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?

The property is inherited - do they have grant of probate? If not, it can take a long time to get it and they can't sell without it.

How long since the previous owner had died? - are they still grieving? They might not be ready to remove all the personal belongings from the house. As there is a lot of junk it takes time to sort through it.

Either of these reasons will delay the sale.

Just an update on here as people have been very helpful. Spoke to an estate agent today who sold one of the other properties in the last 18 months. When I explained about the condition of the property he valued property between 850-900k in current market.
We have now sent a very carefully worded email explaining our concerns asked for a reduction of 40k - without estate agent fees this equates to a market offer of 975-980k. It remains to be seen whether or not it will fall through. The final straw came when an elderly relative transferred some cash into our account to help us afford the purchase and the work and it just made me realise that we have to walk away if they won't reduce the price as we can't waste huge sums on something that isn't worth it

So you are still overpaying by circa 100k.... must be a very special house

If you do the house up, how much profit do you stand to make..

Perhaps you should ask yourself how you'll feel if another similar house becomes available in the next year - perhaps before you've moved in, while the building work is happening. I know you said this particular house is one of the best ones in the street for you, but it's maybe worth considering how you'll react if a neighbouring house comes up. Unless it's "nope, this is definitely the one for us at any price" then I'd seriously consider pulling out.

I haven't a clue what makes this house so special - river access? - but it sounds like you're over paying. I do understand why you're so attached as you sought out this house specially but if you need to borrow from elderly relatives, I'd take a hard look at whether it's worth it.
The London market will get worse, not better, with Brexit.
I'd only consider proceeding if you are a cash buyer or very close to one.

Your sellers don’t seem naive at all if they’ve managed to sell (or get an offer) for more than the house is worth!
You don’t know the circumstances of the other sales. A seller might have taken a lower offer because they needed to move fast. Some one may have fallen in love with a house and paid more. After all you are willing to pay a premium for whatever reason!
To offer less just before exchange will collapse the chain. YOU are the ones who want to get it moving and that’s not the way to do it.
Get your lawyers to talk to the sellers lawyers and tell them to get a move on or else you’re pulling out.

We won't make a profit doing the house up - certainly not in the short term.
These houses are really big and there is not that many of them.
They have replied asking us to reconsider but refusing to budge at all

Sorry to be so cliche but it will be you and your experiences that make the house special

They’ve said no, I think it’s time to walk away. You’re in rented so in a good spot for something else.

Just to be clear, you're looking at spending £999k to buy the house, then spending £220k on doing it up, and an estate agent guessed he'd have marketed it around £850-900k in the current market? In the meantime you'll be spending £2k per month to rent a house?

It really sounds like you'd be in a precarious position if you go ahead, even with a reduction of around £30-40k. I'm sure you can afford it or you wouldn't be considering it, I mean that you'd be potentially in negative equity for some time.

@OnTheEdgeOfTheNight yep exactly right - we really don't mind paying a premium but they told us 'we were getting a bargain' today and refuse to discuss the price at all

OP I'd walk away. Regardless of the money, how much longer would you accept as a delay?
When the vendors start to engage estate agents, they'll realise that they missed out on a great price. Maybe they'll come back to you. But be prepared to lose this particular house.

Did they give a date of completion if you proceed at the agreed price? It's a tough decision to make. I can see why you want it. The main question to consider is - if the sale is successful will you ever regret buying it.

Send them some comparables and explain why it's not a bargain then the ball's in their court. What is the work that needs doing though, apart from extending the heating to upstairs? Is it really necessary to make the place liveable or is it what you would like to do to make it your dream home?

I realise you put in the OP about roof, electrics, etc but is the roof leaking, are the electrics dangerous, is the kitchen falling apart?

Yes they are saying Tuesday for exchange
Work that needs doing (essential)
Stripping out a granny kitchen
Stripping out attic rooms -to make bedrooms - last used when owner was a child (he's retiring )
Moving current non fitted kitchen - think just hob and a sink
Central heating through out/ new boiler
Electrics through out
Making the roof watertight, retiling

The rest is choice

@wowfudge have drafted an email which I will send later of properties in their road and condition

If the exchange is Tuesday...and this house is a doer upper....you do know once youbuy it you can legally go back and claim if things were not stated...
It sounds like your money will mean a massive equity after enprovements, are you willing to lose it.... As an old man I might turn you down and be stubborn and just say f.... It. Let's just stay here and not have the upset of moving....

There's no point doing any of this unless you are actually prepared to walk away. That's the thing with ultimatums. Either you negotiate a middle ground everyone can live with or issue an ultimatum you are prepared to stand by.

They've been living there for however long and think the place is fine so you have to be careful not to insult them/make them feel they'll be paying for what you want rather than what is necessary. Stick to facts, keep emotion out if it. Think how you would feel in their shoes or someone said to you what you are thinking of saying to them. Do they actively want to move because if you think they really do then emphasise how resolving this means they get what they want.

If someone, not or someone

Sounds like a money pit. You've tried your hardest to make it work but your have to consider walking away. With the budget you have (even in London) you can buy something else that's beautiful. Hope it all works out for you.

@wowfudge good advice - we have been very clear not to insult them, to praise the vibe, they are just not been objective.
I wonder in the next few days some estate agents (not all)) who view the house and hear the offer will tell them to take it

There is another thing that makes the house deeply unattractive to vendors - it's very outing so won't post- but think unattractive pets!!!

They have said right from the start that the price is not negotiable so that's not a surprise. Your exchange date is set for Tuesday, you have been asking for a date and they have given you one - if you are moving out on Thursday, that doesn't seem too far from whatever you were given in March.

If I had to pick a person who was being unreasonable here, it would be you OP. You've got what you wanted but are trying to move the goalposts with less than a week to go.

How will you feel if someone else buys the house?

At least they gave you a day so the finishing point is in sight.