Gazundering Question?

QTPie

That is a completely different situation that you describe... I don't think ANYONE really has a problem with renegotiation of a price due to the findings or a survey or a serach: that make perfect sense.

What I was saying is that if people intend to gazunder for purely market reasons (i.e. because they want to pay less in a dropping market or just because they want to pay less), then they will probably gazunder BEFORE the survey - since a survey is added expense.

A HUGE risk of gazundering is that the seller will not be willing to negotiate: there is a very large chance that the sale will fall through. A gazunderer has to be willing to accept this and, to do it most effectively, they don't want to have to care that they will loose the cost of a survey (£250? £500? Even a £1000 in some cases?) if they go on to gazunder.

So having a survey done is a "sign of commitment" from the buyer...

Does that make sense or do you still disagree with it?

Wickedkitten wrote: »

I can't agree with that at all.

All lenders will request a valuation of a property being bought simply so they will know if they can get their money back in case something goes wrong. They could have very easily came back with a lower valuation than what you think your house is worth, and what your buyers offered you.

When we bought in 2006, the survey was done the week after we put our offer in and not only did the bank downvalue it, but they also had a retention because there was work that would have needed done before anyone would have been able to get a mortgage on it, so we took the survey into the estate agent, they made a copy of it and passed it to the vendor, and they accepted our lower offer.

On the house we are buying now, the survey was done the week before last, we got our mortgage offer last week and it was fine but then again we are getting the house at 2001 prices.

Wickedkitten

Nope, still don't agree. This is a rapidly falling market; who is actually going to be more likely to lose out in that situation, the buyer who has hundreds of properties available for them to choose from that are getting cheaper by the day or the person who has a much smaller pool of buyers?

You are lucky in the fact that you don't actually have to sell your house but for a lot of people out there that have had their properties on the market for months on end with hardly any viewings, if someone comes along and gazunders right before contracts are exchanged, they can't afford to be so picky.

Can't speak for anyone else personally, but if our house purchase was to fall through, we would get the survey and our legal fees paid on the next one, so just having a survey done isn't always the best indicator or whether someone is going to gazunder you or not.

QTPie

Wickedkitten wrote: »

Nope, still don't agree. This is a rapidly falling market; who is actually going to be more likely to lose out in that situation, the buyer who has hundreds of properties available for them to choose from that are getting cheaper by the day or the person who has a much smaller pool of buyers?

I am afraid I don't understand at all? What do you mean?

Wickedkitten wrote: »

You are lucky in the fact that you don't actually have to sell your house but for a lot of people out there that have had their properties on the market for months on end with hardly any viewings, if someone comes along and gazunders right before contracts are exchanged, they can't afford to be so picky.

What has that got to do with it?

I am totally confused?

QT

Wickedkitten

QTPie wrote: »

I am afraid I don't understand at all? What do you mean?



What has that got to do with it?

I am totally confused?

QT

A HUGE risk of gazundering is that the seller will not be willing to negotiate: there is a very large chance that the sale will fall through. A gazunderer has to be willing to accept this and, to do it most effectively, they don't want to have to care that they will loose the cost of a survey (£250? £500? Even a £1000 in some cases?) if they go on to gazunder.

It's not nearly as big a risk these days as it would have been before is what I'm saying, especially if it is taken all the way to exchange.

QTPie

Wickedkitten wrote: »

It's not nearly as big a risk these days as it would have been before is what I'm saying, especially if it is taken all the way to exchange.

Ok, but isn't that different to totally disagreeing with something?

Eeerrr, if it goes to exchange, then you are fine. Valuation is prior to exchange...

I think to consider gazundering not a sizeable risk is "optimistic", but I would like to believe it

I think we must be having a conversation at cross-purposes... as I still don't really have a clue as to what you are so vehemently disagreeing with me about...

QT

ghostbusters

I was guzundered last year July/Aug by a professional landlord few weeks after I accepted the initial offer.
My agent I suspect did not pass on my rejection to the buyer ; or my instruction to find me another buyer.
I am guessing but when the buyer solictors contacts mine after 6 weeks as to what is the hold up , it became pretty clear as what was happening ; or not happening in this case.
Reasons given for lower price were ' poor market conditions etc..' In the end I accepted to meet the buyer half way since I suspected that I wasnt going to get any other offers, market falling ( Big mistake locking myself into 12 week sole agency contract), plus mortgage of 850 a month.. for 2500.. it seemed better to accept the reduction.
Lessons learned..
1) Notice period 2 weeks from now on ( With hindsight I read on here 1 week, but I may give them a little leeway..)
2) Agents really don't give a damm what price they get for .. A 100k price drop maybe a lot to you .. but to them not a lot in commission.
3) Agents act in the interest of the buyer


Saving the best bit to last.. I got a call from the buyer 2 months after I sold saying that their tennant were having a problem with the boiler..
Did I have any suggestions?
My reply ..
'do what I did ; get a british gas contract' obviously they didnt ..
I might of being more helpful if they hadn't gazundered me

SavingSteve

I think in your case the 'professional landlord' and the agent had some sort of relationship (do I want to say backhanders? Yes I do).

In any case, agents act for the sellers, their income, bonuses, everything hinges on getting as high a sale price as possible.

Me thinks you've been taken for a ride.

ghostbusters

SavingSteve wrote: »

I think in your case the 'professional landlord' and the agent had some sort of relationship (do I want to say backhanders? Yes I do).

In any case, agents act for the sellers, their income, bonuses, everything hinges on getting as high a sale price as possible.

Me thinks you've been taken for a ride.

Possibly , but difficult to prove , I think .
It was a question of going with it or accepting another few months of not selling in a falling market..
as to agents acting for sellers.. the difference in agent fee between 300,000 and 350,000 at say 1% is £500..
would that makes such a big difference to the agent??
I suspect not.
May we agree to differ on this???
It was very different for me in the past when selling in a rising market..

SavingSteve

Agree to differ.

Just my experience of agents, every £1 is precious.