Offer accepted! but surprise across the street

CADL

Hi there,

I'm a FTB, who got an offer accepted on a flat in London - I was obviously really happy, until i discovered that the estate agent "forgot" to mention that there's a very large development that received planning permission right across the street (I discovered it by doing my own research, and I did ask them about the neighbourhood when viewing the property), with an expected 4-year construction timeline, leading to increase foot traffic during day and night, noise disturbance etc. I now feel like that was hidden from me, and I'd be right to negotiate a lower price, as this would definitely impact the property value, at least in the medium-term. 

We're still early in the process and haven't even done the Survey yet, but what advice would you give me?

Thanks!

movilogo

You can pull out until before contract exchange time. Only you can tell what you want. 
You can also try to reduce offer based on this discovery. Vendor may or may not accept that.
If you are happy to walk away, you can try anything you want. 

Flugelhorn

this is what the searches are for - no-one will tell you what is planned in an area, it is up to you and your legals to find this out. it is possibly the reason why they were moving. 

you can try to reduce the price or start looking for somewhere else 

pinkshoes

Estate agents sell many properties so won't generally know things like that.

If you don't like the idea of living opposite a building site for 4 years then walk away.

Bendy_House

CADL, what is there at the moment? And what will the development look like?

I'd lay odds that the development will be a significant, perhaps dramatic, improvement on what's currently there, so will/should make your street more desirable, and the value of your flat go up.

That's the potential other side of the coin

shorley_wall

Agents have an obligation to reveal information that may affect your decision, like planning permission. You can read more on the HOA website on the page about Estate agents legal obligation to buyers, under section 2, Not Withhold important information. 

So, for example, not revealing planning permission or development in the area or proximity to a power station or sewage works is illegal.

You can make a complaint to the agent and then if after the required time has elapsed, and you're not satisfied you can raise it with either the property ombudsman or the property redress scheme, depending which scheme they are a member of.  

BikingBud

pinkshoes said:

Estate agents sell many properties so won't generally know things like that.

If you don't like the idea of living opposite a building site for 4 years then walk away.

If the EA is not aware of significant developments close by I would suggest they have little proximity to reality and are really not worthy of anybody's business, buy or seller.

Ath_Wat

BikingBud said:

pinkshoes said:

Estate agents sell many properties so won't generally know things like that.

If you don't like the idea of living opposite a building site for 4 years then walk away.

If the EA is not aware of significant developments close by I would suggest they have little proximity to reality and are really not worthy of anybody's business, buy or seller.

I am not sure you know what an estate agent is.  They are a negotiator who the seller employs to get as high a price for their property as possible, without having to market it and negotiate with the buyer themselves.  That's pretty much it.  Nobody should be relying on them for any information.  

Ath_Wat

CADL said:

Hi there,

I'm a FTB, who got an offer accepted on a flat in London - I was obviously really happy, until i discovered that the estate agent "forgot" to mention that there's a very large development that received planning permission right across the street (I discovered it by doing my own research, and I did ask them about the neighbourhood when viewing the property), with an expected 4-year construction timeline, leading to increase foot traffic during day and night, noise disturbance etc. I now feel like that was hidden from me, and I'd be right to negotiate a lower price, as this would definitely impact the property value, at least in the medium-term. 

We're still early in the process and haven't even done the Survey yet, but what advice would you give me?

Thanks!

Quite simply, you have the right to renegotiate price or pull out at any point in the process until exchange of contracts.  You do whatever you think is best for you.  It doesn't matter whether anyone else thinks you are right or wrong - you should only ever pay the price you think is right, and if that changes as you discover information, so be it.  It happens hundreds of times every day.

What isn't happening is any concerted attempt to con you.  Nobody trumpets the negatives about the area when selling a house.  Approach it as a business deal, unemotionally, logically and level headedly, and do whatever you think will leave you happy if it goes through.  If you're not happy, pull out.

BikingBud

Ath_Wat said:

BikingBud said:

pinkshoes said:

Estate agents sell many properties so won't generally know things like that.

If you don't like the idea of living opposite a building site for 4 years then walk away.

If the EA is not aware of significant developments close by I would suggest they have little proximity to reality and are really not worthy of anybody's business, buy or seller.

I am not sure you know what an estate agent is.  They are a negotiator who the seller employs to get as high a price for their property as possible, without having to market it and negotiate with the buyer themselves.  That's pretty much it.  Nobody should be relying on them for any information.  

I am perfectly happy that I know what an estate agent is but if as @pinkshoes intimates they are not aware of significant developments occurring in the area how can they possibly expect to achieve the highest possible price for their client.

I also understand that there is a significant difference between what they may know and what they may disclose but @pinkshoes specifically said "won't generally know" but you obviously understood my comment was in reference to what  @pinkshoessaid rather than what you decided to interject with didn't you.

prowla

BikingBud said:

Ath_Wat said:

BikingBud said:

pinkshoes said:

Estate agents sell many properties so won't generally know things like that.

If you don't like the idea of living opposite a building site for 4 years then walk away.

If the EA is not aware of significant developments close by I would suggest they have little proximity to reality and are really not worthy of anybody's business, buy or seller.

I am not sure you know what an estate agent is.  They are a negotiator who the seller employs to get as high a price for their property as possible, without having to market it and negotiate with the buyer themselves.  That's pretty much it.  Nobody should be relying on them for any information.  

I am perfectly happy that I know what an estate agent is but if as @pinkshoes intimates they are not aware of significant developments occurring in the area how can they possibly expect to achieve the highest possible price for their client.

I also understand that there is a significant difference between what they may know and what they may disclose but @pinkshoes specifically said "won't generally know" but you obviously understood my comment was in reference to what  @pinkshoessaid rather than what you decided to interject with didn't you.

Whilst the point that they are the seller's agent is true, I'm sure it's not in the seller's interests to have buyers dropping out because the estate agent withheld relevant information.

However, finding out that information, doing searches, scouting the area, checking the lease, ascertaining the parking arrangements, and so-on are incumbent upon the buyer.

A decent estate agent could be expected to have a fair amount of local knowledge, but they may also only respond to specific questions rather than volunteer all of the negative information and/or hearsay regarding the property.