Can we drop offer made on house?

CBRadio

Hi,
Any advice would be appreciated.
We viewed a house 3 weeks ago, on the market since June 15, dropped 40k in asking price in Sept 15 down to 225k.
We are mortgage approved, nothing to sell. We would have been willing to pay 215k but never made that offer.

Viewed the house again this Saturday and EA said 2 offers on it both offering asking price, one cash buyer and one couple who just need to organise finance but ready to go.
He said the owners would decide Monday night what to do but to let him know what we wanted to do.
We rang on Monday & offered the asking price thinking that they would go with cash buyer (more fool us!) but that we'd be considered if it fell through.
EA rang us today to say they would accept our offer, cash buyer has 150k but has to sell a house to make up rest!

In a bind now, it's a fantastic location, walking distance to city centre and schools but needs some updating. €225k is us at our max with nothing left to put into it.
I know we shouldn't have offered asking price (hindsight is great!!!) Can we negotiate now?
Thanks in advance,

GrayFox208

CBRadio wrote: »

Hi,
Any advice would be appreciated.
We viewed a house 3 weeks ago, on the market since June 15, dropped 40k in asking price in Sept 15 down to 225k.
We are mortgage approved, nothing to sell. We would have been willing to pay 215k but never made that offer.

Viewed the house again this Saturday and EA said 2 offers on it both offering asking price, one cash buyer and one couple who just need to organise finance but ready to go.
He said the owners would decide Monday night what to do but to let him know what we wanted to do.
We rang on Monday & offered the asking price thinking that they would go with cash buyer (more fool us!) but that we'd be considered if it fell through.
EA rang us today to say they would accept our offer, cash buyer has 150k but has to sell a house to make up rest!

In a bind now, it's a fantastic location, walking distance to city centre and schools but needs some updating. €225k is us at our max with nothing left to put into it.
I know we shouldn't have offered asking price (hindsight is great!!!) Can we negotiate now?
Thanks in advance,

I don't see why not. You've not actual signed any contracts you just placed an offer. Tell them you need to revise your offer, and see what they say. The worst thing that happens is your offer will be rejected. If you're not going to have enough to cover legal fees etc you need to change your offer. It's not something you want to just let go.

ChippingSodbury

It's up to yourself really. They might be miffed but then again, if they want a buyer, they may be willing to accept a lower offer (after a row or two). It's a game of cat and mouse: you want to pay as little as possible, the seller wants to get as much as possible.
If you think they may accept less, then offer less. Say you made a mistake and said the wrong figure on the phone etc. (use your imagination!). Remember, the EA is at this day in day out and will probably be a better negotiator than you so plan out your play before you contact them again.

Butters1979

You are well within you right to change your offer right up until you sign a contract. You are not obliged to the offer. However, if you drop your offer they will probably go with the other people.

But more importantly, why would you offer something you had no intention of following through on? That could force the other couple to up their offer when in reality they shouldn’t have to. No offence but it’s people like you that drive up house prices in fickle bidding wars and make this whole buying a house business so difficult.

CBRadio

Thank you all so much for your swift replies, really appreciate it. We would be okay to cover legal fees etc. but house needs insulation, new boiler etc so can't stop thinking that 10k would make a massive difference to us. I know we shouldn't have offered the asking if we weren't 100% but the EA did a very good job of convincing us that cash buyer was all set to go & deal would be done on Monday, hence the pressure on us. I've no idea why they went with full asking when offers before that were 192k, then 195k and it jumped from there.
We are under a time pressure and very little comes up in that area so loathe to lose it either.

3DataModem

Don't worry about EA and seller. Drop your offer but be honest for the reason, to give you best chance of having offer taken seriously.

NewCorkLad

If you now decide to drop your offer they could well tell you to get lost and just decide to wait for the cash buyer. Even if you get them to drop the price to 215k, the bank will only release the 215k, they will not give you the remaining 10k for home improvements.

Butters1979

Ok, maybe I'm being harsh, it seems like you did make the offer in good faith, if not with forethought.

Remember this, the EA works for the seller, they will say things to get you to up your offer. Not dishonest, it’s their job to get the best price for the house.
You should know how much you can afford, and how much you think any place is worth before you give an offer, always take the time to discuss and decide on this before you talk to the EA.

But as already said, you can change your offer, tell them you misjudged and maybe they will still go with the lower offer if they want to move quickly.

