Drop in price of Apartment

[Paddylast]

Hi,
We are in the process of purchasing an apartment that was on the market for €175,000 back in June. we eventually bid €165,000 which was accepted. We paid a deposit in June but since then there is a hold-up as the apartment is part of a bankruptcy (owner went bankrupt) and although it now belongs to a bank, the ownership has not yet been transferred.
We now see that the agent has the apartment up in his sales room at €155000!! a drop of €10,000. As we have only paid a booking deposit we are unsure how to proceed. Although we don't want to lose the apartment , obviously we are not happy to pay €10,000 more than the agent is now looking for. Would it be worth just withdrawing and bid again??

Would appreciate any advice on how best to handle this.

 

[Brendan Burgess]

Normally, it is good and honest practice to proceed with an deal once it is made, although there is no legal obligation to do so.

However, you could argue that there are two reasons for reneging on your deal - the bankruptcy of the seller and the delay in the deal.

If you do break your deal, they might or might not deal with you again.

You could ask for a reduction.

Why is this particular apartment so important? Surely there must be others like it.

 

[PaddyBloggit]

You are entitled to your deposit back if you haven't signed any contract.

 

[Paddylast]

The reason for the strong interest in the apartment is mainly the location but also the size and condition. Very difficult to find an apartment for sale in this particular location. Only 20 apartments in the scheme - (older scheme where apartments are larger and the gated community very settled).

I realise the most honorable thing to do is to proceed with the sale, but at present we have no idea when this will go through. Also I feel quite aggrieved that the estate agent is not acting honorable by continuing to have the apartment up for sale in his window!

 

[bugler]

Also I feel quite aggrieved that the estate agent is not acting honorable by continuing to have the apartment up for sale in his window!

That is the key point in this case. It is odd. If the EA took a deposit on a property why are they effectively readvertising it at a lower price? Is it definitely the same apartment? Is there any chance due to laziness/ineptitude that the EA has another property in the development and is using pictures of the original apartment? Probably not, but worth checking.

This is strange behaviour, but I would use it to my advantage. Clarify with the EA the current situation: Are they still aware of your offer, and deposit? Why has the price dropped? Why is it still advertised?

Let them know that you feel a little unsettled and disconcerted by this turn of events, but that you are willing to meet price X (I would suggest the new asking price, at most..) provided that the property is withdrawn from the market and marked Sale Agreed immediately.

 

[bacchus]

Gazumping did prevale in yesterday's buoyant market, gazundering prevales in today's distressed market. I don't agree with either, but they are reality. So use it to your advantage.

Did you contact the EA for clarification? strange to see a price drop if there is really a stong demand for the appartment.

 

[Paddylast]

Here's the situation. The apartment is in a tiny developement and I know there is one other apartment on the market but it is a two bed and it is with a different estate agent. I just happened to pass by the EA premises on Sunday and saw the photo of apartment we have agreed to buy with the reduced price. Quite honestly I am really annoyed but I just want to approach this in the right way and at the same time would like to benefit from this reduction.

I suppose I have nothing to lose by just making a call and letting the EA know I have seen the advert at the lower price and ask for reduction. Somehow I can't see him agreeing as he always hides behind the bank being the one calling the shots. It would appear that banks don't give a fiddlers whether you back out of a deal or not. They put a price on a property, allow a small margin for negotiation and there is no moving them after that. At least that has been our experience so far.

 

[bugler]

There is no excuse for dropping the price of a Sale Agreed property unprompted. That is not normal. It is not sensible. You need to speak to the EA.