Buyer holding me hostage on house sale

GDB2222

It’s quite expensive owning two houses, but not the end of the world, so I suggest that you take a deep breath and stop panicking. Mortgage cost is say £3000 a year plus Counciltax another £1000 maybe. Say £400 a month until the property is sold. Compared to what the buyer is demanding, that’s about a year's worth.

So, it’s a simple equation. If you remarket the property, that will cost you a few hundred in solicitor fees plus an ongoing £400 a month. What nobody here can tell you is whether you can find another buyer willing to pay the same price, and how quickly. 

The obvious starting point is to get your own electrical report, so you know what needs doing. I don’t think it’s practical for you to get major repairs done before selling, particularly if you are short of funds, but be prepared to offer a reduced price if your electrician says a lot needs doing.

Alternatively, remarket at £105,000 and hopefully start a bidding war.

ciderboy2009

OP - the two critical questions that you don't seem to have answered are:

- What did the survey value the house at?  If it's the price the purchaser originally offered then I would be telling them where to go.

- Have you seen a copy of the report which says that the wiring MUST be replaced?  The odds are that it's just the standard backside covering statement that the sureveyors always make.

If it was me then the house would probably have gone back on the market as soon as I'd seen the estimate.

Davidoffash

GDB2222 said:

It’s quite expensive owning two houses, but not the end of the world, so I suggest that you take a deep breath and stop panicking. Mortgage cost is say £3000 a year plus Counciltax another £1000 maybe. Say £400 a month until the property is sold. Compared to what the buyer is demanding, that’s about a year's worth.

So, it’s a simple equation. If you remarket the property, that will cost you a few hundred in solicitor fees plus an ongoing £400 a month. What nobody here can tell you is whether you can find another buyer willing to pay the same price, and how quickly. 

The obvious starting point is to get your own electrical report, so you know what needs doing. I don’t think it’s practical for you to get major repairs done before selling, particularly if you are short of funds, but be prepared to offer a reduced price if your electrician says a lot needs doing.

Alternatively, remarket at £105,000 and hopefully start a bidding war.

That is very sound advice .. thankyou for taking the time to help 

Cheers 

Davidoffash

Doozergirl said:

Davidoffash said:

m0bov said:

Your being stitched up, he would need to amend the offer if he wants a reduction and no way should you re wire a house for someone else. Your being mugged off.

Thats what I feel too.  Sometimes it helps to get others input on the matter. He won't amend the offer as he says he cant afford to get the work done. 

Then he can't afford the house, let alone new decking lights paid for by you.  

You cannot be rewiring a house for a buyer if that wasn't your intention.  It's an unreasonable request.  

Thats correct..the decking doesn't even have lights in it. Think today I grow a pair and tell him where to go.

Davidoffash

Falafels said:

Doozergirl said:

Davidoffash said:

m0bov said:

Your being stitched up, he would need to amend the offer if he wants a reduction and no way should you re wire a house for someone else. Your being mugged off.

Thats what I feel too.  Sometimes it helps to get others input on the matter. He won't amend the offer as he says he cant afford to get the work done. 

Then he can't afford the house.

This ^^^. 
Talk to your solicitor about their fee, too. While there will be something due because of the work they've done so far, it may be that you settle up the entire bill on completion. 

You don't say which part of the country you're from, but is your local market really so desperate that you can't afford to walk away from this guy, get an EICR for yourself, and put it back up for sale?

I'm from the North West..Barnoldswick. its a 3 bedroom terrace and i may have to get this EICR done so I know myself as he refuses to show me any evidence of the work  needed kt a quote 

Davidoffash

AdrianC said:

Davidoffash said:

many thanks for the responses. I tried to negotiate but he has point blank refused saying he does not want to change his mortgage offer nor does he wish to meet half way with the repairs. I cant get any work done before hand not that I would as I simply do not have the funds to do so. My solicitor is refusing to hold any monies on completion and says he must declare this as an allowance but again he refuses to do so. And if I put the house back on the market I still have to pay for my solicitors work to date. New it was not going to be stress free but not like this 😂

It is a very simple four-way choice.

1. You get work done before sale, to a mutually agreeable compromise.
2. The sale price is reduced, to a mutually agreeable compromise.
3. He gives his head a wobble, and drops the whole thing.
4. The sale is off.

None of these is free of cost to either or both of you. 4 is the maximum hassle, and potentially the maximum cost, but the default position in the event of an inability to come to an agreement on the first three.

