Lowering purchase price before completion (after offer accepted)

darrinm81

Hi,

I know this may attract some noise, but I am only asking to better understand the options.

An offer is accepted by the seller. Anything could happen on price until contracts are signed?

How much leeway does one have in paying less than the offer accepted price? And on what basis?

For example, initial agreement of £150k. Property is found to require repairs; or seller delays completion date. As a result buyer is out of pocket - for repairs; or alternative accommodation etc

Could the buyer ask for £x off?

missjy

When was the buyer made aware of these 'repairs'? Would it not have been at the survey stage? How essential are these repairs and why has the buyer waited to such a late stage to rectify them??

I am a FTB so don't know the costs involved in selling a house but surely if sale falls through them buyer has lots to lose too, eg - survey fee, conveyancing fees etc. Would the buyer risk these and risk losing the house??

sonastin

Buyer can ask for anything off. Seller does not have to agree. If you have a good reason and can justify why you're asking for £x off, you have a better chance of getting agreement.

experience08

darrinm81 wrote: »

For example, initial agreement of £150k. Property is found to require repairs; or seller delays completion date. As a result buyer is out of pocket - for repairs; or alternative accommodation etc

Could the buyer ask for £x off?

YES, go for it...it's a buyers market. On the other hand, the vendor could tell you to get stuffed and you lose the money you have spent on survey, searches, legal costs etc.

G_M

Depends which country you're in! England? Scotland?

Very different processes and systems.

ruggedtoast

It is ungentlemanly to renege on a deal. And I personally will do no business with an ungentleman.

JingleJangle

Why on earth would you ask the seller for a price reduction based on 'alternative accomodation'?

MacMickster

If you are talking about gazundering (demanding a drop in price just before exchange of contracts) then my reaction as a seller would be to raise the price due to the previous negotiations not having been conducted in good faith.

If, however, you are talking about additional negotiations following the survey revealing repairs being required of which you were not previously aware then that is a perfectly normal part of the process.

jonny_power

ruggedtoast wrote: »

It is ungentlemanly to renege on a deal. And I personally will do no business with an ungentleman.

Absolute rubbish:mad:

All offers are subject to survey. The house we're buying we were told when we viewed that it had been treated for damp and was under guarantee. When we had the survey it emerged there was still a damp issue, and after a few quotes we negotiated that they should pay for the work and have it done between exchange and completion because our offer was based on the clear fact that there wasn't a problem. They had 'lost' their guarantees and so have the DPC company, so we felt it was there problem to sort due to their own tardiness.

That's not being ungentlemanly IMO. If urgent issues come up, especially if you couldn't see them when you viewed the property, then I think it's perfectly reasonable to negotiate. If they aren't immediate issues, then you can still give it a go, but it's likely you'll have less of a chance.

I think it is unfair to do it right at the last minute after promising timelines and things. Always best to be open and not to put pressure on.

PJD

I, as a buyer, agreed a price, - but new information came to light from a survey, and I have since managed to re-negotiate a 7% reduction.

If you have good reason to, don't be afraid to ask the question, it doesn't automatically risk losing the deal altogether by trying to re-negotiate.

As said above, - it's a buyer's market, - buyers who are able to get a mortgage these days are hard to come by, many people selling at the moment testify to that.

shebanjoed

On a proprerty I have had an offer accepted on a refresh valuation has came back £10k less than that stated 12 weeks ago with an added urgent repair. I will be looking to re-negotiate as the terms have completely changed to my original offer. (Scotland btw).