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

Dianacj

Of course you should not demand a last minute discount! It is evident that in the same way as in a Gentleman's Agreement, you have given your word and your bond to complete this transaction and to take advantage of the Seller's vulnerable position would be despicable.
We are all measured by our actions and it is very simple to me; I would not like it done to me; therefore I would not do it to someone else.
If we each tried to keep our little bit of the World, over which we have influence, the way we would all like the World to be, we would all be a lot happier.

And anyway, aren't you really better than that?

trejoy

If you are going to live there forever and love the place, then yes ask for discount, but still buy anyway. If it is an investment property, then you pull out unless they have the house revalued. It might be rotten, but , they are not your friends, its business.;)

Paul_Herring

swiftlx wrote: »

Also if I had signed anything then I am not sure what I am legally expected to do, full offer price I suppose...

You are legally expected to pay the full price (or forfeit your deposit IIRC.) Once you've signed you are unable to offer anything other than the agreed price, nor is the seller able to offer the property to someone else at a higher price (gazumping.)

This is the whole point of the original question - should you or should you not attempt to change the price in your favour shortly before signing, with the implication being that, market conditions allowing, if the other party could, they probably would.

mayb_2

I have both been caught in this situation and worked in an Estate Agents. Bargaining is ok if the whole chain is involved and each person passes on the reduction to the next one down the line or somewhere sombody swallows all the cost. This cannot happen in the last days of a sale and would delay the whole thing for everyone anyway. So no I wouldn't do it at the end but I would haggle after making my first offer and I would offer the full price before the survey was done and then haggle it down to what I could afford. That way you get to be the buyer and others drop out of the picture. Not really good, but Estate agents pricing is rarely realistic - just over optimistic in order to be the one who wins the estate agent competition to get the contract.

koru

Well, I would say it is about 50/50 between those who would look after themselves and those who think they have a moral responsibility to stick to the deal.

This has taught me a valuable lesson. If I ever try to sell my house and I accept an offer from someone, I will write to them asking them to clarify under what circumstances they think it would be acceptable for them to back out of the deal or to try to renegotiate it. If they indicate that they think it would be reasonable for them to reduce their offer if the market falls or if they find somewhere they like better, I will reply that in that case I reserve the right to keep the house on the market while I wait for them to complete and that if someone comes along who offers me more money or can complete more quickly, I will go with them instead.

I realise this would not be legally binding. But at least this would clarify what the parties understand to be the gentlemen's/ladies agreement. I find it hard to believe that most people would not stick to a clear statement of how they would behave. Of course, some people might simply lie or break their word, but that would be on their own conscience. At least they would not be able to pretend (or fool themselves) that they are behaving acceptably.

joemit

Some years ago we were selling our house having found another property. The deal was agreed but a week before we were due to move the buyer asked for a 25% discount so that they could fit new windows (nothing wrong with the ones that were in) and carry out a complete refurbishment. None of this was mentioned at any time prior to this date.

I told the couple that I'd see them in hell before I'd sell them the property.

It later transpired that the buyer was a local property developer and they had obviously hoped that by leaving it so late that they would have us over a barrel as they knew we were committed to purchasing the house we were buying.

I had to hastily arrange an expensive bridging loan.

However, on the day we were moving out a couple drove up, asked to look around the house, and made us an offer of the full asking price.

It seemed too good to be true but they were true to their word and completed a few weeks later.

I was so glad we didn't cave in to those b@$t@rds!!!

Joe

Phuddles

My youngest brother sold his house last year to avoid repossession. The first purchaser offered the full price, mucked about for about 8 weeks then pulled out. The second one offered £30000 less, which my brother accepted, then just before he signed said he was dropping by a further £25000 & my brother could like it or lump it. Unfortunately Little Bro's circumstances were such that he couldn't afford to tell the buyer where to stick his offer, but I still feel savage that he was able to get away with it! The estate agents were worse than useless. The only good thing is that my brother sold for more than he owed, but he will never manage to get back on the property ladder. :mad:

alanfp

Phuddles wrote: »

My youngest brother sold his house last year to avoid repossession. The first purchaser offered the full price, mucked about for about 8 weeks then pulled out. The second one offered £30000 less, which my brother accepted, then just before he signed said he was dropping by a further £25000 & my brother could like it or lump it. Unfortunately Little Bro's circumstances were such that he couldn't afford to tell the buyer where to stick his offer, but I still feel savage that he was able to get away with it! The estate agents were worse than useless. The only good thing is that my brother sold for more than he owed, but he will never manage to get back on the property ladder. :mad:

"Never" is a long time - just ask anyone who found themselves in that position during the last negative equity period in the late 1980's - most of them recovered OK and now own property.
It is undoubtedly an unpleasant experience for your brother, but we have to remember that the true value of anything is exactly what somebody else is willing to pay, and harsh as it may be, your brother may well have ended up with the true value in the end. As a matter of interest, I wonder if he made money on his foray into property owning - it sounds as though he probably did.

kellyp31

Shortly after me nad my Partner aplied for a 104% mortgage because we couldn't afford the fees the developer started offering them to prospective new buyers - what, if anything, can we do to reclaim the costs????? They included Stamp Duty, Conveyancing and Search Fees which totalled our bill to be an extra £5000

toomanyshoes

toomanyshoes wrote: »

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.

Just to add I exchanged yesterday and will complete next week on the flat.

The buyer stuck to his offer and my solictor told me I was "very lucky" for that to be the case in the current climate.

I did accept a lower offer as he said he could complete quickly and he did. I hope there are more buyers out there like mine who was a man of his word.