MONEY MORAL DILEMMA. Should you demand a last-minute property discount?

veloo

A house is no different from any other commodity traded in the market, from a commercial perspective. It is susceptible to all market forces!
From a personal perspective, for most of us, buying a house is almost akin to marrying someone... ;-)

toomanyshoes

Absolutely not.

I'm just selling a flat - the deal was made on the 6 March and we are about to exchange, if he renages on the price I will not be a happy bunny.

Similarly, I have my mums house on the market as she passed away in September just gone.

In October, one agent valued it way above the others and one of the other beneficiaries insisted we put it up for the higher probate valuation price. Of course it didn't sell and the market has since dropped considerably.

The very same agent who priced it OTT at £365,000 in October was trying very hard to get me to accept an offer of £250,000 only yesterday. A drop of £115,000 in 6 months, I dont think so.

Agents are getting desperate so no doubt they will be encouraging all sorts to get their commisions.

Not good news. People should not be able to reduce their offers so close to the end of the deal - its about time offers were made legally binding once accepted.

tryfive

Dorrie wrote: »

No - it's morally wrong. You have agreed a price and should stick to it, unless there was something wrong with the property that had been discovered in the survey.

NO CHANCE - if you haven't exchanged contracts, you've agreed nothing (unless you're in Scotland)

The value of the property has DROPPED. It's completely reasonable for you to revise your offer to reflect this fact.

tallgirld

OH YEAH!!!

I would ask for a reduction. At the end of the day it's probably the BIGGEST purchase you will ever make, and yes it could potentially screw 5 families over BUT........ Life's a !!!!! and then you die baby:eek:

toomanyshoes

How many of those who think this is an acceptable practice have actually been through the stress of selling a home?

tryfive

I think there has been a serious misunderstanding throughout this thread.

As a buyer, you are NOT obliged to buy the property at the price agreed until you exchange contracts.

As a seller, you are NOT obliged to sell the property at the price agreed until you exchange contracts.

It is at the point you EXCHANGE CONTRATS that you are COMMITTED to the sale/purchase - AND NOT BEFORE.

THIS IS THE WHOLE POINT OF THE CONTRACTS! An agreement to pay at a set price. If you were committed prior to this, you'd be exchanging much earlier in the process.

Prior to that you may negotiate how much you're going to buy/sell it for, but that negotiation does NOT COMMIT YOU IN ANY WAY.

Both parties are fully aware of this (painfully so, in the case of gazuming/gazundering). Although a lot of disappointment may be caused if the chain fell through, those in the chain are fully aware of this risk, and have to accept it as part of buying/selling process.

tryfive

toomanyshoes wrote: »

Not good news. People should not be able to reduce their offers so close to the end of the deal - its about time offers were made legally binding once accepted.

A la Scotland? That's one idea - but it does bring with it corresponding problems of it's own; if you think it through, you can probably see why.


It's an alternative way of doing things, but certainly no magic bullet!

Tiger_greeneyes

I would ask but I wouldn't pull out if I didn't get. I'm sure that it would be done to me though...

However, if the market was still dropping with no sign of a let-up then I'd probably pull out anyway and move into rented. It also depends how much the purchase price was - 10% isn't a great deal on £65,000 but it is on £365,000.

If I wasn't getting a mortgage then it probably wouldn't be an issue as I'd be in it for the long term anyway.

Andy_Holmes

I suspect that many in this situation would simply pull out of the sale all together without even trying to renegotiate a lower price. That's cowardice, but reflects the fact that most of us get too personally and emotionally involved in house buying.

If your chain is more that about three houses long, you're in a very vulnerable position and need to be prepared to be disappointed for a number of reasons -- being gazundered is only one of many pitfalls. A falling house price market won't make it any easier, either.

Cumbrian_Male

Too right I would, plenty of sellers would happily gazzump you for a higher offer. Had it happen to me many times when we first bought our house years ago.

Currently got mine for sale price been reduced 9k and still getting offers 6-7k below listing.

Your house is only worth what someone is willing to pay.

I had an offer for a property rejected that was 8k under listing, that house has now been reduced by 5k. I would still buy it but at 6k less than current price.

I'm happy to do it, and quite mercenary.