Has he actually given you a copy of his electrical report?
Have you commissioned one yourself?

I have not been given a copy of the electrical report just a quote of the work he wanta doing by his own electrican that he refuses to pay a penny towards. He wont alter his mortgage and he wont take an allowance on completion.  Basiy he wants it doing.. like now 

numbercruncher8

Surely the survey must have OK'd the price, that would be a simpler way and less offensive way to ask for a reduction.

I doubt it 'needs' a rewire in the strict sense of the word, but more that the buyer got alarmed at what 'not up to current standards' or similar in the report. 

However, there seems to be a bit of emotions attached, most people's automatic reaction is to tell someone to **** off, but I don't think without the full picture you can say it for sure. For example if the initial price was a kite-flying one and the OP got a bite early, it may well be still good to go ahead with the deal. I'm not saying it is or not, just that it's not possible to tell.

So when considering, part of the consideration should be, putting yourself in the shoes of the buyer. If the deal falls through, are there similar comparable properties that could be bought at the same price level? I think that is a better guidance for what to say in a counter-offer.

AdrianC

Davidoffash said:

AdrianC said:

Davidoffash said:

many thanks for the responses. I tried to negotiate but he has point blank refused saying he does not want to change his mortgage offer nor does he wish to meet half way with the repairs. I cant get any work done before hand not that I would as I simply do not have the funds to do so. My solicitor is refusing to hold any monies on completion and says he must declare this as an allowance but again he refuses to do so. And if I put the house back on the market I still have to pay for my solicitors work to date. New it was not going to be stress free but not like this 😂

It is a very simple four-way choice.

1. You get work done before sale, to a mutually agreeable compromise.
2. The sale price is reduced, to a mutually agreeable compromise.
3. He gives his head a wobble, and drops the whole thing.
4. The sale is off.

None of these is free of cost to either or both of you. 4 is the maximum hassle, and potentially the maximum cost, but the default position in the event of an inability to come to an agreement on the first three.

Has he actually given you a copy of his electrical report?
Have you commissioned one yourself?

I have not been given a copy of the electrical report just a quote of the work he wanta doing by his own electrican that he refuses to pay a penny towards.

So you're taking his word for it, with no evidence, that the wiring needs (from a safety sense - not just not up to current spec) doing.
Commission your own report. It's a hundred quid or so investment in trying to save the sale.

He wont alter his mortgage and he wont take an allowance on completion.  Basiy he wants it doing.. like now 

Which means he's ruling out option 2 and option 3.
You are (currently) ruling out option 1.
That only leaves option 4...

If your own report says "Perfectly safe", hand him a copy of it, and say "Last change - option 3 or 4, your choice"...
If your own report says "These aspects are dangerous", would you offer to resolve them (option 1)?

NinjaTune

Unless you're desperate to sell then I'd echo the others re: cutting your losses and remarketing.

This buyer sounds a right pain in the backside.  Yes you'll lose the money you've invested in the process, but so will he; he also likes your house enough to want to buy it.

I would contact the seller and say "As we have been unable to reach a compromise, I will be putting the property back on the market.  Thank you for your interest".  The thought of losing both money and the house might be enough to kick him up the backside if he's trying to mug you off.

I'd get an electrical check done so you know what you're dealing with going forward with remarketing and can factor it in to any future offer.

davidmcn

Davidoffash said:

Falafels said:

Doozergirl said:

Davidoffash said:

m0bov said:

Your being stitched up, he would need to amend the offer if he wants a reduction and no way should you re wire a house for someone else. Your being mugged off.

Thats what I feel too.  Sometimes it helps to get others input on the matter. He won't amend the offer as he says he cant afford to get the work done. 

Then he can't afford the house.

This ^^^. 
Talk to your solicitor about their fee, too. While there will be something due because of the work they've done so far, it may be that you settle up the entire bill on completion. 

You don't say which part of the country you're from, but is your local market really so desperate that you can't afford to walk away from this guy, get an EICR for yourself, and put it back up for sale?

I'm from the North West..Barnoldswick. its a 3 bedroom terrace and i may have to get this EICR done so I know myself as he refuses to show me any evidence of the work  needed kt a quote 

Unless you think there are actually problems with the electrics (i.e. it's obviously an ancient/shoddy installation or you've been having faults) then I'm not sure I'd even bother getting an EICR. I suspect this is just a FTB under the naive impression that they ought to be getting shiny as-new electrics. 

I'll add to the chorus of remarketing in the hope that it'll jolt your buyer into seeing sense.