Should I reduce my offer?

Steve78

Hi Guys,

We are first time buyers. One and half month ago we made an offer (235K) on a property (property needs modernization) that was reduced to 265K from 277K.

Our offer was accepted. We had the survey and based on the survey report, we decreased the offer to 206K and our offer was rejected two weeks ago. Area is very nice and similar properties were sold at around 195K in 2001.

Last week I made a final offer of 215K and told them that the offer was valid for a week, they rejected the offer. Now after one week deadline has passed and guess what, EA called me in the afternoon and told me that the seller wants to accept our offer. He said he discussed with the seller and advised him that due to christmas time it will be difficult to sell this property and they should consider quick sale. Now after hearing what he said about quick sale and difficulty in selling the property I want to reduce my offer. It would indeed be a quick sale as our mortgage is agreed and survey has been done on this property as well.

Do you guys think, it is alright to reduce the offer now (keeping in mind that time line that I gave them finished yesterday)?

drbeat

Hi Steve, I would say reduce it.

Be warned that you've just entered a hornets nest here - some will advise that you should increase your offer to 2007 levels.

shirlgirl2004

You are in a very strong position. I'd go back and remind them that they didn't make the deadline and so the price has been reduced. It does depend on if you are willing to risk losing it though. If it will be the house of your dreams when refurbished then you need to think about how firm on this you want to be. Dreams are priceless;)

hethmar

Yes, it really depends on whether you are willing to walk away steve.

Steve78

Thanks for replies guys.

My OH is very keen and says she is fine with 215K, I had a detailed chat with her, told her a thing or two about HPC. She seems fine now (at least for the time being.. lol)

I am going to offer 207K tomorrow and will tell them that offer is valid just for the day. If accepted all fine otherwise I will walk away. Not sure they will accept 207 K though. It is a deceased estate so may be they will agree.. lets see.

I will be very happy if they accept 207K

ad9898_3

I think Steve you have done your homework pretty well, if similar property sold in 2001 for 195k then 215k isn't that far away, you have protected yourself from a good portion of the falls. You could try 207k, nothin ventured, nothin gained.

Heyman_2

I think you have the right idea, time-limiting your offers - and in this falling market I think it's ok to keep offering lower if they miss your deadlines.

The EA and the Seller need to be reminded that it's a falling market, average prices are dropping MoM so as a buyer you are effectively going to be lumbered with negative equity for a while. :rolleyes:

All depends if they can afford it, if they can put up with your goalpost-moving and how much YOU want it!

Steve78

ad9898 wrote: »

I think Steve you have done your homework pretty well, if similar property sold in 2001 for 195k then 215k isn't that far away, you have protected yourself from a good portion of the falls. You could try 207k, nothin ventured, nothin gained.

Thanks for your replies guys. I double checked it, 195K is for house next to the one I made an offer on but it was in April'2002.
Do you guys think whether I am getting a good deal if I can get it for 207K - 210K?
210K is the max I will pay now.

Another thing I noticed today morning, House is going to be advertised with another EA from today onwards (may be thats why old EA was so quick about pushing sellers to accept our price). The new EA has another unsold property on the market on the same street for last 4-5 months. I am not sure how this will affect reducing my offer. ANy ideas?

pawpurrs

Im sorry but its people like you that make buying and selling houses such a nightmare, stop messing around, they have agreed your reduced offer and now you want to mess them around again, personally I think your bang out of order, and hope that when you come to sell the same happens to you, and you can see what its like to deal with idiots!

mitchaa

I hope they tell you to get lost. I certainly would.

Complete timewaster in my opinion. What is this garbage with 2001/2002 rates, the market is a long way off that yet and probably wont go down to levels even near this at the end of the crash.

Probably another MSE troll post, new account, 3 posts and all that:rolleyes:

What is the betting, your next post says something along the lines of....

''I GOT IT''

Steve78

pawpurrs wrote: »

Im sorry but its people like you that make buying and selling houses such a nightmare, stop messing around, they have agreed your reduced offer and now you want to mess them around again, personally I think your bang out of order, and hope that when you come to sell the same happens to you, and you can see what its like to deal with idiots!

you dont have to be rude to put your point.. do you? when prices were going up then sellers were doing these things at the very last moment and now I hear everybody complaining.. I made them an offer with a deadline, they dint accept our offer within that period so I am entitled to change my offer.
Dnt understand why r u so rude?