Builders want more money

delt900

We paid a deposit on a new build back in September 2014 through and estate agent . The house was due to be completed this week but isn't so we contacted the auctioneer who now states the builder wants an additional 30k and will not sell it to us based on the price last year. ( this is not a self build, property bought from the plans)

There is no written contract just deposit paid and verbally with auctioneer. Now the auctioneer says he can negotiate for us even tho it's the builder that has hired him.

We don't have the additional money not can we get it on the mortgage. At a loss as to what we can do

Any advise

Geniass

You have no contract. Have you proof you paid the deposit?

The best you can do is get the deposit back if you cannot afford more.

Before people would pay a deposit, which proved useless and was refunded when they got gazumped.

It looks like the property has increased in value and the builder is being a bad sport, but not illegal as far as I know.

SCOOP 64

Did you put a deposit down on 2014 price ?

garhjw

No contract? Any proof at all regarding the agreed price? You need a solicitor

delt900

Yeah we put the deposit down last September on that original price, the auctioneer rang us today to tell us price had gone up. And he will refund the deposit to us it's just our hearts were with this house and we just can't afford the increase I disgusted due to the fact we were to move in in two weeks we have a kitchen and flooring ordered which we paid for separate based on this house measurements.

TheDriver

If you were moving in in 2 weeks, surely you have solicitor and contracts draw up and received??

delt900

TheDriver wrote: »

If you were moving in in 2 weeks, surely you have solicitor and contracts draw up and received??

Our solicitor has been chasing them for the last month and today we got that phone call we know it's legal what they have done but just wanting to know has anyone else experienced it and what they did next

durtybit

delt900 wrote: »

Our solicitor has been chasing them for the last month and today we got that phone call we know it's legal what they have done but just wanting to know has anyone else experienced it and what they did next

I believe you have 3 options
accept
negotiate
walk

coylemj

delt900 wrote: »

Our solicitor has been chasing them for the last month and today we got that phone call we know it's legal what they have done but just wanting to know has anyone else experienced it and what they did next

It was common practice when property prices were sky rocketing in the late 1980s and early 90s. In one instance with a development in south Dublin, just before completion the company went into liquidation but everyone got their deposit back. A few weeks later a new company took over the development and the same properties were back on the market but the price of each unit had gone up by about 20%.

delahuntv

You should have been looking to signa contract fairly soon after paying a deposit - the deposit means nothing, just a goodwill gesture.

If house prices had fallen, you could have walked away and the builder would have been unable to do anything and had to give your deposit back.

I'd walk away - more choice is coming onto the market and prices are stable. I can't see a €30k increase from last September being achievable.


The builder will have to look for a new buyer - they will have to get mortgage approval / valuation. He's unlikely to get the increase he thinks he'll get. I wouldn't offer 1c more and start looking elsewhere. I'd also refuse to deal with the selling agent on any other property.

Geniass

I'd call his bluff and ask for the deposit back. Tell him you've an eye on another property. Thinking you were so secure you've possibly been telling them how much you love it and can't wait to move in.

He is exploiting that. Remove his power if you can.

runawaybishop

delt900 wrote: »

We paid a deposit on a new build back in September 2014 through and estate agent . The house was due to be completed this week but isn't so we contacted the auctioneer who now states the builder wants an additional 30k and will not sell it to us based on the price last year. ( this is not a self build, property bought from the plans)

There is no written contract just deposit paid and verbally with auctioneer. Now the auctioneer says he can negotiate for us even tho it's the builder that has hired him.

We don't have the additional money not can we get it on the mortgage. At a loss as to what we can do

Any advise

The auctioneer in no way has your best interests at heart if his client is the builder. No contacts means they can up the price if they wish.

coylemj

runawaybishop wrote: »

The auctioneer in no way has your best interests at heart if his client is the builder. No contacts means they can up the price if they wish.

+1 the auctioneer is probably on a large commission if he can squeeze more money from the buyers. He may even be the instigator of this stunt. I'd demand my money back and walk away.

Another option is to contact the builder directly and appeal to his sense of fair play - you agreed a price and you now want him to honour it - a deal is a deal! Failing that you can threaten to go ballistic on social media. Is there a showhouse at the site? Tell the builder and auctioneer that you will picket it.

delt900

Ok so spoke to auctioneer on Wednesday told him we couldn't get an additional amount on the mortgage and that we have viewed a property up the road which we did and it's 50k less then what builder is looking for.

Auctioneer rang back last night said builder will accept 20k a drop of 10k still
Told him no

So see how it will pan out today

Menas

delt900 wrote: »

Ok so spoke to auctioneer on Wednesday told him we couldn't get an additional amount on the mortgage and that we have viewed a property up the road which we did and it's 50k less then what builder is looking for.

Auctioneer rang back last night said builder will accept 20k a drop of 10k still
Told him no

So see how it will pan out today

These things really make my blood boil. Messing people around like that.
Glad to see that you are prepared to tell them to get lost.

Mongfinder General

delt900 wrote: »

Ok so spoke to auctioneer on Wednesday told him we couldn't get an additional amount on the mortgage and that we have viewed a property up the road which we did and it's 50k less then what builder is looking for.

Auctioneer rang back last night said builder will accept 20k a drop of 10k still
Told him no

So see how it will pan out today

Well done. Is the same estate agent handling the other house sale as well?

delt900

Mongfinder General wrote: »

Well done. Is the same estate agent handling the other house sale as well?