Archaeoliz

If I was the seller in their situation and the offer I had accepted dropped, aside from being really cross at being messed around and not accepting it on principle because it doesn't bode well for someone actually following through on the deal, I've got two other options without loosing financially.

You can drop your offer, of course but don't expect to keep the house.

Think outside the box and talk to the EA and see if some of the work can be done by the vendor before you exchange as it's the work that concerns you rather than just the price.

mickdw

3DataModem wrote: »

Don't worry about EA and seller. Drop your offer but be honest for the reason, to give you best chance of having offer taken seriously.

Considering the property needs work, the op could carry on as is and make a reduced offer based on survey results later - reasoning that there is more work needed than previously believed. That way, the op doesn't look like a messer and had got further into the process and less likely to have the seller back out.

Sunny Dayz

OP have you had an engineer or a structural survey done? If you get this done, and go back to the EA and say engineer found these faults, mention the poor insulation and heating system needing replacing and that based on these findings you are revising your offer to a lower amount.
This way it make you sound more calculated and shrewd rather than you saying you accidentally bid too much.

Jonti

CBRadio wrote: »

Hi,
Any advice would be appreciated.
We viewed a house 3 weeks ago, on the market since June 15, dropped 40k in asking price in Sept 15 down to 225k.
We are mortgage approved, nothing to sell. We would have been willing to pay 215k but never made that offer.

Viewed the house again this Saturday and EA said 2 offers on it both offering asking price, one cash buyer and one couple who just need to organise finance but ready to go.
He said the owners would decide Monday night what to do but to let him know what we wanted to do.
We rang on Monday & offered the asking price thinking that they would go with cash buyer (more fool us!) but that we'd be considered if it fell through.
EA rang us today to say they would accept our offer, cash buyer has 150k but has to sell a house to make up rest!

In a bind now, it's a fantastic location, walking distance to city centre and schools but needs some updating. €225k is us at our max with nothing left to put into it.
I know we shouldn't have offered asking price (hindsight is great!!!) Can we negotiate now?
Thanks in advance,

If no documents signed you can drop your offer to whatever you like. The can accept it or reject it. Auctioneers are infamous for tell porkies about what other bids are when in reality no other bid exists! Stick to what you think it's worth.

dollyk

Maybe ask for a second viewing and bring a plummer with you.
Then you can honestly say if you need to lower your price
because of the price of the work ?

draiochtanois

This post has been deleted.

ForestFire

Agree with what most have said above, but also remember that you offered the 225K on the understanding that there were buyers ready to go...and I guess you had to match this quickly to be in the game

This is now not the case and they are coming back to you..

This is also a valid reason to drop saying that you were really just above your limit because of the pressure of other buyers and little time to think you have reconsidered your offer.

This combined with Engineer report would help

But I guess there are risks they will wait for other buyer and will you increase offer again, will they accept

bobtongs

Butters1979 wrote: »

No offence but it’s people like you that drive up house prices in fickle bidding wars and make this whole buying a house business so difficult.

No offence, but why don't you read the original post properly before raking muck? OP said they didn't bid anymore than the existing bids, so they didn't push the price up for anyone.

Butters1979

bobtongs wrote: »

No offence, but why don't you read the original post properly before raking muck? OP said they didn't bid anymore than the existing bids, so they didn't push the price up for anyone.

Read the post properly? Are you kidding? Do you understand how this works?

If OP's offer was accepted, then two people who offered asking price were told they weren't getting accepted, because of OP.

So basically OP won out in the bidding (higher bid is not always the only way you can do that) by offering something he didn't intend to follow through with. If one of the others had come back with a higher offer and that was accepted, OP would have forced the price up with a fickle bid. Either way, two others have been told they don't have the house and this has dragged out the process even further. Also OP had no concern over pushing other people out with a fickle bid. How would he feel if it was done to them. What if I called up the owners now and offered 235K for the laugh?

zac8

Most people who have an offer accepted on a property will inevitably wonder if they could have got the property for less. It's human nature. You don't go and phone the agent the next day and say you made a mistake and want to reduce your offer after the seller has shown their hand. And with two matching offers on the table? You're going to make a fool of yourself.

I suppose you could drag out the sale to contract stage and then gazunder if you are that type of person. But there's no guarantee that will work either and you'll have paid for a survey and legal fees.

draiochtanois

This post has been deleted.

