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    • reg091
    • By reg091 5th Jul 18, 7:04 AM
    • 75Posts
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    reg091
    Buyers lowering offer just before exchange!
    • #1
    • 5th Jul 18, 7:04 AM
    Buyers lowering offer just before exchange! 5th Jul 18 at 7:04 AM
    Our buyers had their mortgage valuation survey done on 21 April.
    We are now (July) potentially a few days away from exchange (of all parties in the chain) and yesterday I am informed that their valuation is 4K below the agreed price so will we reduce?
    Why wait this long!!!?
    It seems like a shabby, calculated trick to me.
    We accepted their offer at the start over another keen buyer who couldn't stretch to what they agreed to pay.

    Anything I can do? I am guessing my only options are to suck it up and wish bad thoughts on them forever, say no and risk them walking away, suggest meet halfway.
Page 1
    • kinger101
    • By kinger101 5th Jul 18, 7:22 AM
    • 4,376 Posts
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    kinger101
    • #2
    • 5th Jul 18, 7:22 AM
    • #2
    • 5th Jul 18, 7:22 AM
    A bit more complicated, but you could see if any of it could be passed up the chain. E.g., explain what's happened and see if your vendors will knock 2K off.

    Personally, I'd tell your purchasers no at first. I suspect they can find it, otherwise they'd have mentioned it sooner.
    • Davesnave
    • By Davesnave 5th Jul 18, 7:30 AM
    • 25,522 Posts
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    Davesnave
    • #3
    • 5th Jul 18, 7:30 AM
    • #3
    • 5th Jul 18, 7:30 AM
    Anything I can do? I am guessing my only options are to suck it up and wish bad thoughts on them forever, say no and risk them walking away, suggest meet halfway.
    Originally posted by reg091
    Firstly, accept that your house isn't judged to be as valuable as you thought. On that basis, negotiate. It's common for the shortfall to be shared 50:50. Remember they still want your house.


    We have no idea about context, such as what % of the price 4k represents, or what your onward plans are.



    Most older posters here will have met similar situations or had to lower their price to keep as sale afloat. People sometimes behave badly and it's easy to get caught-up in strong emotions, then do the wrong thing, but the overall objective should always guide actions.
    If you are finding huge gaps between your paragraphs, MSE know about the problem. However, they aren't necessarily doing anything about it. More changes on the way?
    https://forums.moneysavingexpert.com/showthread.php?t=5844460
    • reg091
    • By reg091 5th Jul 18, 7:38 AM
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    reg091
    • #4
    • 5th Jul 18, 7:38 AM
    • #4
    • 5th Jul 18, 7:38 AM
    @Davesnave Thanks for the reply. A bit more context: the house was valued by five estate agents at between 385 - 400K. We put it on at 400K expecting to get somewhere in the range suggested.

    We accepted 389K from these people after negotiating them up from an initial offer of 385K, So we were confident that we were just about bang on with the price we expected and hoped to realise.

    It doesn't have a massive impact on the onward purchase (we can absorb it). It is just the timing that stinks!
    • greatgimpo
    • By greatgimpo 5th Jul 18, 8:02 AM
    • 767 Posts
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    greatgimpo
    • #5
    • 5th Jul 18, 8:02 AM
    • #5
    • 5th Jul 18, 8:02 AM
    Remember they still want your house.
    Originally posted by Davesnave
    ...and perhaps they need it as they have sold themselves presumably.
    • kiddy guy
    • By kiddy guy 5th Jul 18, 8:06 AM
    • 938 Posts
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    kiddy guy
    • #6
    • 5th Jul 18, 8:06 AM
    • #6
    • 5th Jul 18, 8:06 AM
    They're playing the game, trying to get it back down to their original offer.

    Tell them No and say that there's no justification at this late stage.
    • reg091
    • By reg091 5th Jul 18, 8:08 AM
    • 75 Posts
    • 10 Thanks
    reg091
    • #7
    • 5th Jul 18, 8:08 AM
    • #7
    • 5th Jul 18, 8:08 AM
    @greatgimpo No, they are FTB (apparently with a 100K deposit, not that that is relevant).
    • pinkshoes
    • By pinkshoes 5th Jul 18, 8:14 AM
    • 15,837 Posts
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    pinkshoes
    • #8
    • 5th Jul 18, 8:14 AM
    • #8
    • 5th Jul 18, 8:14 AM
    I would be tempted to say no and give them 24 hours to confirm if they would like to proceed still, otherwise you will instruct the estate agent to re advertise it again.

    Did you have much interest initially?
    Should've = Should HAVE (not 'of')
    Would've = Would HAVE (not 'of')

    No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)
    • csgohan4
    • By csgohan4 5th Jul 18, 8:17 AM
    • 4,631 Posts
    • 2,897 Thanks
    csgohan4
    • #9
    • 5th Jul 18, 8:17 AM
    • #9
    • 5th Jul 18, 8:17 AM
    @Davesnave Thanks for the reply. A bit more context: the house was valued by five estate agents at between 385 - 400K. We put it on at 400K expecting to get somewhere in the range suggested.

    We accepted 389K from these people after negotiating them up from an initial offer of 385K, So we were confident that we were just about bang on with the price we expected and hoped to realise.

    It doesn't have a massive impact on the onward purchase (we can absorb it). It is just the timing that stinks!
    Originally posted by reg091


    Your house is not worth what an estate agent markets at, they want your business, the higher value, the more business.


