Am I being unreasonable?

iSilent101

Hi MSE, just looking for some opinions to help calm my nerves.

So me and my partner (FTBs) have offered £320,000 for a property that we really like. The lender approved the mortgage and valued it at the offer price.

However, our homebuyers survey came back with a valuation of £300,000. As we really still liked the property, we decided to get a second independent valuation completed from a more local surveying company. It also came back at £300,000. When we looked at the comparables, we saw a flat in the same block was sold for £295k in August 2021 (not yet in land registry but confirmed with estate agent that sold it). The flat is on the ground floor, ours is the first floor. But it has the same floor plan.

When we made the offer, we did this thinking the lease was 110 years, as this was confirmed by the estate agents and seller. However, we have since found out the lease is 99 years.

Considering all of this we decided to try and renegotiate the price to be £310,000. The seller is very unhappy and is refusing to budge.

Are we being unreasonable?

Copstaasty1234

What was it initially listed at? 

Brie

Considering all of this we decided to try and renegotiate the price to be £310,000. The seller is very unhappy and is refusing to budge.

I think is the thing that would bug me for a really really long time.  I'd always be saying "we have always loved the place but think we got done on the price, you know the flat below....."

ReadingTim

Negotiation is an art not a science, therefore reason doesn't come into it.  You have one price in mind, the seller has another.  You either arrive at a price which both of you can accept, or you you don't and the sale doesn't happen.  

Best you can do is 'show your workings' ie explain how you arrived at your revised offer and suggest that as it's based on 2 valuations of £300k, any other buyer may encounter the same issue, and offer a similar price to yours, so why not accept your offer now?  The vendor may or may not believe this, or prefer to test the theory with another buyer.  They may believe it subsequently, or get lucky with a buyer who doesn't need a mortgage, or only needs a smaller one where a downvaluation isn't an issue.  

However, there is no magic wand of reasonable-ness which you can wave over a seller to make them roll over and say "it's a fair cop guv, you've got me banged to rights...".  Sorry if this isn't what you want to hear.  

iSilent101

hannahcolobus said:

What was it initially listed at? 

£340,000 and then reduced to £320,000 in November. We made our offer in December and before our offer, the highest offer she received was 315,000 which she declined.  

dodo1990

You are not being unreasonable, no. Seller should be taking a hint that it was overpriced at £340k and not selling in a strong seller's market. If you only want to pay £310k then say your offer is valid for 10 days else you are withdrawing. If you are ok with paying £320k, just continue with that.

Side point - I would never recommend buying a leasehold if you can avoid it. They are a nightmare to buy and sell and sellers actively avoid chains with them on. I'm not sure where you are but would your budget get you a house instead?

johnny182

iSilent101 said:

the highest offer she received was 315,000 which she declined.  

That's probably why they are not budging. You're not being unreasonable but your only option would be to pull out if they don't accept the revised price. Did the survey come up with any issues at all?

iSilent101

ReadingTim said:

Negotiation is an art not a science, therefore reason doesn't come into it.  You have one price in mind, the seller has another.  You either arrive at a price which both of you can accept, or you you don't and the sale doesn't happen.  

Best you can do is 'show your workings' ie explain how you arrived at your revised offer and suggest that as it's based on 2 valuations of £300k, any other buyer may encounter the same issue, and offer a similar price to yours, so why not accept your offer now?  The vendor may or may not believe this, or prefer to test the theory with another buyer.  They may believe it subsequently, or get lucky with a buyer who doesn't need a mortgage, or only needs a smaller one where a downvaluation isn't an issue.  

However, there is no magic wand of reasonable-ness which you can wave over a seller to make them roll over and say "it's a fair cop guv, you've got me banged to rights...".  Sorry if this isn't what you want to hear.  

Yeah, you're right. I guess we're just looking for reasons to make us feel comfortable with our decision.

Mahsroh

No, you're not being unreasonable. 2 valuations (including that of your lender) have the price at £300k. You're now offering to make up half the difference.

What your vendor needs to realise is that if they don't budge and remarket the property, they will likely encounter the same problem with the next buyers, but given that (I assume, being a flat) it's likely to attract FTB's, most wont have the luxury of being able to make up a £10k shortfall, let alone £20k. 

iSilent101

dodo1990 said:

You are not being unreasonable, no. Seller should be taking a hint that it was overpriced at £340k and not selling in a strong seller's market. If you only want to pay £310k then say your offer is valid for 10 days else you are withdrawing. If you are ok with paying £320k, just continue with that.

Side point - I would never recommend buying a leasehold if you can avoid it. They are a nightmare to buy and sell and sellers actively avoid chains with them on. I'm not sure where you are but would your budget get you a house instead?

She's actually told us that we have till midday tomorrow to agree with £320,000 😅. We'd love a house but a flat is all we can afford atm

ReadingTim

iSilent101 said:
 

Yeah, you're right. I guess we're just looking for reasons to make us feel comfortable with our decision.

The only person you need to get to feel comfortable with your decision is the vendor - what you, I, or "the internet" in general thinks or feels doesn't really matter...