Can we renegotiate after referendum

warby68

indianabones wrote: »

A lot of one sided and crap replies in this thread.

Firstly it's your money and a lot of it. If the market determines that prices are currently stagnating or even dropping in some areas, then you sure as hell should be trying to get a reduction.

As some of the others have pointed out though, if you do try to renegotiate be prepared to lose it.

I know people who were haggling over price and extra bits right until the exchange, in most cases a middle ground was found.

I've halted my search for a home until probably Oct/Nov this year when post Brexit we'll have a better idea where we are market wise, but if I were in your shoes I would definitely ask for a reduction. If they pull out then good luck to them. I've posted on this forum in the last 2 weeks plenty of links to houses coming back on the market or being reduced in Birmingham.

Some sellers like the ones on this thread won't like renegotiation, but if the market determines prices are coming down then they'll just have to suck it up.

Don't be put off by the people in this thread, you don't have to guess twice to figure out they're all homeowners with a lot of equity and made full use of the housing bubble that was created pre-2008.

Nope, you are wrong , about me anyway. We last bought in 2010.

I'm simply a little 'old-fashioned' and like to trust the people I deal with. If you try to vary the terms of a done deal(post survey), I simply would no longer trust you and prefer not to deal with you. If you do it now, you could do it again the day before completion. No, not everyone would 'suck it up' and its unwise to encourage the OP to do it just because you have some resentment of owners with equity.

The OP can try it by all means, but has to be prepared to lose the house/walk away.

adindas

warby68 wrote: »

Nope, you are wrong , about me anyway. We last bought in 2010.

I'm simply a little 'old-fashioned' and like to trust the people I deal with. If you try to vary the terms of a done deal(post survey), I simply would no longer trust you and prefer not to deal with you. If you do it now, you could do it again the day before completion. No, not everyone would 'suck it up' and its unwise to encourage the OP to do it just because you have some resentment of owners with equity.

The OP can try it by all means, but has to be prepared to lose the house/walk away.

This is exactly the tricks many cash buyers form big companies are doing. They will do it bit by bit and will try to knock down the price using any excuses even the one which is not reasonable or irrelevant ...

Thrugelmir

adindas wrote: »

This is exactly the tricks many cash buyers form big companies are doing. They will do it bit by bit and will try to knock down the price using any excuses even the one which is not reasonable or irrelevant ...

Remember some years having a "serious buyer" for a property I was selling. Out of the blue had a call from the EA. Buyers were reducing their offer as was going to cost £35k for remodelling the downstairs layout to their specification. EA said I think I know what you are going to say.......:rotfl:

sheff6107

AnotherJoe wrote: »

And then in September the seller asks for a 1.5% uplift "as thats how much house prices rise in September"

Exactamundo.

indianabones

warby68 wrote: »

its unwise to encourage the OP to do it just because you have some resentment of owners with equity.

The OP can try it by all means, but has to be prepared to lose the house/walk away.

Interesting, it's unwise for the OP or anyone for that matter to renegotiate. But it's wise to potentially be throwing away a lot of money by not renegotiating.

If the OP uses the current market as justification I see no issue at all.

Yeh he could risk losing the house but realistically what's the worst that can happen, they say no and you proceed with the original agreed price or if the seller don't like it, he says no and pulls out. Tell me, do you really think the vendor will pull out if it's the same price?

So to sum up, by asking for a cut off the original price, big or small, isn't that much of a risk is it?

adindas

indianabones wrote: »

So to sum up, by asking for a cut off the original price, big or small, isn't that much of a risk is it?

It is and warby68 has pointed it out in post #43

"If you do it now, you could do it again the day before completion. "

Also keep in mind if people has hard feeling to be treated unfairly, get insulted or feel slandered they will be thinking twice to continue dealing with you.

Put it on your shoes:
- If the seller is asking to increase the price before the exchange and mention the brexit is the reason. What are you going to do ??
- What about someday people are offering you a new job and verbal offer (not written in contract yet) that they offer you £X but a few days later they reduce it to £X-A which is just a few hundreds more then your current job and the reason is because they find something in your social network ...
- You have bought an item online £X and a few days later the vendor is asking you to pay more because the £ is weakening due to result of the referendum ??

