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Renegotiating price due to down-valuation
Comments
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Hope your next viewing results in a better deal!
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The guy sounds Delulu. NEXT!themilkman said:
I completely agree. When the EA asked the vendor whether he would be willing to negotiate though, his two rebuttals were:dwsjarcmcd said:I agree with the other EA in that I think you'd be mad to pay the original price given the survey, which will also impact the amount the lender will lend you.
To put it starkly, if you're currently paying £250k for the house, then you're effectively giving away £40,000. It could take years to recoup this which may impact your ability to move in the future as you could still be in negative equity.
Personally, I'd run away if the vendor doesn't agree to renegotiate rather than put myself and family in such a negative position.
1) "well if he's planning to live it in a few years then the value will go up so he won't have lost any money"
2) "even at the current selling price I'll still be out of pocket because I paid stamp duty on it"
Nothing is foolproof to a talented fool.2 -
Smart enough then, unless like one famous spat over royalties he is just a "dancer" and not a "main songwriter" LOL. What is it with pop stars, footballers and Hollywood types and their bad overpriced property deals where they eventually sell for half what they paid years later, is it bad advice or just inability to sort hype from reality in the latest "Must Have" trend? How many other offers do they have?themilkman said:
Yes, actual wealth. He's in a household name band, worth £20m+. Not smart wealthy though, you're right 😂Sarah1Mitty2 said:
Are you sure he isn`t just "wealthy" on paper, i.e highly leveraged and depending on property prices from 2 years ago? Buying in November and trying to sell now doesn`t sound like smart wealthy money to me (that money exited during the stamp duty holiday window IMO) more like a flipper who has just misread the market and interest rates completely.themilkman said:
He's selling because he's already completed on another house - bought both with cash - he is wealthy.caprikid1 said:Why is he now selling ? Is this a forever house ? How much have you invested into the purchase ?
He may not be in a position to drop.
Invested around £3K so far probably, survey, solicitors, searches etc. I'm more worried about paying over the odds than the £3K!
Anyway, we've asked if he will renegotiate, and it sounds unlikely but is letting us know tomorrow. If he won't then we'll need to pull out. I've spoken to other estate agents today and they said we'd be absolutely mad to buy at the price we had agreed as it simply isn't worth anywhere near that. Oh well!1 -
Not good, are you scanning similar properties with PropertyLog?themilkman said:
I completely agree. When the EA asked the vendor whether he would be willing to negotiate though, his two rebuttals were:dwsjarcmcd said:I agree with the other EA in that I think you'd be mad to pay the original price given the survey, which will also impact the amount the lender will lend you.
To put it starkly, if you're currently paying £250k for the house, then you're effectively giving away £40,000. It could take years to recoup this which may impact your ability to move in the future as you could still be in negative equity.
Personally, I'd run away if the vendor doesn't agree to renegotiate rather than put myself and family in such a negative position.
1) "well if he's planning to live it in a few years then the value will go up so he won't have lost any money"
2) "even at the current selling price I'll still be out of pocket because I paid stamp duty on it"
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0 other offers!! And won't be getting any in the foreseeable.Sarah1Mitty2 said:
Smart enough then, unless like one famous spat over royalties he is just a "dancer" and not a "main songwriter" LOL. What is it with pop stars, footballers and Hollywood types and their bad overpriced property deals where they eventually sell for half what they paid years later, is it bad advice or just inability to sort hype from reality in the latest "Must Have" trend? How many other offers do they have?themilkman said:
Yes, actual wealth. He's in a household name band, worth £20m+. Not smart wealthy though, you're right 😂Sarah1Mitty2 said:
Are you sure he isn`t just "wealthy" on paper, i.e highly leveraged and depending on property prices from 2 years ago? Buying in November and trying to sell now doesn`t sound like smart wealthy money to me (that money exited during the stamp duty holiday window IMO) more like a flipper who has just misread the market and interest rates completely.themilkman said:
He's selling because he's already completed on another house - bought both with cash - he is wealthy.caprikid1 said:Why is he now selling ? Is this a forever house ? How much have you invested into the purchase ?
He may not be in a position to drop.
Invested around £3K so far probably, survey, solicitors, searches etc. I'm more worried about paying over the odds than the £3K!
Anyway, we've asked if he will renegotiate, and it sounds unlikely but is letting us know tomorrow. If he won't then we'll need to pull out. I've spoken to other estate agents today and they said we'd be absolutely mad to buy at the price we had agreed as it simply isn't worth anywhere near that. Oh well!
