Can I lower an offer that has been accepted?

clumsycloggs0305

We have seen a house that we have been interested in for about 3 weeks. We initially offered £320k, it was advertised for £340k. This offer was rejected so we increased to £328k ( i know it was quite a bit straight away). I was getting attached to the property and forgot tactics and got carried away. Anyway that was declined too. So we left it holding with the EA at £330k. The vendor wanted between £335-£340k, so the EA says. We felt it with them the leave with vendors.Today I get a call from EA to say that vendor will accept £330k. In between all this and after we offered £330k, my father came to view the property. He is a builder/carpenter and has been in the trade for 20 years. He says we went in too high and in his opinion we should have paid £320-£325k. The house isn't in great order (last decorated after extension 20years ago). Father saw more reasons to drop the price than we did. Now we have settled a deal at £330k, is there anything we can do to lower this price to say £325k? We believe there to be around £15-£20k costs in bringing it up to a good standard as it needs new kitchen and bathroom and wiring, and DG. We've used this to justify the initial offer. I have also looked up rightmove, and sold prices for that area but there is nothing being sold that is similar to that property. Somone suggested that I could say (when the survey is done) that the surveyor valued at below the offer price...As I am new to this I need advice. Is is possible to do this? Does the EA or vendor need proof (as I would be blagging)?

The vndor is moving the a flat currently let out. We have said we will accomodate them moving there and that we have nothing to sell. We know that there are no other buyers for that property as it has been on the market since Nov 05, and it has always been overpriced for its condition. I think the EA is actually relieved to have made a sale!!

can anyone advise what we can do without losing the property, thanks

mr218

dont be pushed into a decision. tell them that your father viewed it and you do not think that it is worth the money and you are withdrawing your offer. be straightforward and act swiftly. that way both of you waste little time. otherwise both of you are affected.

whatever you do dont be pressurised into paying what you think is over the top for the property.

F_T_Buyer

You can always change an offer. Why don't you explain, well, what you just posted? Say your father came to look, of which the EA should know, and say their is more work than you originally thought.

I guess there will be some bluffing going on, but hold you ground! £10k is alot of money!!!

Poppy9

Talk to the EA. It's there job to deal with the vendor. I wouldn't wait until survey if you've no intention of paying the agreed price now as you maybe wasting the cost of the survey if the vendor won't accept lower price.

Doozergirl

Nothing's been signed, so if you want to lower your offer you can. I would be absolutely honest though and tell the Estate Agent like you've told us and do it straight away, it's better to dash their hopes now and try to renegotiate. There's absolutely no need to be underhand about it, just tell it like it is.

If you don't get it for the lower price, then don't forget to take your dad before you make any more offers on houses! I won't pretend that the vendor won't be upset, just minimise the damage you do by learning from your mistakes!

NAR

Sounds like the seller has been holding out for an unrealistic price put into their heads by the EA. I agree with the other posters, negotiate downwards using the reasons posted, starting tomorrow!

NastyMatt

You are entitled to withdraw your offer and obviously you will want to state your reason why but you must be prepared for the fact that the vendor will most likely say no to your 325 offer.

Are you prepared to let the house go for the sake of £5k?

You need no proof of anything. It's your money you can offer what you like.

A trick developers pull all the time is to agree the price, get everything done and come exchange day say the price is now £10k less!!!! Not a nice tactic if you are the vendor but it does happen.

Felicity

Two things are really on your side here:

1. The house has been on the market for over 4 months with no offers. A lot of people put their houses on the market with a 'view to testing the market' and then drop the price after 3 months if no offers.

2. You are not in a chain and they have found something they want to move to!

Go for it - you are in a VERY strong position! We just got over £40k off our house as we were in a very similar position and our new house had been on the market over 12 months!

Good luck!

Felicity!

zag2me

Its only an offer, change it to whatever you want before you exchange contracts.

clumsycloggs0305

Thank you so much for all the advice. As I am very new to MSE, I appreciate all the help I can get. Today, have told the EA that we think we have overpriced our offer. I asked him how much he would pay (knowing what the answer what be!!), and he said 330k. So I have booked for an independent survey to be carried out this week and I should have a report next week. I have told the EA this. If the valuation comes in lower than 330K he will re-negotiate with the vendors he says... If not then will will stick to 330k. We are having a homebuyers report, would this be sufficinet? The cheapest I got was with HABITUS. I know I will be paying two lots of survey fees (another from the lender) but if it saves me £5k even I'd still be better off, no? Also, HABITUS are on the panel for many lenders and he suggested I could say to the lender that a survey fee has already been done and could either avioud another valuation charge or split the fees. Does anyone have any experience with this? what I have learnt is that all these things are negotiate and if you don't ask you don't get...

PS - had to vauations so far on current home and have difference of £20k!! If I price in at a higher amount (£275k) and offer to pay all stamp duty is this a good idea to achieve the market price of our property? Has anyone done this before? EA says it will attract buyers as SD would be 3%, or what if we offer to pay the 2% only? Your opinions greatly welcomed

Ian_W

I would never depend on 2 valuations by EAs to decide on pricing, 3/4 at least. Some EAs are notorious for over-valuing props to get them on their books only to advise a downward correction after only a short time when there is no interest. Do your own research as well for what's on sale [and what's recently sold] in your area that appears similar to your own property.
Really the £255K valuation is an indication that Agent doesn't think your property is going to fetch more than the £250K threshold for 3% SDLT. If they're right then pricing it at £275K might well mean those who would be prepared to go to 250 won't even view it. If your property is really worth 275 then offering to pay some or all of the tax is a good incentive but the 260-280 range is difficult to sell in because of the distortion of the big rise in SD, so do make sure your property really does fit into that catagory otherwise you could have a long wait for a sale.
BTW I'm a little surprised your offer on the other prop has been accepted when you're not in a position to proceed.