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.

Ooops sorry. Didn't meant to post that twice.

but I don't think it's the agent that's the problem. It's the obstinate bastard crooks buyers.

Agents are selling so few houses at the moment that they won't want to lose the sale. I can't believe that someone has gone through all those weeks of buying and has considerable bills is going to drop out. I believe they are trying it on and it depends whose nerve is stronger as to who wins. You haven't necessarily lost yet.

The agent may not be the problem, but he needs to be working for you to earn his commission - that's his job.

He should be negotiating like mad to make this work, not just telling you you'll need to take the hit, iyswim.

but my nerves are fraying!

thing is, they don't have to move. If they don't buy this, they hold out, buy another flat (not as nice, true!) in a few months time for less money for their daughter, who continues to rent in the meantime.

We rented with a dog and 2 cats and three kids but it was a huge 5 bed house in the country that was last decorated in 1984 so not too much of a problem. I think if you look for an older tattier house you should be fine rather than a white carpets throughout type.
Loads of people are having trouble selling and renting out their flats and houses instead so that will drive down the price of rentals too, IMO you need to get rid asap, I would call their bluffs first though, £25k is a lot of money.

And neither do you have to move. You do have options. If you accept this loss now, it may impact on your ability to buy again in the future if the market doesn't drop as predicted. The continued downturn in the market is only predicted, not absolutely certain.

but we do have to move now - I have a new job starting in January in another city. If I were to commute, I wouldn't see ds, who won't even be 1yo, from Monday-Friday. I can't do that.

i would say no

the people you are buying from have said no

But you can rent this flat out and rent somewhere else until the property market has levelled out.

Just say no. You have a new job in January. You have time.

Tell your agent to put the flat back on the market, and put it on the rental market too.

Just that. New instructions. Your agent will have to tell your buyer what he has been instructed. It is up to the buyer then. They will either lose this flat, or not, and YOU are calling the shot as you are now putting it up for rent in ADDITION to for sale.

ANd the agent? He failed to secure you a buyer.

this was ages ago but something similar happened to me once. i brazened it out and counted on the buyer wanting the property and having spent all that money already not wanting to lose it. it worked.

if they'd wanted to negotiate price they've had 3 months.

i would stick to your guns, tell agents to do their job (bet they stand to makea mint) and tehy are allegedly only selling one house a week at the moment - so make them sell yours at the price you need for it.
and tell them of the sale falls through you're withdrawing it from market and will not use them again

and RENT it out and rent in the new area

ooh cross post. like idea of putting it back on market - but with same agent??

That will be quicker. But she can tell the agent she will also be contacting a second agent, to improve her chances of getting a sale. It wont be sole agent anymore, but it might have a higher chance of finding a buyer with two agents pitted against eachother.

How tight are things financially ?
I mean can you afford the Energy Performance certificates, £50, Gas Safety inspection £100, the deposit needs to be held by an independant body, the agents fee's, the empty months, the repainting after the tenannts have left, fixing any problems whilst they are there.
I would try and sell it if you can.

QS then you have to pay either 2 sets of fees or the agents both put their prices up, not that straight forward.

My friend has just been told by a landlord (of a very nice £2k (was recently £3k per month) per month house) that he will accept her family and several pets (including a new labrador puppy) but will take 8 weeks' rental deposit instead of the normal month's deposit.

I think there are a lot of rental properties on the market and landlords are having to be realistic to get them rented out.

I used two agents with my property. You only pay a fee to the agent who is successfully selling/letting your property. Unless things have changed since June.

We rented with a dog
It was fine
We just viewed the properties, and then discussed it with the agent when it came to the one we liked
when we were landlords the main thing we wanted were reliable paying tenants
The dog is neither here no there

QS you did well there, they usually charge say 1% plus VAT for sole agency and then 1.5% for a dual, but that was 3 years ago.

OP needs to find out her agents policy on dual versus sole agency. (and also the policy of the other agency she may decide/propose or just tell her agent that she will use)

'The dog is neither here no there '

it is when it's a big dog.

stinky, vile dogs. yuk.

Dear MamaC, don't accept their lowly offer, you can get a place to rent quickly if you want. We sold our London property but we had to agree to two weeks after exchange and it was hell as my partner had one day (a Saturday) to find a property for rental in Rugby, a town we had only been once before.

So you can find rental quickly and if agents are iffy, you can offer to pay a few months' rent in advance. We were prepared to shell out six months if they were difficult (rental here is much lower than in London).

Many people I know in London are renting their properties out because they cannot afford to sell for rock bottom prices. You can rent it out easily as your area is considered a good place for young professionals to rent.

Good luck!

I have read every single post on this thread with my heart in my mouth! OMFG what a nightmare for you MamaChris.

I speak as someone with years of experience in the residential property market and 20+years as a homeowner (who survived the price slump of the 1980s) and I am pleading with you PLEASE DO NOT ACCEPT THIS OFFER!

It is an absolutely unbelievable unforgivable fucking liberty your buyers are trying with you (and I have seen some horrific similar situations in my time) but you really must let a little bit of your heart rule your head in this situation and tell them to stick their £25k reduction where the sun doesn't shine.

You will be ok with letting your house and finding somewhere to rent. It will work out, please don't sell yourself short with this.