Help! - flat selling advice

[Blue in the Face]

Oh board of all knowledge. Sorry to clog the board with this thread. Just desperate to get some advice from some wiser more experienced heads.

I'm currently in the process of selling my tiny one bed flat in London. I accepted a bid a margin less than neighbours had sold a year ago as the market is clearly cooling. The buyer has submitted a PDF of a survey report saying the valuation is right in accordance with the bid. But the survey report is saying the value of the property is going to drop a steep amount in the next 90 days. Do the banks dictate the market? Or is it demand driven?

I feel like I'm being scammed or low-balled by an experienced buyer who knows brinkmanship. Should I hold out? Or accept the offer a fair whack under what the value is now?

Thanks for anyone who has time to give their 5p!

[TH63]

Demand and supply surely?

The buyer's bank are bound to want to protect their investment by pointing out that the value of your property might drop, potentially reducing the buyer's equity, i think that is responsible behaviour.

That said, it's the buyer's risk. My view is that he's made an offer and you've accepted it, so now he's trying to reduce the price again.

I'd tell him to pay up or do one.

[Blue in the Face]

Demand and supply surely?

The buyer's bank are bound to want to protect their investment by pointing out that the value of your property might drop, potentially reducing the buyer's equity, i think that is responsible behaviour.

That said, it's the buyer's risk. My view is that he's made an offer and you've accepted it, so now he's trying to reduce the price again.

I'd tell him to pay up or do one.

I was hoping you would reply to this TH. Good advice. I've seen your savvyness on this kind of thread before. Really appreciate you taking the time.

[Wales-Bales]

So the housing bubble is about to burst. Thanks for the info

[Blue in the Face]

So the housing bubble is about to burst. Thanks for the info

Not necessarily bud. This buyer could be gaming me. The report given still shows a very healthy yield in regard to rental income and it's a buy to let mortgage so the projected drop doesn't really make sense. There could be a wobble in lending because talk of a hung parliement? Or maybe this buyer's borrowing power is poor.

[Vindec]

The buyer's stance is ridiculous. He is buying the flat now not in 90 days time. And whose to say the market will drop? It might and it might not. I would stick to your guns.

Furthermore when the man decides to rent it out he will want to accept present day rents and not some fictional rent in the belief rents will either rise or fall in 90 days time. If he is so concerned about rent in the future I suggest he buys a flat in 90 days time and not now.

[Wales-Bales]

Not necessarily bud. This buyer could be gaming me. The report given still shows a very healthy yield in regard to rental income and it's a buy to let mortgage so the projected drop doesn't really make sense. There could be a wobble in lending because talk of a hung parliement? Or maybe this buyer's borrowing power is poor.

Ah ok, I was going on the bit where the survey report is saying the value of the property is going to drop a steep amount in the next 90 days, and I assumed it was an independent view of the market.

[Taunton Blue Genie]

Demand and supply surely?

The buyer's bank are bound to want to protect their investment by pointing out that the value of your property might drop, potentially reducing the buyer's equity, i think that is responsible behaviour.

That said, it's the buyer's risk. My view is that he's made an offer and you've accepted it, so now he's trying to reduce the price again.

I'd tell him to pay up or do one.

A flat no then :coat:

[Wales-Bales]

I wouldnt take on board what the buyer says. They either pay you what you want - or they F off. Dont get conned into some sort of BS story.

And by the way - even if it was true - I dont think you would sell your house before June 8th ?

As long as you dont make a loss on it - sit tight, you can always rent it out. If Jezza gets elected PRIME MINISTER and all hell breaks out in the markets - lending may go down - which means rentals will go up. (another reason why tax and spend doesnt work)

How did you shoehorn Jezza into this thread? You've now turned it into a political post, and Matt will be along shortly to move it into the correct forum.

[Nick]

Ah ok, I was going on the bit where the survey report is saying the value of the property is going to drop a steep amount in the next 90 days, and I assumed it was an independent view of the market.

One should never make assumptions!

It was hardly an independent report - it was a report prepared on behalf of the potential purchasers funders. No independent surveyor could possibly predict what may happen 3 months from now.

[Wales-Bales]

One should never make assumptions!

It was hardly an independent report - it was a report prepared on behalf of the potential purchasers funders. No independent surveyor could possibly predict what may happen 3 months from now.

It's weird why they would mention it then, if it means they will lose the morguage opportunity. Unless of course the funders are not a bank.

[Blue in the Face]

Thanks for all the advice comrades and caviliers! Super helpful.

It's weird why they would mention it then, if it means they will lose the morguage opportunity. Unless of course the funders are not a bank.

It is weird mate I do agree. The report literally suggests that the bank estimates a 10k drop in 90 days. It could simply be the bank protecting itself in an unpredictable climate and projecting a worst case scenario.

