Changing offer price after sale agreed

DinnyBatman

We have sale agreed an old house (which requires a lot of work) for €195,000 back in July. As the house is a probate case (owners have died), we still haven't closed.
A friend has suggested to us that we should go back to the auctioneer and tell them that we will now offer them less (our friend suggested 20%).
We still haven't signed contracts.
Anyone got any thoughts? €39,000 off the asking price would go a long way in this house!

Grawns

Have you handed over a deposit? If so and you start messing now you could lose your deposit. Otherwise you could try to renegotiate especially with house prices on a continued downward spiral. Go for it!

astrofool

You can't lose your booking deposit. Assuming contracts haven't been signed, you can do whatever you want. The sellers can also do whatever they want, including changing the state of the house, or refusing to deal with you any more, so be careful either way.

DinnyBatman

Thanks for the quick replies. Our solicitor informed us that this case could go on for a while yet - probate cases can take a long time seemingly.
Just to clarify, we actually have signed contracts but our solicitor has not send them to the other solicitor as he's waiting for clarifications on certain things.
As my mate pointed out, by the time we buy the property, prices would have fallen. I don't want to come across as a penny pinchin' miser but we're in a recession, so i am!:D

Senna

Why would you exchange contracts if the house is still in probate?
If you do exchange you will be tied to the house but you might not get the key or deed for months if not years.

irishguy

DinnyBatman wrote: »

Thanks for the quick replies. Our solicitor informed us that this case could go on for a while yet - probate cases can take a long time seemingly.
Just to clarify, we actually have signed contracts but our solicitor has not send them to the other solicitor as he's waiting for clarifications on certain things.
As my mate pointed out, by the time we buy the property, prices would have fallen. I don't want to come across as a penny pinchin' miser but we're in a recession, so i am!:D

You havent exchanged so your not bound to buy the house. Unless you have got an unbelievable bargain I would go back and demand a reduced price and give them a closing date, if they cant close by this date threaten to pull out. You have them over a barrel really.

Agent J

irishguy wrote: »

You havent exchanged so your not bound to buy the house. Unless you have got an unbelievable bargain I would go back and demand a reduced price and give them a closing date, if they cant close by this date threaten to pull out. You have them over a barrel really.

What he said.

Also you are making one of the biggest purchases of your life.
Pinch every penny, cent ,pound and euro you can.

DinnyBatman

Thanks, I'm meeting with the auctioneer next wednesday or thursday...he must be busy:rolleyes:.
I'll let ye know how i get on!

3DataModem

Go for it.

In a rising market they'd do the same to you (had it done to me!)

This was also done to my folks in 86 (although we got revenge on that fecker)... dropped the price on the day of signing simply because he knew we had to sell quick.

Graces7

This was done to us and we were not impressed; neither was the agent.

He called it dishonourable.

We had refused other good offers of course.

Sellers have needs also.

3DataModem wrote: »

Go for it.

In a rising market they'd do the same to you (had it done to me!)

This was also done to my folks in 86 (although we got revenge on that fecker)... dropped the price on the day of signing simply because he knew we had to sell quick.

Victor

Graces7 wrote: »

This was done to us and we were not impressed; neither was the agent.

He called it dishonourable.

We had refused other good offers of course.

Sellers have needs also.

Then don't try to sell until your have a contract ready to be signed and everything else is in order.

Graces7

I see! We had that but the solicitor made some errors.

Now we rent.

Victor wrote: »

Then don't try to sell until your have a contract ready to be signed and everything else is in order.

silverharp

Off topic but has anyone notice estate agents putting "Probate Sale" on their signs. I saw one the other day cant say I ever noticed it before.

badinfleunce

Drop the offer by 40% - if its in probate the recievers/vendors will be delighted to get anything at this stage as they see the prices of houses dropping by the day.

