Crafty FTB!

powerful_Rogue

Evening all! Quick summary of our situation

Had our house on the market for three weeks and during that time had quite a lot of viewers. One couple viewed the house in quick succession and then made a few offers below our asking price but finally offered the full asking price.

We advised from the very outset that we would not be instructing solicitors until we had found somewhere to move to and have our offer accepted.

FTB had homebuyers report conducted and advised it had highlighted a couple of issues, nothing serious, but they would like to come back and look at these problems.

We arranged a date and the FTB then started to say they were getting worried and wanted the details of the solicitors we were going to use. Advised that we didnt know until we found somewhere (depends on sale price etc).

They cancelled the return visit and then said that once we had instructed solicitors they would have a full structural survey conducted on the property.

We advised the EA to tell the FTB that we wouldn't be willing to negotiate on the price regardless of what either survey had shown up. The FTB bought our property at a bargain price.

FTB states that if were not willing to negotiate on price, then as there is a long list of work highlighted by the homebuyers report including legal requirements that need to be met, would we pay fo the work.

We asked ofr a copy of the work that needs to be conducted but was advised she couldnt tell us until it had been cleared with their solicitor. We also aksed what sort of price they were thinking about in regards to negotiation but was advised the FTB wouldnt give any figure until speaking to their solicitor.

Im very interested to see this list as although I understand theres probably a few things that need doing, probably the same with every house, shes trying to make it sound as if the house is going to fall down!

Got to wait until Tuesday to see whether the solicitor gives permission for us to see this list!

Needless to say my trust in the FTB has diminished. They were willing to wait for us to have an offer accepted on a property, instruct solicitors and then try and negotiate on price. Would probably feel a bit different if they had been upfront.

kingstreet

If they are getting a mortgage ask to see the mortgage report and valuation. This will set out the essential repairs and the current and post-repair values. You'll then know if you are going to pay for what's needed, or what the buyer and their surveyor fancy which will give them an improved value at your expense.

EG - if the work will cost £3k but adds £3k or more to the value, why should you pay for that?

makeyourdaddyproud

Yes, your buyer is not crafty, he paid the asking price - already revealing her interest. This has already empowered your belief in the value. FTB is a numpty

silvercar

EG - if the work will cost £3k but adds £3k or more to the value, why should you pay for that?

If the house cost say 100k and 3k of work is needed that would add 3k of value, then it would be worth 103k. If the FTB are getting a 90% mortgage then 90% of 103k is 92.7k, leaving them find a 10.3k deposit. 90% of 100k is 90k, giving a 10k deposit plus 3k for the work, so total cash required is 13k.

So in some cases the buyers can only afford to buy if the seller pays for the work.

kingstreet

silvercar wrote: »

If the house cost say 100k and 3k of work is needed that would add 3k of value, then it would be worth 103k. If the FTB are getting a 90% mortgage then 90% of 103k is 92.7k, leaving them find a 10.3k deposit. 90% of 100k is 90k, giving a 10k deposit plus 3k for the work, so total cash required is 13k.

So in some cases the buyers can only afford to buy if the seller pays for the work.

The mortgage will be 90% of the lower of purchase price, or valuation in current condition.

If the work will increase the value above the agreed purchase price, the buyer should have two options;-

- purchase at the agreed price, £100k and get the work done themselves
or
- pay £103k and have the vendor do the work for them.

Dan-Dan

so it basically sounds like the buyers unwillingly went up to AP , showing that they were desperate for your property , but perhaps with the intention all along of trying to get back down to somewhere near their preferable purchase price by the using the tactics you describe, if i was you i`d call their bluff and get the house back on the market , then you`ll know how serious they are.....

moneyistooshorttomention

Trying for a lower price than agreed on the excuse of "the survey said......problem problem" - aka gazundering WITH an excuse as to why, rather than just outright saying "I'm only going to pay you a lower price than I agreed to" was listed in an American article I read on the Net recently about Dirty Tricks Buyers Sometimes Play.

If the price is a fair one in the first place then sellers can only grit their teeth and think "This one is an attempted gazunder with an excuse" and "That one is an attempted gazunder without an excuse" and either way tell the buyer to stick to the agreed price or the deal is off and hope the buyer cuts the tactic out and proceeds with the purchase and, as a last resort, if the buyer keeps on trying to gazunder then put the house back on the market.

makeyourdaddyproud

So, all of a sudden a lower price becomes a dirty trick when you won't put in the money to bring your house up to standard? Why should someone else pay for work you should have done yourself?

I don't give a hoot what the vendor thinks, if the survey reveals work that could be costly i will definately lower my price. If they don't like it, they lost my sale.

The only reason i would persist with the offer is there was something advantageous or of value about the house not seen in any others on the market.

moneyistooshorttomention

moneyistooshorttomention wrote: »

If the price is a fair one in the first place

I guess you didn't notice that comment in my post - or the comment in the OP's post to the same effect (ie theirs being "at a bargain price").

I'm guessing OP set the price in the first place at a level to reflect work that would need doing. I've done the same - I found out what price my house would be if not needing any work and then adjusted it downwards to reflect the fact that it needs a new kitchen. My house has been priced at £15,000 lower than was paid for a nearby similar one that was "done up", but more awkward layout than mine (and everyone agrees that it is very fairly-priced - or thinks I'm not charging enough).

It is very clear that there are some buyers out there (we've seen their posts on this board) that agree a price and are just waiting for the survey to come back deliberately intending to try and find any excuse they can in it to try and lower their offer later (and will find even the tiniest little thing and try and use it to this effect) or maybe not even waiting for the survey....and getting in an excuse in advance...

(NB: I am, of course, perfectly happy to get my house done up and then re-market it at £15,000 more if that's what buyers seem to want.......)

kingstreet

makeyourdaddyproud wrote: »

So, all of a sudden a lower price becomes a dirty trick when you won't put in the money to bring your house up to standard? Why should someone else pay for work you should have done yourself?

I don't give a hoot what the vendor thinks, if the survey reveals work that could be costly i will definately lower my price. If they don't like it, they lost my sale.

The only reason i would persist with the offer is there was something advantageous or of value about the house not seen in any others on the market.

... and what if the work will increase the value of the property to a higher level than the agreed purchase price? As a vendor, do you think you should pay for the work AND give the purchaser the property at the lower price/value than your repairs will increase it to?

makeyourdaddyproud

Haven't we've all been told that the value of a house is only what buyers are prepared to pay for it? IMO, you would do better if you "did it up" and got the EA to extol the virtues of the recent work. You might then get the asking price.

I had a similar situation here where the EA kept the spec from our previous house seller was able to tell immediately that we upgraded it. It was listed on a Friday and sold the next day. EA said it would have struggled to sell without the work.

Despite the work put in, we only got 95% of the sale price.

There's always room for manoeuvre.