Re-negotiate price

beepat1

Hi,
My bid on a property i have placed has been accepted, and is in the progress of the buying process.  In the current economic market, I would like to know how can i re-negotiate the price.  In addition the property needs full gutting and rework internally.  Any ideas on how i could approach this matter, and when it would be advisable to discuss with the agent please?

Many thanks for your advise.

Thrugelmir

Ring the Agent and tell them you've revised your offer price. The vendor will either agree, compromise or decline. The sooner the better before your costs mount further. Your solicitor will also need to obtain a revised mortgage offer. 

beepat1

Ok thank you.  Is it better to email them or over the phone?

Thrugelmir

Personally I'd speak to them on the telephone. Though there's no need to go into detailed justification behind your decision. 

dunstonh

Effectively, what you are doing is known as gazundering.  i.e. putting in an offer which is accepted and going back later to reduce it.     The possible outcomes here do include the vendor accepting your offer.  However, it can also result in the vendor getting irate and telling you to sod off and either put their price up or withdraw it from you (both scenarios occurred during the last period of gazundering).  If you play a game of poker, you need to accept you may win but you may lose.

beepat1

Thank you for your help. I will try this out.

ACG

If I were the vendor and you did this to me, I would give you 2 words (the second word would be "off") and I would put the property back on the market. 

You entered an agreement, albeit not legally binding but you are now going back on it despite lack of any evidence that property prices are dropping. There was a report out today from Zoopla saying that house prices and chains are holding firm, house prices are holding firm as none are completing so there is no data to say house prices are going up or down. But for me the most important bit is that people are not pulling out of the transactions at the minute which makes me think house prices in the main will hold out. But obviously it depends on what happens in the longer term. 

Just be prepared that you may win, you may find you get told there is no negotiation but you may also find that the property is put back on the market and they refuse to sell to you.

davidmcn

OP, how long ago did you make the offer?

Windofchange

We're ready to exchange contracts as soon as this virus does one, and are not going to renegotiate for many of the reasons cited above. We love the house, and remain happy to pay what we offered back in January. I guess if you don't really care about losing any money you have already paid out, and don't really care if you lose the property then why not - they can only say no. However, if you like the place and don't want to risk losing the money and time you have already spent, think very carefully before messing around with your offer, especially if you're only talking 5k or something paltry. What's the point!? 

beepat1

I made the offer in end of October, in good faith at that time.  I agree with your comment, however the economy is down and unsteady, less people putting property on the market, and fewer mortgage approvals. 

Unicorn_cottage

beepat1 said:

I made the offer in end of October, in good faith at that time.  I agree with your comment, however the economy is down and unsteady, less people putting property on the market, and fewer mortgage approvals. 

So what? Some people will say the economy has been unsteady for sometime. If it was me and you wanted to reduce the price now I would be absolutely livid. You could mess up a whole chain. You must be mad!