Re-Negotiate on New House

[emc]

I put down a deposit on a new home in March last, at the time the value was 370k, now with the decline in the prop market etc i would think the value is more like 340k. i have paid 20k deposit, the house is due for completion in november. does anyone know what my legal grounds are if i were to go back to the estate agent and request a review on the price of the house. many thanks

 

[rmelly]

Re: Re-Negociate on New House

What does your solicitor say?

 

[emc]

Re: Re-Negociate on New House

i haven't asked her yet, will do on monday

 

[ontour]

Re: Re-Negociate on New House

Two sides to this situation. One is that you have signed a contract to buy at 370k, would you be happy if the developer was coming back to you asking for more money of the market had risen?

The other side relates to many peoples inability to obtain the mortgages that they expected when the contract was signed. Developers may realise that the mortgage that the prospective purchaser can get will not allow them to pay the contract price. The developer may see the commercial sense in dropping the price to ensure the sale closes.

 

[DeeFox]

Re: Re-Negociate on New House

Legally, once the contracts are signed the Developer can pursue you for the full price as agreed. However, you can try and negotiate with the Developer - he may or may not agree to a reduction. Is the bank still willing to lend you the same amount? If the bank will give you only a lesser amount tell the Developer you have no way of making up the difference but that you would like to proceed at a lower amount (emphasise that you will happy to close out quickly as soon as the house is ready). You should have the house valued now to get a more accurate idea of its value.