I'm just wandering if the buyer has knocked up some dodgy dossier though in an attempt to low ball.

[Igovernor]

There is confusion here, all the bank is saying is that they are only going to lend your buyer an amount that would be the value if the property had to be sold withing 90 days, a forced sell, if your buyer defaults.That is your buyers problem not yours, the money you have agreed on is what you should accept, if the buyer cannot get the money then your deal is dead in the water, move on to the next buyer, should be no problem selling in London.

[Blue in the Face]

There is confusion here, all the bank is saying is that they are only going to lend your buyer an amount that would be the value if the property had to be sold withing 90 days, a forced sell, if your buyer defaults.That is your buyers problem not yours, the money you have agreed on is what you should accept, if the buyer cannot get the money then your deal is dead in the water, move on to the next buyer, should be no problem selling in London.

Great advice Guv'nor. Big thanks for taking the time. And to everyone else...

[Igovernor]

[TH63]

I was hoping you would reply to this TH. Good advice. I've seen your savvyness on this kind of thread before. Really appreciate you taking the time.

Cheers for that mate, I know I spend most of my time on this board cocking about, but it means a lot to know my rare sensible posts are appreciated

[Wales-Bales]

Simple - if the buyer's valuation report says there will be a massive reduction in price over the next 90 days - what else do you think would cause that - other than a change of Govt. Unless of course the potential buyer is about to crash the housing market himself.

A Govt coming in with massive a borrowing / taxing agenda - will affect the market - in my opinion.

So you see - it's not a political post at all. Just a possible answer has to why the housing property will be massively devalued over the next 90 days.

What else do you think would cause this ? - end of the world perhaps, Tsunami, maybe an out break of Ebola in the UK , the world is waiting and this forum is your stage - so crack on son - let us know ?

What you having for dinner? I'm having a Tories Kill The Sick & Disabled burger

[Mrs Steve R]

I'm guessing as it's a flat it does not come with a garden or a fence?

[Wales-Bales]

I'm guessing as it's a flat it does not come with a garden or a fence?

Yep, no Jezza gnomes in the garden

[Mrs Steve R]

Yep, no Jezza gnomes in the garden

[goats]

Thanks for all the advice comrades and caviliers! Super helpful.



It is weird mate I do agree. The report literally suggests that the bank estimates a 10k drop in 90 days. It could simply be the bank protecting itself in an unpredictable climate and projecting a worst case scenario.

I'm just wandering if the buyer has knocked up some dodgy dossier though in an attempt to low ball.

Sounds like bank just trying to cover itself on an assumption, no one knows what's going to happen do they?? If the bloke wants it enough then 10k won't stop it. We had a similar scenario last summer with brexit, I was selling a house at the time. It all went through no problem. This happens every election doesn't it?? Particularly when they fear labour might win.....

[Blue in the Face]

Sounds like bank just trying to cover itself on an assumption, no one knows what's going to happen do they?? If the bloke wants it enough then 10k won't stop it. We had a similar scenario last summer with brexit, I was selling a house at the time. It all went through no problem. This happens every election doesn't it?? Particularly when they fear labour might win.....

Yes. the political uncertainty can't be helping.

The only thing with the buyer is I think he's professional landord. Assuming his loan to value is say 75%, the an extra 7.5k from his risen cash stake might be enough to turn him off.

I've turned the low ball down anyway.

Have a read of this - it may explain where the house price crash story is coming from https://fullfact.org/economy/labours...l-your-garden/

I don't have a garden with the flat. But this tax may could very well have an affect on the average prices and therefore could be impacting me anyway. It certainly would add to the uncertainty for sure.

[BLUETIT]

I'm guessing as it's a flat it does not come with a garden or a fence?

No "GARDEN TAX" then.

Talking of "GARDENS", how is yours these days, Mrs R.

[Wales-Bales]

I think maybe we have found the source of the property prices going down that the buyer in the OP was on about.

The infamous Garden Tax in the Labour manifesto pledge homeowners would pay an annual tax based on the value of their land. It seems the Land Value Tax will be a new tax - as per though, they haven't said how much it will raise, how much it will cost to implement etc.

This means that houses in London and South East would be hit hard compared to houses in other parts of the UK - which will affect the house price. Ok if you are buying - not so good if you are selling , or if you staying put and having to pay a new tax.

It's a manifesto pledge but not yet a fully fleshed out project

Labour isn't committing to an extra tax on people's gardens. Its manifesto only promised:

"We will initiate a review into reforming council tax and business rates and consider new options such as a land value tax."

A Land Value Tax is a tax on the potential value of land itself, ignoring anything that's built on it. It isn’t being proposed as an additional tax, but as a potential replacement for council taxes and/or business rates.

[Mrs Steve R]

No "GARDEN TAX" then.

Talking of "GARDENS", how is yours these days, Mrs R.

I've got a concrete yard.