Stupid needs MSE's help re: Offer accepted.

random-wanderer

Hi, I am guilty of being stupid. I just put in the highest offer for a house having not looked at the home report etc (there is a story) and discovered that it is worth 12k less than I offered and there is quite a lot of cat 2 work that needs doing to it. I'm (now) aware of the buyer aware law stuff.

I'm thinking we should visit it (yes, you read right we didn't even view the place, again, there is a somewhat valid story) and decide whether or not to cut our losses and remove the offer. The thing is, I really like the place, its in Scotland (which of course you will all know has different rules) and its been so hard finding somewhere that seemed right (have been looking for approx 1 year and missed a couple of lovelies) that this time I jumped in...so, what room is there for improving our situation if we do want it? My sister said there was all sorts of stuff that could be negotiated, especially if work needs doing to it. How do you go about doing that? Are there openings in the Scottish way for lowering your offer?

"Frilly" bits (longer story)

I saw it the night before the offers were closing so wanted to act quickly. After talking with my husband the original plan was a far lower offer than what I made. 7k lower than the offer I made to be precise. Because we had to act quickly the estate agent forwarded me to a solicitor to act on our behalf. I told the sol our number and she said that I'd be better going up 4 or 5k and so I went up 6.8. Incidentally in her email she simply said that she advised to go above our original offer.

Every person I spoke to from estate agents to solicitors, I told I had no idea what I was doing and needed their advice and guidance about what to do. No one suggested viewing the home report....perhaps my honesty got me into trouble?...I just didn't believe the housing market was like that...I'm still not 100% certain that I was talked up deliberately I just think people weren't listening to me (saying I didn't know) and didn't realise how stupid I was.

Why am I buying in such a hurry and not renting etc?...I've been looking for renting, but a mortgage is much cheaper, I need to be there and settled by next Feb so I can commence my studies. There's a few more frilly bits to this too but I shan't bore anyone.

Anyway, what are your thoughts (aside from "sh*t your so stupid" haha), tell me things...

Thanks everyone.

comeandgo

In Scotland it is priced to reflect any work needing done to it so you can't use that as a negotiating hand.

Lord_Baltimore

I admire your honesty random-wanderer; hopefully, this will go some way to sparing you the good telling off you might otherwise get!

There are people here who know how things work in Scotland. Good luck (and in your studies)! And now you've found this forum, ask before you leap eh?

davidmcn

Cat 2 items tend to be pretty standard routine maintenance stuff and sometimes sound scarier than they actually are. And depending on the area/type of property, if it's going to a closing date then you probably have to pay more than any conservative valuation in order to outbid everyone else.

After a closing date, attempts to renegotiate the price aren't going to be taken well - you might not have been much above other offers (though you're unlikely to find out how far ahead you were). Also there are professional rules which mean your solicitor ought to stop acting for you rather assist with renegotiating the price.

random-wanderer

"assist with renegotiating price" ...so that is an option?

I shall be very relieved if it is. What do people know about renegotiating prices, when is it good/acceptable? when is it bad/non-acceptable? do's and don't's etc.

Many thanks

Pixie5740

You don't have a good reason to renegotiate. The home report was available to you before you submitted your offer. If you decide to try and renegotiate your solicitor will probably have to withdraw and if I were the vendor I would tell you to do one.

It's not acceptable to try and renegotiate unless your offer was made subject to a satisfactory valuation or survey or obtaining satisfactory finance and your survey then discloses an issue that warrants a renegotiation of the price but really that survey would need to unearth something that wasn't on the home report.

https://www.lawscot.org.uk/rules-and-guidance/section-f-guidance-relating-to-particular-types-of-work/division-c-conveyancing/guidance/gazumping,-gazundering-and-closing-dates/

cr1mson

It depends on the area of Scotland but in some areas it is quite common for houses to go above their home report value. We bought our house before the home report's came in so had it surveyed prior to offer. It valued well below our offer and we only just got it. My Mum also paid above home report value for her house.

I think your best bet is to speak to your solicitor but a renegotiation is highly unlikely as if it has gone to closing dates they would probably just accept the next most suitable offer (may not be highest). I would suspect that if you pulled out it may put any future purchase at risk too if future sellers were aware.

Basically my advice is speak to your sols asap.

scottishgirl87

Surely until missives are concluded you're not legally bound to buy the property so can pull out of the sale?

Pixie5740

scottishgirl87 wrote: »

Surely until missives are concluded you're not legally bound to buy the property so can pull out of the sale?

The OP isn't talking of pulling out of the sale but trying to renegotiate the price.

random-wanderer

Yes, the trouble is I really like it, but my sol talked me up far higher than I think they should have done. 7k higher than my planned offer. i'm learning that I probably just have to go with it, but am also feeling reassured by people saying its normal and the cat 2 stuff is minor. Seems things may be ok after all ?

Pixie5740

Your solicitor should have knowledge of the local market. If (s)he suggested putting an offer in that is £7k higher than the home report value then that's probably because properties in that area are going for that much over the home report value.

Whether the property is right for you remains to be seen. You still need to view it. Do you know the area the property is in well?

Are you aware that the mortgage lender is going to base the LTV on the home report value? This will either result in you having a higher LTV or stumping up another £7k on top of your deposit.