Arbiter of Good Taste

Have a friend on the other side of the table - seller accepted and then came back later demanding more.

We all thought she should walk away. Instead, she met the seller half way.

At the 11th hour - with mortgage drawn down - Seller backs out.

If someone starts playing silly beggars, move on.

The moral of the story is, if I was the seller in the OP's situation, I would walk away and hope that one of the other parties is still interested. Life is too short to deal with people who want to mess you around.

db

You are perfectly entitled to reduce your offer just as the vendor is entitled to accept a higher bid even though he has already accepted your offer. Both actions are equally bad but there is nothing to stop either. Just be prepared for the vendor to tell you where to go, especially if he has other offers for the asking price.

antoinolachtnai

You can walk away, but why would you if it is the house for you and you can afford it? If you are under time pressure, is it really worth saving 10k to hang around for another 6 months?

Upgrading boilers, insulation is not something you need to do immediately.

You could use your strong offer to put pressure on the seller to close quickly.

If you are concerned that you are paying way over the odds, then get some sort of professional advice. The bank's valuer will give you a view on this anyway.

Remember it is your job to secure a home you can afford and enjoy for yourself and your family. Don't worry too much about driving up the market.

JuliusCaesar

Are you absolutely sure that the other two bidders actually exist?

ted1

Does the boiler really need to be replaced?

Does it really need insulation ?
In many cars The payback on replacing a working boiler isn't that great.

Likewise the payback on insulation isn't great either. If there's no insulation then basic attic insulation can be added cheap enough.

Any second hand house will need work.

CBRadio

Thanks again everyone, all opinions and comments gratefully received. There was absolutely no intention to mess anyone around, I suppose just annoyed that the picture painted by the EA on Saturday was not all it seemed by Tuesday (but I know that's their job).
We're going to proceed at offer price provided a few things are clarified (no BER provided yet, not sure what's staying in the house (furniture, white goods etc.) and also need to find out what home improvement grants if any have been applied for).
No structural survey done but had a friend who is a civil engineer look at it with us and other than bit of damp, few hairline cracks, bad gutters, old outside pipes (all part of old house), he didn't see anything majorly wrong.
Thanks again to everyone for taking the time to post.

mickdw

CBRadio wrote: »

Thanks again everyone, all opinions and comments gratefully received. There was absolutely no intention to mess anyone around, I suppose just annoyed that the picture painted by the EA on Saturday was not all it seemed by Tuesday (but I know that's their job).
We're going to proceed at offer price provided a few things are clarified (no BER provided yet, not sure what's staying in the house (furniture, white goods etc.) and also need to find out what home improvement grants if any have been applied for).
No structural survey done but had a friend who is a civil engineer look at it with us and other than bit of damp, few hairline cracks, bad gutters, old outside pipes (all part of old house), he didn't see anything majorly wrong.
Thanks again to everyone for taking the time to post.

As a Civil Engineer who does survey work of this nature, having a friend look is a waste of his time and yours.
You will still need a professional survey, which should cover structure, planning and building regulation compliance together with boundary checks as a minimum.
From what you say, a professional survey will give you plenty reasons to go back with a reduced offer. That is standard practice as far as I'm concerned and the seller should be prepared to deal with that unless they literally have offers flooding in.

Chimichangas

CBRadio wrote: »

Thanks again everyone, all opinions and comments gratefully received. There was absolutely no intention to mess anyone around, I suppose just annoyed that the picture painted by the EA on Saturday was not all it seemed by Tuesday (but I know that's their job).
We're going to proceed at offer price provided a few things are clarified (no BER provided yet, not sure what's staying in the house (furniture, white goods etc.) and also need to find out what home improvement grants if any have been applied for).
No structural survey done but had a friend who is a civil engineer look at it with us and other than bit of damp, few hairline cracks, bad gutters, old outside pipes (all part of old house), he didn't see anything majorly wrong.
Thanks again to everyone for taking the time to post.

No offence to anyone but you're doing nothing wrong. You pay what you think the house is worth to you. If you have a valid reason to lower your price, you do it. But be prepared to walk away or be told youre no longer in the running. The seller doesnt have to accept your offer either. Maybe he wont see your (last) offer as the best offer on the table now.
Youre not pushing up prices, youre just trying to buy a house you are happy with.

Best of luck with it.