Buyer asking for discount - just when we are agreeing completion date!

tizerbelle

soulsurfer wrote: »

it's like they have us over a barrel.

That's what they are relying on - you are emotionally involved - in your mind you are already in your new home and all your hopes and dreams will only be fulfilled if you move into the new place. To them, it's a business transaction, full stop.

This is a tactic that in the experience of a long-time (decades) conveyancer I know frequently happens with buyers with an eastern cultural background (compared to other cultural backgrounds in her professional experience). Normally, the request for a reduction is done on the morning of exchange and often along the lines of we can't raise the last £5000, can you lower the price so we can still exchange. Vendors often panic and as they feel over a barrel, they agree! When same friend was faced with the same situation although it was £10,000 her buyers couldn't find - her response was you've had ages to get the money together, if you don't have it, the deals off, I don't care if you have to pawn your grandmother - if the agreed funds aren't there, then we aren't selling and the house is back on the market. The buyers "found" the 10 grand in an hour!!

So it's up to you, yes you could agree to drop the 5000, you could negotiate and say 2000 only and we exchange tomorrow or you could stick to your price. It is entirely up to you and if you are not ready to exchange yet, yes they may well try it on again on the morning of exchange.

G_M

Tell them you are fed up with their messing about about and you want to increase the sale price by £5000.

That will shut them up. They have paid out for surveys etc, so they won't want to walk away either.....

Doozergirl

If you agree to any reduction then make it on the condition that contracts are exchanged immediately. Or the house goes back on the market.

ChrisEvanson

I would be looking for a reason for the price reduction request. Ie. have they had a survey done and what does this say to merit the reduction. What did the valuation say?

I am currently two and a bit weeks into selling/buying and it is all fine at the moment, but if this happened to me I would be asking for reasons. Then look at what you are selling for - is it a fair market price given nearby prices and sales?

What I mean is, how much you have reduced the price is, with respect, irrelevent really. Why? Well say the house was worth £200k three years ago and is now worth 150k. If you have had it on for 3 years and have come down from £220k to £180k then it is still overpriced. If however you had it on for 6 months at £170k and reduced it to £140k then although a lesser reduction, your house is still around £10k under the valuation/comparable market price.

If your sale looks in jeopardy because they won't continue without the reduction, I'd try something that I am surprised nobody else has suggested: go to the sellers of the house you are buying, apologise, but explain the situation and say that you regret that you can only proceed if they also knock 5k off the price.

soulsurfer

Thank's everyone for the extremely helpful comments. Couple of the things we had thought of but couldn't decide which to go for. Our solicitor is making sure they have got their mortgage offer and that there are no issues there before we make a decision.

Will update you - but genuinely thank you!!

ruggedtoast

If they have some kind of reason I might consider discounting but in these circumstances I would just tell them to stick it. Would depend on what I thought my house was worth too.

ChrisEvanson

ruggedtoast wrote: »

If they have some kind of reason I might consider discounting but in these circumstances I would just tell them to stick it. Would depend on what I thought my house was worth too.

Careful with 'what you think' your house is worth. You need to base your valuation on fact - what prices are in the area, what others have sold for. Too many people think their house is worth too much.

I'm talking as somebody who sold their house recently in 5 weeks with two good offers (the best from someone who had still to sell theirs).

It is only worth what someone is prepared to pay.

property.advert

I'd push up the chain for £7500 or £10000 off to get £5000 off and still not give them a penny more discount ! (well, perhaps £2500 at a push for immediate exchange).

If I were doing business with certain cultures, they'd have to put up some cash to lose because some cultures negotiate like this.

timmyt

I would suggest your lawyer faxes the buyers lawyer to say 'please return the papers while our clients consider your clients' request for s £5000 price reduction'

Seen that work a treat to change their mind.

lukeh23

brit1234 wrote: »

Its a buyers market, house prices are falling and continue to fall. If these transactions take a long time it is reasonable to assume the house has fallen in price since the initial agreement.

Well that is only continent upon the area in which the OP resides.

Less houses have been sold, but the figures released by the land registry for April show the country as whole has seen prices increase by 0.8 per cent since March (London has 3%, the North West has seen -1.7% drop).

http://www1.landregistry.gov.uk/about-us/press-listing/2011/consultation-on-land-registration-act

Its by no means indicative of a boom and there are many variables which can effect the market, however on the whole prices are climbing.