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tboy

Gazunderring - Best Technique To Try

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So I've bought a house in London...agreed price a few weeks back, gone through the legal stuff and mortgage application etc, and should be ready to exchange soon. But the seller seems desperate..hit a low offer having already cut asking price a couple times, hassled my solicitor to hurry up to get to exchange, etc. I'm considering dropping the price at the last minute. Paying over a million quid for the place (it's London so not even anything fancy!).

Any thoughts on how to pitch it, other than "market feels very weak, I'm only paying xxx now, take it or leave it" ? I guess if they did leave it, I'd only be mildly disappointed, and just have some solicitors costs to pay.

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So I've bought a house in London...agreed price a few weeks back, gone through the legal stuff and mortgage application etc, and should be ready to exchange soon. But the seller seems desperate..hit a low offer having already cut asking price a couple times, hassled my solicitor to hurry up to get to exchange, etc. I'm considering dropping the price at the last minute. Paying over a million quid for the place (it's London so not even anything fancy!).

Any thoughts on how to pitch it, other than "market feels very weak, I'm only paying xxx now, take it or leave it" ? I guess if they did leave it, I'd only be mildly disappointed, and just have some solicitors costs to pay.

Nasty piece of work.

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If the seller seems desperate, I think you should show some human charity and increase your offer. By at least 10%. After all, this is a £1m+ property in London, so will be worth £2m+ before Xmas. It you share the bonus of constantly rising property prices around a bit, it helps the economy massively and you'll sleep better at night.

p.s. If anyone tried gazundering me I'd play along all the way, up to the point of exchanging contracts (two days before completion) then pull out and tell them to stick their offer. Just a thought.

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Nasty piece of work.

Yup, that was my thought too. It's my estimation that every man can afford a house in London these days is one kind of sumbitch or another. You probably don't get that kind of money by being a decent human being.

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p.s. If anyone tried gazundering me I'd play along all the way, up to the point of exchanging contracts (two days before completion) then pull out and tell them to stick their offer. Just a thought.

Yes, people seem to get really emotional about gazundering, funny that sellers seem totally happy about happy gazumping when they get a higher offer!

If you have been noticing similar properties coming onto the market for significant less, i.e. 10% or less, than you've agree and you are happy to have your bluff called (if it is indeed a bluff) and lose any monies paid out, then it may be worth it. Just note what S.Sam said and remember that if they do agree they may get very petty about other things like fixtures and fittings or leave a pile of dog truds in the garden, etc.

However anyone feels about gazundering and gazumping, they are always going to a feature in fast moving markets. Exchanging just takes too long.

P.s. I don't think I could go back on an agreed price, if I was happy to pay that much before then I should still be happy to pay the same now, but if you could really get the same house just around the corner for 10% less you really would have to seriously consider pulling out.

Edited by renting til I die

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Yes, people seem to get really emotional about gazundering, funny that sellers seem totally happy about happy gazumping when they get an higher offer!

If you have been noticing similar properties coming onto the market for significant less, i.e. 10% or less, than you've agree and you are happy to have your bluff called (if it is indeed a bluff) and lose any monies paid out, then it may be worth it. Just note what S.Sam said and remember that if they do agree they may get very petty about things like fixtures and fittings, etc.

However anyone feels about gazundering and gazumping, they are always going to a feature in fast moving markets. Exchanging just takes too long.

P.s. I don't think I could go back on an agreed price, if I was happy to pay that much before then I should still be happy to pay the same now, but if you could really get the same house just around the corner for 10% less you really would have to seriously consider pulling out.

They're not a symptom of fast moving markets. They're a symptom of people.

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They're not a symptom of fast moving markets. They're a symptom of people.

Haha, yes I agree! Also a symptom of stupidly high prices! I think people would be a lot less greedy about an extra, or reduced, £5k than the silly numbers we are talking about nowdays!

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Do as you would be done by. A dirty trick, IMO.

Someone once tried to gazunder me just before exchange. I called her bluff and she backed down. I was particularly incensed because shortly after accepting her offer I'd had a higher one, which I had turned down because I had agreed with her to take the property off the market.

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Do as you would be done by. A dirty trick, IMO.

Someone once tried to gazunder me just before exchange. I called her bluff and she backed down. I was particularly incensed because shortly after accepting her offer I'd had a higher one, which I had turned down because I had agreed with her to take the property off the market.

If the property was off the market how did you get a higher offer?

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Someone wanted to gazunder me at the last minute and I told them to stick their offer....the sale fell through. Served them and the EA right and was worth the loss of sale as I didn't want to deal with such a person. To be fair I was getting all sorts of hassle on my purchase at the same time so I called a halt to all of it and started again a few months later.

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So I've bought a house in London...agreed price a few weeks back, gone through the legal stuff and mortgage application etc, and should be ready to exchange soon. But the seller seems desperate..hit a low offer having already cut asking price a couple times, hassled my solicitor to hurry up to get to exchange, etc. I'm considering dropping the price at the last minute. Paying over a million quid for the place (it's London so not even anything fancy!).

Any thoughts on how to pitch it, other than "market feels very weak, I'm only paying xxx now, take it or leave it" ? I guess if they did leave it, I'd only be mildly disappointed, and just have some solicitors costs to pay.

A deal is a deal (which I'm already sure you negotiated hard on?). Are you a man of your word? If you've genuinely gone cold on the deal and don't want to proceed - because you think you can get better elsewhere, or there's a fundamental problem that the survey/searches has thrown up - then that's fair enough, pull out. Shit happens, as they say.

If you're just doing it to screw the vendor then shame on you. Take a look in the mirror and question your sense of honour. Just because you can do something doesn't mean that it's the right thing to do...

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Haha, sense of honour...this is a business deal, not my problem the system requires no downpayment until the point of exchange. Hate the game not the player...

Seems like I'm in the wrong place here asking for advice on getting a house cheaper, you guys all seem keen on overpaying, not what I was expecting.

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I say go for it, tboy. All's fair in house buying. If it's the London market, and on for £1m - then they are undoubtably screwing you compared to the price they paid. At that price level, I guess sentiment plays a huge part in whether a transaction completes.

What do you know about the seller's circumstances e.g. are they emigrating? That may help you determine the likelihood of success. Finding some local asking/sold prices which indicate a recent softening will also help in building your case. Only the truly desperate are likely to go on a vague statement.

The most you stand to lose is probably around £1K in survey/solicitor search fees. Equally, that's all they (possibly) stand to lose unless they are working to a deadline too.

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What did you expect? A list of a dozen ways to rejig a deal that you obviously over bid in the first place?

There's still a flicker of life in the London market, a weak pulse as the patient expires. With any luck you'll get gazumped.

My advice - go and ask them on MumsNet. They seem to have the moves you seek and you'll pick up some useful tips about rusks versus carrot sticks for teething.

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Haha, sense of honour...this is a business deal, not my problem the system requires no downpayment until the point of exchange. Hate the game not the player...

Seems like I'm in the wrong place here asking for advice on getting a house cheaper, you guys all seem keen on overpaying, not what I was expecting.

We're not the fools who seem to have over bid in London.

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