Advice needed - buyer has come in with lower counter weeks before exchange....

sheramber

bluelad1927 said:

Is it necessarily gazundering though.

If a mortgage valuation comes in way under the agreed price it is likely to affect the amount that can be borrowed and subsequently unable to proceed with insufficientfunds. Either the valuation is way out or the house is genuinely overpriced.

If you lose the buyer there is potential that the exact same thing could happen to any other agreed sale

The value of the OP’s house has not been reduced. 

It is his buyer who is claiming the valuation on their house is less than anticipated so they have less funds to buy the OP’s house.

Albermarle

Basically they are being bought out of their current home by their partner but the valuation on their property going down means apparently they're now short on the onward purchase. I'm not sure how it works or if you can ask for proof?!?

You can ask for proof, but unlikely you will get anything really solid.

However when negotiating ( if that is what you are going to do) it is a good technique to avoid only talking about price. You could ask the EA why the valuation has gone down. Is it because of the market or what etc

If you can get a friendly dialogue with the EA, they might give away more info about what is really going on and give you an indication of what might be a way forward. 

MacMickster

Personally, I would be telling my EA to prepare to remarket the property if the buyer is unable to get sufficient funds to pay the agreed price.  Give in to a further reduction now and you never know what your buyer might try the day before exchange of contracts.

lika_86

It sounds like you're at a relatively early stage if this has come up due to mortgage valuations. On that basis I'd tell them you're re-marketing, if they manage to come up with the cash before you find other buyers then you'll proceed with them.

BikingBud

Interesting how we see the influence of a more realistic interest rate coming to bear on the market.

ReadySteadyPop

Hoenir said:

Mark_d said:

The valuation on your buyer's property has gone down, 

People are known to be less than truthfull. 

Chances are that this is truthful, their house is worth less than they thought and they are lowering their offer, unless the OP has a few other offers in the wings they should just accept it IMO.