Buyer trying to gazunder! Help!

NJamesN

We were in the process of selling our flat in Devon to an investor, for 325k. It is due to exchange this Thursday.

I have just now received from the EA a forwarded email from the buyer which essentially says that the buyer is not willing to go ahead with the purchase at the agreed price due to the possibility of wholesale changes in stamp duty in the autumn budget (including potential plans to shift responsibility from buyer to seller, etc), the heightened possibility of a no-deal Brexit, yada yada yada.

He has said that he will continue to exchange this Thursday only if we either drop the price to 305k or are willing to wait until after the autumn budget to exchange! The cheek of it!

I think these are just bullsh*t excuses to try and gazunder me.

1. My question is, if he pulls out - I have spent about £320 on indemnities for the buyer, can I require him to return it? Either voluntarily or using small claims? The only reason I spent that money is because he said he would buy the flat.

2. What would you do in my situation when faced with such blatantly nonsensical reasons to attempt to gazunder?

Thanks,

James

warby68

I would refuse to sell and probably stomach the indemnity costs - not sure if they would be transferable to another purchaser? Or at least at reduced cost, if the other one does not go on risk.

Probably a well used tactic if its an investor. If you need to sell urgently that would be different but sounds as if you are willing to call their bluff and that's what I would do. Can't stand this sort of thing so if circumstances permitted I would tell the buyer to take a running jump.

babyblade41

This happens more than people think as it's a common tac tic with investors at the last minute.

For me I'd tell them where to stick their offer where the sun don't shine ..but that depends on how quick and your reasons for selling

Doozergirl

You can use the indemnities for the next buyer. Presumably they are needed. That money won't be wasted.

Your own choice on what you do. Only you know how much you need to sell right now.

Of course it is bad behaviour and shouldn't be rewarded. Whether it's cutting your nose off to spite your face to agree, only you know.

I know what I'd do out of principle, but...

sillyhilly

NJamesN wrote: »

2. What would you do in my situation when faced with such blatantly nonsensical reasons to attempt to gazunder?

I would immediately re-list the property and tell him to go for a long walk on a short pier.

chucknorris

NJamesN wrote: »

due to the possibility of wholesale changes in stamp duty in the autumn budget (including potential plans to shift responsibility from buyer to seller, etc), the heightened possibility of a no-deal Brexit, yada yada yada.

As if sellers, wouldn't simply add the stamp duty to the asking price. Although I do think that it is a good idea because the additional cost of the stamp duty could be mortgaged.

davidmcn

You have no right to claim anything as you don't have a contract. And as above, the indemnities are very unlikely to be personal to your current buyer, and can be used by you for any subsequent transaction.

And I would view the guesswork about the budget or Brexit as being a load of nonsense, of course.

NJamesN

I have to talk to my other half but we are keen to sell before the political/economic situation gets any more uncertain.

The flat used to be a great btl but we have been struggling with getting professional tenants over the past year hence why we're selling. I don't want to get stuck with the property in case things go belly up before they get any better.

We bought it for 50k in the 90s so have some room to play with.

Just fuming that someone could pull such a low trick.

Doozergirl

NJamesN wrote: »

I have to talk to my other half but we are keen to sell before the political/economic situation gets any more uncertain. The flat used to be a great btl but we have been struggling with getting professional tenants over the past year hence why we're selling. We bought it for 50k in the 90s so have some room to play with.

Just fuming that someone could pull such a low trick.

You could negotiate them up a bit.

I believe in karma anyway. He'll get it where it's due. People prepared to behave like that don't lead happy lives in the first place.

Faith1960

I had this conversation with our Estate Agent when we put our property on the market recently and told him that if we ever got into the situation you are in now that we would tell the buyer "OK, go find another house" I would rather lose the small amount you have spent already on "indemnities" than £20k. Our Agent told us that he has only come across gazundering three times this year and only one vendor took the drop. The other two stayed firm on their 'agreed price and both sales went through.

I suppose essentially though how will it affect your purchase; are you relying on the full sale price to purchase your new property. Can you or are you able to delay exchange/completion until the Autumn budget confirms what we are reading in the papers? £20k is a lot of money to lose.

We still wouldn't but then that is our decision and we would accept the consequences. We haven't sold our property yet but are now fully expecting much lower offers than we have been getting at present due to this 'possible' change in stamp duty.

NJamesN

We don't need the money for our next purchase as it's a btl flat and we moved out more than 15 years ago.

It's just that good tenants have become increasingly hard to come by and sold prices have been dropping steadily (especially for flats) so we would like to cash out before any more major upheavals mean that we are stuck with it until things get better.

I fear that we will struggle to find serious buyers until the autumn budget anyway with all these rumours in the air.

Faith1960 wrote: »

I suppose essentially though how will it affect your purchase; are you relying on the full sale price to purchase your new property. Can you or are you able to delay exchange/completion until the Autumn budget confirms what we are reading in the papers? £20k is a lot of money to lose.

We still wouldn't but then that is our decision and we would accept the consequences. We haven't sold our property yet but are now fully expecting much lower offers than we have been getting at present due to this 'possible' change in stamp duty.