Reducing offer price at last minute before exchange

chickmug

dfh wrote: »

Yeah,everything is perfect in your ideal little world.Little miss goody two shoes.

Remember the forum rules otherwise you may get banned: -

Pls be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree courtesy helps.

Welshwoofs

dfh wrote: »

Yeah,everything is perfect in your ideal little world.Little miss goody two shoes.

Resorting to personal abuse is a sure sign of someone losing an argument...

dfh

Considering the amount of abuse,sarcasm,on the boards I am surprised every single person has not been banned yet.

sdooley

I was going to buy a house in 2007 and the survey came back with the building society refusing to lend the full amount because of the property's location (above a shop, front door facing out onto the alley behind). I'd already negotiated down the price when I made the offer so couldn't face trying to negotiate it down further. So I walked away.

The property is still on the market nearly two years later, now at less than I offered for it (but not as low as the building society was saying). Although he'd have hated it at the time, I bet the seller now wishes I'd offered him a lower price based on the down-valuation.

ognum

I think you did a sensible thing but what you didnt do is what the origional poster is suggesting, get a mortgage valuaton saying yes the price is right and then wait until exchange day and ask for the price to be lowered.

dfh

ognum wrote: »

I think you did a sensible thing but what you didnt do is what the origional poster is suggesting, get a mortgage valuaton saying yes the price is right and then wait until exchange day and ask for the price to be lowered.

"What has just come to light, and I don't know how my solicitor managed to get hold of it, is a valuation survey carried out on behalf of the seller a week prior to accepting my offer. I have a copy now of this valuation and the contents of this are that they valued the property at £170k without extending the lease. They then valued the cost of extending the lease to 99 years as £13.5k and then the price of the property with a 99 year lease at £190k."

The OP didn't plan to ask for a reduction at the last minute.He is asking for a reduction because new facts have just come to light.And I think he is perfectly justified.

penguine

All of the moral outrage over the OP waiting until the last minute is ignoring what I think is the crucial point in his first post -- the property has a short lease and if he pays the price originally agreed (£180k) plus the price for extending the lease (£13.5k) then he will have paid a total of £193.5k when he's been told that the property WITH the lease extension will only be worth £190k. He only just found this out.

He also just received a valuation done on behalf of the seller (which I'm assuming was in order to find out the cost of the lease extension?) which came in at £170k. He's planning to meet in the middle, £175k. This isn't a straightforward case of gazundering: he didn't deliberately wait until the last minute in order to bargain down the price. He's renegotiating based on the cost of the lease extension which he's only just learned will cost £13.5k.

Having said all that, however, I would suggest the OP walks away from this property. It sounds like you can take it or leave it and don't mind living with your parents awhile longer. Prices are likely to carry on falling so long as unemployment is rising, and if you keep saving you can probably afford something you like better next year or the year after.

bluejake

Quote:
Originally Posted by bluejake
I am yet to hear one of these moral people say that the price of their house has tripled but they are only going to ask for the price they paid plus inflation so as not to cripple the next generation of FTBs with debt.

That people on here, a moneysaving site, ....

Please explain how selling your house for a third of its value is worthy of a moneysaving site.

silvercar wrote: »

Please explain how selling your house for a third of its value is worthy of a moneysaving site.

Only an idiot would sell their property for less than the market price. I suggest you read my post again.

However, those people who are advising a first time buyer to pay more than he need to are advising just that - simply from the other side of the transaction. They are motivated simply by the fact that they are either selling their own property or may do so in the future and have already banked their capital gains in their minds. They don't care a fig about the first time buyer seeking advice here. They just don't want to come up against a buyer who is a moneysaver and is prepared to play hardball.

That they wrap up their non moneysaving advice up as about being moral when they are motivated by self interest is unpleasant to see.

House prices are still at historically grossly inflated levels relative to earnings so I doubt any first time buyer is really getting a good deal at this time. If the pay more than they need to now then they may be crippled by debt and stuck with negative equity for a very long time whilst house prices continue to fall relative to earnings.

That means it is vital first time buyers bargain hard and 'gazunder' if necessary in a falling market. All the other moneysaving on this site pales into insignificance if you get your first house purchase wrong at this time.

bandofbrothers

No wonder the % of failed selling and buying of property is high.

I agree that no one should make a loss and that both parties should walk away with a fair deal.

I in no way proport to be very knowledgable in selling or buying as im in the latter stages of selling my 1st property.

As I stated in my earlier post ' my word is my bond' and after agreeing a price I would not pull out. The buyer knows this and they know my intentions if they play a game with me too. No one is under any illusion.

If the buyer came back with a reduced offer which was not in connection to the survey, at whatever stage then I would simply decline and move on.

It looks to me like some play a game with the intention to chip away at the initial offer, hoping the seller gets unnerved and accepts.

To each his/her own !!

dfh

Or if the buyer has uncovered new information which values the house at less than what he is paying-he is being savvy to look for a reduction.