Lowering offer before being accepted

Aussieinscotland

Needing some advice.

We are buying our first home and put an offer in on a property owned by the police that went to closing date in Scotland

We were keen to get the property as had a lot of potential although had been empty for 6 years. We offered £5k over guide price which was market value. (Really should of probably offered £10k under but since was closing date we really wanted to secure it) Closing date was 5th April and we stipulated verbal acceptance with in 24hrs and written by 14th April. Neither of these have happened, but have been informed needs to go to the police commissioner to have final acceptance. We were told should be accepted as we put in the only offer.

Given the circumstances would it be acceptable to lower our offer? We are chain free and keen to settle ASAP.

All advice appreciated

glasgowdan

If yours is the only offer, and you don't mind possibly losing it, then of course change your mind.

davidmcn

Aussieinscotland wrote: »

Given the circumstances would it be acceptable to lower our offer?

It's not "acceptable" in terms of being the done thing. But in theory everything is negotiable until missives are concluded.

However, if the only "circumstances" are that you've now realised you weren't bidding against anyone else, then your solicitor shouldn't accept instructions to lower the price:

Solicitors acting for prospective purchasers of residential property whose offer is accepted – either verbally or in writing – should withdraw from acting if the client subsequently wishes to re-negotiate the price dowvnwards without having made the offer subject to a satisfactory valuation or survey or obtaining satisfactory finance. If there is a valid issue arising out of an unforeseen problem with the title that would not require the agents to withdraw.

(from the Law Society's professional guidance)

So you'd need to either find a good excuse or a new solicitor.

unforeseen

Being Scotland isn't the price set once the offer is accepted?

davidmcn

unforeseen wrote: »

Being Scotland isn't the price set once the offer is accepted?

An offer being "accepted" doesn't usually mean much more than it would in England i.e. merely that the price is in principle acceptable, not that there's a contract in place. That will generally occur at an earlier stage than it would in England. Until then in theory everything is negotiable, but gazumping/gazundering are frowned upon much more than south of the border (hence the solicitors' professional guidance I quoted).

JP1978

davidmcn wrote: »

It's not "acceptable" in terms of being the done thing. But in theory everything is negotiable until missives are concluded.

However, if the only "circumstances" are that you've now realised you weren't bidding against anyone else, then your solicitor shouldn't accept instructions to lower the price:



(from the Law Society's professional guidance)

So you'd need to either find a good excuse or a new solicitor.

It appears to me from the OP that the offer is not yet accepted so the above from the guidance is a moot point.

The OP again appears to have made an offer based on conditions, neither of which the seller has met - so yes, in my opinion, offer lower. If its still the only offer then what have you got to lose.

Aussieinscotland

Thanks for the guidance. Jp is right the offer is yet to be accepted and they have not met my terms I which the offer was made.

Would that change your opinion David?

davidmcn

Still smells of gazundering to me, given you've been told yours was the highest offer at the closing date.

The time limit is to enable you to walk away (without being surprised by an acceptance weeks later), not to indicate a point at which you're entitled to renegotiate the price.

Pixie5740

Run it by your solicitor on Tuesday and hear what (s)he has to say on the matter. I would be surprised if (s)he let you reduce your offer though.

Aussieinscotland

Thanks for the info. Given the information we will stick with where we went in.

glasgowdan

As above, you're welcome to drop your offer. It's up to you 100%. Even if the seller accepts this first offer, you can reduce it later if you like. You don't HAVE to stick to it, for ethical or other reasons. Scotland or not, you're not bound until quite late in the day.

A company/organisationally owned house is less likely to have issues with emotional sellers. If mine was the only offer, I'd HATE to be paying thousands over the guide/market price.