Can you re -negotiate???

Scottie69_2

Hi

We have put a deposit down for a new build with a small local builder. I really feel as though we have agreed on a price that could be a bit lower. Is there any way we can re negotiate??? We are wondering if we should just lose our deposit but I like the house and the area and there is very little else on the market.
Can we pull out and then put in an offer again in a few weeks?
Could we say we cannot get mortgage for that amount??? Would they want proof????
Any ideas welcome
Thanks

Treadmill

If you have put down a deposit you will more than likely lose it if you pull out, I wouldn't bother telling porkies about your reasons, just come clean, property prices are falling and taking this into consideration you are putting in a revised offer, when did you put the deposit down ? If it was only a month or two ago I don't think you will get much sympathy. Also would you be upset if you withdraw and somebody comes forward and buys the property ? You like the house and the area so it seems you might end up losing out, there are still people buying so it is a risk.

pinkshoes

By all means try and negotiate a lower price, but at one point you must've thought the house worth it if you agreed on the price, and if prices had risen recently, I'm quite sure the builder wouldn't be coming back to you to negotiate a higher price...

If there's nothing else for sale, and you love the area, and you intend to live there a long time, then I don't see the problem.

Treadmill

I agree in principle pinkshoes, but the OP does not state when the deposit was put down, if it was over a year ago for example and the builder is dragging his heels finishing the proprty then I think re-negotiating is in order, also the issue of whether the builder would want to renegotaite if prices where rising is a bit iffy as builders have been known to give back deposits because there is "a buyer in a better position to move" which in a rising market usually means you've been gazumped.

IHS88

Hi Scottie69

You must renegotiate! It's irrelevant when you put down the deposit.

Take it from me, the builder is hoping and preying that you dont read a newspaper, watch the news or turn the radio on. He is frightened you will pull out as its doubtful theres a queue of other people waiting to take your place.

Sure he could call your bluff and say "Well if you dont complete at the agreed price you'll lose your deposit".
I doubt the developer would take this stance, they are too desperate for your cash.
A developer would rather lose a few thousand on a sale than lose one.

However, you are legally bound to complete as you have exchanged.
The developer could in theory sue you for his loss of the sale. I have not seen any developer put this into practice though - too much hassle.

So its back to the negotiating table. I'm sure the developer will be very obliging. No need to lie about mortgage etc, simply explain that you are very worried about the market and thinking of pulling out.

Watch him shake in his boots!

Good luck and let us know how you get on.

stilernin

I realise that the OP is talking about buying from a builder, but would you also renegotiate on a purchase through and EA? (Apologies for sneaking in on this post.)

I agreed a price mid June but was dragging it out waiting for a decision from Darling about stamp duty. So,with £1730 already in my pocket, should I go for a bit more? What is the chance the vendor will tell me to sling my hook?

The house is empty and I am a cash buyer ........and of course it is my 'dream house', well nothing else has been on the market that has tempted me in the last 18mths.

SquatNow

OK, OP please answer the following question so we can advise you:
1) When did you put the deposit down.
2) How much was the deposit.
3) How much is the house
4) Did you SIGN anything.
5) Has the house been build yet? If now, when is it due.
6) Is the house off-the-shelf or is the builder customising it for you?
7) Have you got a mortgage approved for the property yet?

Scottie69_2

Hi
Thanks for the replies so far.

We put down £1000 deposit 2 weeks ago.
House will be ready in 3 months approx. Roof is on and walls up etc.
We have signed the reservation form
Asking price was £385k and we offered £350 (did offer less but this is where we met in middle.
Property is one of 5 being built. Houses in this area are not selling but £350 is average.
Have not got mortgage approved but been told on principal we will have no trouble. (large deposit)
Thanks - Just would love to pay a little less if we could.