Is it common for the chain to reduce prices to cover shortfall?

Doozergirl

Jowo wrote: »

I think this is an appalling suggestion and I don't understand how they could have joined the chain when the offer wasn't accepted by both parties.

It is ridiculous for the other buyers to fund the tight fistnedness of the buyer or greed of the seller.

Personally, I would be extremely reluctant to subsidise a property transaction between two other strangers!

I don't see why it's appalling. It's not a gazunder situation, the bottom of the chain has a low offer, this new potential buyer is well within their right to offer whatever they want.

The estate agent is doing what they can to salvage what is now a broken chain - it will almost certainly collapse unless a buyer is found quickly at the bottom.

It is an option, nothing else. The associated costs could potentially be higher for everyone involved than accepting a little less than originally planned...

What is to say that each person in the chain would acheive the same price when they have to go looking for buyers after the chain collapses? And what about all the solicitor's costs etc that have already been incurred? They would simply be lost...

I think it's a good suggestion that tries to make the best of a bad situation. Otherwise the chain splits into pieces - which may or may not work out better.

I do know of a situation where it happened and it was appaling because it was a £15k gazunder on moving day, where they had quite naively agreed on exchange and completion on the same day. The two houses trying to sell split it between them as they were packed into vans when it happened!

lellow_lorry

It is a solution in making the move but you all end up out of pocket...but the EA's its next to nothing to them and they still get their commision.......you could turn round and see if all the agents will cut their commision by 50% to help with this cost......i think I know their answer:D

DVardysShadow

lossofbargain wrote: »

(i dont understand people who offer or look at properties out of their budget and expect the seller to accomodate them)

As seller, I too would not comprehend this. But as buyer, I would understand perfectly. In the middle of a chain, I would be both buyer and seller and the above would describe my position perfectly.