Mkt Value of Apt Dropped - Contracts Signed - Builder offer...

C

City_Guy28

Guest
Hi All,

I signed a contract for an off the plans apartment over a year and a half ago and it is nearing completion now (finally). However i have had to renegotiate my mortgage and as a result they will only give me market value of the property which is 40k less than signing price.

The builders solicitor has said they will drop the price by 15k if i close out as soon as possible.

Do you think i should go back and see if i can get more off or am i stuck as i have signed a contract? Has anyone else gone through this or are currently in the same predicament.

Thanks
 
My guess is that you can get more off the price - maybe a lot more

On paper it is simple - if you pull out he may struggle to find another buyer - ok he gets to keep your deposit but he prob needs to sell units not collect 20 or 30k here and there.

It depends on your own circumstances and what you perceive his circumstances are - but if it was me I would try it on to the limit - play the poor mouth card and say you want to buy but the bank will only give you € x and you still have to buy furniture white goods etc. pick a figure and stick to it - try to come across as genuine - " I really want the apartment but ...."

Think about it - do you really want to pay more for this than the bank values it at?
Property prices are still falling and may do so for a while - do you want to be in negative equity immediately? Have you priced around to see what price is being paid for these units or similar in the area. I have seen stories about apartments being reduced by € 100k!

Good Luck
 
its quite possible your solicitor would have signed contracts "subject to finance approval" if so you may have an out. Otherwise why would the builder offer a discount if he has you committed.
 
1. OP signed a contract to buy a property at a certain price. Thats a contract - a legally binding agreement.
2. How he finances that purchase is his problem. If he had cash he would pay cash. He does'nt so he is borrowing.
3. He cannot now borrow from the bank the amount he wants. That is his problem. Its not really the builders problem - except its going to make the whole thing more difficult all round.
4. Builder has a signed contract - he does not have to move away from that BUT he needs to be realistic also. He cannot want to drop it below a certain level - that would be madness when he has signed contracts. However, he equally may not be able to successfully recover the whole sum due from a reneging purchaser if he sues on the contract. So he is being pragmatic.
5. "Subject to loan approval" - this has not been acceptable to builders for about 10 years. It may start to come back into favour - but it is unlikely to be the case here.

By all means haggle - but OP needs to be aware of the real, true situation he is in. He is in trouble and he needs to find a workable solution which does not involve being sued.

mf
 
mf1 said:
By all means haggle - but OP needs to be aware of the real, true situation he is in. He is in trouble and he needs to find a workable solution which does not involve being sued.
Click to expand...
I totally agree. I was just suggesting the "haggle" approach since the worst that can happen is that the seller says "no".
 
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