No wouldn't deal with that estate agent again.

daheff

delt900 wrote: »

Ok so spoke to auctioneer on Wednesday told him we couldn't get an additional amount on the mortgage and that we have viewed a property up the road which we did and it's 50k less then what builder is looking for.

Auctioneer rang back last night said builder will accept 20k a drop of 10k still
Told him no

So see how it will pan out today

Big immediate drop from the builder...i reckon hes desperate for cash. I'd get your solicitor to make sure hes all above board and all the facilities that are supposed to be put in (eg water ,sewers etc) are done or theres sufficient moneys available to complete the contract. My worry here would be that he'll take your money and feck off leaving you in a half built estate for years.

Atlantic Dawn

delt900 wrote: »

Ok so spoke to auctioneer on Wednesday told him we couldn't get an additional amount on the mortgage and that we have viewed a property up the road which we did and it's 50k less then what builder is looking for.

Auctioneer rang back last night said builder will accept 20k a drop of 10k still
Told him no

So see how it will pan out today

Tell him no to any additional charge, tell them they have until end of next week to confirm that price, if not your going elsewhere. It will take them months to find and then close the sale with someone else, clearly they are just chancing their arm.

TheDriver

fair play to you, that type of cowboy crap is awful

loyatemu

daheff wrote: »

Big immediate drop from the builder...i reckon hes desperate for cash. I'd get your solicitor to make sure hes all above board and all the facilities that are supposed to be put in (eg water ,sewers etc) are done or theres sufficient moneys available to complete the contract. My worry here would be that he'll take your money and feck off leaving you in a half built estate for years.

you can't trust him at all at this stage, he's revealed himself to be a shyster.

runawaybishop

Some massive leaps to conclusions here. House prices are rising, no contracts have been signed and the builder is fully entitled to raise the price. Back when house prices were dropping people had no issues with buyers dropping out of verbal agreements.

NSAman

runawaybishop wrote: »

Some massive leaps to conclusions here. House prices are rising, no contracts have been signed and the builder is fully entitled to raise the price. Back when house prices were dropping people had no issues with buyers dropping out of verbal agreements.

I don't think it is a massive leap of anyones imagination to think that the builder is trying it on here. An agreed price is an agreed price. A deposit while not binding in itself should be a strong enough agreement. Unfortunately, in Ireland this is not the case.

Saying that trust is broken and both builder and auctioneer have acted in an untrustworthy way is not leaping to conclusions. If trust is broken, walk away, it never ends positively.

runawaybishop

NSAman wrote: »

I don't think it is a massive leap of anyones imagination to think that the builder is trying it on here. An agreed price is an agreed price. A deposit while not binding in itself should be a strong enough agreement. Unfortunately, in Ireland this is not the case.

Saying that trust is broken and both builder and auctioneer have acted in an untrustworthy way is not leaping to conclusions. If trust is broken, walk away, it never ends positively.

No, it is not. Signed contracts are an agreed price. People were happy enough "break trust" when prices dropped and it suited them but the other party isn't allowed to do so when prices rise? Can't have your cake and eat it too.

NSAman

runawaybishop wrote: »

No, it is not. Signed contracts are an agreed price. People were happy enough "break trust" when prices dropped and it suited them but the other party isn't allowed to do so when prices rise? Can't have your cake and eat it too.

That is why walking away is the best option. Trust is gone.

runawaybishop

NSAman wrote: »

That is why walking away is the best option. Trust is gone.

Perhaps walking away is the best option, if the asking price is not reasonable. This is the single biggest purchase most people ever make in their lifetime and shoudl be entered into with both eyes open and all paperwork in order.

Had house prices continued to fall and the OPs potential house been worth say 20k less now then when it was verbally agreed no one would be advising the OP to just hand over the extra 20k.

Larbre34

NSAman wrote: »

That is why walking away is the best option. Trust is gone.

Agreed. Nobody involved in this sale deserves your money.

Explore the other house option and mention plenty that you haven't tolerated being messed around before.


Its a lesson to everyone, get your contracts signed early and thoroughly, leave no room for nonsense like this.

db

Get in touch with your kitchen and flooring suppliers immediately. I'm sure they will put a hold on your order until you sort it out either way and you if buy a different house most will just take the new dimensions and either refund or charge you the difference.

hfallada

OP look at it this way. The builder is after putting more a 100k into the house. He needs money soon, as it has probably used up his cash reserves. Use this to your advantage and negotiate hard. If you pull out, it will take a while for another buyer to get mortgage approval etc.

Would you go direct to the builder and offer what he wanted from the start. Cut out the ****ty estate agent, as he is probably withholding info from the builder and will cost the builder commission.

Retailer

OP, if as you say you didnt sign a contract i personally would call his bluff and ask for your deposit back, saying you're going with the 50k cheaper house.

i'd even go as far as offering 10k less than what he was originally asking...play him at his game.

but that's me and i'm a risk taker. so i wouldn't necessarily advise it!

is the 50k less house a real option for you?

runawaybishop

This isn't poker There is no need to enter into mind games or mess about, the OP just needs to state clearly the price they are willing to pay and that's it. If the seller doesn't agree then the OP takes their deposit back and looks for somewhere else.