renegotiating the agreed price, STC

JB675

Hi there.
I've had an offer accepted on a house purchase for £380k, so we're at the STC stage. But it has now emerged from the seller's information pack that there are plans for a housing development on the field opposite. The land is owned by the developer and the local planning policy is highly favourable to building (although the Parish Council will do its best); so it is a case of when, not if, it will be built on.


We specifically asked about that field when viewing, and at the time these plans had not been proposed, even if we suspect that the sellers had some idea about it.


I'd imagine this provides grounds to renegotiate on price, but what sort of reduction should we be asking for? Impact is likely to be increased traffic, view, pressure on local services & infrastructure and in the shorter term noise.
Cheers.
JB

mije1983

JB675 wrote: »

what sort of reduction should we be asking for?

How much would you have offered if the development was already there? There's your answer.

Would you be happy to lose the property if the vendor doesn't want to negotiate? If you are, you can push harder for more of a reduction.

It's almost impossible to give a definite answer as you know the area best, and I think it's quite a subjective thing anyway.

kinger101

I suspect it was always a case of when, rather than if. Especially if the land was owned by a developer.

How much do you want the house? You're flipping a coin.

JB675

"How much would you have offered if the development was already there? There's your answer."


Well the asking price would have been lower, but as you say it's subjective as to how much.

"Would you be happy to lose the property if the vendor doesn't want to negotiate? If you are, you can push harder for more of a reduction."

Good point. I wouldn't like to say at this point, don't have all the details of the development anyway. But I'd guess the seller would have to drop their price for any other buyer, now that there are these definite development plans. Food for thought, cheers

kinger101

JB675 wrote: »

Good point. I wouldn't like to say at this point, don't have all the details of the development anyway. But I'd guess the seller would have to drop their price for any other buyer, now that there are these definite development plans. Food for thought, cheers

As you're so unsure, and you're the one who wants the house, knows where it is, and have presumably done some research on the area........what makes you think random internet people are in a better place to "say"?

It sounds like you're on thin-ice to be honest.

AdrianC

JB675 wrote: »

"How much would you have offered if the development was already there? There's your answer."

Well the asking price would have been lower

Irrelevant. The question was how much YOU would have wanted to pay, not how much the vendor would ask.


Really, you should be thankful that the plans have been submitted before you exchange, rather than after.


If you want to protect the view, you need to own it.

lookstraightahead

I don!!!8217;t think it!!!8217;s a negotiating point I think it!!!8217;s more of whether you want to live opposite a new delevlopment or not. And then buy or pull out.

G_M

Do you still want to live there? If not, withdraw.

If yes, are you willing to pay the agreed price, given that a development will be built in the field?

If not, how much are you willing to pay?

System

I guess the one issue would be potential loss of equity if the new development had a significant impact on the future value of the property. You can't predict what that would be, so you can't really negotiate on that basis. As others have said, you either pull out because you no longer want the property, or offer your best and final offer based on the new information. If they decline, walk away. If you still want it, pay the price they are willing to accept. If there where houses built there now, would you still want to live there?