Vendors pull out AFTER exchange of contract

john_white

yasmin_afshur wrote: »

i am not sure what the valution were but our mortgage were approve but we only need to borrow half of the value so i though they would value on the borrowing value... not sure how it work.

To be blunt, you need to be sure. It reads as though the offer was 885K you had 450k and needed a mortgage of 435k, but wre only offered 400k. So now the question is, was 400k based on icome or valuation?

For example if it was a max 50%LTV loan and they valued it at say 800k then they would offer a max of 400k. They may have valued at 885k but your income may have menat they would only lend 400k. Its important to know which.

YMoney

GDB2222 wrote: »

I am really sorry that you find yourself in this position. In answer to the original question you asked, there is no cheap way out of this contract.

The only possible comeback you have is against the surveyor who valued the property on behalf of your lenders and yourself. He may possibly have overvalued it.

The other remote possibility is that you can re-negotiate the deal with the developers, and they may agree to sell you one of the larger houses for the same money. I think that is a very remote possibility, but you could start to put pressure on them by giving them bad publicity. To be frank, I am quite surprised that you have not named them in this thread.

Thanks a lot as i really need to know if i can do this. I was going to contact them tomorrow and find out what my options are... how can i give them bad publicity if after speaking to them and they said NO.

I am not going to name them as I have not approach them as yet and I also feel that it is not good to do bad on others even if they do wrong on you... not sure if this makes sense!

paddedjohn

At the end of the day its just business, nothing personal just business. If they have made a few grand extra off you then they can use that as leway to discount the other houses, just the same as the car sales game.
It looks like they had a good saleteam and they saw you coming.

YMoney

john_white wrote: »

To be blunt, you need to be sure. It reads as though the offer was 885K you had 450k and needed a mortgage of 435k, but wre only offered 400k. So now the question is, was 400k based on icome or valuation?

For example if it was a max 50%LTV loan and they valued it at say 800k then they would offer a max of 400k. They may have valued at 885k but your income may have menat they would only lend 400k. Its important to know which.

it was on income...

YMoney

paddedjohn wrote: »

At the end of the day its just business, nothing personal just business. If they have made a few grand extra off you then they can use that as leway to discount the other houses, just the same as the car sales game.
It looks like they had a good saleteam and they saw you coming.

i don't agree with your comment. Firstly i am not buying a car.. it is a house of a high value and the developer is a reputable one. When we agree the sale they told us specifically that not further discount would be given on any of the property.

YMoney

john_white wrote: »

35k is 35k but its done now.

Enjoy the house, you thought it was worth the money and so should be happy you got a house you loved, who cares what the others sell for, your not planning to sell anytime soon so 4/5% varaince won't make much issue in 10/20 years time.

John,

that is a really good point and you're right.. It is going to be our home for a long time but the excitement of moving has just gone down slightly!

GDB2222

yasmin_afshur wrote: »

Thanks a lot as i really need to know if i can do this. I was going to contact them tomorrow and find out what my options are... how can i give them bad publicity if after speaking to them and they said NO.

I am not going to name them as I have not approach them as yet and I also feel that it is not good to do bad on others even if they do wrong on you... not sure if this makes sense!

Effectively, you are going to them and asking them for a large reduction on a deal they have already concluded with you. You may dress it up as a better house, but it comes down to the same thing. The only possible way to get them to agree will be through the threat of bad publicity about the sales methods they have used in your case. For that to have any effect whatsoever, it needs to be a very plausible threat. Even then, I do not want to get your hopes up – it is a very long shot.

InMyDreams

yasmin_afshur wrote: »

Is there anyway i can go back to them and argue my case here!

I would have thought no more chance than they would have had, had they been able to sell the other houses without any 'discount' at all, then come back to you saying that they made a mistake and shouldn't have offered you a discount either.

If your offer was going to be based on what the other houses sold for, you should have waited until you actually knew that amount (rather than what the salesman hoped that amount would be) before putting in an offer on your house. The salesman was obviously hoping someone else like yourself would turn up to buy the other houses and be persuaded to part with almost the full asking. Had that happened, and three other people been persuaded to over-pay, would you still be upset?

YMoney

GDB2222 wrote: »

Effectively, you are going to them and asking them for a large reduction on a deal they have already concluded with you. You may dress it up as a better house, but it comes down to the same thing. The only possible way to get them to agree will be through the threat of bad publicity about the sales methods they have used in your case. For that to have any effect whatsoever, it needs to be a very plausible threat. Even then, I do not want to get your hopes up – it is a very long shot.

yes but i am not sue how to go about... i am just going to say that they told us assured us that we got the best discount but what kind of threat and would they take me seriously....

YMoney

InMyDreams wrote: »

I would have thought no more chance than they would have had, had they been able to sell the other houses without any 'discount' at all, then come back to you saying that they made a mistake and shouldn't have offered you a discount either.

If your offer was going to be based on what the other houses sold for, you should have waited until you actually knew that amount (rather than what the salesman hoped that amount would be) before putting in an offer on your house. The salesman was obviously hoping someone else like yourself would turn up to buy the other houses and be persuaded to part with almost the full asking. Had that happened, and three other people been persuaded to over-pay, would you still be upset?

Anyone can pay less than the asking price and they can give them a better discount than what was given to us but we will never know about this as this is their negotiation and it is kept private. They have reduced the price by giving a 'home of the month deal' so yes it is something that i should be concern about as I am aware of the fact that they CAN give further discount. I was told that even if the house will not sell in 6 months time there will not offer further discount than £15k.... this might be their selling technique but this is also what they have told us. You're right we should have waited and we were going to just to see how the house were sold for but they told us that under no circumstances that they would do this so why wait...