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  • FIRST POST
    • Denspe
    • By Denspe 8th Jul 18, 7:29 PM
    • 11Posts
    • 12Thanks
    Denspe
    Renegotiate house price
    • #1
    • 8th Jul 18, 7:29 PM
    Renegotiate house price 8th Jul 18 at 7:29 PM
    Hello all, after a bit of advice. To give you some context.. viewed house 5 weeks ago, three other interested partyís 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 donít 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?
Page 1
    • need an answer
    • By need an answer 8th Jul 18, 7:47 PM
    • 943 Posts
    • 1,153 Thanks
    need an answer
    • #2
    • 8th Jul 18, 7:47 PM
    • #2
    • 8th Jul 18, 7:47 PM
    Hello all, after a bit of advice. . I guess if there is no room to negotiate we should walk away?
    Originally posted by Denspe
    if the vendor wont negotiate you will need to find the extra to cover the funds up to the asking price.

    The vendor may negotiate simply because if your survey has picked up faults and downvalued other prospective purchasers are likely to get a similar result if they try to buy the house.

    Some vendors however just see a figure they want for a property and wont budge an inch!

    Try but be prepared to walk away.
    in S 36 T 57 F 57
    out S 51 T 60 F 66
    2017 -32
    • Denspe
    • By Denspe 9th Jul 18, 7:05 AM
    • 11 Posts
    • 12 Thanks
    Denspe
    • #3
    • 9th Jul 18, 7:05 AM
    • #3
    • 9th Jul 18, 7:05 AM
    Thanks for your reply. After mortgage valuation we re-worked our figures to pay the difference. Now the homebuyer report has come back we are just not sure this a wise thing to do? £24k is a lot of money. Just feels like the house is overpriced. Vendors seem to think they can get full asking price.
    • lookstraightahead
    • By lookstraightahead 9th Jul 18, 7:15 AM
    • 399 Posts
    • 376 Thanks
    lookstraightahead
    • #4
    • 9th Jul 18, 7:15 AM
    • #4
    • 9th Jul 18, 7:15 AM
    The advice has kind of been put in the reports. It's up to you whether you want the house enough to feel it's worth more.

    Personally it would leave a sour taste for me - what are the vendors thinking ! I wouldn't pay over valuation.
    • avacapri
    • By avacapri 9th Jul 18, 7:21 AM
    • 39 Posts
    • 11 Thanks
    avacapri
    • #5
    • 9th Jul 18, 7:21 AM
    • #5
    • 9th Jul 18, 7:21 AM
    walk or run away if they will not lower the price
    • JoJo1978
    • By JoJo1978 9th Jul 18, 8:50 AM
    • 368 Posts
    • 442 Thanks
    JoJo1978
    • #6
    • 9th Jul 18, 8:50 AM
    • #6
    • 9th Jul 18, 8:50 AM
    With the initial interest you describe vendors probably will get full asking price again if they remarket it soon, after all you offered it without hesitation.

    It depends on their specific situation whether they are willing/able to start again with a new buyer, if they are in no hurry they probably will rather than negotiate. Although the market gets a bit quieter now, there's a good chance the EA is still in contact with the other interested parties.

    Although you are having second thoughts they only need one buyer who is less fazed by the report advice and/or can more easily justify the shortfall. But you need to decide based on only your circumstances though.

    If I were in your position I'd probably prepare to negotiate, but in parallel with a back up plan of viewing more houses. We always tried to have multiple options on the go right up until our full chain was complete.

    Our vendors did too and that strategy served them well when the chain broke on exchange day above us. They had been continuing to view houses and got an offer accepted on an alternative within a week.
    Hamster in the wheel (London) 1999-2017
    Mortgage free since 2015; Pension pot sorted 2017
    Part-time gigger and charity volunteer 2018
    • greatgimpo
    • By greatgimpo 9th Jul 18, 9:01 AM
    • 776 Posts
    • 1,091 Thanks
    greatgimpo
    • #7
    • 9th Jul 18, 9:01 AM
    • #7
    • 9th Jul 18, 9:01 AM
    When's the last time a 'valuer' has ever 'valued' a property above the asking price? Jumped up and self-opinionated 'experts'... and that goes to the estate agents too who probably overpriced it to get it on their books - everybody is an 'expert'!
    Last edited by greatgimpo; 09-07-2018 at 9:09 AM.
    • _CC_
    • By _CC_ 9th Jul 18, 9:08 AM
    • 317 Posts
    • 336 Thanks
    _CC_
    • #8
    • 9th Jul 18, 9:08 AM
    • #8
    • 9th Jul 18, 9:08 AM
    If I really like the house, was going to stay put for a long time and there weren't many similar properties coming to market I'd be inclined to stick with purchase if funds allowed.


