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House purchase advise

  • 02-07-2008 7:35am
    #1
    pazza
    Registered Users, Registered Users 2 Posts: 129 ✭✭


    Hi - I was wondering if anyone could offer advise, we have paid a deposit (sizeable amount @ 10% of cost) last year for a house being built. Since then house prices have tumbled - is there any way we can get the developer to drop the cost? I suspect we cannot pull out without losing the deposit, so the developer knows they have us over a barrel. the valuer says they will likely value the house the same as last October - is there any action they can take (or the mortgage provider) to get this price reduced? any help appreciated.


Comments

  • #2
    craichoe
    Closed Accounts Posts: 2,706 ✭✭✭craichoe


    pazza wrote: »
    Hi - I was wondering if anyone could offer advise, we have paid a deposit (sizeable amount @ 10% of cost) last year for a house being built. Since then house prices have tumbled - is there any way we can get the developer to drop the cost? I suspect we cannot pull out without losing the deposit, so the developer knows they have us over a barrel. the valuer says they will likely value the house the same as last October - is there any action they can take (or the mortgage provider) to get this price reduced? any help appreciated.

    Dont think so as you agreed to an amount and not a percentage i assume ? i.e. it was stated at the time the amount and not a percentage as this would change on a daily basis. I.E. if its went up in value the builder wouldn't/couldn't ask you for more as you agreed to an initial amount.

    Works both ways im afraid :(


  • #3
    pazza
    Registered Users, Registered Users 2 Posts: 129 ✭✭pazza


    yea, thats what i thought - my only issue is that it was valued in October, and the valuer will value it as the same again now even though the price has surely dropped and too see if there was any way out of it or to force builder down a bit. Thanks anyway.


  • #4
    Moonbeam
    Moderators, Education Moderators, Society & Culture Moderators Posts: 18,986 Mod ✭✭✭✭Moonbeam


    You can probably still pull out of the sale and get your full deposit back.


  • #5
    Boom_Bap
    Moderators, Music Moderators, Society & Culture Moderators Posts: 25,734 Mod ✭✭✭✭Boom_Bap


    you should be able to get your deposit back and walk away from the sale.

    I assume that you have a solicitor for the purchase so he/she should be able to advise. you are paying them a lot of money so you may as well get them to do some work for it :)

    I'm in the process of buying at the moment and i made sure that my deposit was refundable in full before paying it.


  • #6
    lynchie
    Registered Users, Registered Users 2 Posts: 2,013 ✭✭✭lynchie


    Moonbeam wrote: »
    You can probably still pull out of the sale and get your full deposit back.

    Only if the OP just paid a booking deposit and not a contract. If you paid the 10% on signing of contracts then thats a different story.


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  • #7
    penexpers
    Closed Accounts Posts: 4,038 ✭✭✭penexpers


    Moonbeam wrote: »
    You can probably still pull out of the sale and get your full deposit back.

    Please don't post such misleading advise. If the contract deposit has been paid (and by the sounds of it, it has) then there is no way out of the contract without losing the deposit. At best the OP would lose their deposit, at worst the builder would force the completion of the sale (which he has every right to).


  • #8
    penexpers
    Closed Accounts Posts: 4,038 ✭✭✭penexpers


    Boom_Bap wrote: »
    you should be able to get your deposit back and walk away from the sale.

    I assume that you have a solicitor for the purchase so he/she should be able to advise. you are paying them a lot of money so you may as well get them to do some work for it :)

    I'm in the process of buying at the moment and i made sure that my deposit was refundable in full before paying it.

    So you managed to get a clause in your contract that says the contract deposit is refundable?


  • #9
    craichoe
    Closed Accounts Posts: 2,706 ✭✭✭craichoe


    penexpers wrote: »
    So you managed to get a clause in your contract that says the contract deposit is refundable?

    What would be the point in paying a deposit if you could just pull out at any point ?


  • #10
    mcaul
    Closed Accounts Posts: 1,493 ✭✭✭mcaul


    In most cases you pay a booking deposit first - this is fully refundable and is a sign of goodwill. Normally this is about 10k.

    You then recieve contracts and unless there is a get out clause subject to mortgage aproval / planning issues etc, then once this is signed & the balance depsoit is paid, you are in a legally binding contract.

    If this is the case, best option is to talk to the builder and say that the banks are only giving you €x mortgage which is €x below what you can pay in total. - The builder wants your cash and probably has a decent enough margin and may drop the price to ensure the deal is closed.

    I'd guess about extra 5 - 8% discount would be possible.

    Be nice, beg, and explain you can't get mortgage approval for original amount.


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