Yorkshire-Seagull
New member
- Feb 11, 2008
- 445
Happened to me last year. Ended up meeting them half-way, and agreeing a deal.
I advise this.
I advise this.
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HELP! We've been gazundered!!
- Thread starter eastlondonseagull
- Start date
eastlondonseagull
Well-known member
- Thread starter
- #22
Have just had email from the estate agent, saying that they've just sold comparable properties in the area for £160K and £150K respectively. Talk about piling on the pressure! They obviously want the sale to go through, cos they'll lose their £2500 fee otherwise, but I just smell a rat. Damn, this is tricky. At least have got the weekend to think about it...
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Tricky Dicky
New member
Not necessarily, they may have had a mortgage offer for the full amount but it's now been blocked by the lender due to these markets conditions.
Easy 10
Brain dead MUG SHEEP
Well, if this was an "Ask the Audience" on Who Wants To Be a Millionaire, I have to say I think we've all been PARTICULARLY unhelpful.
eastlondonseagull
Well-known member
- Thread starter
- #25
scooter1
How soon is now?
What he said.
Or up to a point what "Afters" said - within reason almost anybody can raise 5 grand if they need to these days, and if these people are doing it as a buy to let then 5k should be no problem
Kylies Stunt Arse
What?
It depends on how much you still owe, and what this will leave you with after all the fees have been taken care of, including deposits on rental property. If you can cope with the hit then try to negotiate, if you simply can't then it's no deal.
Help! The fuckers who are buying my house have sprung an expected 'surprise' on us today, a week before exchange of contracts, saying they're having difficulty raising the deposit needed to buy our house. All this, six weeks after having their offer of £165,500 accepted.
They now want us to drop the price to £160,000. They're buy-to-let buyers and claim they've had to raise their deposit using equity on their existing properties - because of the credit crunch, their houses aren't worth as much as they'd thought, hence the £5,500 short-fall. But it doesn't half seem convenient. Surely they should've known about this weeks ago?!
They said they had a 50% deposit, but have failed to raise all that was needed - so why not just raise a slightly smaller deposit and then have a slightly larger mortgage?!It's not going to cost them much extra!!
Uncle S warned about gazundering and we had prepared ourselves, but it's still been an almighty shock.
We've already dropped the price from £200K to get the sale - so an extra £5.5K takes the total drop to 20%! We can't afford to drop it that much! What do we do?! HELP!
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I find it very hard to believe they only found this out at the last minute....their paper work would surely have been sorted a while ago if there is only a week to go. The valuation on their existing properties would have been done some time back. They are pulling a fast one.
Horses Arse
Well-known member
Help! The fuckers who are buying my house have sprung an expected 'surprise' on us today, a week before exchange of contracts, saying they're having difficulty raising the deposit needed to buy our house. All this, six weeks after having their offer of £165,500 accepted.
They now want us to drop the price to £160,000. They're buy-to-let buyers and claim they've had to raise their deposit using equity on their existing properties - because of the credit crunch, their houses aren't worth as much as they'd thought, hence the £5,500 short-fall. But it doesn't half seem convenient. Surely they should've known about this weeks ago?!
They said they had a 50% deposit, but have failed to raise all that was needed - so why not just raise a slightly smaller deposit and then have a slightly larger mortgage?!
Uncle S warned about gazundering and we had prepared ourselves, but it's still been an almighty shock.
We've already dropped the price from £200K to get the sale - so an extra £5.5K takes the total drop to 20%! We can't afford to drop it that much! What do we do?! HELP!
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Bloody estate agents
Albion Rob
New member
Would there be any way you could keep your house on and rent it out, while renting another, bigger place?
If so, that would give you some wriggle room for negotiation because at the moment, if you're desperate to sell then you pretty much have to take what's on the table - that's what I had to do a month ago, although they did try the £5k under trick and I managed to pull it down to £2k under and left a load of shit in the attic and cupboards to screw them over.
Mind you, things have progressed quikcly even in the last six weeks.
If so, that would give you some wriggle room for negotiation because at the moment, if you're desperate to sell then you pretty much have to take what's on the table - that's what I had to do a month ago, although they did try the £5k under trick and I managed to pull it down to £2k under and left a load of shit in the attic and cupboards to screw them over.
Mind you, things have progressed quikcly even in the last six weeks.
