Withdraw from purchase or try to negotiate price?

sJanes

I'm about 5 months into a purchase which has been stop-start as the vendor (buying an empty property) has had 2 fall through. At the time of offering the market was very competitive and I had to go 12k over asking so as not to lose another bidding war (despite being a cash buyer).

After weeks of silence after the 2nd false start I was starting to doubt they would actually move (want a bigger garden so not a compelling reason) so I started looking on Rightmove again. Strangely, there are now lots of comparable (mostly around 10% cheaper) properties on the market not selling. Virtually nothing that's gone on in the last 3 months has sold (2 that were reduced have) and several have been reduced and are still sat there. A couple of weeks ago I viewed 6 properties over a weekend, 5 of which I would consider offering on (I didn't at the time as I was still unsure about the whole situation). All are still on the market, one reduced again.

Basically, I now feel as if I'm overpaying, and I've lost confidence in the market, so I don't want to go ahead at the agreed price. There were various issues in the survey too, which I wouldn't cite as a reason to reduce the price as they are part and parcel of old properties, but on top of paying over asking the additional cost of those is a nagging doubt (particularly 2 rotten front windows, in a conservation area, which I couldn't assess when viewing as they are upstairs and painted shut).

I've just heard the vendor has now found another property so I need to be fair and decide one way or another now. Would you go straight for withdrawing, citing price/market conditions and see if they come back with anything, or try suggesting a new price first? I don't like going back on a deal but it's a lot of money. I do like the house and have obviously sunk money into fees but that's not worth a 10% premium when there are now other options (and I might leave it for a bit anyway and see how the world economy pans out over the next few months).

housebuyer143

I would decide how much you want to go ahead with it for and tell them exactly what you have said, that you don't feel like it's worth what you are paying now due to many new properties coming on the market at a lower price. 
If they don't agree to your lower price then tell them you will withdraw. Choice is thiers then. 

Albermarle

Plus that  the 5 month delay ( in which time the market seems to have softened) was due to problems at their end and not deliberate dragging of heels by you.

HillStreetBlues

sJanes said:

I've just heard the vendor has now found another property

I expect paying the current rate, unlike you paying the old higher rate.

pinkshoes

sJanes said:

I'm about 5 months into a purchase which has been stop-start as the vendor (buying an empty property) has had 2 fall through. At the time of offering the market was very competitive and I had to go 12k over asking so as not to lose another bidding war (despite being a cash buyer).

After weeks of silence after the 2nd false start I was starting to doubt they would actually move (want a bigger garden so not a compelling reason) so I started looking on Rightmove again. Strangely, there are now lots of comparable (mostly around 10% cheaper) properties on the market not selling. Virtually nothing that's gone on in the last 3 months has sold (2 that were reduced have) and several have been reduced and are still sat there. A couple of weeks ago I viewed 6 properties over a weekend, 5 of which I would consider offering on (I didn't at the time as I was still unsure about the whole situation). All are still on the market, one reduced again.

Basically, I now feel as if I'm overpaying, and I've lost confidence in the market, so I don't want to go ahead at the agreed price. There were various issues in the survey too, which I wouldn't cite as a reason to reduce the price as they are part and parcel of old properties, but on top of paying over asking the additional cost of those is a nagging doubt (particularly 2 rotten front windows, in a conservation area, which I couldn't assess when viewing as they are upstairs and painted shut).

I've just heard the vendor has now found another property so I need to be fair and decide one way or another now. Would you go straight for withdrawing, citing price/market conditions and see if they come back with anything, or try suggesting a new price first? I don't like going back on a deal but it's a lot of money. I do like the house and have obviously sunk money into fees but that's not worth a 10% premium when there are now other options (and I might leave it for a bit anyway and see how the world economy pans out over the next few months).

Of course you shouldn't over pay if you don't have to! Markets change, even locally.

The money you have paid in fees will be less than the money you can save. If you like 5 out of the 6 other properties, do you like any of them MORE than this one? Or just as much?

I think I'd be tempted to lower the offer back to the original asking price, or to the same as what other properties are asking (especially if they're not selling) and make it clear that you've waited 5 months and prices have now dropped locally. If the don't accept, then be prepared to walk away.

Sapindus

The seller will hate you and probably come on here complaining about gazundering.  They will probably refuse your lowered offer out of pique and you will lose the house.  Or they'll accept the offer and stuff shrimp in the curtain rails when they leave.

If you feel genuinely OK with that prospect, go ahead.  Life's too short.

sJanes

That's why I thought just withdrawing, citing my concern about paying over asking, would be a better approach than trying to negotiate. The door would be open for them to come back with an offer if they value a cash buyer who's ready to exchange today. If not, I'm fine with not buying that one (I might just rent for a year now prices seem to have stopped going up anyway).

housebuyer143

sJanes said:

That's why I thought just withdrawing, citing my concern about paying over asking, would be a better approach than trying to negotiate. The door would be open for them to come back with an offer if they value a cash buyer who's ready to exchange today. If not, I'm fine with not buying that one (I might just rent for a year now prices seem to have stopped going up anyway).

I would just be direct. If you want them to accept a lower offer then ask them. They have no idea what you want to pay or that you are expecting them to read your mind and say "oh we should offer it to him cheaper". Even if they do, playing a game of back and forth trying to guess that figure you want to pay is annoying.