Gazundered for 33k, Just A Few Days From Exchange of Contracts

gemsy46

Hi Everyone,
I sold my Dads 3 bed house (Probate) just before Christmas for 11k under the asking price due to some work needing doing. Everything had being going along ok and I had an estimated completion time of between the 10th - 24th Feb as apparently the buyer was ready to go.
 I got all my paperwork done before xmas, so I was just waiting for the buyer to sort their mortgage, which was confirmed as in place in January and for their solicitors enquiries and searches etc to be done .  
The estimated date passed and at last the final solicitors queries came in with hints at completion the 2nd week of March. Hoping the exchange could get done and completion date confirmed, another question but this time from the buyer asking if they could put a fence up, which I'd already told them they could when they came for the second viewing, so was surprised they asked. Although it made me wonder if they was just stalling for time, anyway I answered straight away and again I waited.
Yesterday, 2 weeks later I get my weekly call from the EA  to say everythings all done but the buyer has had a chat with their solicitor and due to the COVID-19 virus and possible effect on house prices that although they still want the house, they now want it at a reduced offer of 33K off the agreed price. 

So as you can imagine after all this time of the buyers side taking weeks to respond and then finally a question from buyer to an answer they already knew and the estimated exchange date moved several times (not sure if this is normal tho), I'm fuming.

I obviously feel like telling them where to shove their offer but my dilemma is, I need the money especially now after all these months of waiting as there are final bills to pay, repairs that need doing, all of which I can't afford to pay unless I sell. Plus as I moved in to look after Dad over the past 7yrs before he passed away, so I was hoping to have enough money left to purchase a decent smaller property for myself, but unless the other property prices drop I'm not going to be able to find anything decent around or near here or will I have enough money to do one up, which I would have had before they dropped this bombshell on me.
I know I need the money and have choices but I just think an extra 33k off the price is pushing it and with this virus about will we be able to complete anyway.
My EA said they think the prices will drop but I was sceptical that she just wants this property gone and their fee paid. I'm also thinking whose going to go and view anyway or should I just reject the offer and put back on market and just wait a few months till after this Virus goes to find another buyer. Have even thought about getting a loan, (although my credit rating isn't brilliant) an Investor or something else so I can pay the bills and do this house up then sell at a higher price.
I just don't want to do anything rash while I'm still fuming and can't sleep, so if anyone has got any ideas or advice I'd apreciate it.

[Deleted User]

gemsy46 said:

Hi Everyone,
I sold my Dads 3 bed house (Probate) just before Christmas for 11k under the asking price due to some work needing doing. Everything had being going along ok and I had an estimated completion time of between the 10th - 24th Feb as apparently the buyer was ready to go.
 I got all my paperwork done before xmas, so I was just waiting for the buyer to sort their mortgage, which was confirmed as in place in January and for their solicitors enquiries and searches etc to be done .  
The estimated date passed and at last the final solicitors queries came in with hints at completion the 2nd week of March. Hoping the exchange could get done and completion date confirmed, another question but this time from the buyer asking if they could put a fence up, which I'd already told them they could when they came for the second viewing, so was surprised they asked. Although it made me wonder if they was just stalling for time, anyway I answered straight away and again I waited.
Yesterday, 2 weeks later I get my weekly call from the EA  to say everythings all done but the buyer has had a chat with their solicitor and due to the COVID-19 virus and possible effect on house prices that although they still want the house, they now want it at a reduced offer of 33K off the agreed price. 

So as you can imagine after all this time of the buyers side taking weeks to respond and then finally a question from buyer to an answer they already knew and the estimated exchange date moved several times (not sure if this is normal tho), I'm fuming.

I obviously feel like telling them where to shove their offer but my dilemma is, I need the money especially now after all these months of waiting as there are final bills to pay, repairs that need doing, all of which I can't afford to pay unless I sell. Plus as I moved in to look after Dad over the past 7yrs before he passed away, so I was hoping to have enough money left to purchase a decent smaller property for myself, but unless the other property prices drop I'm not going to be able to find anything decent around or near here or will I have enough money to do one up, which I would have had before they dropped this bombshell on me.
I know I need the money and have choices but I just think an extra 33k off the price is pushing it and with this virus about will we be able to complete anyway.
My EA said they think the prices will drop but I was sceptical that she just wants this property gone and their fee paid. I'm also thinking whose going to go and view anyway or should I just reject the offer and put back on market and just wait a few months till after this Virus goes to find another buyer. Have even thought about getting a loan, (although my credit rating isn't brilliant) an Investor or something else so I can pay the bills and do this house up then sell at a higher price.
I just don't want to do anything rash while I'm still fuming and can't sleep, so if anyone has got any ideas or advice I'd apreciate it.