    It is the buyer's and what their willing to pay is the true price and to an extent an independent surveyor
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
    • reg091
    • By reg091 5th Jul 18, 8:19 AM
    • 75 Posts
    • 10 Thanks
    reg091
    Hi Pinkshoes. Well then of course we will lose our onward purchase which is not an option.

    We had about ten people view and 3 offers in the 14 days it was on the market.
    • ACG
    • By ACG 5th Jul 18, 8:31 AM
    • 17,147 Posts
    • 9,045 Thanks
    ACG
    There is absolutely no way in this world I would negotiate. I would literally rather cut my arm off with a rusty knife.

    I would ask the agents to put the house back on the market until exchange has taken place.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Alfrescodave
    • By Alfrescodave 5th Jul 18, 8:57 AM
    • 584 Posts
    • 317 Thanks
    Alfrescodave
    It would be interesting to know what percentage of buyers who suddenly drop their offer just before exchange are FTB's?

    From posts on this forum about this topic my guess is that it is a high percentage
    • Davesnave
    • By Davesnave 5th Jul 18, 8:57 AM
    • 25,522 Posts
    • 93,487 Thanks
    Davesnave
    Within the context now provided, I'd probably want to play this hard, but I wouldn't risk a house I really wanted for 2k either. Maybe that's because it took years to find the property I have now.
    If you are finding huge gaps between your paragraphs, MSE know about the problem. However, they aren't necessarily doing anything about it. More changes on the way?
    https://forums.moneysavingexpert.com/showthread.php?t=5844460
    • getmore4less
    • By getmore4less 5th Jul 18, 9:00 AM
    • 32,390 Posts
    • 19,460 Thanks
    getmore4less
    Hi Pinkshoes. Well then of course we will lose our onward purchase which is not an option.

    We had about ten people view and 3 offers in the 14 days it was on the market.
    Originally posted by reg091
    Will they find another buyer quicker than you?


    Your FTB means they only have the cash and the mortgage to play with.

    If they pull out their cash pot goes down by another set of costs and if renting a few more months rent.

    get the agent doing their job, they will want this one sold and move on.
    • wesleyad
    • By wesleyad 5th Jul 18, 9:02 AM
    • 239 Posts
    • 183 Thanks
    wesleyad
    Really depends on the buyers situation. If their mortgage offer has come in at the lower value maybe they cant make up the difference? They genuinely might not be trying it on.

    I'd say no, explain you have tons of interest and will have no problem selling at current price. However if it then turns out they would have to pull out, I'd consider bargaining rather than mess up the entire sale.
    • Lauralou79
    • By Lauralou79 5th Jul 18, 9:06 AM
    • 217 Posts
    • 225 Thanks
    Lauralou79
    I hate this. If the mortgage valuation came up in April why hasn't this been sorted before now? Funny that 4K is the exact amount they went above their offer. Have you/solicitors seen proof of the valuation?

    It's difficult cos my immediate thoughts are no way and call their bluff but your circumstances may not quite be that simple.

    I certainly wouldn't give them the full amount off though.
    • AdrianC
    • By AdrianC 5th Jul 18, 9:10 AM
    • 17,778 Posts
    • 16,106 Thanks
    AdrianC
    Our buyers had their mortgage valuation survey done on 21 April.
    We are now (July) potentially a few days away from exchange (of all parties in the chain) and yesterday I am informed that their valuation is 4K below the agreed price so will we reduce?
    Originally posted by reg091
    Have they just said this, or have they given you documentary evidence in the form of a copy of the valuation?



    Anything I can do? I am guessing my only options are to suck it up and wish bad thoughts on them forever, say no and risk them walking away, suggest meet halfway.
    Yep, they're the choices. The chances of them walking now over four grand are slim, unless they're right on the edge of affordability and have been taking the time to try and make the numbers work, but have finally admitted they can't...
    • foxy-stoat
    • By foxy-stoat 5th Jul 18, 9:11 AM
    • 2,186 Posts
    • 1,186 Thanks
    foxy-stoat
    Say that you believe the property is worth more money now than it was in April, ask for another 4K on top of their original offer.
    • Crashy Time
    • By Crashy Time 5th Jul 18, 11:39 AM
    • 6,253 Posts
    • 2,380 Thanks
    Crashy Time
    There is absolutely no way in this world I would negotiate. I would literally rather cut my arm off with a rusty knife.

    I would ask the agents to put the house back on the market until exchange has taken place.
    Originally posted by ACG

    This is how people end up with property on the market for years, take off the 4k and think good thoughts about your buyer (they don`t grow on trees)
    • pinkshoes
    • By pinkshoes 5th Jul 18, 12:42 PM
    • 15,837 Posts
    • 21,758 Thanks
    pinkshoes
    Hi Pinkshoes. Well then of course we will lose our onward purchase which is not an option.

    We had about ten people view and 3 offers in the 14 days it was on the market.
    Originally posted by reg091
    So accept the price drop then!

    If you are not willing to call their bluff, then that limits your options.

    Your vendors will then have to find another buyer too if they choose not to wait for you to find a new buyer, and given you have had the searches done already you will be faster than any new buyer, so easy enough for them to wait.
    Should've = Should HAVE (not 'of')
    Would've = Would HAVE (not 'of')

    No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)
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