Delicate issue ?

whunt18885

Hi All

Hopefully someone can help, I have an apartment that I am trying to sell and so far I have been screwed over 4 times. Basically over the last few months I have had 4 different investors all put in an offer of around £83k for my apartment only to decide at the last minute to drop the offer to sub £80k. This happened over the space of about 3 months and every single time it was always the same pattern - Offer £83k then after about 4 weeks literally the week before exchange they drop the offer to something silly like £77k

My property has been independently valued by 2 EA with written valuations stating the value at between £90k-95k so my current guide price of £85k I think is more than reasonable - My apartment is in perfect condition I just want a fast sale hence the lower price.

The issue is that everyone of the investors so far have been of Pakistani or Indian descent and every one has tried to pull the same trick of dropping their offer at the last minute leaving me with no choice but to kill the sale.

I spoke to my friend (who is a small time property developer) and he said that this used to happen to him until he decided to be more selective over who he sold his properties too.

Can someone please tell me - Am I just unlucky or is it a known issue that asian / foreign investors drop the price at the last minute ?

If its a known issue then I will try and be more selective over who I sell too however if its just bad luck then I suppose there is not much I can do.

Just for ref my price is bang on and I will not take a penny less than £80k - I know I am keenly priced as I checked with one of those we buy your house places just for research purposes and they came out to look at it and offered £76k within 72 hours - Given that these companies offer a lot less than market value I know I am good at offers over £80k

Please advise.

Thanks

whunt18885

I know the above makes me seem very closed minded but the fact remains I am losing money every time someone pulls this trick so my patience for morals is fast running out.

Stevie_Palimo

It is just bad luck I guess and you cannot say this a ethnic thing as I know many a European individual that would chance there luck, I would perhaps have a word with EA and say that the bottom line here is what you have said above so offers yes but below 80k don't waste my time, Sometimes being blunt is the only way.

ReadingTim

The issue is the nature of the buyer you're trying to sell to: an investor who's looking at it from a business perspective, and is looking to take advantage of your weak negotiating position, i.e. that you need/want to sell fast, rather than their ethnicity.

whunt18885

Yep maybe that is correct action. I was thinking of talking to my EA. Just bad luck then by the looks of it. What I think we are going to do is wait until the last conceivable minute before paying of a survey of our onward purchase. Ideally the buyer will have paid for a survey of my place at least then I know they are serious and any subsequent drop in offer price is as a result of a genuine concern. Fingers crossed I don't get any more time wasters.

Paully232000

Stevie_Palimo wrote: »

It is just bad luck I guess and you cannot say this a ethnic thing as I know many a European individual that would chance there luck, I would perhaps have a word with EA and say that the bottom line here is what you have said above so offers yes but below 80k don't waste my time, Sometimes being blunt is the only way.

I don't think that would work as it seems like each potential buyer would meet that criteria, at least initially.

Davesnave

whunt18885 wrote: »

I know I am keenly priced as I checked with one of those we buy your house places just for research purposes and they came out to look at it and offered £76k within 72 hours - Given that these companies offer a lot less than market value I know I am good at offers over £80k

It's generally accepted here that these companies also find excuses to drop the price just before exchange. It would not be in their business model to pay 76k on a property they might only sell-on for around £80k.

It's also known that some EAs will slightly over-value in order to get business.

getmore4less

You could be too cheap.
whats stuff seeling at that does not end up as a rental.

Are you getting any viewing from potential occupiers or just investors?

Being too cheap does give the I am desperate to sell message to the investors.

G_M

Remember discriminating on grounds of race is illegal. So don't tell your EA not to accept offers from anyone of X race/religion etc...........

Of course, it is entirely up to you whether to accept/decline any specific offer you receive (subject to the above proviso).

Mojisola

getmore4less wrote: »

Are you getting any viewing from potential occupiers or just investors?

G_M wrote: »

Remember discriminating on grounds of race is illegal. So don't tell your EA not to accept offers from anyone of X race/religion etc...........

But you could say that you don't want to know about offers from investors.

moneyistooshorttomention

I doubt its an ethnic connection. More likely its just pure and simple down to that's the way some investors operate.

When I sold my last house my EA confirmed my views that I would get both investors and home-owners looking at it. They specifically told me "Avoid an investor if you can - because they are known for last minute gazundering". I took their advice - and eventually sold to a home-owner.

In your position - I would talk to my EA and make it plain I was aware investors were much more risky and I was looking to sell to a home-owner.

When viewers came along I would say/get EA to say that this trick had been tried on you several times already. Say that the flat is popular and people want it - but you will "pull the rug" straight out from under anyone else that tries that trick and get the EA to say "I can prove that fact - because OP has done it more than once". Get EA to say to would-be buyers that it just isn't worth their while to even try that trick - so don't offer in the first place unless you mean it - because OP will see you off with a flea in ear basically.