US based vendors want an additional £10k owing to Brexit!
Discussion
Hi chaps,
A bit of a grumble as it were and a gauge of opinions.
I've mentioned in another thread that our house purchase is proceeding ok. Mortgage approved, survey done (just waiting for the report - pre Brexit valuation btw). However, I've just had some (bad) news from the estate agent.
The owners of the house are based in the US and owing to recent events with the weak £ against the $ they state they will be losing too much money and as such request an additional £10k on top of the asking price to "comfortably proceed"!
My understanding of the Brexit situation was that house prices would be expected to drop a touch. As such, for me to pay more for something that is now worth less doesn't strike me as a particularly good deal.
We got a reasonable price on the house (just under asking price), but certainly not enough for me to 'happily' pay an additional 10k. Moreover, the mortgage is already arranged for the required amount and I'm getting stung with significant SDLT as well so 10k logistically will be hard to find.
The house currently has tenants in it. The vendors state if the sale doesn't go through, they'll continue to rent it out. Fair enough for them.
It's a nice house, a very nice house in fact with much (epic) garage potential. However, I can't justify another 10k especially in the current climate.
What do you guys reckon?
Grumble grumble.
A bit of a grumble as it were and a gauge of opinions.
I've mentioned in another thread that our house purchase is proceeding ok. Mortgage approved, survey done (just waiting for the report - pre Brexit valuation btw). However, I've just had some (bad) news from the estate agent.
The owners of the house are based in the US and owing to recent events with the weak £ against the $ they state they will be losing too much money and as such request an additional £10k on top of the asking price to "comfortably proceed"!
My understanding of the Brexit situation was that house prices would be expected to drop a touch. As such, for me to pay more for something that is now worth less doesn't strike me as a particularly good deal.
We got a reasonable price on the house (just under asking price), but certainly not enough for me to 'happily' pay an additional 10k. Moreover, the mortgage is already arranged for the required amount and I'm getting stung with significant SDLT as well so 10k logistically will be hard to find.
The house currently has tenants in it. The vendors state if the sale doesn't go through, they'll continue to rent it out. Fair enough for them.
It's a nice house, a very nice house in fact with much (epic) garage potential. However, I can't justify another 10k especially in the current climate.
What do you guys reckon?
Grumble grumble.
It's priced in £'s and you've offered in £'s. What the owners do with those £'s once the deal is concluded is up to them and you should't foot the bill for currency fluctuations.
Whenever I sell a house in future I might claim I live in a country where currency has moved against me and ask for the purchaser to make up the difference!
Whenever I sell a house in future I might claim I live in a country where currency has moved against me and ask for the purchaser to make up the difference!
Edited by FrankAbagnale on Tuesday 28th June 16:00
Tell them thanks but no thanks, take it or leave it.
We had to walk away last year, if people start to mess you about you just have to do it.
Found another house which turned out better for us and we were in within 6 weeks.
Sometimes people being a bit d*ckish can actually work out in your favour!
We had to walk away last year, if people start to mess you about you just have to do it.
Found another house which turned out better for us and we were in within 6 weeks.
Sometimes people being a bit d*ckish can actually work out in your favour!
It's a value thing...It's the Pound that's dropped.
But house prices have cooled a little, if you really want the house as it appears you do your only option is to negotiate.
While you might currently see the sellers as money grabbing opportunists, to effectively re negotiate you have to sit in their seat for a moment!!!!
I've never really English house contract law. (which is really the problem here)
But house prices have cooled a little, if you really want the house as it appears you do your only option is to negotiate.
While you might currently see the sellers as money grabbing opportunists, to effectively re negotiate you have to sit in their seat for a moment!!!!
I've never really English house contract law. (which is really the problem here)
Go back and politely tell them that due to the Brexit vote and market uncertainties etc... the house is worth £10K less than when your offer went in, and that all things considered you're prepared to keep to the existing offer to facilitate a quick sale for them. If they hang around though, you may not be able to proceed at this price in the near future.
Twunts!!!
Twunts!!!
Thanks chaps, appreciate the opinions.
It's difficult as it's a nice house. My gut feeling is 'not a chance'. My wife echoes the sentiment.
I've gone through the building survey report. Nothing too terrible has come up. Roof will need re-slating at some point in the next couple of years (~£10k cost) but otherwise nothing of major concern or unexpected given the age of the house.
There's a lot to like about the house, but it's not perfect.
It's difficult as it's a nice house. My gut feeling is 'not a chance'. My wife echoes the sentiment.
I've gone through the building survey report. Nothing too terrible has come up. Roof will need re-slating at some point in the next couple of years (~£10k cost) but otherwise nothing of major concern or unexpected given the age of the house.
Piersman2 said:
Go back and politely tell them that due to the Brexit vote and market uncertainties etc... the house is worth £10K less than when your offer went in, and that all things considered you're prepared to keep to the existing offer to facilitate a quick sale for them. If they hang around though, you may not be able to proceed at this price in the near future.
I've certainly been concerned about the potential drop in value. However, from my point of view, the commitment to the offer has been made and even if the value was to suffer in the short term, one has to take the rough with the smooth.There's a lot to like about the house, but it's not perfect.
Piersman2 said:
Go back and politely tell them that due to the Brexit vote and market uncertainties etc... the house is worth £10K less than when your offer went in, and that all things considered you're prepared to keep to the existing offer to facilitate a quick sale for them. If they hang around though, you may not be able to proceed at this price in the near future.
Twunts!!!
In practical terms this ^ is what I would do. Even if they go back to renting they will lose a lot on currency, and house prices are more likely to go down in the next few years than up. So when you do want it then go for it, but don't pay the extra when you don't think it is worth it. It's their risk when they play with stuff in a different currency (as I also face now).Twunts!!!
I would tell them to jog on, the change in exchange rates is really not your problem. I personally think they would be mad to lose a buyer in the hope that they could sell for another £10K in light of the Brexit vote last week.
They are lucky you are not turning around and asking for a £10K reduction due to the Brexit!
They are lucky you are not turning around and asking for a £10K reduction due to the Brexit!
NRS said:
Piersman2 said:
Go back and politely tell them that due to the Brexit vote and market uncertainties etc... the house is worth £10K less than when your offer went in, and that all things considered you're prepared to keep to the existing offer to facilitate a quick sale for them. If they hang around though, you may not be able to proceed at this price in the near future.
Twunts!!!
In practical terms this ^ is what I would do. Even if they go back to renting they will lose a lot on currency, and house prices are more likely to go down in the next few years than up. So when you do want it then go for it, but don't pay the extra when you don't think it is worth it. It's their risk when they play with stuff in a different currency (as I also face now).Twunts!!!
you may also want to mention that if they keep renting it, then they are going to take a hit on the rental income too- so either way they are losing. If they want to hedge their currecny risk then there are professionals who will help them do that.
I would have a word with the Estate Agent. They will have seen a marked reduction in activity since the vote and may even have had a deal or two unravel already.
They will therefore be more on your side than usual and if you indicate that you were actually thinking about lowering your offer or walk away then the agent will do everything in his power to sort the vendor out.
They will therefore be more on your side than usual and if you indicate that you were actually thinking about lowering your offer or walk away then the agent will do everything in his power to sort the vendor out.
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