Your buyer has really been dragging their feet if you accepted an offer in December and you were still working towards exchange at the end of March.  I would be cheesed off that the sale hadn't been done and dusted before now never mind the gazundering.

Are you living in the property just now?  How much was the offer you accepted?  What repairs need to be done and are they urgent?

warby68

It depends how big a discount that represents and what your options are for where you live next. 
If you had secure living accommodation and this got you out of debt etc I'd consider a largish hit to get out from under.
However if you don't have somewhere to live lined up you might have as good a reason to pull out as the buyers as it won't be easy doing new deals, removals etc in this very uncertain time. If this house is mortgage free and you've lived with its faults for 7 years, there is a case for hunkering down where you are for the time being.
Whatever, I'd start with negotiation and a pushback on that amount,  based on your own significant uncertainty whether it is now worth going ahead with the sale.
I suspect pressure from any creditors you have may be alleviated as well by whatever government support or dictate is coming down the line, at least for the next few months. You have equity to offer them after all.

[Deleted User]

As said, it depends on your situation, I can't really make out where you are living now, why you need money for repairs (on the probate house or where you are living) and how urgent it all is.  If the drop in price stops you from buying something else then I think the answer has to be a no as the buyer is taking liberties.  But that could leave you with a property on your hands for ages - how likely do you think that is to be (you know your area, we don't)?  I'd at least put the property back on the market to show you are serious that this price is not acceptable and allow you to see there is interest.  A lick of paint on the probate house could be all that is needed to achieve a sale at a better price.  

csgohan4

first it was brexit now Covid as an excuse to gazunder, sigh....

AdrianC

What proportion of the sale price is £33k?

gemsy46

Thank you for your replies.
I also felt they were dragging their feet but couldn't be sure as this is the first time I've gone through this process. 
The house is a 1960's corner plot property which had large garage and a brick storehouse added in the 80's. I was advised to put it on the market for 250k a quick sale, other properties with less land and have been modernised and patios added have been selling from between 250k to 300k but I accepted another 11k off so agreed to 238k,
 I'm still living at the property which has no mortgage on it luckily.  The house is just in need of updating throughout but nothing urgent. New bathroom, Kitchen, plastering all through and some external work etc, estimated to be altogether approx 40K at the most. I had already knocked that amount off when comparing to other properties in our area even though I expected to be asked to knock a bit more to get a sale. To be honest even some of the people who viewed were put off with the repairs that need doing, although the house is livable, clean and has bags of potential.
I was thinking of putting everything in storage and go into an Airbnb or rent for 6 months while I looked for a smaller property to buy  and after paying out for bills etc, including giving my brother his share I'd have had enough to buy a half decent 2bed house for approx 130k with money left over for improvements if needed. 
I'm happy to stay here and luckily I have the final say where my brothers concerned, it was just the fact that I have bills that need paying and wanted to give my kids a small amount especially with one getting married in November.
I think after what's you've said so far, I'll reject that offer, I think they've took the pee long enough and this last drop is just an insult tbh, so sod the debts they can all wait, it's not like i'll have the bailiffs knocking down my door any time soon lol.

UnderOffer

I’d relist, tell the buyer no, £33k is more than 10% of the original price. If prices do decline, so will your ongoing purchase so you won’t be any worse off. Refuse the request and tell EA to remarket, that will focus the buyers real intentions, you’ll soon find out if they want to continue with purchase. 

KiwiCoop

If you're dropping down the property ladder you will be worse off.  At this stage no one knows what the longer term affect of this will have on the house market so personally, I would want to sell up now and sit on the cash and see what unfolds. The Airbnb market has fallen off a cliff so there will be plenty of rentals and a few sales coming to market very soon.  I would go back and reluctantly offer a much smaller reduction and see what feedback you get - maybe they're just chancing their arm.  

Jumblebumble

UnderOffer said:

I’d relist, tell the buyer no, £33k is more than 10% of the original price. If prices do decline, so will your ongoing purchase so you won’t be any worse off. Refuse the request and tell EA to remarket, that will focus the buyers real intentions, you’ll soon find out if they want to continue with purchase. 

This may well be a bogus assumption as surely the OP is only in the same position if the new property is either the same price or better off if it  is more expensive
 OP lets 200K property go at 10% discount 20K loss negotiates 10% off 100K house
Net loss 10K 
Also one cannot assume that different locations will have the same percentage change

gemsy46

Thanks again for all your comments.
I've spoken the my EA and told her to reject the offer, she agreed and said that at the price my buyer wants to pay it would fly off the shelf and she also agrees the buyer is taking the P.
I've also been looking at other properties for sale in my area and so far no one has dropped their prices. I'm just going to ride this out and see what my buyers response is to my counter offer, if they pull out then so be it, I'll just put the house back up for sale. Luckily I'm on a no sale no fee contract with both my EA and solicitor so at least I won't have a big bill come in if they do pull out.