Can I drop agreed price before closing?

Victor

Know what you want. Explain that you are under pressure / need money for the plumbing / are conscious of the price drops. and that you need a reduction. Gauge their reaction. If you can, get them to offer first, but if not ask for a reduction somewhat greater than what you are looking for (allow them space to haggle back some distance), but don't ask for so much that they walk away.

Perhaps give them 24 horus to think it over.

3DataModem

This happened a bit during the boom. I bought my first flat through Gunne's EA. After price was agreed a builder selling a bunch of new build flats gave all the deposits back and jacked up prices by 30%. Gunne's figured that a bunch of these buyers would be interested in the place I was buying. So they put the place back on the market. Scummy behaviour, but that's the way the market is structured. Deposit / Contract / Close in that order, and nothing final till contract step completed.

Ray Palmer

Garzorico wrote: »

Brazzer do what is right and correct for you and yours..

You can do it but don't call it right. It is an ethical issue and doing it for your "family " doesn't make it right. You are doing it to another family it isn't a grey area.

Legally you can do it

cursai

I don't see any issue with this. I was in the same boat at the end of last year. Got into the process of buying a h iused for 220000. Before I signed or paid the deposit. I asked for the price to be dropped to 210000.
They refused. I taught it was too risky seeing as the prices kept dropping nationwide and the interest rates had risen that week so I pulled out.

The same house is now on the market for 185000......

n900guy

Contracts are oral as well as written. If you agreed at price (by saying you did) and paid a deposit on that price - well, that's indication enough that you agreed a contract and the deposit is proof.

You can try for a lower price - therefore looking for a new agreement. If they don't want the new lower price, you have broken your oral agreement and lose the deposit.

It's like getting a plumber out for €100 and when he at the door, you say, actually I want the service done for €80.

IANAL!

zac8

n900guy wrote: »

Contracts are oral as well as written. If you agreed at price (by saying you did) and paid a deposit on that price - well, that's indication enough that you agreed a contract and the deposit is proof.

You can try for a lower price - therefore looking for a new agreement. If they don't want the new lower price, you have broken your oral agreement and lose the deposit.

It's like getting a plumber out for €100 and when he at the door, you say, actually I want the service done for €80.

IANAL!

You've never bought a house, have you?

zac8

This happened to me in 2008. I managed to negotiate with the buyer to meet half way on the drop he was looking for.

It's legal to do this and also I think it is fine to do it if the surveyors report identifies any issues, as you obviously agree the price before getting the report.

Keep in mind that you run the risk of seeing the whole deal collapsing as some buyers take this personally and you will still need to pay your solicitor. Most likely outcome is that he will try to meet you half way.

wetdufflecoats

Interesting thread...i've just agreed after 6 weeks an offer of 110k on a house on the outskirts of Galway. Took forever for the EA to get word from the seller as he had been in trouble with the banks and NAMA had control over his finances according to the EA. I'm now a little worried considering the budget and the doubts over the euro....and am considering not going ahead with it until January/February. I wonder where do I stand legally?I havent signed any contracts but have given an offer.

domcq

I'm in a similar process. Sale agreed but there's an issue with planning on an extension that I'm not happy with. I've been advised that until I sign the contract my booking deposit is fully refundable - I think this is the case in most instances.

ravendude

domcq wrote: »

I'm in a similar process. Sale agreed but there's an issue with planning on an extension that I'm not happy with. I've been advised that until I sign the contract my booking deposit is fully refundable - I think this is the case in most instances.

Booking deposit is fully refundable. Its merely a signal that you are serious about proceeding.

jmayo

Brazzer wrote: »

Hi Guys
You can probably tell I'm a bit uneasy but we're heavily stretched to buy this house and literally only have what we agreed to pay for it. Not that it makes a difference to the seller but it does to us, the house needs a whole new heating system and this is what's going through my mind, the money I could potentially save could be used to install a new heating system.
...

