renegotiating sale agreed price

J

jmsm

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we are sale agreed on a house since september - there are structural issues which the vendor is fixing but it is very slow going - the work has not even started yet.
It is now unlikely that we will even get to signing contracts until the end of January.

So my query is can we go back now with a lower price offer and what do we offer?
is it just a matter of looking at how much houses have dropped in the months till we sign and offering that or what.

Alternatively we could take back our deposit and let it go back on the market (when it is repaired) and bid again in the new year?
Thanks for any advice
 
Hi,

Did you already signed with your sollicitor, the papers of their sollicitor? IF you didnt yet then i dont think it will be a problem to take ur deposit back...The best way is to discuss this matter with your sollicitor...
 
No contracts signed means there is no sale agreed. Either party can do what they want.
 
hi again
thanks for the replies - we have no contracts signed as the house is not saleable in the condition it is in - it needs to be fixed.

I very much realise that "sale agreed" means very little but we have agreed a price and paid a deposit to the estate agent. He says that he has not shown the house since then - however as I said it is not saleable in current condition

I would just like to know what people think
we agreed a price in September, we will probably sign contracts in Feb
Should we offer less than the sept. price we agreed?
If so how much less (% wise)?
Thanks
 
Would you consider buying the house as is and doing the work yourself?

This means that you would do a proper job on it.

It means that you would get the deal done now. You may be set on the house, and they may renege on the deal later.

I don't think you should adjust for the change in market prices. If prices had risen, and they told you that the house was now €5k dearer, would you be happy?

Brendan
 
Thanks very much Brendan

Unfortunately the banks we have spoken to will not lend any money on a house with structural issues so we cannot buy it as is.

Would prefer to do that really but it is just not possible. Hard to know what to do.

Sorry editing to say

that yes i do agree in general that coming back with a different price after we have agreed one is not on however in this case I'd like to make the following points.

The structural issues were raised after we agreed the price, we were told that they would be resolved asap, after over 3 months nothing has really happened. We have had to contact the EA every two weeks - he has never got on to us about it.

When the work is complete then we will have to reapply for our mortgage, we have had to rent and will be renting until march or so next year at least.

I think that the agent was not straight with us from the start - i think he knew that there were issues and that the house couldn't be sold as it was so he has benefitted from having us agree a price and then getting the work done after that, as by all accounts prices are still dropping.

I spoke to him and he is very flippant about the whole thing.

SO that is why I'm wondering about renegotaiting the price - had it all went relatively smoothly we would have lived with family for the few weeks and would be in the house by now at the agreed price!!!
thanks
 
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Well the situation is you can do what you like. The deposit you paid to the estate agent is fully refundable.
The Bank has told you they will not lend money on the house as is.
So the house is unsaleable in it's present condition.

If it were me, I would take back my deposit (you may well have to do a rethink of your finances anyway after today's Budget!!!).

And I would say to the estate agent - when the work is done we may come back in February and renegotiate, because things are just too up in the air at the moment.
Chances are the estate agent may be a little annoyed, but as you say the house is not in a saleable condition at the moment, and there are just too many factors at play for you to be able to commit.
The sellers have to do the work anyway if they want the house sold.
 
Knock between 10 and 20% off the price of the house. All they can say is no.
 
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