Not used PropertyLog but will have a look now, thank you!0 -
It is a very cool tool, won`t make you a pop star though......themilkman said:
0 other offers!! And won't be getting any in the foreseeable.Sarah1Mitty2 said:
Smart enough then, unless like one famous spat over royalties he is just a "dancer" and not a "main songwriter" LOL. What is it with pop stars, footballers and Hollywood types and their bad overpriced property deals where they eventually sell for half what they paid years later, is it bad advice or just inability to sort hype from reality in the latest "Must Have" trend? How many other offers do they have?themilkman said:
Yes, actual wealth. He's in a household name band, worth £20m+. Not smart wealthy though, you're right 😂Sarah1Mitty2 said:
Are you sure he isn`t just "wealthy" on paper, i.e highly leveraged and depending on property prices from 2 years ago? Buying in November and trying to sell now doesn`t sound like smart wealthy money to me (that money exited during the stamp duty holiday window IMO) more like a flipper who has just misread the market and interest rates completely.themilkman said:
He's selling because he's already completed on another house - bought both with cash - he is wealthy.caprikid1 said:Why is he now selling ? Is this a forever house ? How much have you invested into the purchase ?
He may not be in a position to drop.
Invested around £3K so far probably, survey, solicitors, searches etc. I'm more worried about paying over the odds than the £3K!
Anyway, we've asked if he will renegotiate, and it sounds unlikely but is letting us know tomorrow. If he won't then we'll need to pull out. I've spoken to other estate agents today and they said we'd be absolutely mad to buy at the price we had agreed as it simply isn't worth anywhere near that. Oh well!
Not used PropertyLog but will have a look now, thank you!
https://www.propertylog.net/
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😂 Good, I'd rather have common sense!Sarah1Mitty2 said:
It is a very cool tool, won`t make you a pop star though......themilkman said:
0 other offers!! And won't be getting any in the foreseeable.Sarah1Mitty2 said:
Smart enough then, unless like one famous spat over royalties he is just a "dancer" and not a "main songwriter" LOL. What is it with pop stars, footballers and Hollywood types and their bad overpriced property deals where they eventually sell for half what they paid years later, is it bad advice or just inability to sort hype from reality in the latest "Must Have" trend? How many other offers do they have?themilkman said:
Yes, actual wealth. He's in a household name band, worth £20m+. Not smart wealthy though, you're right 😂Sarah1Mitty2 said:
Are you sure he isn`t just "wealthy" on paper, i.e highly leveraged and depending on property prices from 2 years ago? Buying in November and trying to sell now doesn`t sound like smart wealthy money to me (that money exited during the stamp duty holiday window IMO) more like a flipper who has just misread the market and interest rates completely.themilkman said:
He's selling because he's already completed on another house - bought both with cash - he is wealthy.caprikid1 said:Why is he now selling ? Is this a forever house ? How much have you invested into the purchase ?
He may not be in a position to drop.
Invested around £3K so far probably, survey, solicitors, searches etc. I'm more worried about paying over the odds than the £3K!
Anyway, we've asked if he will renegotiate, and it sounds unlikely but is letting us know tomorrow. If he won't then we'll need to pull out. I've spoken to other estate agents today and they said we'd be absolutely mad to buy at the price we had agreed as it simply isn't worth anywhere near that. Oh well!
Not used PropertyLog but will have a look now, thank you!
https://www.propertylog.net/0 -
It sounds a bit obvious, even before the bank informed you, that the vendor was kite flying. It sounds like the vendor made a questionable decision to buy in November, but as he is wealthy does not have to listen to reason and sell at a loss. He is at liberty to keep the asset which may be the best remaining choice for him. You are finding bigger cheaper properties, so less chance of making an excessive offer like before.
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Yeah, he bought at peak of market and didn't care (or know), but the house was just a stop-gap house in between moving out of London and finding the 'forever home'.[Deleted User] said:It sounds a bit obvious, even before the bank informed you, that the vendor was kite flying. It sounds like the vendor made a questionable decision to buy in November, but as he is wealthy does not have to listen to reason and sell at a loss. He is at liberty to keep the asset which may be the best remaining choice for him. You are finding bigger cheaper properties, so less chance of making an excessive offer like before.
It sounds like he will be happy to hold and leave it empty, though has invited us to make another offer We're going to wait until we've seen this other house tomorrow.
He has paid additional stamp duty on his new house which is somewhere between £2m-£3m...so if he sits on the current house too long then he won't be able to reclaim the £70-90K additional rate he could otherwise reclaim. It keeps getting better!0 -
I think he has a few years but in any case reduced prices at the top end of the market seem likely.themilkman said:
Yeah, he bought at peak of market and didn't care (or know), but the house was just a stop-gap house in between moving out of London and finding the 'forever home'.[Deleted User] said:It sounds a bit obvious, even before the bank informed you, that the vendor was kite flying. It sounds like the vendor made a questionable decision to buy in November, but as he is wealthy does not have to listen to reason and sell at a loss. He is at liberty to keep the asset which may be the best remaining choice for him. You are finding bigger cheaper properties, so less chance of making an excessive offer like before.
It sounds like he will be happy to hold and leave it empty, though has invited us to make another offer We're going to wait until we've seen this other house tomorrow.
He has paid additional stamp duty on his new house which is somewhere between £2m-£3m...so if he sits on the current house too long then he won't be able to reclaim the £70-90K additional rate he could otherwise reclaim. It keeps getting better!1
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