OT - Selling house, negotiatiating work

Hi,
I am selling and have agreed a price with our buyers 2000 under the asking price, the property is worth the asking price of 120,000 and houses are going like hot cakes in our road (3 went up and sold over last two weeks). Ours has been commented by estate agents as being up at the top end of the condition of the houses in road so definately worth the asking price. (ie double glazing / central heating / new roof all within 4 years old)
However for a quick sale we accepted 118,000. The surveys came back and 1100 worth of work needs doing, the buyers have (via solicitors) asked for us to reduce the cost of the house by this amount to cover the costs.
By accepting 2000 under the price have I put myself in a difficult position regarding the negotiations over the work that needs doing? Or should I expect to have to reduce the cost further?
With hindsight I could have held out for the asking price and then simply reduce the price to pay for the work (but then we'd all like the benefit of hindsight!)
Thanks for any advice Dave.
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On Tue, 13 Dec 2005 12:54:33 +0000, Mingin wrote:

If the houses are selling so quickly why accept this offer? You have a simple choice reduce the price as asked and hope that this purchase then proceeds to completion quickly or refuse to reduce the price and see what happens. If as you say yours is worth the selling price and the houses are going quickly my inclination is to say no to the further reduction as he has already had one bite at the cherry.
--
Regards
Tony
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Well we saw a house we liked and wanted to get in there. We made an offer but it wasn't taken off the market until we had a serious buyer. Also there was a quiet period of sales, it had picked up a lot since we accepted an offer TBH!
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If it's a sellers market as you say then tell them to pay up the price as agreed or find somewhere else. They will have already pissed away money on a survey and possibly the legal fees so I will cost them more than you.
Bad time to be selling a house though!
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Matt wrote:

I disagree, I'd put the price back up to the original 120k, bodge the repairs so they don't 'flag' next time and wait for another buyer.
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Mingin wrote:

Does the work *need* doing. Most surveys have some work that they recommend.

Only if you choose to. What's wrong with
"I've already reduced the price by 2K. No."
They can always come back with another offer if they want. If the houses are selling like hot cakes then why reduce the price any more?
Ben
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What works need doing? The surveyor takes the price it is selling as a "fair market value", so increase the asking price and tell the buyer to get knotted.
As they have already paid the survey fee and possibly a few legal costs they may be willing to stick to the price agreed. If 120k is really the value then they are getting it cheap(ish) anyway.
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Mingin wrote:

How much did the other houses go for, compared to your asking price? How long have you been trying to sell your house for?

Do these prices seem reasonable?

I don't think so - the decision is really up to the buyer.

Has the possible buyer incurred any cost so far? If so, they will probably be loath to drop out for less than 1% of the price. They may be trying the reverse of the "a little extra would be nice" tactic used sometimes when selling at a reduced price.
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Well without going into details (due to the public nature of usenet) - I would argue about 400 quids worth of the work isn't essential (I've asked to see the lenders reply to the surveys carried out)

I don't know this for certain I'm afraid, although I have my suspicions that they haven't spent much yet.
I'm thinking that I will say I won't reduce the costs any further and see what they say.
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If the prospective buyers have gone as far as getting a survey which threw up these points they're serious buyers. So 1100 quid is neither hear nor there. You've already reduced for a quick sale so bluff them out.
--
*Why doesn't Tarzan have a beard? *

Dave Plowman snipped-for-privacy@davenoise.co.uk London SW
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If houses are indeed "selling like hot cakes" give them until the end of the week to accept 118,000 or you'll look for another buyer elsewhere.
You have the upper hand at the end of the day. Don't budge any further.
sponix
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Mingin wrote:

Out of interest, what part of the country do you live in? I recently bought a one-bedroom flat for that much :|
alex
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Hi,
In the Midlands, i'd prefer not to give specifics just in case the buyers read this. (paranoia!)
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asking
Huh, my brother recently sold a lock-up Single garage for that amount.
-
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Why on earth should you have put yourself in a difficult position? Just say no.
The only reason for not saying no is that you think you might have difficulty finding another buyer. You have already told us that's not the case. There is no obligation (moral or otherwise) to drop the price at all. I wouldn't personally raise the price again having made an agreement as I (rather old-fashioned I know) regard a [wo]man's word as their bond but reducing it further would be going too far!
A flat "no" is much more effective than a "well, I 'm not sure" as well, so don't leave any ambiguity!
--
Bob Mannix
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Thanks, the general concensus seems to be I'd be nuts to reduce the price any further so a flat "no" is the answer they will get!
Cheers all!
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You say that you have "accepted 180,000" Is this just verbal or has their written offer been accepted? Was their offer "subject to satisfactory survey?"
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<BeeJay> wrote in message wrote:

Wouldn't make any difference as "subject to satisfactory survey" means they can withdraw their offer (which they have already done, as would be their right). A new offer 1100 cheaper is a new offer and the seller can just say no. Never start arguing the toss over words - it's a new offer, you don't like it, you don't think you will be disadvantaged, say no not maybe!
--
Bob Mannix
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Mingin wrote:

Just BTDT...
Presuming this is a normal transaction in England or Wales, their offer of 118k will have been "subject to survey" and your acceptance "subject to contract", so everything is still negotiable.
Unless you want to go back on your acceptance of 118k (which I believe you're legally allowed to at this stage, though IANAL), you're only actually negotiating about the additional 1100.
A surveyor will always find something that needs doing, so you should ask for a copy of the relevant parts of the report so you can see exactly what he said. Try to place each item of work somewhere on a scale running from "structural and urgent" all the way down to "he cannot be serious!"
For example, on our 80-year-old property the surveyor found one item of non-urgent remedial work that was a fair cop, so we decided we should pay for it. But dig your heels in about things the that surveyor found but the buyers already knew about - they should have taken those into account in the initial offer.
Having identified your strong and weak points, negotiate accordingly... but remember that these building-related issues aren't everything. It could be worth making concessions here in order to get more of your own way about something else - especially the timing of the move.
And having come to an agreement, get the contracts exchanged PDQ to nail it down!
--
Ian White

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It depends how desperate you are to sell but if anyone tried that on me I would tell them to piss off and put the house back on the market at the original asking price, or even a bit higher so there was some negotiating leeway with the next buyer. If your original buyer is actually really keen he would then have to increase his offer.
--
Roger Chapman

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