Re-negotiate price a month before contract (maybe)

[Honin]

Some advise needed please....
We have just received a call from estate agent saying the vendor should be ready to exchange sometime next month, and just a week ago, DW and I were discussing whether we should re-negotiate our offer due to the current pandemic.

It's been half a year since our offered was accepted (£285K) originally £300K. We are currently renting atm, and we are eager to finally move into our own place.

The reason we are considering whether to re-negotiate instead of pulling out is, the mortgage will be much more affordable than the rent, and we don't think the market price will drop more than the amount of a year rent.

Hi, can I ask why it's taken 6 months to complete?

Hi Smallgoon, I believe it's due to the vendor had to find a property. As far as I know, the vendor and her vendor want to exchange and complete on the same day.

and how much lower are you thinking of trying to get the price down by?

I'd say 10k. I don't think its a huge amount, especially if the vendor counter offer. Is it worth delaying the exchange for a couple of thousand pounds?

I mean, if you ask me personally, unless your own financial circumstances have changed somewhat, I wouldn't be trying to renegotiate. It will piss the vendor off massively, and you'd be pissed off if you were in their shoes. So by the sounds of it, you want to request £10k lower as a starting point, which with some negotiation, may end up being £5k less. Is it worth it in the long run? I wouldn't say so. If they're in a chain, they may then to seek a lower offer too to recoup some money, which could further delay your move. Personally, I wouldn't do it. But that's just me.

You want to renegotiate at this late stage due to market speculation after the pandemic? If you are confident that it's a fair price & you can afford the repayments, I would just go ahead with it. I'd be really pissed off if I was the seller & you started trying to reduce the price now.

Would the reduction in purchase price make a difference to the LTV if you are getting a mortgage? If so, your lender will need to issue an amended offer. Lenders are now becoming cautious about offering 90% mortgages and have withdrawn quite a lot of products. Have you signed the contract yet? If so, this would need to be amended as well.

It does seem as though property prices may well come down so you could consider dropping out of this purchase and taking your chance on a much cheaper property in a couple of months time.

Thanks everyone, really appreciated! I too think it's not the wisest decision to try to reduce the offer at this moment. However, I'll have a second thought if the exchange doesn't take place next month, and this process drags on for a few more months.

You run the risk of the vendor not selling to you at all.

If your financial situation hasn't changed then why run the risk of this falling apart.

You have had an offer accepted that is £15k under asking. Vendor may well not accept you going to £25k under asking.

Are you buying it to live in or make a buck?

Two different scenarios- two different realms of possibilities.

I think it wouldn’t be cheeky to tell the estate agent that the vendor needs to hurry up or you are considering looking for cheaper alternatives as the market changes. They do seem to be treating you as though you aren’t important.

What was the valuation?

I think the market will drop in a few months but what happens is often people are not prepared to reduce the price (or are unable to due to LTV) so stay out and the market stagnates. If the house if what you definately want then go ahead as otherwise you might just be unable to find what you want

Don't ask, don't get. Be prepared for them to tell you to stuff it but from reading the above you seem OK with the current offer so why rock the boat?

As a buyer I'd be arguing the prices will fall so a small gesture of 10k off (accept 5k) is reasonable... As a seller I'd be thinking why should I bother moving now if prices are dipping and I could ride it out where I am and maybe do some improvements.

After 6 months is your mortgage offer still valid?

Thanks all again for the feedback! There are truth in both side of the argument, and that's what make this an interesting topic to discuss~ lol

This'd be our first home and I think the vendor do want to move things forward since they also want to complete with their new property. On that note, that makes it more likely the vendor will accept a slight reduction, but then again, I don't want to be an ass by reducing a few thousand just for the sake of it. Not to mention they did seem to speed up their progress after I spoke to the agent saying since my mortgage application will expired at the end of July, and if it expired, then I'll have to reapply, and who knows I. may have no choice by the renegotiate the offer.

Therefore, no I don't think it's morally right to reduce our offer, and risking the possibility of loosing the property, but if my mortgage offer expired, then we'll be looking at this from a very different perspective. lol

We only search online for the valuation, it says around the 290 mark, we had a survey done and beside some condensation and minor works, generally all good. HSBC didn't tell us their valuation neither, only guessed it's not too far off.

Just to clarify,is it the case that you didn't have a valuation or survey ?

Hi User, I had a survey done, but not the valuation.

There is another thread running whereby the buyer did what you are asking about....they refused and out it back in the market at full price over what they agreed!

yes, I saw that thread. A bit extreme from both parties, but it happens.