Re-negotiating a house purchase

[MrsHarford]

OK here's the scenario... (apologies in advance for all the numbers and complicated house nomenclature, I found I couldn't make sense when I tried to put it down in abstract terms!)

Our house 'House A' has been on sale since January. In a very slow, falling market.

Our initial asking price £315K. IN May we accepted an offer of £284K from our buyers who had an offer on their House B for £134K.

Found house we really like 'House C' - was on at 'offers over £450K' but we eventually agreed to pay £425K for it.

Chain collapsed (House B buyers pulled out) in June so all back to square 1.

We lowered asking price of House A to £295K but very little interest over the summer. House C also reduced to offers around £435K.

Our original buyers eventually found new buyers for house B at £125K and subsequently made an offer on our house A at £274K which we accepted (hence we had absorbed all of the shortfall). In spite of an attempt to bargain with vendors of house C the best agreement we could come to on theirs was £423K. My husband did the negotiation and I think we are overpaying at that figure but the house really suits us so was prepared to live with it.

Now the chain has fallen through again (sigh!) so houses A, B and C are all again 'for sale'. However there does seem some renewed interest in our house so we might still get a sale.

Today we heard via our EA that another EA who lives on the same street as house C believes it is worth £400K 'at best'.

Question is, if we do get a new offer for ours, is it possible/ethical to start negotiation AGAIN on house C? With the hope that we'd get it for something near it's actual market value. I do worry that (through no fault of our own) they already see us as 'flaky' buyers and they may just walk away. But I am equally sure that they are not very likely to get anywhere near asking from anyone else and that in 6 months time their house will be worth even less. I don't want to be grossly overpaying for the house no matter how much I like it. Complicating factor is that husband is completely in love with it and will be totally gutted to lose it. Hence our rolling over immediately on all negotiations to date...'how much would you like us to pay for your lovely house that we love? Oh, ok then are you sure that's enough?'

Thanks to anyone for taking the time to read this far, Would appreciate any advice.

I am confused - you say that House C had offers over £450k but the vendor settled for your £425k bid? No offence but if a vendor has an offer over £450k how comes he went with your lower bid?

Secondly you then say that after the chain collapsed the vendor of House C than reduced his sale price to offers over £35k but yet the vendor still accepted your second offer of £423k - if he had a higher offer surely he would of gone with that.

Like I said I am not looking to offend you in anyway I just don't understand it - maybe there really were no other offers apart from yours - that is the only reason why I see he went with both your offers.

Sorry I meant that the initial asking price was 'offers over £450k'. Ours was the only offer on the table then. Since they reduced the price the only other offer they have had was £405k which was rejected before we came back the second time. That wasnt a proceedable buyer either afaik.

And don't worry about offending me its interesting to get an outsiders view.

Of course you can renegotiate. I don't think 5K more or less is what will change their minds on whether you are flaky or not.

How awful for you to be going through this all. Good luck, you deserve a good resolution.

Ah yes, they are going to be annoyed aren't they. If you want to negotiate that much lower I would put together a good case (sold figures, what is going on in local market, other houses you like just as much, etc) and get their EA to talk some sense into them and encourage them to negotiate down on the one they are moving to. More time on the open market without offers may help your case. Good luck!

Personally if I could I would wait until the cash was in my hand / exchanged (possibly look at rental as a short term measure to be in a better bargining position).

Your sale has unfortunately fallen through twice which would make me wary and less likely to neogiate hard...

There is absolutely no reason why you can't try to renegotiate with the sellers of House C - they might not be willing to go down that route with you again but you don't get if you don't try! They may have had no other interest and feel that you're their best bet.

The best way to negotiate is based on what you sell your house for - if you have to accept a further reduction, it's perfectly reasonable that this will affect what you can/are willing to pay for House C. In a falling market in particular they should understand that.

I was in a similar position in that I had to pull out of the purchase of a house I loved when my own sale fell through. I ended up buying the same house a year later and for £100k less than my original offer so it can be done.

Ah ok, I wonder if the Estate Agent is aware that your OH loves the house - once an EA knows this she will relay that info to the vendor who will most definately stick with his price knowing that you will get the house at any cost. I am buying at the moment - the EA was trying to get me to admit I loved the house - I quickly told her it is indeed a nice house but it is a house and if I don't get it their will be other houses. I managed to negotiate £5k off the asking price.

You have to be prepared to walk away and never ever as hard as it is get emotionally attached until you complete.

I would negotiate with House C - time has moved on the market is not any better. As others have suggested get lots of comparable data - i.e. what prices other similiar houses on the road and neighbouring roads have sold for. House C are clearly not inundated with offers either so that will also play to your advantage.

At the end of the day out in your offer the worst that can happen is House C say no.

Have you had a survey done on the house? If not that could also present you with an opportunity to negotiate depending on the results of the survey.

I also agree with the other poster sell your house go into rented accomodation and look then.

Good luck!

One that I've had put to me in the past is the chain can be back on, but it's up to you...you'd need to accept 'x', or your buyers can keep marketing and looking for another buyer.

It puts an amazing pressure on because on one hand you feel like you're holding all the cards on the other you'll be letting the whole chain down.

Thanks everyone, I know that selling ours and renting is the best option. Can't bear the thought of having to move twice but it makes sense.