Very low offer by landlord buying my property is his final offer - is this normal?

kinger101

Crashy_Time wrote: »

http://www.telegraph.co.uk/property/commercial/house-prices-fall-almost-everywhere-as-property-market-takes-on/


With headlines like this can you take the chance of the buyer going elsewhere?

Listen to crashy.....he successfully predicted 18 of the last 1 crashes.

frugalsmurf

Oh we once had this. They were exactly the same and wouldn't budge on price. They did walk away and buy elsewhere (we weren't bothered as we sold at a good price soon after). But from what you suggest, maybe a 10k hit is worth it to get moving . Only you know how desperate you are to move...if you are then I'd go for it.(if you can afford to take the hit)

Vectis

Considering that your house is on the market for just shy of £500,000, I don't think dropping £10k on the asking price will affect things too badly.

(Or maybe it isn't on the market for that much - it would be helpful to know how much you have it on for as, if the asking price is £50,000 rather than £500,000, people might have different views on whether an offer of £10k less is a good deal or not).

westernpromise

You think it's worth more than the buyers do. If you insist on this point, you'll be keeping it.

The landlord will have worked out what he can spend on the property in order to be cashflow neutral or positive once it is let out. This is not a negotiable figure, because unlike an owner occupier, he's not going to overpay irrationally for it because he's fallen in love with it. Which, from your description, sounds like it would be unlikely anyway.

At some point the rental revenue foregone will exceed the discount versus your price ambition anyway so at least this way you can sell up and move on.

katepower

So based on your advice, I decided to accept the offer as ultimately I need to sell a property that I am not living in...


The vendor has now decided to go with another property, so annoyingly this has all been in vain.


It has prepared me in terms of what I will/won't accept in future, so many thanks for all your advice, it was greatly appreciated!

katepower

The house was on the market for 125 by the way - and the offer was 115.

Crashy_Time

katepower wrote: »

The house was on the market for 125 by the way - and the offer was 115.

Is he just game playing to come back with another slightly lower offer? Can I be bold and ask how much you paid for it, if only just to see his perspective maybe?

westernpromise

What the vendor paid is relevant how? What's relevant is the value now.

If it was worth £115k it was worth £115k, whether the seller paid £1 or £1 million.

ancientofdays

katepower wrote: »

So based on your advice, I decided to accept the offer as ultimately I need to sell a property that I am not living in...


The vendor has now decided to go with another property, so annoyingly this has all been in vain.


It has prepared me in terms of what I will/won't accept in future, so many thanks for all your advice, it was greatly appreciated!

Possibly not time spent totally in vain, however frustrating it must be. But it has given you the opportunity to think about what you would accept for your house. A shame though, it is annoying to be messed about. Hope you get a genuine buyer soon.

moneyistooshorttomention

That is quite a discount on asking price.

But that was my personal experience of would-be buy-to-letters too when I sold my last house. That being - many of them have a tendency to make one offer and you are expected to "take it or leave it". I rejected one buy-to-letter that was taking that attitude. The bidding war when I sold was actually between a buy-to-letter and a would-be homeowner (so that landlord was increasing their offer a couple of times during that).

The would-be home-owner won that "bidding war" anyway - but I do have suspicions as to whether the landlord would have tried pulling the "drop the price" stunt just before Exchange of Contracts.