It's it ever ok to reduce offer price just before exchange

[absolutelyknackeredcow]

Very long story but this is the situation:
Private sale -we found them and did all the leg work.
House needs considerable work - think everything (roof, plumbing, electrics the lot). Extremely poor decorative state.
It has a lot of space and is in a road we were keen to live in so we offered what they asked. They said this was a non negotiable price. At this point we thought we were paying about 30k over the market rate but it's a long term investment for us and forever home.
After we offered we realised that there was no central heating in the property in bedrooms (this was not obvious on viewing as there is so much stuff) - even at this point we didn't ask for a reduction.
The chain has stalled - in order to keep our buyers we exchanged in current market we will be going into rental ( for building works this was going to be necessary).
Our sellers still refuse to put pressure on their sellers. We have no idea when exchange or completion will happen and how long we be in rental. Our builder has been very understanding but he has no idea when he will be starting - meaning longer in rental for us.

We are really fed up.

Since then other properties have really dropped in price - seeing 5-10% reductions - let alone for people with no chain. I'm feeling like we are being mugged.

Given this information, would it be reasonable to ask for a price reduction if we get to exchange?

Only if you are prepared for it all to fall apart at this stage.

Ummm no. If you want to reduce your offer do it now, don't wait for exchange. Be prepared to be asked for proof of these reductions you mentioned and for them to get the hump and reject. Only do it if you are willing to follow through and pull out.

It's always reasonable to offer what ever you wish to, and it is equally reasonable for the seller to say jog on... In your position I would definitely re consider all my options.

Thanks all - I'm prepared to walk away.

I love the potential of the house - but it really is in a terrible state. I'm absolutely convinced in the current market they would not get anyone offering more than 40k less than we are paying. Let alone proceed-able with no chain

Have you had a survey done and had a valuation?

Survey done. Sellers were clear that would accept no reductions.
Estate agent valuation in similar ball park to what we were offering but this was nearly 5 months ago.

Also we had to offer a small £5k reduction to our buyers to keep them - that was also not passed on

If you truly believe that you're overpaying, then the added delay and added work are a good reason to reconsider your offer. Did the survey suggest you're overpaying by
around £30k, and since then the market has dropped further?
As an aside, it sounds like on embarking upon the work, there's likely to be extra expense from currently unknown issues. If you know the seller has stated they won't negotiate, and yet you're considering it, it sounds like the house definitely isn't as valuable as they want it to be.

What I mean is that you're clearly not just trying it on, you know in your heart that the price isn't right.

We had a engineer survey for a variety of reasons so the valuation came from
Estate agents trying to get the house.
We had done our own substantial research and knew we were paying over the odds
They are very naive - if they put in on the market they would have to pay estate agent fees and that would be a lot of the reduction we would ask for

@OnTheEdgeOfTheNight you are very right - it's too much money given the reductions we have seen

If you want to reduce your offer, you need to do it now, not just before exchange. Then everyone in the chain knows where they stand rather than proceeding, and incurring costs, under false pretences.

I agree with you @HeddaGarbled - however we have been asked to incur ongoing costs with no clarity at all

Offer a reduced price now, they'll say no, you will know where you stand and can get your skates on to find a new place. Delaying the reduction is delaying your moving day, at this point. "Punishing" them by delaying the reduction is cutting off your nose to spite your face. Give them a one time, last chance ultimatum and then follow through. If they won't negotiate on timescales then fine, neither will you and the deal's off.

It sounds to me like you've mentally rejected this house now and it is time to move on.

Whilst I appreciate that is frustrating and annoying, it doesn’t justify deliberate underhand game-playing, IMO. Don’t forget, your annoying vendors are not the only people in the chain.

Thanks @HeddaGarbled and @Ambydex - good perspectives.
Have discussed it with DH - we are going to give it an ultimatum this week saying we are good at previous price for another two weeks but then we will really will start incurring costs and will have to seek a reduction to proceed.
This feels like we are being open and transparent about our situation and there should be no surprises for our sellers

Are you sure they want to sell?

Your solution sounds like the best one. They will be very pissed off if you just ring and reduce, this way you are offering them an incentive to get off their arses and get the sale moving. They are being incredibly unfair on you. I really feel your frustration but someone in our chain gazundered (which is a really shit thing to do IMO) and it caused no end of stress and upset and we almost lost the whole chain.

So do I have this right... you were overpaying by 30k for something in a terrible state that has now gone down by another 10-15%.... and you are still willing to pay the price if they exchange in 2 weeks.
I think that sounds like madness in what has a very top of the market 2007 feeling about it with banks throwing money at buyers
Walk away... actually run away
Bad thing for you Is they have no estate agent to reason with them and tey to keep the chain together. They sound bloody minded and they wanted x amount for their house and no other price will do. Sometimes deals just cant be done
Price of house for context of what another 10-15% is would be useful too, is it a 1 million pound house or a 300k house. By the drop you are talking I assume its greater london area?

How did your buyers phrase their request for you to reduce by 5k?

Thanks for responses - our buyers found 20k of non urgent work ( surveyor said it was second best Victorian property he had ever seen). It was just a ruse. We offered them 5k as a good Will gesture to keep them. We settled at a good price - we don't think they would have kept them much more at that price at the moment and we were keen to lock them in. We also wanted to start the process of moving schools for the children so needed to exchange with them and at least get a tenancy in our new location although exchange of contracts would have been preferable.

Property is £999,999 zone 3 London. Previous properties have gone from £980,00- 1million and 80 depending on condition in last three years. The 980k one was better nick than ours - hence why we thought we were overpaying. It's huge - and beyond any thing we thought we could ever have. Building works are 220k

Based on your update I'd be wary of losing it if it really is a forever, dream home. How much of a reduction are you thinking of asking for? 20000 is around 1% of your total spend. Is it really worth it? Get onto them to push for a date, explain that for every extra month you rent it's costing you and your builders need to be in by X.

The cost of taking central heating upstairs when they do have it downstairs is negligible tbh when you'd be having all new anyway by the sounds of it

I wouldnt dream of overpaying in zone 3 at the moment especially if the ceiling is 1.08m and you will be over 1.2m plus stamp duty of probably 50k. You should be haggling hard at the moment, not overpaying.
Obviously for the sellers it is a vanity thing of selling their house for that magic 1m
Are there other options for you to purchase?

No other options suitable at the moment but we can wait.
We were overpaying
We now need central heating on top of everything else
We will incur further costs if they don't get a jog on
The market has now dropped
We have no clarity at ALL on when this will start

Do you want it even at the reduced price? If you can wait then maybe take all this as a sign and pull out? But don't mess their chain about by waiting until exchange. That's really shitty