New home seller has changed selling price, where do I stand?

RichBram

In a nut shell, agreed a price for a new build property and paid a reservation fee. Recieved a phonecall 5 days later from the Sales Director of the builder saying that they couldn't sell at the agreed price!!!

Hi all, after some advice. I reserved a new build property last Friday (Good Friday). A price was submitted 'pending MD approval' which meant the offer I made was subject to the offer being vetted by the director. I didn't pay a reservation fee and was told that I would be contacted at the weekend to confirm whether my offer had been accepted. Later on that day I recieved a phone call from the sales rep onsite to say that my offer had been accepted and the property was off the market. I returned to the site and paid a reservation fee, and exchange and completion date were set and my details were passed to the sellers nominated solicitors and I was left to arrange my mortgage.

Yesterday I recieved a call from the Sales Director of the company to say that they couldn't sell at the price that had been agreed and suggested a new selling price. Needless to say I was pretty p*ssed off and dissapointed but where do I stand legally? The reservation fee is yet to be refunded so technically I still have a hold on the property. I know we haven't exchanged contracts in writting but does the verbal confirmation hold any legal weight?

Any help appreciated!

clutton_2

but does the verbal confirmation hold any legal weight?

in a word - no

chickmug

Sorry but they can change their minds, up and down, every day before contracts are exchanged, and you can't do anything about it.

prowla

Offer them less.

SplanK

they could be trying it on, trying to get every penny from you... stick by your guns and just say you will walk and demand the deposit back if they do not stick by their original agreement.... maybe give them a time limit on the offer of 72hours from that point on...

they do not have to sell at the agreed price - its only really legally binding once you have exchanged contracts

RichBram

I think they're trying it on. The new price they have suggested is £12,000 higher than what was originally agreed. I've written to the MD to ask for an explanation but I'm not going to budge too far from what was agreed.

poppysarah

Lower your offer if anything.

You must have seemed too eager to buy.

chickmug

Who is the builder?

Mini_Bear

This is exactly the same situation my siter-in-law is in. They negotiated hard on a new build (not ready for completion til june 2009), agreed on £235k for a £280k house pending board approval.
needless to say a week later she received a fone call wanting an additional 5k, then 10k.
They had put down a £500 deposit and we advised them to walk away.
My advise would be to get some independent valuations as often what the builder values the property at is a little on the high side. After the valuations you may feel you can negotiate or that or indeed that the house is overpriced.

stanleyunwin

Tell em to shove it where it don't shine and walk away. There are plenty of houses. Do you really want to buy from them after they have tried this on. Could be the first of many issues

sunshinetours

Don't forget if they up the value then the mortgage company may not agree with their valuation and your mortgage offer may not be sufficient for you to be able to complete anyway.
Unless you absolutely have to have this house I would give them 24 hours and then walk - there are plenty of other new builds that are out there and selling slowly but going down in value quickly