Buying - Should and can we amend our offer?

TomHM

Hi folks - hoping for some advice!

We're midway through buying a flat. We were told by the seller's estate agent not to delay things with a homebuyer's survey, among them yelling at us for doing the standard checks... we got a survey anyway, and so found damp, blown render, that the parking isn't legal, a few other things.

After a month's silence from the sellers, we now have surveys being carried out, and will likely tweak our offer depending on the costs there.

However, we're also looking at the overall market, seeing talk about potential drops in the market of 10-20%, and the huge jump in rates (though we have a 2 year fixed rate)

Are we making a mistake by buying now? Can we legitimately suggest a % price reduction plus the cost of repairs, especially given the delays from their end, or are we over-reacting? 

Thanks in advance!

canaldumidi

Legally, you can amend your offer at any time, by any amount, prior to Exchange of Contracts.

Morally, there is a 'gentleman's agreement' on the price, and it is bad form to amend your offer without good reason.

If the survey shows up costly issues which were not previously apparant to you, that's a good reason to negotiate a new price based on the cost of required repairs.

Seller may or may not agree

'shouting at you'? Ignore the estate agent's advice and do what you need to do.

aoleks

TomHM said:

Hi folks - hoping for some advice!

We're midway through buying a flat. We were told by the seller's estate agent not to delay things with a homebuyer's survey, among them yelling at us for doing the standard checks... we got a survey anyway, and so found damp, blown render, that the parking isn't legal, a few other things.

After a month's silence from the sellers, we now have surveys being carried out, and will likely tweak our offer depending on the costs there.

However, we're also looking at the overall market, seeing talk about potential drops in the market of 10-20%, and the huge jump in rates (though we have a 2 year fixed rate)

Are we making a mistake by buying now? Can we legitimately suggest a % price reduction plus the cost of repairs, especially given the delays from their end, or are we over-reacting? 

Thanks in advance!

here we go again...

can you tell me exactly when this drop will occur and what type of properties will be affected?

t1redmonkey

It depends on how it was priced compared to other similar properties in the area, if it was much lower, then maybe they priced it with those defects in mind.  If they priced it about the same, then I would try and get it lower personally.  Getting the render re-done is quite expensive these days (in the thousands but will vary depending on the area that needs redoing).

TomHM

canaldumidi said:

Legally, you can amend your offer at any time, by any amount, prior to Exchange of Contracts.

Morally, there is a 'gentleman's agreement' on the price, and it is bad form to amend your offer without good reason.

If the survey shows up costly issues which were not previously apparant to you, that's a good reason to negotiate a new price based on the cost of required repairs.

Seller may or may not agree

'shouting at you'? Ignore the estate agent's advice and do what you need to do.

Thank you for the advice!

Yes, we don't want to just drop our offer in a 'gazundering' way - but nor do we want to end up in negative equity due to manners.

Of course, if we could've gotten a better price at a different time, that's just how it is!

DE_612183

Price falls and rises are subjective - depending on the area / type of property they can vary.
I remember the last "slump" so properties in the area I lived in were more or less unaffected - they may have stopped rising as fast - but bid not drop...

Section62

aoleks said:

TomHM said:

Hi folks - hoping for some advice!

We're midway through buying a flat. We were told by the seller's estate agent not to delay things with a homebuyer's survey, among them yelling at us for doing the standard checks... we got a survey anyway, and so found damp, blown render, that the parking isn't legal, a few other things.

After a month's silence from the sellers, we now have surveys being carried out, and will likely tweak our offer depending on the costs there.

However, we're also looking at the overall market, seeing talk about potential drops in the market of 10-20%, and the huge jump in rates (though we have a 2 year fixed rate)

Are we making a mistake by buying now? Can we legitimately suggest a % price reduction plus the cost of repairs, especially given the delays from their end, or are we over-reacting? 

Thanks in advance!

here we go again...

can you tell me exactly when this drop will occur and what type of properties will be affected?

The key word in the BiB is probably "talk".  So expectations of exactness are possibly ill-founded.

Rich2808

Ultimately its your personal call. How wedded are you to this particular flat - its a flat in the end not a dream pile in the country.

It has damp which wasn't disclosed and you have identified the parking situation is not as originally implied by the seller/agent - so you have the case to negotiate as you can argue the seller/estate agent has potentially misled you. I presume the solicitor has checked out the parking issues - and parking if you need a car for work etc can be a huge issue.

You are buying a property which you will live in - and may take 25 years of your life to pay off. You aren't buying a kettle.

In the end - how badly do you want this particular flat? Its impossible to say what may happen to house prices - but in the end there are only two prices which matter - the price of the property you want to buy and the one you are selling.

Are you that in love with it you are willing to risk living in a damp place in winter and can't park there. If not - proceed - if yes negotiate down or walk away. Flats are usually always in supply - are there similar flats in large volumes going for sale in your area?

MaryNB

TomHM said:

canaldumidi said:

Legally, you can amend your offer at any time, by any amount, prior to Exchange of Contracts.

Morally, there is a 'gentleman's agreement' on the price, and it is bad form to amend your offer without good reason.

If the survey shows up costly issues which were not previously apparant to you, that's a good reason to negotiate a new price based on the cost of required repairs.

Seller may or may not agree

'shouting at you'? Ignore the estate agent's advice and do what you need to do.

Thank you for the advice!

Yes, we don't want to just drop our offer in a 'gazundering' way - but nor do we want to end up in negative equity due to manners.

Of course, if we could've gotten a better price at a different time, that's just how it is!

What % deposit you are putting down? How long do you intend on living there? Long term, house prices are only going one way so if you're there for a while you'll ride out any dips in the market. After the major crash in 2008, on average UK house prices rebounded to pre crash levels by 2014. People who were in negative equity in 2008 were still better off than those who entered the market post 2014. 

What if they refuse the reduction? Will you drop out? Are there other cheaper properties you can buy?

For what it's worth, I was told by a colleague I was silly to buy in late 2020. Some people were convinced a large crash was imminent. I decided that I was sick of renting, my work was secure for a few years, I was planning to buy a property to live in for the long term and I had a decent deposit so could handle a small decrease in house prices. I am SO relieved I bought then. If I waited a year I wouldn't be buying a house where I did, I'd certainly be buying a flat much further out. If it's your home it has more than financial value.  

Thrugelmir

TomHM said:

After a month's silence from the sellers, we now have surveys being carried out, and will likely tweak our offer depending on the costs there.

Late in the day to start having surveys performed. Should be undertaken early in the process. Vendors may question how serious you are. Changing your offer may impact their ongoing purchase. 

TomHM

Thrugelmir said:

TomHM said:

After a month's silence from the sellers, we now have surveys being carried out, and will likely tweak our offer depending on the costs there.

Late in the day to start having surveys performed. Should be undertaken early in the process. Vendors may question how serious you are. Changing your offer may impact their ongoing purchase. 

To be clear, we commissioned a homebuyer's survey four days after the offer was accepted. The surveys now are to get quotes to repair issues identified.

And thank you all for your thoughts - do keep them coming, they're all very informative!

We're not wedded to this property - mainly just want a garden, some stability, and to be on the ladder!