A late query from our buyer has left us puzzled.

OCS_Fan

We bought our current house in March 2021. We did get it for a bargain price compared to similar  properties as we bought it directly from a builder (Barratt Homes) who had bought it from the then occupiers as a part exchange as they were buying a new house from Barratts. Barratts just wanted to recoup what they had paid.
Three and a half years later we have sold the same house SSTC. The agreed price is £45000 more than we paid. We based our advertised selling price on the average of three estate agents valuations. Despite this, we dropped the price by £10000, when we received no offers despite a number of viewings. Our eventual buyer offered us £5000 under this price and we accepted. 
We plan to purchase a house from the sale of our current property, leaving us mortgage free, in an area of the UK where houses are on average £100000 cheaper. 
We are some way down the line now with our sale and purchase. Searches have been completed on our sale and purchase. We have answered enquiries from our purchasers. Then yesterday our solicitor forwarded a question from our buyers regarding the increase in our sale price since we purchased in March 2021. What are the reasons for the increase? To us this is a non-question and frankly we are annoyed with our solicitor for emailing this question to us without explanation or context. It panicked us and has made us question whether our buyer wants to back out. I'd like to add that they have chosen not to pay for a valuation or a survey. Do they want to back out or are they trying to get a reduction in price (based on what I do not know)? 
Our solicitor has told us that this question is not uncommon. We have worded a response back to our buyers that we hope will satisfy them. Our solicitor has arranged for us to go in to their offices to sign our side of the paperwork on Thursday and we have discussed with her potential move dates. We have also contacted our estate agents to confirm with our buyers that they wish to proceed. Their current property is still SSTC to a first time buyer. Are we worrying for nothing? It is so stressful.
I'd appreciate any thoughts or advice. Has this happened to you? 

user1977

Yes, you are worrying about nothing, and it isn't that unusual a question. Just answer it, it's not some sort of trick.

eddddy

It's likely to be a standard question asked by the buyer's solicitor - and not at the request of the buyers.

A kind of 'fishing question', to see if it uncovers anything worrying, like...

- Possible mortgage fraud - i.e. the purchase price valuation is unrealistically high

- You purchased the house undervalue - which might have repercussions if the seller is/was insolvent

- You've made changes/improvements to the house - which should have had planning consent and/or building regs sign off

ReadingTim

It's probably a crude attempt to start building a case for a price reduction: many online house valuation sites simply take the last sold price and apply whatever percentage prices have risen (or fallen) nationally, regionally or locally to that price.  It a very simplistic method if comparing like for like, but few properties are totally like for like, and it also takes no consideration of extenuating circumstances surround the last sale (condition of property, whether it's a quick or distressed sale, etc) or any improvements made to the property during the current owner's tenure.  It also takes no account of what current asking prices of comparable properties are.  

So they'll probably say something along the lines of "prices locally have only gone up by x% since 2021, yet you're asking for y% more.  Given you haven't made any significant  improvements to the property, we feel it's only worth £xxx [ie your purchase price + x%] so wish to reduce out offer to that amount."  

If I were in that position, and the property was competitively priced compared to comparable properties in the surrounding area, I'd be telling them to take a running jump.  And even if not, hold your nerve and tell them to stick to the price originally agreed, or you'll be putting it back on the market - suspect they'll back down given the money they'll have spent with solicitors etc...

user1977

ReadingTim said:

It's probably a crude attempt to start building a case for a price reduction

I think that's very unlikely. The first and/or second of edddy's reasons are almost certainly what they're getting at.

lisyloo

I also think they are trying to cover their back and uncover anything worrying like neighbour issues, noise, anti-social behaviour, repair works, subsidence anything like that.
If there was something and you omit it then they'd have their back covered for a future claim.

if you simply got a good price due to the builders circumstances at the time then that should satisfy them that there is nothing amiss with the property that justified a lower price.

MysteryMe

Has there been no valuation at all? Are they cash buyers because a lender will require one.

pretamang

are they buying with a mortgage? If so then the lender will do a valuation and confirm with them the price is in line with the market.

looks like you sought advice from an estate agent(s) - my answer would simply be that this what you believe that market to be based on advice and research.

OCS_Fan

MysteryMe said:

Has there been no valuation at all? Are they cash buyers because a lender will require one.

No, they are not cash buyers. They have a mortgage on their current property. If someone has been to value our property for mortgage purposes, we are not aware of it. We believe our estate agents have arranged their mortgage for them. They have used a different estate agent to sell their property.

OCS_Fan

Thanks all for taking the time to respond. All of your comments are reassuring and make a great deal of sense. 

theartfullodger

"That's the price" ..