You’ve agreed a sales price and are so close to exchanging but what should you do if your buyer suddenly lowers their offer?
When it comes to selling your home, very little is guaranteed until you have exchanged contracts. In fact, a buyer is entitled to change their offer, without warning, right up until the point of exchange. This practice, known as gazundering, is not illegal but it is unethical – and avoidable.
Sometimes lowering an offer is justifiable – perhaps if a survey has revealed aspects that adversely affect a home’s value – but in many cases, a buyer will decrease their offer to chance their luck. They pin hopes on the fact that the seller has got so close to exchange that they are unwilling to start over again or lose their current purchaser.
In today’s current property climate – with the media full of scare stories about the value of property falling and chains on the brink of collapse – buyers who started the purchasing process before lockdown may be encouraged to reduce their offer.
Here’s what you can do if your buyer reduces their offer:-
Accept the lower figure
If you have been in a chain for some time or need to conclude your sale quickly, it can be tempting to accept a lower offer so you can progress. This, however, doesn’t give any certainty that your buyer won’t lower their offer again.
Try to renegotiate upwards
You could try re-negotiating in hope you can force the buyer’s offer back up. It is unlikely, however, that they will increase their offer to the asking price and they may withdraw from the purchase if they feel pressurised.
Get your home revalued
If market conditions have changed dramatically since your ‘for sale’ sign first went up, your buyer may think your home is now worth less than at the start. Only rely on an independent valuation from a trusted source – not what your buyer has read in a newspaper - to confirm what your home is worth. Our expert property valuers can give you an instant offer using their expert market knowledge and live sales data.
Dismiss the buyer & start again
It’s crushing to turn away a buyer but if you feel your home is worth more than the reduced offer, you may feel there’s no other option but to start again in hope of finding someone willing to pay a higher price. This will draw out the sales process and is not guaranteed to produce the desired end result. Plus, it’s worth bearing in mind that the longer a property remains unsold, the more suspicious potential buyers will be.
The guaranteed, no-quibble offer option
It is a worrying time for sellers, especially those who crave a degree of certainty or who need to move due a change in financial circumstances. We mentioned that accepting a reduced offer – and the turmoil associated with deals falling through on the open market - is avoidable and this is how.
A cast-iron cash offer waiting
Open Property believe the home moving process is complicated and unpredictable enough, so we are dedicated to removing any uncertainty. We buy properties direct from sellers – no estate agent required and no chain above – and provide a free instant cash offer.
We can instant offers– no haggling, and no changing our mind unless there was a major issue revealed within the legal conveyancing or survey process. Don’t forget, if you are tempted to accept a lowered offer just so you can move quickly, Open Property can offer you a competitive figure and conclude the transaction within the timetable which you choose. This can be as soon as seven days – much faster than a High Street estate agent.
Get in touch
We’d be pleased to learn more about your property and your selling circumstances, so contact us today.
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