Contracts signed- House price reduced

T

tara83

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160
Hi,

Not sure if I have any comeback at this stage. I put a deposit down on a new home in Oct last year. The contracts where then signed end of Nov. I am at the stage where I am waiting for the house to be finished. In the meantime, the prices of the houses has decreased. Do I have any chance of getting a reduction in the price I am paying. Should state that I have a basic turn key package in the price (as everyone did at the time)
 
You can haggle and ask your solicitor to advise but presumably you have signed a binding contract (and not just a booking contract or whatever) so the seller may simply refuse to drop the price.
 
Presumably if I were to try to pull out now the developer could keep the deposit I have paid. In theory if I were to lose that and go to buy a house in the development now, I would have lost less. i.e lose deposit of 10grand but houses now 20 grand cheaper.
 
tara83 said:
Presumably if I were to try to pull out now the developer could keep the deposit I have paid. In theory if I were to lose that and go to buy a house in the development now, I would have lost less. i.e lose deposit of 10grand but houses now 20 grand cheaper.
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Not quite so simple. The developer can retain your deposit but also, if they sell within a year, sue you for the difference in the price he would have obtained from you and the one they actually achieved.
 
It may not be as simple as pulling out though. If the developer really wanted to drag his heels, he could bring you to court to force you to complete the contract.
 
and the selling agent, you will need a huge favour done for you in the current climate, do you have any contacts that might be able to help you out?
 
Don't have any contacts. It was always a possiblity in this climate that it was going to happen. I'm surprised the house is taking so long to finish as it was second fixed when I purchased and obviously costing the developer money everyday it is sitting there. Not expecting to get the reduction to the new price but a gesture maybe. Will it affect my valuation as this is yet to be done on the house - as I'm borrowing 92% will I only be able to borrow at 92% of the reduced price
 
tara83 said:
Hi,

Not sure if I have any comeback at this stage. I put a deposit down on a new home in Oct last year. The contracts where then signed end of Nov. I am at the stage where I am waiting for the house to be finished. In the meantime, the prices of the houses has decreased. Do I have any chance of getting a reduction in the price I am paying. Should state that I have a basic turn key package in the price (as everyone did at the time)
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Your only chance is that the banks valuation is below the price you agreed to pay. Which considering the fall in house prices in the last few months should be farily easy.
If you can make mortgage application fall through it should make the house purchase fall through.
 
Thomas22 said:
Your only chance is that the banks valuation is below the price you agreed to pay.
If you can make mortgage application fall through it should make the house purchase fall through.
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But can't the seller still enforce the legally binding contract or make things awkward?
 
Thomas22 said:
Your only chance is that the banks valuation is below the price you agreed to pay.
If you can make mortgage application fall through it should make the house purchase fall through.
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No,no, no, no,no, no,. NO!!!!!
Don't say silly things like that - ITS NOT TRUE. No Contracts, currently, will allow for a loan approval clause. This is very likely to change.
The previous posters have pretty much explored the avenues and potential if unlikely remedies available. The price of this house has not been reduced. Its the price of other houses in the estate which have been reduced.
Many developers are sitting on estates with poor sale rates - it is highly unlikely that they will reduce the price. And if the OP's bank do value the property lower, then OP has to find the money elsewhere.

mf
 
even if such a clause existed, the bank is only interested in the house value matching/exceeding the mortgage value - not the mortgage value plus your contribution.
 
Thanks for your replies. As I thought not much I can do.It's a long term home so just hope within the next ten years prices improve.
 
Dont suppose this house is in Kilcoole as we're in the same position and trying to contact other people who bought in the estate.
 
No sorry not in Rathcoole. I think it seems to be happening all over the country at the moment.
 
WOW. For me, signing contracts means i am handed a key. Dont use that solicitor ever again - he wasnt looking after your best interests anyways.
 
Brendan said:
Yanklink

I don't understand your post. In what way was the solicitor not looking after Tara's interests?
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I believe his implication is that she should have been advised not to sign a binding contract until the property is finished/turn-key.

Not sure how realistic this position is given the panic to 'get on the ladder' there has been in Ireland the last few years.
 
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