Do you want to sign that new contact or just keep your old job with lower pay ?? Do not know about you but I prefer the latter ....

Of course in the situation like the OP it will depend how much s/he wants the house ?? If S/he is preparing to take risk loosing this deal and go ahead with the plan

Alpaca

Quite a few people in this thread are saying something along the lines of "if you don't like it, pull out". But that would be to miss the important point that there's a cost involved in pulling out to both buyer and seller. Abandoning this deal is not a "no regrets" step from either parties' point of view.

From the buyer's perspective, there's the cost of the time, money and hassle they've sunk into the deal so far and the risk that a new property may turn out to have issues that come up in the survey and searches and so on. So if they're at the point of walking away to buy something else that's on the market and is comparable but cheaper, they ought to be willing to pay something in between the cheaper option and their original offer on this property because of the costs to them of giving up on this deal.

From the seller's perspective, there's the cost of time to re-market and find a new buyer and given that, as the OP stated, similar properties are now going for less, there's a risk that subsequent buyers won't be willing to pay the price that they originally agreed with the OP. So, if they're at the point of losing this buyer, the seller ought to be willing to drop the price a bit because of the costs to them of giving up on this deal.

In other words, if, because of what's going on in the market, the buyer would genuinely be willing to pull out, then it makes sense from both parties' points of view to re-negotiate to a price that's lower than previously agreed.

Which begs the question, why don't more people see it this way? I guess the answer might be to do with the fact that as humans we don't always act only according to what makes sense considering purely rational and economic considerations. Feelings and emotions come into things as well - in fact you only need to look at some of the responses in this thread to see there's quite a bit of emotion involved here!

warby68

indianabones wrote: »

Interesting, it's unwise for the OP or anyone for that matter to renegotiate. But it's wise to potentially be throwing away a lot of money by not renegotiating.

If the OP uses the current market as justification I see no issue at all.

Yeh he could risk losing the house but realistically what's the worst that can happen, they say no and you proceed with the original agreed price or if the seller don't like it, he says no and pulls out. Tell me, do you really think the vendor will pull out if it's the same price?

So to sum up, by asking for a cut off the original price, big or small, isn't that much of a risk is it?

The risk depends on how much you want the house - I can't make it any plainer. You can chance it but the vendor may well tell you to shove it (and any hastily reinstated original offer) where the sun doesn't shine. They can, and do do that.

Have you bought and sold much?

bigfreddiel

abankerbutnotafatcat wrote: »

The FTBers at the foot of our chain renegotiated after Brexit - the selling agent advised his clients that their property wouldn't now achieve the same price it had done in Spring but that the requested reduction was about twice the market decline so it was half met. We accepted a reduction to keep our buyer but couldn't pass it on even in part and as we felt we too were paying a premium from Spring that is no longer market we decided we couldn't absorb the reduction so withdrew our offer to avoid being vulnerable by buying at potentially the top of the market but receiving a post-Brexit price.

I don't believe it! Prices where I live have gone up since BREXIT. These agents just speak a load of old cobblers! fj

Mickygg

indianabones wrote: »

Interesting, it's unwise for the OP or anyone for that matter to renegotiate. But it's wise to potentially be throwing away a lot of money by not renegotiating.

If the OP uses the current market as justification I see no issue at all.

Yeh he could risk losing the house but realistically what's the worst that can happen, they say no and you proceed with the original agreed price or if the seller don't like it, he says no and pulls out. Tell me, do you really think the vendor will pull out if it's the same price?

So to sum up, by asking for a cut off the original price, big or small, isn't that much of a risk is it?

Of course it is a risk. People like me would not continue to sell to someone asking for a price drop due to fear factor brexit. Would be too risky as I would suspect before exchange they would insist on a reduction. I would remarket it is that simple.

Stop telling people there isn't much risk when renegotiating price because of fear factor brexit when of course there is a good risk the seller might not sell to you!!!