Buyer trying to gazunder! Help!

steampowered

What a cheek. I'd be hopping mad. Those are nonsense reasons for seeking a price reduction.

Unless you are desperate to sell, I would simply say that the buyer must exchange on Thursday at the agreed price or walk away.

Tell the EA to remarket the property starting from Friday if exchange doesn't happen on Thursday.

If the investors really is going to pull out unless he gets a reduction, I am sure you'll be getting a counter-offer. The investor was probably hoping that he'd ask for £20k off in order to get £10k or £5k off.

RedFraggle

If you want rid I'd suck it up but insist on exchange tomorrow so he can't do it again.

Leggitte

01afraser4 wrote: »

From what you've said it sounds as though they are fully prepared and willing to pay the originally agreed price but are trying their luck to squeeze any savings out of it.

^^ This. And it is nearly working, as by posting here it is obvious that you are considering it. Stick to the originally agreed price and re list. Chances are, he'll go for the agreed price.

NJamesN

I just had a chat with the EA. He did not sound very confident about finding me a new buyer (very different from when he swore that I'd get 340-350 easy!).

He said it's still a great BTL buy but that landlords will lay low until there is more clarity on the government's plans. So we would be completely dependent on FTBs who pay almost no stamp duty (on 325k).

Rodders53

Call his bluff.

Tell EA to re-market and get viewings lined up asap (and to let your buyer know that).

Get them to tell investor it's £325k if he exchanges immediately, and that the price to him will be increasing by, say, £325 per day if he doesn't.

I'd be inclined to refuse to sell to him at any price. But I do have a temper.

EDIT: cross-posted with your EA comments.
Wonders: Is your EA hoping to be letting agent for this investor?

pinkshoes

NJamesN wrote: »

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

Counter offer with £315k with exchange on Thursday otherwise you will re-market.

Or just accept the offer and move on with your life.

spadoosh

NJamesN wrote: »

I just had a chat with the EA. He did not sound very confident about finding me a new buyer (very different from when he swore that I'd get 340-350 easy!).

He said it's still a great BTL buy but that landlords will lay low until there is more clarity on the government's plans. So we would be completely dependent on FTBs who pay almost no stamp duty (on 325k).

They might be right about not being confident or they could be reluctant due to there not being a lot in it for them. Itll work out to about 7% less in fees for them when theyre nearly there, i wouldnt want to do all the work again for 7% more.

Mojisola

Rodders53 wrote: »

EDIT: cross-posted with your EA comments.
Wonders: Is your EA hoping to be letting agent for this investor?

Or is the EA getting a back-hander if he manages to get you to agree to the lower offer?

muhandis

OP, take a deep breath and a step back.

It's all very well pulling out in a huff but if the EA says that there aren't many buyers looking, you need to look at the bigger picture.

You say you bought it for 50k in the 90s, so anyway you look at it you have had an annualized capital growth of between 8-10% year on year depending on when you bought it in the 90s, even if you sell up for 305k.

Just to be clear, not for me to say how much profit is "enough" for you but you need to balance your (perfectly understandable) desire to shove the lower offer up the seller's a** with your desire to cash out asap.

The buyer's reasons might well be nonsense but if enough buyers feel the same way, you might end up twiddling your thumbs for the next few months anyways, with the flat empty, not generating any income while you pay council tax and insurance.

So, it's easy for me to say that you should just go ahead and pull out, but think hard about the whole picture before doing anything rash.

In any case, there's no need to accept this offer. You could call his bluff and reject this lower offer. If the seller pulls out, you can still go back with a counter offer (315k?).

connors07

Tell him the price is £325k. Regardless of Brexit there isn't enough homes in the UK for the demand. As homeowners are we suddenly going to put our homes on the market at 50% of the previous value? No.

As for the EA. He wants you to sell and to sell with him. No idea about if there are any backhanders in the background but no EA has any loyalty to anyone other than themselves.