FTB asking for 5K reduction just before exchange

GDB2222

Surely, as FTBs the stamp duty holiday does not help them? Unless this is a rather expensive house. 

There’s been such a lot of hype over the stamp duty holiday, and prices may reduce after it ends?

getmore4less

In most cases FTB have more to lose so don't have the upper hand. 

They don't have a house and are usually up against limiting factors like size of deposit and salary multiples.
Loss of a £1k  in sunk fees can impact their limits on the next if they back out.

VintageHistorian

getmore4less said:

In most cases FTB have more to lose so don't have the upper hand. 

They don't have a house and are usually up against limiting factors like size of deposit and salary multiples.
Loss of a £1k  in sunk fees can impact their limits on the next if they back out.

Also depending on their living situation they may have parents that are desperate for them to move out (either so they can downsize or get their spare room back), or they may have been daft and handed in their notice for their rental property, in which case they may need to find a new rental if they pull out of the sale (or risk !!!!!! off their landlord by refusing to leave).

numbercruncher8

Whoever needs the deal less has the upper hand, status of buyers is less relevant.

You can create that impression with the EA by simply bluffing 'we decline, there are other bidders standing by at the original price'...

On the other hand if there was not much other interest are you really need the sale then you might not want to lose the buyer so you can get the EA to negotiate something.

Not really sure anyone can give you anything definitive.

MovingForwards

If the reduced offer is agreed, or negotiated to meet in the middle, the lender has to be advised and a new mortgage offer produced.

I'm assuming the property was valued at their offer, which took into account the condition of the property, otherwise they would have come back at that point with a reduced offer.

grumiofoundation

GDB2222 said:

Surely, as FTBs the stamp duty holiday does not help them? Unless this is a rather expensive house. 

There’s been such a lot of hype over the stamp duty holiday, and prices may reduce after it ends?

Indeed, not really sure why stamp duty being mentioned as a factor - in fact if OP is buying a house themselves they are the ones who would be impacted if completion doesn't occur by the end of the holiday. 

Sid91

MaryNB said:

It's helps if you stick to the one thread. People can see the full history of your concerns 
https://forums.moneysavingexpert.com/discussion/6234501/electrical-inspection#latest

The buyer is also losing out if they pull out now. They've spent money on conveyancing and surveys and will probably be emotionally invested in the house. 

Have you had a response since you responded with a counter offer? If not, there no point in getting upset over it yet. They haven't actually threatened to pull out. As an FTB they might have someone goading then to keep asking for money off for any issues in the surveys. Or they might be very naive about the costs of keeping a house maintened and want to you to pay to get it perfect. You shouldn't. 
They probably know well they are chancing their arm.

ETA: I'm a bit confused at your first post. Is the £5k the money they wanted off for the electrical survey (as per your other thread) or is this another £5k reduction they've requested?

I spoke with the estate agent this morning and they have not responded. The estate agent has made it clear that I spoke with the electrician and know exactly what is required. I think his dad is a big part in asking for the reduction. The 5k is a further reduction after the electrical inspection was carried out, they just didn't know that I knew how much it would cost. I spoke with my solicitor this morning and everything is in place, we're just waiting for them!

Sid91

MovingForwards said:

If the reduced offer is agreed, or negotiated to meet in the middle, the lender has to be advised and a new mortgage offer produced.

I'm assuming the property was valued at their offer, which took into account the condition of the property, otherwise they would have come back at that point with a reduced offer.

The mortgage provider valued it at more than they offered! This is my point, why now? 

Sid91

pinkteapot said:

If they pull out now they won't benefit from the stamp duty thing. Hold firm. If they say they're pulling out you could offer *something* off. 

Thank you! I've offered £500 off which will pay for a new CU and will resolve a lot of the problems.

Sid91

AdrianC said:

Will they walk away over £3.5k?

Remember, they've spent a couple of grand to get to this point, and they're staring at the imminent removal of the SDLT holiday.

Why 3.5? They want a 5k reduction for 1500 worth of work! I think they're chancing it, thinking I didn't know what the electrician had said.