Buyer reduced bid by 9% before exchange

[Deleted User]

Here is the update:

On recommendation of the EA I countered their offer and met them in the middle. However in very quick succession the buyer reduced their offer by a further 1.5%, then revoked their offer completely while they wait on the council review decision regarding HMO regulations in the area.

It's possible they may still purchase the property, however EA has suggested we re-market the property at the original price so we have some flexibility going forward and we aren't just waiting on the developer for weeks. So the property is back on the market and viewings are being booked for next week.

I would have accepted the lower offer.

This could also have happened with a non-developer buyer. It's just unfortunate timing given the economic situation and I'm sure plenty of other deals are suffering similar cicumstances. I can't imagine the stress involved for people whom are going through a similar situation with their primary residence. I am fortunate that:

• It is an inherited property, so it's all profit regardless of the sale price. And I have made no plans for the money until it lands in my bank acount.
  
• I don't live there, so I am not dependant on the sale

Regarding the current market, I don't think we will have trouble selling the property. It is in a hugely popular area. Whether or not I get similar offers as April is out of my control, so I do not worry about it.

Sarah1Mitty2

[Deleted User] said:

Here is the update:

On recommendation of the EA I countered their offer and met them in the middle. However in very quick succession the buyer reduced their offer by a further 1.5%, then revoked their offer completely while they wait on the council review decision regarding HMO regulations in the area.

It's possible they may still purchase the property, however EA has suggested we re-market the property at the original price so we have some flexibility going forward and we aren't just waiting on the developer for weeks. So the property is back on the market and viewings are being booked for next week.

I would have accepted the lower offer.

This could also have happened with a non-developer buyer. It's just unfortunate timing given the economic situation and I'm sure plenty of other deals are suffering similar cicumstances. I can't imagine the stress involved for people whom are going through a similar situation with their primary residence. I am fortunate that:

• It is an inherited property, so it's all profit regardless of the sale price. And I have made no plans for the money until it lands in my bank acount.
  
• I don't live there, so I am not dependant on the sale
  

Did you have any other offers at the original price other than the developer?

[Deleted User]

Sarah1Mitty2 said:

jcuurthht said:

Here is the update:

On recommendation of the EA I countered their offer and met them in the middle. However in very quick succession the buyer reduced their offer by a further 1.5%, then revoked their offer completely while they wait on the council review decision regarding HMO regulations in the area.

It's possible they may still purchase the property, however EA has suggested we re-market the property at the original price so we have some flexibility going forward and we aren't just waiting on the developer for weeks. So the property is back on the market and viewings are being booked for next week.

I would have accepted the lower offer.

This could also have happened with a non-developer buyer. It's just unfortunate timing given the economic situation and I'm sure plenty of other deals are suffering similar cicumstances. I can't imagine the stress involved for people whom are going through a similar situation with their primary residence. I am fortunate that:

• It is an inherited property, so it's all profit regardless of the sale price. And I have made no plans for the money until it lands in my bank acount.
  
• I don't live there, so I am not dependant on the sale
  

Did you have any other offers at the original price other than the developer?

After 2 weeks on the market there were 8 offers. 3 at asking price and 5 above asking price.

eidand

I would give them a short time to exchange or go back to the market. No need to play their game

youth_leader

Sorry to read this, good luck with finding a new buyer, it's so stressful. 

My developer buyer still behaved badly even buying at auction.  He had asked for eight weeks rather than the four I'd specified to completion,  which I reluctantly accepted, but then wouldn't sign and pay the deposit as he had to 'pass it to his underwriters'.  I had an anxious three day wait until  late the following Monday.  Then he refused to pay for the oil I'd had to order to accommodate his eight week completion request. Pah!

user1977

eidand said:

I would give them a short time to exchange or go back to the market. No need to play their game

It appears the buyers have (for the meantime) withdrawn, doesn't make sense to do anything other then remarket.

[Deleted User]

user1977 said:

eidand said:

I would give them a short time to exchange or go back to the market. No need to play their game

It appears the buyers have (for the meantime) withdrawn, doesn't make sense to do anything other then remarket.

That's correct. If we just wait and hope they want to continue with the purchase in a few weeks, they'd be holding all the cards in any negotiations.

Gycraig

housebuyer143 said:

sidneyvic said:

I've never seen-so many prices reduced as I have seen this week and it is going to get worse. Everything is getting more expensive and interest rates are only going one way. We are going to start seeing people coming tonthe emd of their fixed rates and not being able to afford the new rate and panic selling or even worse repo'd.... 

Yes they are going up, but so is inflation so house prices should rise with that at a minimum.

This week is a blip caused by speculators trying to bet against the market. The pound is already coming back to the level it was a week ago and predictions are looking to be back at what they were.

Give in a week and most the fixed rates will be back again also.

Why would prices rise with inflation when wages aren’t rising with inflation and interest rates are going up. 

housebuyer143

Gycraig said:

housebuyer143 said:

sidneyvic said:

I've never seen-so many prices reduced as I have seen this week and it is going to get worse. Everything is getting more expensive and interest rates are only going one way. We are going to start seeing people coming tonthe emd of their fixed rates and not being able to afford the new rate and panic selling or even worse repo'd.... 

Yes they are going up, but so is inflation so house prices should rise with that at a minimum.

This week is a blip caused by speculators trying to bet against the market. The pound is already coming back to the level it was a week ago and predictions are looking to be back at what they were.

Give in a week and most the fixed rates will be back again also.

Why would prices rise with inflation when wages aren’t rising with inflation and interest rates are going up. 

My wages have gone up with inflation. Hundreds of thousands of others who get Real Living Wage got an inflation busting payrise, pensions will be increasing by 10%?.Lots of job vacancies mean that employers are paying more. The council also just increased many personal assistants wages by more than 10%.
Lots of jobs are going up with inflation, maybe just not the minimum wage ones.

The whole point of inflation is that, things go up by it? Food, services, products. Wages do not need to go up, but inflation will still increase all these items.

Titus_Wadd

Speaking as an old f@rt, when I was a ftb in the late 80s early 90s rampant inflation and eye watering mortgage rates created a buying frenzy where I lived.  Folk  couldn't see anywhere safer for their money than bricks and mortar.  My first purchase increased from £37k to 49k* in 11 months, all we'd  done was painting and tidy the garden. There might be a blip in the market but folk will still buy and sell.

* add zeros for current equivalentent prices