only lost £250 so it could have been worse.
People gazundering stand to lose quite a lot of money if people refuse to budge. It depends how much they want your property. With a lot it must be bluff.

what's weekending?

so let me get this straight. 25k is a 25% drop?

so:

originally the flat was on the market for 150k. You accepted an offer which was 50k less than asking price (100K)? so actually you already dropped the price by 33% to accept that offer. And now they want to pay 75k for the flat instead of the agreed 100k (which was already 33% below original asking price.

So in fact, if you give in to these tossers, you will be taking a 50% hit on your asking price?

no. no no no no no no tell them to stick it. and remarket the property.

And the "it's business" is bollocks. If this had been in scotland the offer would have been legally binding, regardless of whether the price had come down since the offer was made. And that is how it should be here too imo.

oh and, I don't agree with gazumping either.

Tell your agent that you are withdrawing from the transaction unless the buyers proceed at the original agreed price and will be remarketing with another agent, failing which you will rent it out. Your agent will be bricking it at the thought of losing his commission and he absolutely will not want to lose a potential sale to another agent.

In the words of the cast of Grange Hill....Just Say No!

They're taking the mickey. I know how you feel, it's tempting just to say yes to get rid of the hassle of it all, but they really are being outrageous and it's not on.

Say No, put it back on the market and I bet they'll come running back tail between their legs.

Good luck!

thing is, we can afford to sell for a lower price, assuming markets continue to fall and we can subsequently buy at a lower price.

but that only works if we can rent with a dog. scaryteacher what are your fears with a dog? is there anything we could do to alleviate them?

Tell your agent that you are withdrawing from the transaction unless the buyers proceed at the original agreed price and will be remarketing with another agent, failing which you will rent it out. Your agent will be bricking it at the thought of losing his commission and he absolutely will not want to lose a potential sale to another agent.