Gazundering - what are my options?

Golden_Glow90

The buyer of my house is trying to get a hefty discount 4 weeks after putting in an offer, now claiming they don’t think it’s worth what they offered. No internal survey has been done or anything plus they offered £20k over the asking price as there was a bidding war between 4 people. My estate agent is trying to pursuance me to take the offer but I’ve already had my mortgage offer for my new house accepted and don’t have enough of a ‘cushion’ to drop the price that much. 

I’ve bought a new build and the developer has said if we have any issues with our sale that we can use their moving scheme to find a quick replacement but what fees will I still have to pay my current estate agent and solicitor?

im trying to work out what my options are so that financially I’m in the best position as I’m already going to lose money now

theoretica

Its only 4 weeks - so what about the other bidders?

UnderOffer

Just ask your EA to approach the other 3 bidders to see if they are interested. It might be worth relishing as it sounds like you could possibly find a new buyer. Last resort could be then part exchanging with your developer. 

Gavin83

Golden_Glow90 said:

The buyer of my house is trying to get a hefty discount 4 weeks after putting in an offer, now claiming they don’t think it’s worth what they offered. No internal survey has been done or anything plus they offered £20k over the asking price as there was a bidding war between 4 people. My estate agent is trying to pursuance me to take the offer but I’ve already had my mortgage offer for my new house accepted and don’t have enough of a ‘cushion’ to drop the price that much. 

I’ve bought a new build and the developer has said if we have any issues with our sale that we can use their moving scheme to find a quick replacement but what fees will I still have to pay my current estate agent and solicitor?

im trying to work out what my options are so that financially I’m in the best position as I’m already going to lose money now

How much of a discount are they asking for and how much were the other bids in comparison?

Personally it wouldn't sit right with me and I'd speak to the previous interested parties or remarket if they were no longer interested but that's your decision to make. Also don't listen to the EA. They don't really care about your situation, they just want to do the least work possible to earn their commission. You taking this offer means a fraction amount less for them vs having to do the work to resell the house.

Golden_Glow90

The estate agent has said that the other bidders have found properties now. It sounds a bit of a fix and it doesn’t sit right with me. They’re asking to drop below what the other bids were. They asked for a £10k discount, then £7.5k but I’ve said no both times. 

If I pull out, what will I owe my estate agent and solicitors though for the work so far? I feel like I’m being messed about and ideally would like to just go via the developer (can’t do part ex though as our old house is worth more than 70%of the new house) and get them to sell it but not sure if I’ll end up with even less depending on what fees I have to pay

user1977

Golden_Glow90 said:

If I pull out, what will I owe my estate agent and solicitors though for the work so far? 

We can't see what terms you signed up to with either of them - but I wouldn't expect the estate agent to be due anything, and your solicitor should (at most) only need paid for whatever work they've actually done so far (which I am guessing isn't much?).

In any event, it's effectively your buyer who's pulling out by not proceeding at the agreed price.

MysteryMe

I'd remarket the house. If they had had a survey and that had raised issues that's a different conversation but this just sounds like people who have used a deliberate tactic of blowing away other potential buyers by offering an amount they had no intention of honouring. 

propertyhunter

Normally you would gazunder just before exchange, so that the seller has more reason to accept the price reduction since they don't want to go through another 3 months of conveyancing with a new buyer. They haven't exactly thought this through. 
Also, it's been 4 weeks - I'm surprised the other bidders have found somewhere else given the lack of supply in the market, or is this not true in your area? 
I'd just find another buyer if the current one doesn't want to honour their original deal since you are only 4 weeks into the process. 

eddddy

Golden_Glow90 said:

If I pull out, what will I owe my estate agent and solicitors though for the work so far?

You need to read your EA's contract, but...

It would be very, very unusual for an EA's contract to say you have to pay their commission if the buyer pulls out.  

But... some EA's contracts have withdrawal fees (or marketing fees), which you have to pay if you terminate your contract with the EA.



AND... at the moment, your contract with the EA is probably still in force. So you need to establish what fees (if any) you'd have to pay your current EA, if you sign-up for the developer's 'moving scheme' whilst still in contract with the EA.

If your minimum contract period has ended, you probably have to give your current EA written notice to terminate the contract - usually 2 or 4 weeks. If necessary, maybe you could give the written notice and wait 2 or 4 weeks before signing-up for the developer's 'moving scheme'.

Golden_Glow90

propertyhunter said:

Normally you would gazunder just before exchange, so that the seller has more reason to accept the price reduction since they don't want to go through another 3 months of conveyancing with a new buyer. They haven't exactly thought this through. 
Also, it's been 4 weeks - I'm surprised the other bidders have found somewhere else given the lack of supply in the market, or is this not true in your area? 
I'd just find another buyer if the current one doesn't want to honour their original deal since you are only 4 weeks into the process. 

As we’re buying a new build, we were due to exchange in 10 days. This is why we’re a bit worried as we’re not going to exchange by then if we remarked but at the same time, accepting £7500 less would mean we’d be cutting it very fine with our mortgage and not leave us with anything left to buy the things we need for our new house 

propertyhunter

Ok, so the 10 days makes a difference. You can either hold out (and risk your onward purchase), or because they essentially want to feel they have got the best price, offer them what you can 'afford' to lose.

If time was on your side, I'd say ditch these buyers and find new ones. 

Your current buyers have moved very quickly to get from offer to exchange in less than 2 months. Assume they have a good position and with no chain?