Gazundering

Hi guys,

We were due to sign contracts in a matter of days to sell our apartment. Our buyer is a cash buyer and has shown the EA proof of funds.

All was going well until today when she rang to say she wanted €10k off the asking price as she apparently has only found out there is PP on a field next to the apt for a nursing home.

We will be carrying approximate €38k NE to the home we hope to buy but our seller took weeks of negotiation to get to our offer price to buy, we simply do not want to add another 10k to our mortgage as we were at our maximum that we could comfortably borrow, our solicitor informed her solicitor that the company that want to build nursing home are in reviewship so unlikely to go ahead and pp is expiring in 2 years.

Has anyone any experience or advice?

We simply do not have the money we just about had deposit and costs outlays etc.

Pull out, I have no time for these guys and their sharp practices, let her off the lead and do as she pleases, its likely she was planning this all along.

Instruct the e/a to put it back on the market.

See how she likes them apples.

she apparently has only found out their is PP on a field next to the apt for a nursing home.

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If her solicitor found this out during the legal process, is probably fair enough.

The receivership issue will only delay things. If they got PP, someone else will use it. If it runs out, they will apply again and probably get it.

But it's a tough one. Had you other offers or interest?

She came straight in with the asking price initially days after it went up for sale, apparently the estate agent said there was a lot of interest iniatally, we took it off the market though as she came with her booking deposit so I do know he got a lot of calls about it.

She rang my fiancé personally yesterday and told him he had an hour to think about it. We had been speaking to her two weeks ago as she wasn't happy with manangement company financial state so we got her information she required so she decided to proceed at that stage, her solicitor would have had all this information at that stage also.

So fiancé rang solicitor who spoke to her solicitor who was not aware of yesterday's development. We have told EA and solicitor we do not want direct contact with her from now, this is what we are paying people for.

After giving us an hour deadline yesterday her solicitor was going to ring her to say we couldn't negotiate so we have not heard back. As time goes on I get angrier. Our solicitor feels she is aware we are a young couple with a baby desperate to sell an apt and get a house and she is using this at last minute. This is week 11, I'm not sure i can go through the sale process again straight away!!

It's highly doubtful we will get the asking price again in order to purchase the house we want as he will not budge on price. But at same time we can't afford to drop this one by 10k either.

So I feel our only option is to walk away and see where we go from here. I really don't know?!

She rang my fiancé personally yesterday and told him he had an hour to think about it.

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Under the circumstances, I think he should ring back and tell her that the price has gone up by €10k and she has 1 day to sign the contracts.

Alternatively, if you want to be really mean, agree to the price reduction, get back the signed contracts from her, but put the house back on the market. Only go ahead with the sale if you can't get a higher price.

Check the legality of this with your solicitor.

Brendan Burgess said:

Alternatively, if you want to be really mean, agree to the price reduction, get back the signed contracts from her, but put the house back on the market. Only go ahead with the sale if you can't get a higher price.

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Cunning plan Brendan..I like it!

I also like it Brendan but I'm not quite sure I'm brave enough to do it. Out stance so far is we have informed her solicitor that we are negotiating the sale price at this point so take it or leave it. I shall keep ye updated.

What's the status of the deposit if she decides at this stage to pull out? Is it due to be returned? Would you be entitled to take any costs you incurred (e.g. solicitors fees) out of it?

Good question I shall enquire 2moro but I imagine as it's only a booking deposit she has put down that's refundable until contracts signed.

Feel sympathy for your situation. Few alternatives I can think of, e.g. play hardball with the buyer, perhaps approach the seller of the house you are proposing to buy and take 10k off your offer. Not preferable or ideal but if you have no other choice.........

I have a more fundamental question though, if what you say above is correct about being stretched ("We simply do not have the money we just about had deposit and costs outlays etc.") - are you wise to be going ahead with the sale and purchase in the first place? Are you stretching yourself too far and leaving no or very little flexibility should your financial situation or personal circumstances change. Babies cost a lot of money.

My advice is to seriously consider walking away, forget about the house until the baby arrives, and reconsider when things settle down thereafter. You’ll have a far better handle on your post baby financial situation.

Unless you really feel you are getting an incredible deal on the buy side, i.e. buying a house at a knockdown price that you are highly unlikely to be able to do again. Unless it’s a great deal why stress yourself personally or put yourself under such financial strain for many many years to come.

Important thing to bear in mind is that in the future, if house prices go up then it is likely apt prices will follow so you may well find that you will not end up carrying anything higher than €48 grand NE in any event (i.e. the existing 38 plus the 10 reduction they're looking for). Not making any predictions though on house prices.

Also see a Key post I did on a situation very similar to yours under Mortgages and buying and selling homes – deals with many of the issues you are working through. Post called Renting out first home and buying second to live in – try this link - http://www.askaboutmoney.com/showthread.php?t=172487.

post6

Hi Gerard.

Thank you for your very comprehensive and informative reply. Our seller not in a position to drop price.

We informed seller through EA that we would not be negotiating at this point of the sale as reasons were completely invalid as she had known for weeks about PP.

If we had gone ahead we would be able to make mortgage repayments comfortably, our son is almost 1 (sorry didn't explain that properly)! But if anything I'm more aware of how expensive babies are. We were not prepared to stretch ourselves any further in case second child came along, option to work part time etc. I am determined not to take on a mortgage that will leave us uncomfortable if our finances change, interest rates rise etc. We already went €10k above what we wanted to offer to house we buying but that was our limit to remain comfortable.

So we made the decision not to negotiate the price with her. She refused to budge also. We are not in a desperate situation to sell, yes it's hard losing out on a house we imagined ourselves living in but it's not the only house out there and maybe it wasn't meant to be. Will certainly be considering the renting option as we are in a good rental area.

We certainly do not want to be leaving one situation and creating a more difficult one.