Renegotiating after Sale Agreed

A

acorn1984

Registered User
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Hi there,

I went sale agreed on a house that needs considerable modernisation in Sep 2019. After much delay for various reasons that were completely outside of my control, this week the sale is about to move to contract-signing stage.

The question I have is whether and how I should go about seeking a reduction on the sale agreed price? I see that some houses in the area have dropped by 10-15k over the last number of months. I am also concerned about prospects to have construction work done on the house given current and further Covid restrictions. As the house is in a relatively sought-after location, I do not want to risk losing the property. So, in sum, my questions are:

1. Should I contact the estate agent to seek a reduction?
2. How should I word this so that I do not risk losing the property?

Any and all advice very welcome as need to make a decision on this ASAP.

Thanks in advance,

Aidan
 
Did the reasons for the delay originate from your side or the seller's side?

What % of the sale agreed price does €10-15k represent?
 
AAAContributor said:
Did the reasons for the delay originate from your side or the seller's side?

What % of the sale agreed price does €10-15k represent?
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The seller's end 100%. I was ready to sign a year ago. The sale agreed price is 335k and asking was 330k.

A
 
You've been very patient, notwithstanding the disruption caused by Covid. You're obviously very keen on this property.

How comparable are the alternative properties that you are looking at to the one you are committing to? Do they also need work? Have you viewed them in the flesh or just viewed them casually online?

Your solicitor must have an opinion on the delay. What comments have they made?

Given the delay, was there any non-price sweetener made by the seller's side to you?
 
OP is free to seek to re-negotiate the price- this is all pre-Contract. Vendor is free to agree or not.

From my own experience, I am not seeing any willingness from vendors, or real optimism from purchasers, in renegotiating prices notwithstanding current worries about Covid 19.

The worst that can happen is that the vendor says no but I think it is unlikely that they would refuse to complete at the agreed price just because OP asked.

mf
 
When I sold my last home it was a “quick sale”, however, the buyers dragged their feet. To the point where they were more-or-less uncontactable. (I resorted to legal quasi-online stalking to try to contact them myself).
It came to crunch time. My solicitor was set to give them an ultimatum. I suggested increasing the sale price by €5k for every further week of delay.

My solicitor replied, “ha! It doesn’t work like that”.

I suggest the OP discuss their suggestion with their solicitor. I’d expect a similar legal reply.

A friend of mine had gone sale agreed on a house back in 2006. But then there were problems. Not sure what but I think it had to do with deeds/ownership. He pulled out of the purchase as it was going to take a long time to resolve. And moved in with his father-in-law. Then the crash happened, and he took a break indefinitely.
Then one day his solicitor contacted him to say that that house was about to go back on the market. The vendor was giving him first refusal at about €50k less (late 2000’s).
He bought it and has been living there since.

However, he had pulled out and was then in a position for a revised price.
You, on the other hand, are still in a verbal contract.
 
Just to be 100% clear, once and for all. In a property sale, nothing is agreed until contracts and signed and exchanged. Any deposit paid prior to contract exchange is treated as "an expression of interest" only and either party is free to withdraw without penalty. "Sale Agreed" is a mythical, mystical status created by estate agents for their own purposes. To continue to use the term and to attach legal status to it is all hoo-hah, another legal term.
 
Thanks for the responses. I have viewed two properties in person in the vicinity since going SA; otherwise I have been keeping a watchful eye online. I have not seen a property of the same size as the one I have gone sale agreed on for the price agreed. Solicitor advised me some time ago to keep looking around, but to maintain interest with current property if I was interested - nothing to lose in this regard. Nothing has come up in the areas I was interested for the price I was willing to pay.

Re the legal status, I'm not sure what you're referring to. Fully aware there is no legal agreement binding this sale, however I equally don't want to turn the vendor off the sale altogether and for the property to go back to market as there is limited stock where I would like to buy. But yes verbal agreement is really all either of us have.

Based on this feedback, I will contact the estate agent and request a reduction as I have nothing to lose really in doing so.

Cheers, A
 
acorn1984 said:
Based on this feedback, I will contact the estate agent and request a reduction as I have nothing to lose really in doing so.
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The fact that you are still there is a good indication that you want this property and by open up the bidding process again you are also giving the the opportunity to up the price.... you only have nothing to loose if you are happy to walk away.
 
The seller knows you have hung in there for over a year. The only reason he is likely to reduce the price now is that he wants the sale quickly and he credibly believes you are prepared to walk away. But if he does credibly believe this and he is not in need of a quick sale he could also put the house back on the market.
 
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acorn1984 said:
Based on this feedback, I will contact the estate agent and request a reduction as I have nothing to lose really in doing so.
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Just remember this will also prompt the seller to look at the whole situation again and maybe he might be happy to walk away and go back to the market especially since he's had all the loose ends tidied now up whilst you were there to fall back on but it could be a different ballgame now, so I'd say you do have SOMETHING to lose and you need be aware of that..
 
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You say the house in need of modernization... I presume an engineers report was done.

Would you be able to pull any faults from the report and associate the requested price reduction with fixing the faults?
It might make the seller more comfortable with the reduction and less likely to take it as you going back on an agreement.

But as others have said its not risk free - the seller could get the hump and put it back on the market.
 
Sheepshooter said:
Would you be able to pull any faults from the report and associate the requested price reduction with fixing the faults?
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If the survey uncovers a significant issue that would escape most viewers, then fair enough. But as you say, asking for a reduction on house in obvious need of modernisation because your engineer says it needs modernisation will make you look like a chancer.
 
The Daft Report showed that up to Q2 there was no real falling asking prices on a year on year basis. This is on average for the country. Things might have changed by then but asking prices might only be down a few per cent.

Obviously this would be different if it was 2008 and prices were falling 15% a year, but they're not.

The best you will achieve is maybe €15k. The worst you will achieve is a sale fallen though. You seem to really like the house. I wouldn't put that at risk.
 
Leo said:
If the survey uncovers a significant issue that would escape most viewers, then fair enough. But as you say, asking for a reduction on house in obvious need of modernisation because your engineer says it needs modernisation will make you look like a chancer.
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Agreed I did mean faults that could be separated from modernization work
 
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