The worrying thing in this post is what I have highlighted.
Also it is noticable how only one other poster on here has commented on it.

You need to save every penny you can.
If it makes you feel better continue looking at it in terms of the loss of the money would be felt a lot more by you than the seller.

It may be buying a home, but it is also a business transaction and those that do well in business are the ones that strike the best deal.

BTW when did you discover you needed new heating system ?
Was it after you had the survey done ?

odds_on wrote: »

In Argentina and I think Spain as well, the day you pay a deposit you sign a contract stating the price and the terms and conditions of sale. Such as what happens if either player pulls out of the deal (the buyer usually loses twice the deposit). There is no chance of changing the price to be paid.

However, the price on the deeds is usually a lot lower than the selling price (often 50% or more). This way the buyer pays less municipal taxes and the buyer pays less tax on the sale. ...

Oh FFS.
You do know what happened in Spain and will likely happen in Bulgaria where this sh**e was happening a lot with the deed price being way lower than the actual prices paid ?
The tax officals start checking up and eventually find out the sale prices were much higher that offically stated and they go looking for the unpaid taxes.
Guest who the only ones they can find are ?
Yep, the Paddy with the keys.
Also if you had resold during the boom for much higher value than on deeds then you were liable for more tax.
Your only saving grace now is that if you sell you won't be making any money, even above deed value, to have to pay taxes on.

TOMP wrote: »

Beware the seller might respond and put the price up 10%

Yeah it is a sellers market out there afterall. :rolleyes:

Brazzer

Only noticed the heating after the surveyors report. Also showed up that the back boiler needed to be replaced so would mean a full new heating system. Have asked around and been told that it will cost approx 8k to do this as part of the heating system has been bricked up behind the kitchen units. Odd layout to begin with but it's an older house. OH wasn't too impressed with the surveyors report and the solicitor actually commented on it too and suggested I go with another one he uses as he felt that the attic and other areas of the house weren't checked out thoroughly enough, he felt it was just given a once over and needed closer inspection. The surveyor I used was actually recommended by the estate agent and is a family member of his.

TwoShedsJackson

Brazzer wrote: »

The surveyor I used was actually recommended by the estate agent and is a family member of his.

It should be obvious to you now what a truly terrible idea this is...

ravendude

Brazzer wrote: »

Only noticed the heating after the surveyors report. Also showed up that the back boiler needed to be replaced so would mean a full new heating system. Have asked around and been told that it will cost approx 8k to do this as part of the heating system has been bricked up behind the kitchen units. Odd layout to begin with but it's an older house. OH wasn't too impressed with the surveyors report and the solicitor actually commented on it too and suggested I go with another one he uses as he felt that the attic and other areas of the house weren't checked out thoroughly enough, he felt it was just given a once over and needed closer inspection. The surveyor I used was actually recommended by the estate agent and is a family member of his.

Whoa, - definite no no! Get your own independent surveyor.

There is absolutley nothing even arguably unethical about going back for reductions due to issues in surveys. Thats what they're for to a large extent.
I think even previous posters who were up in arms previously would have no problem with this.

If something wasn't obvious at the time of putting in the offer, I wouldn't think twice about going back for money off. Ideally, you would send them a written quote as to the cost.

pavb2

Victor wrote: »

Know what you want. Explain that you are under pressure / need money for the plumbing / are conscious of the price drops. and that you need a reduction. Gauge their reaction. If you can, get them to offer first, but if not ask for a reduction somewhat greater than what you are looking for (allow them space to haggle back some distance), but don't ask for so much that they walk away.

Perhaps give them 24 horus to think it over.

I agree with most of this but again if more things are showing up on the survey it's more cost to you and legitimate & ethical to ask for a reduction. I'd say that house prices are expected to drop 8% ask him to meet you halfway at 4% if he says yes you've got a reduction and kept your 'integrity', he still gets the sale. If he says no at least you've given him the opportunity seal the deal.

