US based vendors want an additional £10k owing to Brexit!

US based vendors want an additional £10k owing to Brexit!

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Discussion

g3org3y

Original Poster:

20,606 posts

190 months

Tuesday 28th June 2016
quotequote all
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. wobble

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. grumpyfrown

KTF

9,788 posts

149 months

Tuesday 28th June 2016
quotequote all
Tell them to foxtrot oscar.

55palfers

5,892 posts

163 months

Tuesday 28th June 2016
quotequote all
If exchange rates had gone the other way would they have made you a refund?

FrankAbagnale

1,700 posts

111 months

Tuesday 28th June 2016
quotequote all
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!

Edited by FrankAbagnale on Tuesday 28th June 16:00

Sonic

4,007 posts

206 months

Tuesday 28th June 2016
quotequote all
What a complete joke! I'd tell them to FO as well and call their bluff, but it depends on how much you want and you're prepared to risk the house?

red_slr

17,122 posts

188 months

Tuesday 28th June 2016
quotequote all
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!

red_slr

17,122 posts

188 months

Tuesday 28th June 2016
quotequote all
Oh and the house we started out buying that only completed about a month ago, we already purchased and fully renovated ours and been in 3 months at this point!
Total time wasters. The vendor even took the plants out of the garden. :/

ATG

20,480 posts

271 months

Tuesday 28th June 2016
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They must be mad. I'd politely tell them to do one.

Charlie Boy

165 posts

180 months

Tuesday 28th June 2016
quotequote all
Or tell them to keep the money as sterling and when the dollar slumps after Trump gets in they can transfer it...

jeff m2

2,060 posts

150 months

Tuesday 28th June 2016
quotequote all
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)

Piersman2

6,596 posts

198 months

Tuesday 28th June 2016
quotequote all
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!!!

Hainey

4,381 posts

199 months

Tuesday 28th June 2016
quotequote all
You lot are so much more polite than I. I'd tell them to suck a bag of dicks.

Chancers. I can't abide people like that.

Moominho

893 posts

139 months

Tuesday 28th June 2016
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Hainey said:
You lot are so much more polite than I. I'd tell them to suck a bag of dicks.

Chancers. I can't abide people like that.
This. Tossers. Sometimes you just have to walk away...

RizzoTheRat

25,084 posts

191 months

Tuesday 28th June 2016
quotequote all
House prices are expected to drop, if they put it back on the market it'll take time and there's a good chance they'll get less for it.

Depends if you think it's worth paying the extra for or if you're willing to take the chance of them not backing down

g3org3y

Original Poster:

20,606 posts

190 months

Tuesday 28th June 2016
quotequote all
Thanks chaps, appreciate the opinions. smile

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.

NRS

22,078 posts

200 months

Tuesday 28th June 2016
quotequote all
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).

rs4al

925 posts

164 months

Wednesday 29th June 2016
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Tell them to FO !

I've been in the same situation and paid the extra and felt bitter about it until I sold the house.

anonymous-user

53 months

Wednesday 29th June 2016
quotequote all
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!

PugwasHDJ80

7,522 posts

220 months

Wednesday 29th June 2016
quotequote all
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).
this

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.

Ean218

1,959 posts

249 months

Wednesday 29th June 2016
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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.