negotiating down on house we're buying when new, lower offer accepted on our flat

dragonballz3

Hi there, wondered if anyone can give us any advice.
Our flat went on market in feb- we got full asking price from ftb in 2 days. Had offer accepted on dream house at full asking price (bidding against another buyer - found out since, this was a real, not made up fictitious one) Survey etc took place on both properties - we were just waiting to exchange, then our buyers fell through last month. So our flat went back on market and house we are buying, also went back on market immediately. Since then we have had 3 further (accepted) offers- 2 have fallen through almost straightaway, but most recent one yesterday possibly more promising - although £25,000 lower then asking price but she wants to exchange in 4 weeks. So, the question is, as the house we are practically ready to exchange with has had no offers yet, we are still hoping to proceed with it- but should we try to negotiate the extra £25,000 off? When their survey came back it was valued at £25,000 lower anyway but didn't reneg then) and just last week another (chain free) house has come up on the same road at the same price but with 2 more (v small ) bedrooms and extra bathroom and shower room) but whole house would need re-doing and prob cost £70,000? It's not ideal as I have a chronic illness and also 2 v young children , plus I prefer the aspect and views from the first house but my husband thinks we should use this as a key tool to negotiate down. I'm just not sure of the best way to go about this. We want to move in next few months so time is key! Oh, also, it's the same EA selling our property and the one we are buying!
Any advice would be much appreciated. Thanks

Mickygg

There is no harm in asking. My friend did this and they agreed on a reduction due to the start of the chain reducing cost at the last minute. However bear in mind there are people (me included) where if a price is agreed then that's the price so take it or leave it. I have told my ea that if there is any silly reducing price at the last minute I will no longer sell to that person and put back on to the market, even if it's for a 1k reduction! So it's a risk as who knows what the seller in your position will do.Also 25k is a hell of a lot of money to hit at the last minute.

dragonballz3

Yes, that's our worry- but it's not quite at the last minute -their house is still on the market - and I'm not sure we would expect the whole £25,000. It seems to be a slightly different market from what it was in February and looks like our flat has reflected that, rather then us just being greedy - if you see what I mean?

cattie

It could all depend on the position of the vendors of the house you want to buy. If they had already found a property and would still like to be able to proceed with that, then they might be willing to reconsider price to enable you to buy and them get the house they want.

If the house came in at a £25k under valuation anyway, I can't see that they should really consider you cheeky. Often when part of the chain breaks down and a new buyer steps in at a lower price, everybody along the chain will agree to adjust their sale price to keep the chain intact and proceeding.

Good luck.

Scabarella

cattie wrote: »

It could all depend on the position of the vendors of the house you want to buy.

I agree if the vendors are in a position to move quickly, the 4 weeks could be a massive selling point, also if there is another house on the same street the vendors may be getting a little nervous.

It's worth asking the question!

Best of luck with it

dragonballz3

Thanks- yes, they have someone waiting for them which is where the chain stops. And as far as we know, no offers- none proceedable anyway. Once we have our buyer checked out is it worth going in asking for the full £25,000 Off and see? Or will that enrage them!!!

dragonballz3

Ps we had suggested giving them a waiting deposit while we remarketed ours so we didn't lose their house , but they didn't go for it and wouldn't even wait a week before they put theirs back on- somehow, it makes us feel that we tried everything we could - and slightly more justified to re-neg?

somethingcorporate

dragonballz3 wrote: »

Ps we had suggested giving them a waiting deposit while we remarketed ours so we didn't lose their house , but they didn't go for it and wouldn't even wait a week before they put theirs back on- somehow, it makes us feel that we tried everything we could - and slightly more justified to re-neg?

Why? because they were not "loyal" to you by waiting for your house to sell? They owe you nothing - it is a purely business transaction and I (and most other sensible sellers) would treat it the same. The moment your original buyers fell through you were not in a proceed-able position so why would they wait when it could have taken you months or years to find another buyer.

I think using this as a reason to renegotiate shows how naive you are in the process.

On the other hand the new house could certainly be used as a bargaining chip but is it actually bigger? or just has more rooms? If the latter it's hardly something reasonable to negotiate about. I'd rather a house with fewer, bigger rooms than an ex-HMO where every cupboard is now a "bedroom.

pararct

If a house has been professionally surveyed and valued at £X and that figure is substantially under what you offered then you would be mad not to try and renegotiate.

Simple economics, why pay more than the value of an item when you don't have to? There is only one exception to this where this particular property is so unique it commands a little premium but even then the figure you are talking about here is pushing it a bit....

Treat the vendors as business associates and try and renegotiate, if they won't play ball then walk away they will have the same problems with the next lot to offer on their property.

dragonballz3

I didn't say we would use that as a point to renegotiate though somethingcorporate.I'm just adding a bit more to our story - It's pretty hard to keep emotions out of it- which is why I'm seeking advice. It's not in our nature to drive a hard bargain, but I'd prefer to think that rather than just keeping quiet, if asking the question is a reasonable thing to do, then we should. And yes the house is much bigger- it's a semi, not terrace and has a drive.

DVardysShadow

somethingcorporate wrote: »

Why? because they were not "loyal" to you by waiting for your house to sell? They owe you nothing - it is a purely business transaction and I (and most other sensible sellers) would treat it the same. The moment your original buyers fell through you were not in a proceed-able position so why would they wait when it could have taken you months or years to find another buyer.

I think using this as a reason to renegotiate shows how naive you are in the process.

I disagree. I have quite a bit of sympathy for Mickygg

Mickygg wrote: »

.... However bear in mind there are people (me included) where if a price is agreed then that's the price so take it or leave it. I have told my ea that if there is any silly reducing price at the last minute I will no longer sell to that person and put back on to the market, even if it's for a 1k reduction!

but if the house goes back on the market, the vendor is saying that the deal is off. It might not be well received, but a lower offer in such a situation is fair enough. By going back to the market, they are in any case accepting that offers might come in lower.