I probably give him longer than 24 hours ultimatum depends on your urgency.

Not an attack on people here but I don't subscribe to the view that you can separate business, shaft someone and say 'it was a business deal but on a personal level I'm a really nice guy and have high morals & ethics'.

I don't think the 2 are mutually exclusive also I tend to believe in Karma

Good luck whatever you decide

bath handle

n900guy wrote: »

Contracts are oral as well as written. If you agreed at price (by saying you did) and paid a deposit on that price - well, that's indication enough that you agreed a contract and the deposit is proof.

You can try for a lower price - therefore looking for a new agreement. If they don't want the new lower price, you have broken your oral agreement and lose the deposit.

It's like getting a plumber out for €100 and when he at the door, you say, actually I want the service done for €80.

IANAL!

Deposits are paid subject to contract. Until the contract is signed by both parties there is no binding contract. Under the Statute of Frauds a contract for the sale of land must be evidenced in writing and signed by the party to be charged.

Victor

n900guy wrote: »

You can try for a lower price - therefore looking for a new agreement. If they don't want the new lower price, you have broken your oral agreement and lose the deposit.

The way around this would be to say "Would you accept X?", which is an enquiry, not a counter-offer.

jmayo

Brazzer wrote: »

Only noticed the heating after the surveyors report. Also showed up that the back boiler needed to be replaced so would mean a full new heating system.

Ok that is very important.
Never mind the fact that market has dropped and your agreed (not contracted mind) price is already probably more than current market value, the survey has highlighted mahor issues that will cost a lot to remedy.

Brazzer wrote: »

Have asked around and been told that it will cost approx 8k to do this as part of the heating system has been bricked up behind the kitchen units. Odd layout to begin with but it's an older house.

If someone quoted you 8k I would add another few grand on for unforseen circumstances and the hassel of doing it.
Thus I would demand drop of 12k.

Brazzer wrote: »

OH wasn't too impressed with the surveyors report and the solicitor actually commented on it too and suggested I go with another one he uses as he felt that the attic and other areas of the house weren't checked out thoroughly enough, he felt it was just given a once over and needed closer inspection. The surveyor I used was actually recommended by the estate agent and is a family member of his.

Ok this sheds a whole new light on it.
FFS what possessed you to use a surveyor that is connected in any way with the seller or the selling agent ? :eek:

You need another survey done before you sign anything.
The surveyor needs to be independent and even if it costs a good few quid it could save you many more thousands down the road.

As it is looking at the information you have provided here I would be backing out of deal.
You are buying old house with very dodgy heating which is going to cost to set straight.
It looks like you are going to have to tear the kitchen apart.
That is not just plumbing, but from the sounds of it you will end up needing a plasterer or the likes to tidy up the mess.
If heating is in rag order then what about the wiring ?

Unless you have made the fatal flaw of following in love with the house I would recommend walking away.
If you have fallen in love with it and really want it you should be looking for drastic reduction, how much depends on new surveyors report and what it turns up.

ArraMusha

wetdufflecoats wrote: »

Interesting thread...i've just agreed after 6 weeks an offer of 110k on a house on the outskirts of Galway. Took forever for the EA to get word from the seller as he had been in trouble with the banks and NAMA had control over his finances according to the EA. I'm now a little worried considering the budget and the doubts over the euro....and am considering not going ahead with it until January/February. I wonder where do I stand legally?I havent signed any contracts but have given an offer.

what are you worried about ? Until the contracts are signed you can tell the seller you have changed your mind 40 times...

I'd be in no hurry to buy now even if its a bargain.

marienbad

What if the seller says no and keeps your deposit as you have broken the agreement ?

Coriolanus

marienbad wrote: »

What if the seller says no and keeps your deposit as you have broken the agreement ?

The seller shouldn't have the deposit. It should be in the solicitors client account.

Graces7

We had this done to us a while back. We had refused other offers meanwhile. The agent was upset; said that there was no honour these days. I agree with him.