problem on valuation only just come to light week before completion. advice needed!

samoya

Hi,
I put my house on the market last June and accepted an offer on it the week before Christmas from a FTB in rented accomodation. His valuation was done on the 20th Jan which we were told came back fine and so I made an offer on our next house which was also accepted. Things have progressed slowly on his part due to the fact he is using Countrywide for his conveyancing and they repeatedly lose things and ask the same endless questions over and over. On top of this our buyer has refused to speak to anyone other than his own solicitor, and all attempts to contact him by my EA are met with contempt and directed to his solicitor.. no idea why he chooses to make things more difficult than they need to be but I've tried to stay calm. We asked via my solicitor for him to suggest completion dates but countrywide said they didn't receive the letter. We asked again and just got more queries. On third attempt we suggested a date to them - 7th March and asked him to confirm, but still no response. Our solicitor needed to confirm this by 28th feb so on 27th, having still heard nothing I rang my EA in a last ditched attempt for them to contact my buyer and confirm this date. They couldn't get hold of him but then out of the blue sent an email to say the valuation that was done (5 weeks earlier) was lower than the agreed price!! This was the first either the EA, solicitors or myself knew aout this. The EA managed to get hold of the buyer and he was told he would have to email the valuation to them straight away which he agreed but failed to do. EA then rang his FA and asked him if this was correct and for him to send report asap. He said it was right and when asked why they were only mentioning it now when we are ready to complete, the FA said he must of got his files mixed up!!! This was Thursday 27th feb and still no-one has seen this report other tban tbe buyer and his FA. I assume that if this valuation is genuine I will be expected to re negotiate a price, and at this late stage I feel very cornered! I am now likely to lose money on the sale plus it will now cost me more in legal fees as the contract for the original agreed price will need to be done again and resigned, more time and expense. Does anyone have any advice? Can the FA be held accountable for the financial losses? I would not of agreed to have sold at the valuation price and would of kept the house on the market. Also the difference is very small, but significant to me. Entering week 11 of this sale now and I don't know what to do next.

Thrugelmir

Walk away. Time waster. Only accountable person is the potential buyer.

anselld

You are not "ready to complete". You are not "a week before completion". The completion date is only fixed when you exchange contracts. Until exchange everything is a moveable feast and either party can change their minds, delay, etc for any reason, or indeed no reason.

samoya

By ready to complete I mean ready to exchange and set a completion date. I thought agreeing a price was done at the start of the transaction and could be renegotiated once the valuation was done if it showed reason (s) why it was not worth what was agreed. If we are told the survey is fine and proceed both with the sale and to make an offer on our new house on this basis because someone has "mixed their files up" surely I shouldnt have to pay the costs? Solicitor has advised I can stick to original agreed price but I guess this would risk the buyer pulling out now. The buyer doesn't even seem to think its necessary to negotiate, he is of the impression he can just say i'm now paying xxx for it because that's what the report said and has only mentioned it by chance. Incedently the house we are buying had all paperwork ready within 4 weeks and they are ready and waiting to exchange. If I pull out my sale i'll lose that too. Not sure I can win with this.

HardCoreProgrammer

I think the buyer is trying to pull a fast one on you (gazundering).

When I sold my house in Cambridge something similar happened. The buyer said there is something wrong with the survey and then did not communicate for about 6 weeks after doing the survey and all attempts to contact them failed, with loads of excuses coming from the agent.

Finally I got so fed up that I told the agent on Wednesday: if I do not have a proposed exchange date this weekend, the house is going back on the market.

Suddenly on Thursday afternoon, I got a call from the agent asking if I can complete on the next day. It was not possible, as I was working and staying overnight in another town, only coming back at weekends. Eventually, we agreed to exchange 1 week later - but I was completely exhausted that weekend, trying to find temporary storage for my stuff, etc.

You have already given next weekend as the completion date and nothing is happening. Personally I would pull the plug, but if your buyer suddenly decides to proceed after all, it will be a fun week for you organising the move - and you do not even have a weekend!

cayennepepper

It sucks and I feel for you but anything can happen up until exchange. You have not exchanged so I am afraid it does not matter whose fault it is, just try your best at negotiating a new price that still allows you to proceed with your sale and purchase.