Plan to drop the agreed purchase price

hawkesbaynz

Hi,
My wife and I currently in rental with a large deposit. Only need 35% LTV mortgage. Viewed a house on the Saturday for £259K, just came on the market in a popular area a few days before.

The house does need about £20K to modernise but we plan to extend the kitchen for another £20K. We are told there is no chain, the couple have split. As we have missed out on some other properties we go straight to the estate agents and offer the full asking. This does hurt a bit as it is just above the £250K stamp duty level, and I like to negotiate. We ask for a quick purchase as our rental is almost up.

Fast forward 10 weeks and the proposed exchange date went 4 weeks ago. We were supposed to complete a fortnight ago. After lots of subtefuge and unanswered phone calls seems that they need to organise their financial settlement on the divorce before exchange.

Told that they will exchange last week but 'the judge did not sign the papers'. 'Will be done by this Tuesday'.

In the meantime I have wasted time money arranging plans, organising builders/plumbers. Even bought some Amptica.

Now I am worried that the market is doing a double dip. Miffed that I only went into at the asking price as it was an easy sale. Considering going back on Thursday (I will give them a day's grace) and telling them that we will walk unless the price is dropped £10K.

My wife has already told the EA that we will walk if it doesn't happen by Wednesday - she thinks that it is 'fate'.

What do the forumites think?

Gwhiz

I'd give them 24 hours or pull out AND at a new price.

Than again that's me - it's what you do that counts and that depends on how much you want it, how emotionally involved you now are etc etc.

neas

do you love the house? is it worth it?

Afterall you wont be crippled if house prices doubledip... and they probably will. Buy the house as a home instead of an investment and you prob wont botjer about double dip etc.

Richard_Webster

Buying a house from a couple splitting can be fine if they have sorted their issues between them. I always advise clietns to ask lots of questions of both of them about whether everything has been sorted between them. If they are evasive you have your answer. If they haven't then you have the difficulty you are now in.

Anyone selling for £259K is saying in code that they will take £250K plus maybe £1-2K for carpets curtains whitegoods etc. Hardly anyone pays £259K for a house - you should have been firmer with them. Now you can be - tell them that you will pay £250K and no more and you will walk if they don't exchange quickly.

DVardysShadow

hawkesbaynz wrote: »

... Now I am worried that the market is doing a double dip. Miffed that I only went into at the asking price as it was an easy sale. Considering going back on Thursday (I will give them a day's grace) and telling them that we will walk unless the price is dropped £10K.

My wife has already told the EA that we will walk if it doesn't happen by Wednesday - she thinks that it is 'fate'.

What do the forumites think?

You must think very carefully about your objectives here. You are muddling up 2 issues

• Your regret over the asking price offer
• Your vendors messing around and delaying exchange

If you cut the price on them without notice, you will only succeed in launching another topic of argument into the situation. It might get you a reduction in price, but it will take you even longer to get to exchange.

If you want to conclude the exchange quickly, then you actually need to hold your offer, but set a deadline of say 10 or 14 days to exchange, after which the offer is reduced quite substantially. And hope that this focuses their minds on getting the best deal over and above screwing each other financially. This message probably needs a few days to sink in.

If you really regret your offer, walk away and start afresh.

Unfortunately your wife has delivered a message to the EA before your thinking is complete - this will tend to muddy the waters when you might really require the clearest of messages to go to the vendors. Of course if you are happy with dropping out on Wednesday for your own purposes, then fine. But if you are trying to influence 2 warring parties, you cannot expect them to react rationally immediately - the message needs time to sink in.

hawkesbaynz

Thanks for the advice.

Today told that their finances had been sorted. Their solicitor told ours that we would complete on Friday. Money was requested from building society. He then says he is too busy and can he do it next week. Friday was a possible completion date when it fell through two weeks ago.

We said we had been mucked around enough - it had to be Friday! Solicitor tells me he has been trying to get a 'man and van' for the vendor - the house is almost empty anyway. However cannot find anyone. I had said that he could leave some stuff in the garage.

Remembered I know a 'man and van' and profer his number. Phone chap later to find out that no one has contacted him and he is available!

Will go back tomorrow (solicitor needs to know early to stop telegraphic transfer from my building society) and suss out the situation. If it is 'can only do it next week' I will drop the price for completion next week.

Ever heard the term '!!!! on my back and tell me it is raining'?

Yes I know I like the house but it is going beyond that.

geoffky

i think you have been very very charitable with your money...

xyellowx

why rush in with a £259k full price offer?
sounds to me that you have realised your mistake and regret the full offer you have 2 options now

1 pull out lose survey fees/solicotor fees but save the stamp duty

2 buy the house knowing you have been a bit silly in offering the full amount

hawkesbaynz

I was quite happy to pay full asking as the house was worth it. I did state that we demanded an early completion (not the case now). Had lost houses in the estate for very close to asking. It had only been on market few days.

Difference now is that I am mucked around. Third completion date not been honoured.

I will phone at 9am and tell them that if not completed, and out, by Friday I will pull out or drop to £249K. Give them one hour. If leave it longer will not be able to stop/start funds from Building Society.

Fang_3

Why bother telling them that? Just say that due to the messing about that you will now only pay £249K and that's only if it's completed by Friday.