Playing Hardball

TexasChainstoreMascara

My property on the market for £115k.

Along comes investor to view with tenant ready to put in the house. I am in the position where £106k will just about cover outstanding mortgage, estate agent fees, solicitors and mortgage closing fees.

First offer is £102k. No way.

Second offer £104k. At this point I explain to estate agent £106k is my absolute minimum.

Investor says his final offer is £105k and no more.

What is my position here? Am I being pig headed not accepting the £105k, even though I know it would end up costing me a few hundred quid to sell the house like this. (Which I don't really have to hand).

Is the buyer just making life difficult arguing the toss over a grand?

Am I right to hold out for the extra grand? In the experience of the members here would you say he's likely to come up to my price?

Was I wrong to tell the agent the price at which I'd accept?

ognum

Investor is just looking at the bottom line, doesn't really care if it's your house or someone else's.

G_M

What is the property worth?

How long on market?

How desperate are you?

TexasChainstoreMascara

It's valued at £115k. On the market for 8-10 weeks, and I'm not desperate, just a little frustrated.

Similarly, I don't care if he's an investor or looking to live in it, young or old, rich or poor, man or marsupial. I'm asking from a sellers point of view, am I right to hold out?

Lord_Baltimore

It's a game. A prospective purchaser is entitled to play it as much as you're entitled to refuse it.

I'd have played the cards tighter to my chest but too late for that now.

It's a judgement call now. How much other interest have you had? What's the market doing in your area?

If you want to get moving, a few hundred quid may be a reasonable sacrifice as you can never tell when your next offer will come and whether it will be the same story all over again.

A house move is a life changing experience. Do you want it to happen soon or are you prepared to sit it out? There's no definitive answer here just opinion.

You could sit back and see what happens. He has a ready made tenant waiting.....but he might go elsewhere.

The decision is of course all yours!

ps for the sake of a grand, I'd sell.

Herbalus

TexasChainstoreMascara wrote: »

At this point I explain to estate agent £106k is my absolute minimum.

Investor says his final offer is £105k and no more.

In a negotiation, no one will believe what your absolute minimum is. If you tell the truth, he will offer lower.

If you can prove to him that at less than £106k you won't break even (maybe even say £108k if he doesn't yet know about the £106k - leaves room for negotiation), he has to risk that you'll sell at a loss unless he gives you more.

WellKnownSid

TexasChainstoreMascara wrote: »

I am in the position where £106k will just about cover outstanding mortgage, estate agent fees, solicitors and mortgage closing fees.

TexasChainstoreMascara wrote: »

What is my position here? Am I being pig headed not accepting the £105k, even though I know it would end up costing me a few hundred quid to sell the house like this. (Which I don't really have to hand).

It sounds like you cannot afford to accept their offer.

Thank them for their offer and tell them that you cannot afford to accept their offer.

Or tell them you've done the maths and now realised that you can't actually afford to sell for less than £107k.

EdGasket

If 106K is your minimum then stick to that; why ask us?

G_M

TexasChainstoreMascara wrote: »

It's valued at £115k.

Hmmmmm.

By who? If you mean your Estate Agent is this just the figure they recommended you market at?

Even if it is the figure they said you could achieve, were they just trying to get you to sign with them, not their competitors?

I asked: "What is it worth?"

ie: what are actual sold prices of other similar local properties?

However - if you are right that its 'value' is £115, why on earth would you accept less than.... 115?

TexasChainstoreMascara

Lord_Baltimore wrote: »

ps for the sake of a grand, I'd sell.

For the sake of a grand, isn't the buyer making life really awkward? I understand he's thinking of his yield, but wouldn't a grand be about £3.50???

[Deleted User]

If you're not in a rush, wait. Think of it this way.. how long does it take you to earn £1000? Is it worth waiting longer to get an extra grand - of course it is.

If you have a minimum, stick to your guns. Tell your estate agent you won't consider anything below it.