Can we hold buyer to his offer?

LittleMoo

We put our house on the market for £94,950 and received an offer from a cash buyer for £85k. We couldn't afford to accept it so he upped his offer to £90,950. We accepted, as it left us enough to put a 5% deposit down on the house we wanted.

Unfortunately, we have been unable to get a 95% mortgage and have had to go for 90%. We're having to borrow the extra 5% on existing credit card 'low rate for life of balance' offers.

Our buyer has deliberately dragged his feet and questioned every little thing on the survey, even where it just says 'in good condition but should be monitored in future years', and has now refused to pay more than £88k for our house! Our estate agent says that the market has fallen so much since his first offer that we wouldn't get any more from another buyer now.

As he is a cash buyer and obviously loaded i'm scared he will just keep dropping his offer. Is there anything we can do to 'lock' him into an offer? i.e. say we'll agree to £88k but that if he tries to drop out or drop the price further we'll charge him £10k?

We can't drop out now as i'm 4 months pregnant and we're desperate to move before the baby arrives. Also, we've paid out for surveys, searches etc and can't afford to lose that money.

hethmar

I think youd need to speak to your solicitor about that.

poppysarah

You can't lock him into an offer.

Do you have no equity in the house to take forward?

EagerLearner

I am not a professional in this but I don't think you would be able to charge a buyer £10k for changing their mind in any market, much less the current one.
You could agree in principle to the £88k subject to the deal going through by xxxx date. I am sure someone with more knowledge will be around shortly - good luck.

Alias_Omega

With the current market, the doom and gloom on the news.

There will be struggle to sell a house, even if it is 'dead cheap'.

I suspect the cash buyer will simply vanish, on the look out for other bargains they can put stupid low offers in on now.

After all, times have shifted & its a buyers market.

howler_2

LittleMoo wrote: »

We put our house on the market for £94,950 and received an offer from a cash buyer for £85k. We couldn't afford to accept it so he upped his offer to £90,950. We accepted, as it left us enough to put a 5% deposit down on the house we wanted.

Unfortunately, we have been unable to get a 95% mortgage and have had to go for 90%. We're having to borrow the extra 5% on existing credit card 'low rate for life of balance' offers.

Our buyer has deliberately dragged his feet and questioned every little thing on the survey, even where it just says 'in good condition but should be monitored in future years', and has now refused to pay more than £88k for our house! Our estate agent says that the market has fallen so much since his first offer that we wouldn't get any more from another buyer now.

As he is a cash buyer and obviously loaded i'm scared he will just keep dropping his offer. Is there anything we can do to 'lock' him into an offer? i.e. say we'll agree to £88k but that if he tries to drop out or drop the price further we'll charge him £10k?

We can't drop out now as i'm 4 months pregnant and we're desperate to move before the baby arrives. Also, we've paid out for surveys, searches etc and can't afford to lose that money.

Not sure you can hold him to the offer - the uncomfortable truth is that property prices are falling fast. Forget what you think the property was worth cos it ain't likely to worth that much now

I'm tempted to agree with your estate agent (which makes me feel dirty!)

Could you look at getting a reduction on the price of the property you're buying - chances are that's falling fast too

joshiesaunt

hello LittleMoo
sorry to hear about your predicament - unfortunately I doubt there is anything you can do (although I'm sure there are wiser and more experienced people here who may be able to offer some other guidance). As I understand it, the price is not binding until you actually exchange - 'gazundering' at the last minute is almost de rigeur at the moment as house prices are dropping so quickly. I also had to take money off as a result of our buyers survey - I met them half way. I would try and proceed with this sale as you seem to need to move and agree to the £88,000 price and set a firm date for a quick exchange and hope for the best. Make it clear to your agent that you will not be able to drop any more (but obviously your buyer can walk away if he is not happy with that.)
Just as an aside, the difference in price between your asking price and his offer is actually below average at the moment and is in my opinion a good offer - most people on these boards and in my own experience have had to lop off 10-15% from the asking price and that is usually before any survey/gazundering has taken place - that is why a lot of people are saying do not sell unless you really have to and can afford to take a hit.

BASFORDLAD

is he really a cash buyer?
you will find in the near future him trying to get a mortgage!

going2die_rich

Think in todays market you'll just have to accept the hit and take £88k. It'll cost you more to find a new buyer. Unless you settle for not selling and just stay where you are.

if you do sell, do some things before you leave to make it horrible for him when he gets there. Such as leaving some dead fish under the floorboards, in the attic and signing up the address to a few things in his name. maybe a couple of dozen double glazing quotes and guttering. He'll get hounded for ages afterwards. Perhpas even set a few mice out in the attic?

phil_b_2

Make it clear you will be having to finance the difference on credit and can budge to 89k. Say it's too much of a struggle to go lower.

I would think 89k from a cash buyer on a 95k priced house is a VERY good offer in the current climate. Even 88k would be pretty good.

Soot2006

going2die_rich wrote: »

Think in todays market you'll just have to accept the hit and take £88k. It'll cost you more to find a new buyer. Unless you settle for not selling and just stay where you are.

if you do sell, do some things before you leave to make it horrible for him when he gets there. Such as leaving some dead fish under the floorboards, in the attic and signing up the address to a few things in his name. maybe a couple of dozen double glazing quotes and guttering. He'll get hounded for ages afterwards. Perhpas even set a few mice out in the attic?

Are you completely insane?
£88K on a £95K property is not so insulting that one should resort to petty pranks to feel better.
The seller knows that in this market they will probably not get a better offer so they are accepting it, but how is that the buyer's fault and why must the buyer be punished?
If they exchange at £88K, then everyone wins.