If its taken this long to close or even to get to contract stage and you only have a booking deposit down you have the ball in your court. Its a buyers market and its not unlikely they will pull out as it may take them another year to find a buyer and by that stage the price will most definetly have dropped again.

iguana

Normally I would not advise gazundering as I find it distasteful to encourage someone to renege on an agreement. But imo, by being made wait for 6 months through no delay on your part they are in breach of reasonable expectation and can't honestly expect you to still pay the original price.

I suggest you quietly look at a few other properties on the market and see how the market has changed since July. Even if nothing suits you as well you will be able to renegotiate from an informed point of view and can provide examples to make it easier to show why you want a reduction.

Don't be pressured into buying this house at any cost, the market still has a way down to go so decide what new price you are willing to pay for the house and when you want to close. Make your new offer conditional on them closing by then, otherwise drop your offer again.

Graces7

While this is ??"legal"??, it gives concern to read this kind of advice on boards.

Leaving this thread; raises painful issues .

As Dickens said, "The law is a ass."

And often immoral or at best amoral.

Doop

badinfleunce wrote: »

Drop the offer by 40% - if its in probate the recievers/vendors will be delighted to get anything at this stage as they see the prices of houses dropping by the day.
quote]


I wonder would you be saying the same if it was YOUR parents house/ your family home.

40% get real, if the op does that safe to say they wont be buying this house at all.

Probate sales do take time, and I understsand the op's position, renegotiating will slow the process even more, but if your happy to do that then go for it, but be reasonable... the way you would like to be treated if the roles were reversed.

badinfleunce wrote: »

Its a buyers market and its not unlikely they will pull out as it may take them another year to find a buyer and by that stage the price will most definetly have dropped again.

As we all know probate sales are slow, but i doubt the sellers are in a panic, prob nobody lives there, hence no ones actually moving, generally no mortgage to pay either. Often probate houses are rented out for years (depending on condition), before beign sold. Also there can be a number of family members involved hard to get an agreement on price etc.

All id say to the op is play fair....

badinfleunce

Doop wrote: »

badinfleunce wrote: »

Drop the offer by 40% - if its in probate the recievers/vendors will be delighted to get anything at this stage as they see the prices of houses dropping by the day.
quote]


I wonder would you be saying the same if it was YOUR parents house/ your family home.

40% get real, if the op does that safe to say they wont be buying this house at all.

Probate sales do take time, and I understsand the op's position, renegotiating will slow the process even more, but if your happy to do that then go for it, but be reasonable... the way you would like to be treated if the roles were reversed.



As we all know probate sales are slow, but i doubt the sellers are in a panic, prob nobody lives there, hence no ones actually moving, generally no mortgage to pay either. Often probate houses are rented out for years (depending on condition), before beign sold. Also there can be a number of family members involved hard to get an agreement on price etc.

All id say to the op is play fair....

Why would you want to play fair? Who has ever played fair when buying and selling property? Its a deal at the end of the day and it is in your interest to get the best deal possible - why would you want to pay more for something that isnt worth what your paying or that will drop a further 20% by the end of the year for only to pay a mortgage on the extra amount for years because you want to be Mr.niceguy on the day of the deal. Bulloney!

You will generally never see the vendor again and it is a chance in a falling market to lessen the burden of your mortgage and enjoy that extra few bob you saved every month for the rest of your days.

How many agents in the past told you there were ten other people in the deal and the price kept going up every time you rang them back? Very unfair but hey thats capitalism - supply and demand. Now there is an over supply and property isn't selling - so put your business head on, remove emotion and grab yourself a bargain. Its a steal, its a deal, its sale of the century.;) good luck.

PullOutMethod

I think this situation is a good bargaining chip.

For me there is no question of behaving dishonourably.
You can't go about screwing other people.

In this case however there has been an unreasonably long delay on the sellers part which is unusual in this type of market.

I would
(1) Check whatever else is out there (even if only to bring it to the attention of the vendor)
and
(2) Explain that there has been an unreasonably long delay, the market is dropping and you as a willing buyer expect to be compensated for that in regard to price.
That is perfectly reasonable.
I would consult the stats or a third party estate agent and find out how much property has dropped in the delay period.
5% over the course of 6 months would not be unreasonable.
P