Buyer has asked for £20k off sales price

sancahojo

Hi all
Our buyer's had a Home Buyer's survey done and apparently the results came back with potential damp and outdated concumer unit (electrcity).
They have said they will only proceed unless we reduce sales price to reflect these - current asking price is £435k.
The flat does not have damp - moisure and condensation, yes, but which London flat doesn't?
The electricity system is old but it functions - I have looked and to replace the whole system would cost c£2.5k for two bedroom flat.
I want to refuse this and say that I will put the house back on the market unless they change their proposal - what are people's thoughts?

davidmcn

I would agree with your view. Everybody's electrics are "outdated" unless it's just been rewired. Actual damp rather than potential then they might have a point - what on earth is the effect on market value of "potential" damp?

JGB1955

I would tell them that the sale price takes into account the current condition of the flat.  How much reduction are they seeking?  I would think a new consumer unit (not full re-wire) would come in at well under £1,000.  They are taking the Michael.
EDIT - just saw that they want £20K off - definitely put it back on the market!

numbercruncher8

You're well within your rights to do that, I guess that would be the consensus here from most.

Bigger picture which nobody else has, is that London flats are probably the most uncertain of properties with regard to valuation. If the initial bid was at a good price relative to others or if you had a lot of viewings without bidders it may be worth attempting to re-negotiate something before pulling the plug.

No way to know this for sure but if a buyer has a modicum of flexibility of where to live in London, there is a greater choice of flats available at most price points than there was a couple of months ago. 

sancahojo

numbercruncher8 said:

You're well within your rights to do that, I guess that would be the consensus here from most.

Bigger picture which nobody else has, is that London flats are probably the most uncertain of properties with regard to valuation. If the initial bid was at a good price relative to others or if you had a lot of viewings without bidders it may be worth attempting to re-negotiate something before pulling the plug.

No way to know this for sure but if a buyer has a modicum of flexibility of where to live in London, there is a greater choice of flats available at most price points than there was a couple of months ago. 

They were the first people to view the house and the first offer on day 1 of viewings.

streamvn

numbercruncher8 said:

You're well within your rights to do that, I guess that would be the consensus here from most.

Bigger picture which nobody else has, is that London flats are probably the most uncertain of properties with regard to valuation. If the initial bid was at a good price relative to others or if you had a lot of viewings without bidders it may be worth attempting to re-negotiate something before pulling the plug.

No way to know this for sure but if a buyer has a modicum of flexibility of where to live in London, there is a greater choice of flats available at most price points than there was a couple of months ago. 

I totally agree with your opinion

numbercruncher8

OK fine - in that case it seems likely that even if the deal falls through you could easily get someone else. 

Jeepers_Creepers

How much interest was there in the flat? Ie - how easy would it be to remarket? How strong is the market in your area - properties going for 'full-asking' in most cases?

This is a game, and each player is effectively gambling. For the potential buyer, they have little to lose by asking for this reduction; they know you want to sell, but if you stick to your guns and say 'No!' to any reduction, they can just up their offer again in order to re-secure the property - they'll consider the episode as 'it was worth a try'.

For you, the situation is similar but in reverse! Eg. do they want your flat more than others? Will they be willing to go back up to close to the original price if you hold firm? How much time and money have you both invested in this so far?

Is your flat on the ground floor - could this 'damp' be 'rising'? If no, then unless it's due to something really obvious like a piece of missing render or pointing or a broken gutter, then chances are it's as you say - internal condensation. In which case that part of their claim is unreasonable.

As for the electrics, if this is 'old' as you say, then good chance they'll wish to update it in any case to perhaps add more sockets, modern lighting, possibly networking cables etc. Not essential, of course, and they did initially offer on the flat as seen. But this might be where a compromise could be found in order to smooth over this glitch and get things moving again.

You could state that there's no evidence of a 'damp' issue, but acknowledge that the wiring is old although functioning perfectly with no issues. You'll therefore offer a reduction of (?) £5k which should more than cover a full rewire. 

Enjoy the game :-(

missjones80

I’d probably pull out now and look for another buyer if you had lots of interest first off. They sound like chancers to me and they’ll probably ask again closer to completion once you are all further down the line and paid for surveys etc. It’d be different if they asked you to rectify it but £20k!!! Alarm bells 

Stenwold

Has the report actually downvalued the property?

Something similar happened to me with a property I was buying. Homebuyers survey downvalued the property by 25k - I was still willing to pay the original agreed price due to the potential (I knew a lot of work was needed on the property, and I wasn't afraid of taking on a big job), but the lender reduced the max lending to 85% of the new value and I couldn't afford to make up the difference with my own funds. 

sancahojo

Stenwold said:

Has the report actually downvalued the property?

Something similar happened to me with a property I was buying. Homebuyers survey downvalued the property by 25k - I was still willing to pay the original agreed price due to the potential (I knew a lot of work was needed on the property, and I wasn't afraid of taking on a big job), but the lender reduced the max lending to 85% of the new value and I couldn't afford to make up the difference with my own funds. 

No! their mortgage was approved. Feel like the timing has something to do with it as it is right before lockdown,.