    That's a lot of caveats though - I'd most likely offer a reduced amount and walk away if declined.
    • Crashy Time
    • By Crashy Time 9th Jul 18, 9:44 AM
    • 6,515 Posts
    • 2,438 Thanks
    Crashy Time
    • #9
    • 9th Jul 18, 9:44 AM
    • #9
    • 9th Jul 18, 9:44 AM
    It is amusing to see sellers not getting the link between price and available lending, where did they think most of the money for the property bubble came from?
    • westernpromise
    • By westernpromise 9th Jul 18, 9:50 AM
    • 4,263 Posts
    • 5,543 Thanks
    westernpromise
    It's amusing to see bedsit crashtrolls not getting that if lenders can't lend enough they'll make borrowing easier
    https://www.telegraph.co.uk/personal-banking/mortgages/mortgage-lenders-relax-affordability-criteria-hunt-new-business/
    Buying a house, if you believe the market has a way to fall, or if you are paying sill asking prices ( like some sheeple ) or if you are buying in London, is now a massive financial gamble!!!!! - June 8, 2012 by TheCountOfNowhere
    • Crashy Time
    • By Crashy Time 9th Jul 18, 9:57 AM
    • 6,515 Posts
    • 2,438 Thanks
    Crashy Time
    It's amusing to see bedsit crashtrolls not getting that if lenders can't lend enough they'll make borrowing easier
    https://www.telegraph.co.uk/personal-banking/mortgages/mortgage-lenders-relax-affordability-criteria-hunt-new-business/
    Originally posted by westernpromise

    The clue is in the title of your link, they are "hunting" for new business, it isn`t necessarily coming to them any more, and that is because sentiment towards property and high property prices has shifted, so it is a double whammy - less lending because banks are down-valuing, and less lending because people don`t want to borrow any more - interesting times if you are trying to sell a house you paid too much for.
    • westernpromise
    • By westernpromise 9th Jul 18, 12:31 PM
    • 4,263 Posts
    • 5,543 Thanks
    westernpromise
    You think any price for a house is "too much", Crashy.


    This rather undermines any credibility you think you may have.
    Buying a house, if you believe the market has a way to fall, or if you are paying sill asking prices ( like some sheeple ) or if you are buying in London, is now a massive financial gamble!!!!! - June 8, 2012 by TheCountOfNowhere
    • Mutton Geoff
    • By Mutton Geoff 9th Jul 18, 12:42 PM
    • 1,177 Posts
    • 1,293 Thanks
    Mutton Geoff
    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?
    Originally posted by Denspe

    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.
    Last edited by Mutton Geoff; 10-07-2018 at 9:34 AM.
    Compensations/Refunds from Banks & Institutions - £4,165 | Stooz Profits - £7,636 | Quidco - £4,014

    All with a big thank you to Martin and MSE.com from Mutton Geoff!
    • Crashy Time
    • By Crashy Time 9th Jul 18, 12:52 PM
    • 6,515 Posts
    • 2,438 Thanks
    Crashy Time
    You think any price for a house is "too much", Crashy.


    This rather undermines any credibility you think you may have.
    Originally posted by westernpromise

    Ten emoticons just undermines any credibility you think you may have IMO. Where have I said that "any price" for a house is "too much"? Most sensible people know that many sellers are asking too much for the current market, but there is always a price that a house will sell at
    • Grenage
    • By Grenage 9th Jul 18, 1:01 PM
    • 1,555 Posts
    • 1,488 Thanks
    Grenage
    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
    • By Denspe 9th Jul 18, 5:42 PM
    • 11 Posts
    • 12 Thanks
    Denspe
    Thanks fo all the replies everyone. Still no further forward today. Hopefully have an update tomorrow.
    • Denspe
    • By Denspe 21st Jul 18, 8:16 AM
    • 11 Posts
    • 12 Thanks
    Denspe
    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.
    • SG27
    • By SG27 21st Jul 18, 8:52 AM
    • 2,450 Posts
    • 1,723 Thanks
    SG27
    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.
    Originally posted by Denspe
    I think you have made the right decision. Although its hard now im sure you will look back in a year or two and be glad!
    • Mutton Geoff
    • By Mutton Geoff 21st Jul 18, 9:03 AM
    • 1,177 Posts
    • 1,293 Thanks
    Mutton Geoff
    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.
    Originally posted by Denspe
    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).
    Compensations/Refunds from Banks & Institutions - £4,165 | Stooz Profits - £7,636 | Quidco - £4,014

    All with a big thank you to Martin and MSE.com from Mutton Geoff!
    • Crashy Time
    • By Crashy Time 21st Jul 18, 11:56 AM
    • 6,515 Posts
    • 2,438 Thanks
    Crashy Time
    Thanks for your reply. After mortgage valuation we re-worked our figures to pay the difference. Now the homebuyer report has come back we are just not sure this a wise thing to do? £24k is a lot of money. Just feels like the house is overpriced. Vendors seem to think they can get full asking price.
    Originally posted by Denspe

    Many still do, hopefully Brexit will bring some people to their senses, or maybe Brexit will go so well for us that a new property bubble can kick off
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