Renegotiate house price

Denspe wrote: »

Hello all, after a bit of advice. To give you some context.. viewed house 5 weeks ago, three other interested party!!!8217;s so went in with full asking price of £175k. mortgage valuation came back 14k lower than asking price, went back to EA vendors not willing to lower price. Now home buying report came back with a number of issues (drains, repointing, no party wall in loft) and also surveyor down valued by 24k. Went to see EA a copy of hb report yesterday. Said I would want to get builders quotes but don!!!8217;t see the point of arranging If Vendors are not willing to negotiate. Any advice would be greatly appreciated. I guess if there is no room to negotiate we should walk away?

You had two "professional" valuations (surveyors) vs the unprofessional valuation (estate agents finger in the air asking price). You were pressured into offering the asking price by the agents who convinced you that one or more of the three "other parties", who may or may not be a figment of the agents imagination, might be in competition with you.


Since your offer was accepted (which almost always says "subject to contract"), you are carrying out due diligence on your purchase. You now have information to hand that you, nor the agents, had prior to the surveys. I would certainly reduce your offer by some amount, possibly even the full £24k based on the information you have.


If you think it worth paying more for the house because it's your "forever home" or any other reason, then base that increase on the latest/lowest valuation (ie £151k) not on the imagined valuation dreamed up by the agent to lock the vendor into a contract with them.


When the agent bleats, ask them for comparables. And don't go showing them your reports as a means of justification. You are negotiating on your own behalf, have strength in that and don't rely on survey reports to persuade the agent (who doesn't work for you) to lower the price.


It's time to play hard ball. I would start viewing other houses that agent has listed (even if they don't interest you), to send a message that your offer on this place is serious and you're prepared to walk.


For each £1k you save, remember how long it takes you to earn that money after tax. Never look at it as just a small fraction of the total price of the house. Now imagine £24,000 in £10 notes sitting on your kitchen table. That is what you are negotiating for.

24k is 13% of the asking price, so that's not a great valuation. I would give them a price you're happy with, then walk away.

Denspe wrote: »

Hello everyone, it!!!8217;s been while since my last post. So having trying to negotiate with a price we were willing to pay, sellers came back with a £500 reduction. So we took the decision to walk away. Really is a shame as it was our dream home but not worth paying over the odds. So back to the house search we go.

Well done, it takes nerves to do that. My guess is when the vendors realise there isn't anyone this side of 2019 willing to make any better offer on their house that they will be back to you again. That would be the time to hold firm on your offer, not to "meet them half way" etc. After all, you are a serious buyer having invested money in chasing this purchase. The vendor hasn't spent a penny (assuming a no sale no fee agency agreement).

I think you made the right decision too. There was too much difference between the valuations and what the offer was. Unless there was something quite remarkable about that house there will always been another one.