Should we Gazunder???

hazyjo

grey_lady wrote: »

There was an article on this in one of the papers today, the advice was to walk away and immediately put your property back onto the open market - if you do offer less, be prepared that you may lose the property.

Exactly.

Subject to survey, yep, I agree. Drop if you have to.

But because the market's gone down for 1-3 months in a row? Get real. So if it was better, the mortgage rate might go up. Swings and roundabouts indeed. But for the sake of a 3 month property transaction (on average), do you really think anyone would have the right to drop? Obviously each to their own. All I can say is, try it with me and my house is back on the market.

Jx

Liquorice_Twirls

citizen11 wrote: »

Our vendor is buying a house off a deceased estate. The lives it will impact are minimal. I have bought and sold before, been gazumped in the boom and had to take a harsh reduction to shift our last house in April 2008.

I hope that other view the transaction as a business transaction. I don't feel I can pay 10k over he odds to be polite.

Also an identical house which is a street or two away, post a 10k reduction in asking price is now cheaper than the price I agreed. Negotiations on that house would start 3k lower than where I currently am.

You seem to be saying that you are very near to exchange of contracts and so to me that is the worst sort of gazundering. You aren't renegotiating over some aspect of the survey that meant work needed doing or because of something that was highlighted due to the search. You are so near to them selling that you feel you are in a better position to tighten the screw on the vendor.

It's not a business transaction in the same way you sell a car or a TV. This is someone's home and I would have thought that if you really had any experience of being gazumped in the past you would understand the ramifications of not buying what you had agreed just like your vendor may end up not selling to the price you agreed.

If you were buying my house I would lose the costs and dump you. You are not the sort of person I would want to sell my home to.

Kirri

I would tell you where to go and pull out totally and find a new buyer, I hate being messed about.

milliebear00001

I'm a buyer rather than a seller, and have pulled out of two transactions so far. Both times, I felt awful for the seller, but felt I had no choice (both were based on an unfavourable survey report).

I would never gazunder - especially at the last minute. It's just morally wrong. You have a verbal agreement, nothing material in that deal has changed - only your 'plucked from the air' view of house values. You could well exchange and then find house prices nosedive. That's the way it goes with house purchases. it's a home, not an investment.

Please don't mess up people's lives in this way - it's not fair and it's simply not the right thing to do.

LisaLou1982

Im with the majority - ive just sold my property and completed on my purchase. If my buyer had tried to renegotiate at the last minute because of some graph shed seen in the paper id have told her to bug*er off. A couple of things came up after survey - i got them fixed for her.
On our purchase, the house was downvalued on survey - we renegotiated the price. It didnt even enter my head to attempt to gazunder before exchange even though i know the people i bought off were desperate to sell. Im just not that way inclined.

Oh, and i used to be an EA and in 5 yrs i only ever dealt with 2 people that attempted to gazunder just before exchange. Both were told to get lost. If you have a genuine reason for thinking that the house you are buying is now worth less then pay for a surveyor to go back out to the property and give you a valuation. If youre wanting to reduce by 10k then forking out £300 for another survey will be an investment for you

citizen11

milliebear00001 wrote: »

I'm a buyer rather than a seller, and have pulled out of two transactions so far. Both times, I felt awful for the seller, but felt I had no choice (both were based on an unfavourable survey report).

I would never gazunder - especially at the last minute. It's just morally wrong. You have a verbal agreement, nothing material in that deal has changed - only your 'plucked from the air' view of house values. You could well exchange and then find house prices nosedive. That's the way it goes with house purchases. it's a home, not an investment.

Please don't mess up people's lives in this way - it's not fair and it's simply not the right thing to do.

I'm not sure my view is plucked from the air. The house two streets away is a reference point. It is now 3K cheaper and hasn't even sold ( so would likely be cheaper still).

Additionally the 3.6% fall in the market is the largest ever recorded.

I have also discovered that I am going to get poorer, due to child benefit withdrawal and not stay the same or be better off.

Material facts and the environment of the deal have changed; one party to the deal is getting poorer (as are my peers who may be alternative buyers) and the asset has dropped in value. Admittedly the house hasn't changed, and we still want it. It is the price I am not happy with. If they were to remarket they would undoubtedly get less also the vendors purchase is being handled by the same agent so I think they would be urging the vendor to accept the revalued deal.


Regarding the ability to complete, our vendor has title absolute so isn't in negative equity or anything.

citizen11

LisaLou1982 wrote: »

Im with the majority - ive just sold my property and completed on my purchase. If my buyer had tried to renegotiate at the last minute because of some graph shed seen in the paper id have told her to bug*er off. A couple of things came up after survey - i got them fixed for her.
On our purchase, the house was downvalued on survey - we renegotiated the price. It didnt even enter my head to attempt to gazunder before exchange even though i know the people i bought off were desperate to sell. Im just not that way inclined.

Oh, and i used to be an EA and in 5 yrs i only ever dealt with 2 people that attempted to gazunder just before exchange. Both were told to get lost. If you have a genuine reason for thinking that the house you are buying is now worth less then pay for a surveyor to go back out to the property and give you a valuation. If youre wanting to reduce by 10k then forking out £300 for another survey will be an investment for you

Could I ask when you spent 5 years as an estate agent? As your name is incorporates 1982 I am thinking this is likely to be your year of birth and you were an EA in Gordon and Tony's lovely credit boom which has now gone.

Dirk_Rambo

citizen11 wrote: »

Additionally the 3.6% fall in the market is the largest ever recorded.

.

thats a very relevant point

citizen11

hazyjo wrote: »

As others have said on other threads - if the market had gone up 3.6% last month, would you be offering to increase your offer?

The property market is full of ups and downs. Are you buying as an investment or as a home? If anyone tried gazundering me, I'd cut my nose off to spite my face and lose a sale/purchase over it and you'd be dumped quicker than my rubbish on a Thursday night. Sorry, that's the way it is with me anyway.

Jx

If the market had gone up 3.6% and an alternative buyer came along would my offer be discounted?

hazyjo

Fact is, to sell something, sooner or later someone has to agree a price. Obviously, if people stopped buying stuff, nothing would be worth anything. At some time, someone has to dive in and say okay, I'll pay whatever for a property that's up for sale. In the three months or so it takes to buy that property, if they gazunder, I'm saying I think that's pretty bloomin' poor. If they're that bothered about what they're paying for it, they should have sat the market out and hoped that nobody else wanted it and that the vendors would have to drop another say 5%, and that the mortgage rates didn't go up in the meantime, and then maybe they could have snapped up a bigger bargain. But then, I suppose they'd still be kicking themselves that they didn't wait another 1-6 months in the hope that nobody wanted it, that the market didn't drop further, that they could have saved a bit more, that the mortgage rates didn't go up...

Where does it end? At some time, you make an offer and honour it. Might be a gamble, but then isn't anything to do with money? If anything was a dead cert, we'd all be millionaires by now!

Jx