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Chain price reduction?
jamiedes
Posts: 1 Newbie
Hi All
I'm just after some advice please, this sounds like a really stupid question so apologies in advance.
We are in the process of selling our house and buying a new one and there are 5 people in our chain.
The lady buying our house contacted our EA this week to advise that the buyer for her property had the survey results back and that due to repairs needed they are now offering 5k less, she has asked for us to drop our price by 2.5k as she can't afford to drop hers and pay the original price that she agreed for ours.
We are not in a position financially to drop ours so the estate agents in the chain have been working hard to try and keep the chain alive and have managed to negotiate a 1k price decrease from the top of the chain meaning that we all decrease our sales and purchase price by 1k down to the bottom of the chain (which is where the person offering 5k less is)
now I was discussing this with a friend and they have confused me, maths isn't my strong point but in my mind this would mean that the lady below us would also save a grand however my friend has advised that as it's a compounded decrease she would save 4k in total, I can't work out how this would be so can someone please put me out of my misery!
thanks in advance
I'm just after some advice please, this sounds like a really stupid question so apologies in advance.
We are in the process of selling our house and buying a new one and there are 5 people in our chain.
The lady buying our house contacted our EA this week to advise that the buyer for her property had the survey results back and that due to repairs needed they are now offering 5k less, she has asked for us to drop our price by 2.5k as she can't afford to drop hers and pay the original price that she agreed for ours.
We are not in a position financially to drop ours so the estate agents in the chain have been working hard to try and keep the chain alive and have managed to negotiate a 1k price decrease from the top of the chain meaning that we all decrease our sales and purchase price by 1k down to the bottom of the chain (which is where the person offering 5k less is)
now I was discussing this with a friend and they have confused me, maths isn't my strong point but in my mind this would mean that the lady below us would also save a grand however my friend has advised that as it's a compounded decrease she would save 4k in total, I can't work out how this would be so can someone please put me out of my misery!
thanks in advance
0
Comments
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If everyone is just lowering their price by £1k then your friend is wrong.0
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Your friend is talking nonsense. It!!!8217;s not compounded. Each person in the chain pays 1k less - although that still leaves your buyer 4K short if her buyers aren!!!8217;t willing to budge.0
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Presumably they mean ...
1 (top of chain) drops price by 1k
2 drops price by 2k
3 drops price by 3k
4 drops price by 4k
5 (bottom) gets 4k reduction even though they wanted 5
ie, 1,2,3,4 are all only 1k worse off0 -
Ponzi scheme in reverse! Love it
0
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