contracts nearly exchanged and then they changed the price!

fitcrazy

Does anyone have any suggestions? Please help. We have waited 6 months now on a new build - back in july we agreed prices with a house builder of £150k part ex for my house and 235k for their new build(yet to be built).
We then had a valuation done and the new house was priced at 225k which the house builder agreed to.
It took them till end dec to issue contracts at 150k and 225k which we signed and sent straight back.
then they phoned me in january to say they were re-valuing my property (which i thought a pointless exercise as all property falls and therefore the new build will have done too). It took them another 3 weeks (after chasing them endlessly) to inform me that if we still want 150k then theirs is now 235k and if we accept 140k (as mine has gone down!!!) then we can have it for 225k.
I naturally went mad and said i would have another valuation done and they informed me that i would be wasting my money and it wasn't open for re-negotiation.

Can anyone help me here? Any feedback would be very much appreciated.
thanks

puddy

have they got loads of people wanting to buy their 235k home? if not, tell them its off unless you get 150 for yours and theirs at 225

silvercar

At the moment new builds are considered to be falling faster than second hand houses. So I would be wary of valuing your purchase too high.

When does your mortgage offer run out? The lender could get jittery and revalue your purchase.

It does seem like the builder wants a differential of 85k. If you can't accept that, you may have to walk away. Walking away from buying a new build when house prices are still falling could be a sensible move.

socrates

Is it possible they have another buyer?

Go back and offer them £10k less than the original deal.

Check the small print!

fitcrazy

the mortgage offer is till the end of december. I just cant see how when they agreed after their property was valued at 225k (and they agreed back in august) thats what came on the contract also, that they are now putting it back up 10k to 235k!
Also they marketed the new builds at 235k back in october and have now put them back up to 250k!!!!!

flossy_splodge

Its really tough when things start to get out of shape in house buying but I agree with the posters above, be careful.
Their tactics sound like bullying and I am really surprised if builders are yet in the position to be so dogmatic.
If they have lots of other buyers waiting you may have to play ball but otherwise stick to your guns and make it clear you will walk away if necessary, provided you ARE prepared to do so of course.
Its really hard to offer any thing other than sympathy as there are so many factors involved so just wishing you good luck.:o

fitcrazy

jenner wrote: »

have they got loads of people wanting to buy their 235k home? if not, tell them its off unless you get 150 for yours and theirs at 225

not as far as i know as they are marketing 3 others and have been for a little while now, its so frustrating. this is coming from the number one house builder too!!!!!

fitcrazy

flossy_splodge wrote: »

Its really tough when things start to get out of shape in house buying but I agree with the posters above, be careful.
Their tactics sound like bullying and I am really surprised if builders are yet in the position to be so dogmatic.
If they have lots of other buyers waiting you may have to play ball but otherwise stick to your guns and make it clear you will walk away if necessary, provided you ARE prepared to do so of course.
Its really hard to offer any thing other than sympathy as there are so many factors involved so just wishing you good luck.:o

many thanks for that. I just can't believe they won't re-negotiate, we've been kept waiting long enough and its driving me insane!!!

socrates

flossy_splodge they may want the OP to walk away, potentially lose money, waste time etc.

As they may have another buyer without a p/ex

OP - Make sure its the developer/builder that cancels this agreement I feel there is something going on behind the scenes

fitcrazy

socrates wrote: »

flossy_splodge they may want the OP to walk away, potentially lose money, waste time etc.

As they may have another buyer without a p/ex

OP - Make sure its the developer/builder that cancels this agreement I feel there is something going on behind the scenes

i know one lady has pulled out just recently as its being marketed again but surely if they have someone at the ready with no part ex then why aren't they buying one of the others - there are 6 properties the same all up for sale - but still this developer hasnt started building. It was meant to be ready by june but now they are building some housing association ones first before they start building these.

socrates

Rather than speculating why do you not ask your contact exactly what is going on.

There are a thousand reasons.

Personally I would start looking elsewhere