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?

We want it at a reduced price.
We can't absorb anymore cost

What is the reason for the long delay in exchanging? Another reason to speed up the sale is if you are buying the property using a mortgage. My mortgage application was only valid for 6 months from the letter in principle until drawing down funds. If you are edging closer to 6 months, you may need to reapply and/or get a current valuation. This could be difficult if the valuation has decreased since your last application.

I think if you frame it that you'll pay the agreed price if they exchange in the next two weeks it makes all your reasons for reducing your offer sound like bullshit to be honest. What I mean is all they will hear is threat you don't intend to carry out designed to push them to exchange.

I think you need to find a different way of getting a reduction. The best way would be to find an alternative house that suits you instead so they can compare for themselves. You need to point out, however obvious it seems, what they are saving on EA fees. Sounds like madness to proceed at the previously agreed figure.

Sorry for the typos. It's a pity you don't have a surveyor's valuation for the place.

If they deducted what they are saving in EA fees, how far off is that from the reduction you would like? Just thinking of a meet in the middle figure.

It’s such a tiny proportion of the buying price though- I’m not sure I read understand the point is asking for £30k reduction (did I read that right?)

The point of asking for a reduction now is that we will be soon absorbing further cost (extra rental, storage) on a house that is already overpriced with no end in sight and in a falling market.
We have already expressed displeasure with the delay - this has had no impact and have also said we have acted completely loyally to date but are now considering options. Neither of these threats have had any impact

If you can wait then I would pull out, sounds like a terrible deal for you and I dont think the sellers seem hugely interested in selling

@wowfudge estate agent fees plus legal for a new buyer would be a minimum of 15k.
20k really isn't much in comparison

If you are sure you are overpaying then offer less and be prepared for them to say no. It sounds like you basically want this to happen, having realised the magnitude of what you are taking on. Which should have been clear to you before you wasted their time....

I don't think I have wasted their time at all. After all I have moved my children into rental, exchanged with my buyers and pressured them to exchange ( we have been ready for 7 weeks).
They have been incredibly slow and we are facing additional unplanned costs now and the market has dropped

There are two parties involved. If they want to sell I fail to see how the OP has wasted their time.

I think you need to send a very clear written communication setting out what reduction you want and why and giving a deadline or the deal is off. Point out what you have done to keep the chain together. Be prepared to walk away - call things off via your solicitor. Get some viewings of other properties lined up asap.

This is the kind of situation where having a good EA can help, but you are where you are and have to deal with it.

@wowfudge
I drafted a very clear email on Thursday demonstrating all the additional costs we are occurring and what we have done to date and asking them to hurry and set a timetable for exchange
I also instructed my solicitor to do the same.
The only thing I didn't do was ask for a reduction. I have heard nothing

in all honesty, you should check things like central heating before you offer.

If you want to drop your offer and set an end date which you aren't prepared to go beyond, do it now.

Waiting until exchange to drop your offer is shitty, will cause more delay as documents will need to be changed, and ime putting extra stress on people at the most stressful point of the procedure just increases the chance of being told where to shove your contract.

Speaking as one who's buyer attempted unsuccessfully to raise the price at that point.

*should be vendor, sorry, wits fading fast today!

I don’t think you’re wasting their time at all, but I think you need to be clear what the reduction is for. As a seller all I would care about is how much my property is worth. I don’t need to compensate you for additional costs- harsh, but I don’t. So I think you should go with the angle that they’ve been so slow you believe the market has dropped in that time rather than wanting your additional costs compensated

@absolutelyknackeredcow I suspect your vendor doesn't have any vendor lined up. They are waiting to take advantage of the market price drop while profiting from you overpaying when they eventually decide to sell. Have you paid them any money?

@Tawdrylocalbrouhaha agree hence why we didn't reduce at this point but when someone tells you
'The boiler is completely fine and was replaced a few years ago' you never think this is for half the house and you simply couldn't see in the top few rooms.
Anyway - that is not the purpose of the drop- we will be incurring ongoing costs and the market has dropped

OP I think you have had some good advice on here

however, I wondered if I could ask a question

how did you get to a point with so much hassle and you didn't even look for central heating? I'm not asking as a criticism, it's just I'm thinking of selling and I'm quite concerned about what buyers actually look at in detail.

I also wonder if they actually want to sell, in which case, be prepared for them to say no. And don't wait for exchange, I think that would piss me off on principle so much that I'd say no!

This is why people pay for Estate Agents, they are the ones that normally do this kind of negotiating and take the hassle!

You sound fed up because you gave a reduction on your own property, OP. That's not your vendor's fault. You said you would move into rental anyway because of the building works.

You are frustrated because of the delay, which is completely understandable. It doesn't sound as if there are many similar properties around so this could well be your only chance (did you put a letter through the door?).

sorry, cross post

so the EA details, did they say central heating throughout?

the market always varies over a period of time, there may be a bounce later?

You should have dropped the offe rprice when you found out about the central heating!

Market is dropping, they are being slow - say you’re no longer comfortable progressing at the agreed price so you’re reducing offer to x but you need to be prepared to walk away if they don’t agree.

This is all really helpful. Thanks to all that have suggested things.
We have done private sales before but agree that a good EA would be helping now.
Re the central heating - rooms without it were completely full to ceiling with junk. We assumed - it was an expensive assumption. That said, this is not why we are thinking of asking for a reduction

I'd see a house full of junk as a warning sign on several levels. Sorry OP.

Seconded. Rooms filled with junk hide ruinously expensive problems. I wonder if the universe is against you on this one, so to speak. They don’t sound like they’re going to get a move on either, so I don’t think they really care what they leave behind. I bet you’ll be hiring a few skips for all the shite they leave behind.

My aunt encountered similar, but down in Devon. It wasn’t a hoarder’s house but not far off; the whole place ended up having to be gutted and redone, and she didn’t manage to break even. She has said in the 15 years since that she wished she saw the warning signs for what they were and never bothered with the place.