Gully
Monkey in a seagull suit.
I think that they might be trying it on bigtime, if they are as seriously into the buy to let market as it sounds it is highly unlikely that they would continue buying properties whilst they are still on the slide...they may think that they have you over a barrel, sadly in some respects they do.
I would go for a stunning counter attack, just to test how serious they are, get your agent to go back to them and say that you are having thoughts about letting it out yourself...with the property market in the state it is you shouldn't have too much problem finding a tenant...if they then make noises about going for a quick completion you would find out how serious they are.
I remember us chatting about this scenario a couple of weeks back, you had almost predicted this happening...your buyers do sound like try it on shysters!!!
I would go for a stunning counter attack, just to test how serious they are, get your agent to go back to them and say that you are having thoughts about letting it out yourself...with the property market in the state it is you shouldn't have too much problem finding a tenant...if they then make noises about going for a quick completion you would find out how serious they are.
I remember us chatting about this scenario a couple of weeks back, you had almost predicted this happening...your buyers do sound like try it on shysters!!!
East Staffs Gull
Well-known member
It's interesting that they are not saying that your house isn't worth £165,500, they are simply saying that they haven't got the funds. I'd be inclined to commiserate with them and wish them all the best in their search for another home. They'll be back.
maffew
Well-known member
Not in property law it isn't. There is no "contract" of any kind until the real contract is exchanged. At that point their deposit becomes forfeit if they back out. Until exchange there is no contract of any kind.
We recently(ish) were buying a house and paid for the survey and legals and for planning application and the vendor pulled out on the day of exchange. We had no comeback and they had incurred us in £3k of costs - but we had no comeback at all.
The agent can see their fee going west - it seems to me agents no longer truly represent the vendor, but themselves (was it ever thus).
The market has got tougher - prices are still falling - the buyer could have a house worth £140k in a years time - so they are going to be jumpy. They're also going to try and use the current situation to their own advantage.
The excuses the buyer gives you are just that - stories to make them feel better about dropping the price. Ignore the story - don't get caught up in the details of why, you can't affect that - think about the price and the sale.
Do you need to sell? If not - best thing to do is hold on and stay where you are for a few years. And have the satisfaction of telling them to poke it (or better still, have no intention of selling to them, push the exchange back, and then withdraw at the last minute)
Could you find yourself having to sell in the next 12/24 months? How secure is your job/income? If that worries you, grab the money now and rent.
Can you afford to sell at £160k? If you can, take it and move into rented as you plan. You should be in a better position in a years time if prices fall another 15% as predicted.
So, ignore their story - that will just wind you up. Deal with the facts and think about your position now, in 6 months and in 12 months. Then make as rational decision as you can.
Best advice I can give.
Gully
Monkey in a seagull suit.
This is very true, but the rental market is still pretty healthy in comparison, your buyer will know this...they probably don't care if the value of their property portfolio falls, unless they keep borrowing against their equity, they will still have a tenant paying whatever mortgage they have. I am now more certain after having read the arguments above that they are trying it on.
Oh shit yes, they ARE trying it on. But that doesn't help eastlondoseagull.
The other point is that they can just walk away because there is a lot more property coming on to the market. They're taking the piss for their own gain because they know they can. Sadly I don't see a calling their bluff option other than the one HKFC suggested, which is to go for a mid-way deal to lessen the blow.
But be prepared for them to walk if you don't go the whole £5k.
Depends how badly els needs to move.
Gully
Monkey in a seagull suit.
Assuming that they have already spent money on surveys/solicitors fees/etc, they also stand to lose if the deal doesn't go through...maybe not as much as the £5k that they are trying to screw els for.
Legals - £300-500 for an aborted purchase
Survey - £300 max
Not much else I am afraid.
Survey - £300 max
Not much else I am afraid.
eastlondonseagull
Well-known member
- Thread starter
- #40
Thanks TRHK, and everyone. It's all interesting advice. Yes, we can afford to take the £160K, providing we sit tight and stick it somewhere safe (ie. not in my doomed Icesave account :thud
and wait until house prices drop further and our deposit has grown. We're not approaching negative equity, thankfully, so that's good. But after spending £20K+ doing the place up, we're barely going to break even on that front. My gut feeling says go for the compromise and see what happens. But we will have to tread carefully.
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