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What we feared, happened. Buyer reduced agreed price.
Bibbitybobbitybop
Posts: 97 Forumite
We knew it might be coming but thought nahhh won't happen to us. We had a super keen cash buyer. Our purchase is vacant. All prices agreed (ours at asking price - woo!) and chugging on through the legals etc.
Then... the dreaded call! Our buyer's buyer had pulled out. Buyer house back on market. Dang.
Miracle! They get another offer! In lock down! But... £30k less. They need us to come down on our agreed price by £20k....
We finally manage to agree a £15k discount because we don't want to lose the sale.
We call our poor seller and go in with £12k off hoping they'll agree maybe 10k. They agree the £12k.
So it seems like only a £3k loss to us but it's not due to the 85% cap on LTV. We are actually about £13k down on (cash in hand wise) what we can borrow which cuts into our renovation budget.
BUT... we've saved the transaction...
Everyone in the chain played fair to make it happen. I suspect that's how these things are going to be saved in these conditions.
Then... the dreaded call! Our buyer's buyer had pulled out. Buyer house back on market. Dang.
Miracle! They get another offer! In lock down! But... £30k less. They need us to come down on our agreed price by £20k....
We finally manage to agree a £15k discount because we don't want to lose the sale.
We call our poor seller and go in with £12k off hoping they'll agree maybe 10k. They agree the £12k.
So it seems like only a £3k loss to us but it's not due to the 85% cap on LTV. We are actually about £13k down on (cash in hand wise) what we can borrow which cuts into our renovation budget.
BUT... we've saved the transaction...
Everyone in the chain played fair to make it happen. I suspect that's how these things are going to be saved in these conditions.
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Comments
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What was the asking price you initially agreed on?Gather ye rosebuds while ye may0
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Sounds like a good outcome for all then given the current climate?1
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That is a problem with some cash buyers, they can gazunder more than others"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP1 -
Good result, could have been much worse for you really?0
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Yes, we are relieved!! Original price of ours was £270k, and our purchase was £475k.0
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But, but, but house prices wont fall. Supply and demand etc etc0
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Considering they had originally agreed full asking price the reduction is not overly significant, £15k reduction off of £270k is under 6% and you have managed to reduce the price of your onward purchase so you can get on with your life in your new home.
You can always postpone or readjust your planned renovations.1 -
Harder to do if there is genuine demand though?csgohan4 said:That is a problem with some cash buyers, they can gazunder more than others0 -
So your 'cash' buyer only has the 'cash' after they've sold their house.
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Yes... I do get the difference in terms of a genuine cash cash buyer! More that they don't need a mortgage I guess.
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