Buying - when is it too late to re-negotiate the price?

t_g_b

Hi everyone,

I'm in the process of buying a flat that was on the market for £200k - I made the mistake of falling in love with it, made an offer of £194k and agreed £197k with the vendor.

However, the same estate agent now has a very similar flat on the market (same location) at an asking price of £185k so I'm wondering whether I'm about to pay a price that's far too high for the flat I'm buying.

The mortgage valuation did come back with a value of £197k - I figured if the flat was over-priced, they would value it lower although they may not care as I'm only taking out a 65% mortgage.

I've received my mortgage offer and my solicitor is still carrying out checks etc - an exchange date hasn't been mentioned yet.

Anyway, I'm considering now how I should approach the estate agent with this and whether it's usual to try to re-negotiate the price at this stage? If anyone had any advice I'd be very grateful.

Thanks in advance.

silvercar

Have you viewed the other flat, is it the same size, in as good a condition?

You could reduce the price, but you risk the seller deciding you are a time waster and pulling out of the sale.

ILW

You can renegotiate or walk away anytime before contracts are exchanged.

Arthritic_Toe

Tricky one (as its with the same agent). You could try knocking on the door in the hope of an impromtu viewing. Otherwise, its probably best just to be straight with the agent. Tell them how it is - you're worried you're paying over the odds and can you view the other flat to allay your fears. They probably wont be too bothered as they will get their commission either way.

t_g_b

Thanks for the replies - silvercar, I haven't viewed the other flat but from the pictures it looks to be in just as good condition and maybe a bit more spacious. It also has a balcony, which the one I'm buying doesn't! The only real difference I can see is that it's a first floor flat and "my" one is on the 5th floor so would have better views (both are seafront flats).

Dr.Shoe_2

How would you feel if the other flat had gone on the market for £220,000 and the vendor said they wanted an extra 15K off you? this is exactly the trick you want to pull on them. What was the conclusion of the mortgage valuation?

phlash

It's not tricky if it's the same agent. It's simple.

You want a viewing, as there is a better deal. Maybe ask them why the price differential? Buying is a big decision, and you shouldn't be apprehensive about exhausting your leads / queries, that includes viewing this one.

ILW

t_g_b wrote: »

Thanks for the replies - silvercar, I haven't viewed the other flat but from the pictures it looks to be in just as good condition and maybe a bit more spacious. It also has a balcony, which the one I'm buying doesn't! The only real difference I can see is that it's a first floor flat and "my" one is on the 5th floor so would have better views (both are seafront flats).

I have to say that a balcony on a seafront flat is a real bonus, if it is also cheaper seems to be a bit of a no brainer.

cte1111

I would definitely view the other flat. If you decide that you like it better / equally, then you can put in an offer on this one, or reduce your offer on the other one or both. I know it might seem a bit mean, but it's better than feeling like you've potentially wasted over £10k.

Valuations - they tend to take the offer price and then knock off money for any work that needs doing. So if you had offered £187k, I bet it would have come back at £187k.

silvercar

ILW wrote: »

I have to say that a balcony on a seafront flat is a real bonus, if it is also cheaper seems to be a bit of a no brainer.

Depends on the view. If its only on the first floor and the view is blocked by another building then a straight sea view on the 5th floor would be preferable.

t_g_b

I just gave the estate agent a call - he said the reason for the price difference was because 1) the vendor of this other flat is in no hurry to sell and 2) it needs a lease extension which would cost around £12k. So I suppose it comes down to whether or not I believe the estate agent?!