Negotiating House Price After Offer Accepted

Written by Nicola Ryan

17th Jan 2023 (Last updated on 26th May 2023) 5 minute read

Can I Renegotiate After Offer Accepted?

Renegotiating once your offer is accepted is a common occurrence. In most instances, buyers will renegotiate their offer if they have received negative survey results.

When an offer is accepted, it is listed as Sold Subject to Contract, often abbreviated to SSTC. This means that the sale is not legally binding because the exchange of contracts has not happened yet.

Read our guide on What Does Sold STC Mean?

Is the Seller Allowed to Change House Price After Accepting Offer?

The seller is unable to change the sale price once they have accepted an offer. Sellers may feel regretful that they didn’t put their property on the market at a higher price point if they receive a higher appraisal. Once they have accepted the offer, they are unable to back out of the transaction without facing financial penalties.

Can I Renegotiate Offer After House Survey?

Most cases of renegotiation come after the house survey has been conducted. This is because house surveys can pick up on defects and issues that can negatively affect property value. In England, Wales, and Northern Ireland, the buyer’s surveyor will conduct the survey and write up a report. Depending on what type of survey you pay for, the amount of detail provided will differ.

The RICS Level 2 Survey, also known as the HomeBuyer Report, is the most commonly conducted survey. The Home Buyer report is best suited for newer properties that are less than 50 years old and have standard construction. Your surveyor will conduct an interior and exterior inspection of the property. They will highlight any defects or issues found in the property.

The RICS Level 3 Survey, also known as a Building Survey or Full Structural Survey, is the most detailed and comprehensive survey. It is the best option for historical or listed properties. The surveyor will conduct a thorough inspection of the interior and exterior of the property. They will also look at areas that are difficult to access. The report is the most detailed, highlighting any defects found. Your surveyor will also provide advice on how to fix any issues as well as estimate the costs of repair.

If any major defects are found, you can choose to withdraw from the sale completely. However, you can also choose to lower your initial offer to take these issues into account. A successful negotiation is one that is realistic. This means not offering a price that is too low. For example, if you have a Building Survey conducted, you may want to deduct the reparation costs.

Can I Renegotiate Offer After Exchanging Contracts?

You are able to renegotiate your offer until you exchange contracts. Once you have exchanged contracts, the sale becomes legally binding. This means that neither party can withdraw from the sale without facing a financial penalty. The buyer will also not be able to renegotiate their offer price.

Read more about What Does Exchange of Contracts Mean?

Can You Pull Out of a House Sale After Offer Accepted?

Buyers can pull out of their house purchase at any point before the exchange of contracts. This is because the transaction is not legally binding. If you pull out before exchanging contracts, you will not be subject to any financial penalties. However, you may lose money spent on conveyancing searches and legal fees.

A general rule of thumb is that the further along in the process you are, the more money you are likely to lose.

What is the Best Way to Renegotiate House Price?

Negotiating the house price can be stressful, especially if you have a seller who is reluctant to budge on the price. However, if you spend the time to thoroughly research and explain why you wish to renegotiate, you’ll have a higher chance of success. Here is the best way to successfully negotiate a house price:

1. Have a Property Survey

As already mentioned, having a property survey is crucial when buying a property. This is because your surveyor will work in your best interest to highlight any defects that can affect the value of the property. When hiring your surveyor, make sure that they are regulated by RICS to ensure that the survey is completed to the highest standard.

Read more about What is RICS?

2. Do Research

Make sure that you research similar houses in the area. This will give you a good indication of what price point is reasonable.

3. Get Quotes to Cover Any Repair Work

If you have received negative survey results or are aware of any defects in the property, you can receive quotes for how much it will cost to repair. Not only does this justify why you are renegotiating your offer, it also shows the buyer that you have done extensive research on the property. This shows that you are eager and will work in your favour.

4. Write a Letter with Reasons and Quotes

Once you have completed the previous steps, you can write a letter to the seller explaining your reasoning. Even if the seller is reluctant to negotiate, they will be more responsive to the facts and figures if you lay it out in a clear and concise way.

What Happens if the Seller Won't Negotiate?

Your seller may be extremely reluctant to negotiate. They may have an estate agent who is insistent that they can get the full price. If your seller will simply not negotiate, you can choose to withdraw from the sale or proceed with the purchase, paying the initial offer.

If you have concrete evidence as to why you wish to renegotiate, you can explain how this may affect future offers.

The best way to avoid upset as a buyer is to not get emotionally attached to the property. Make sure that you keep your options open and keep an eye on other properties in the area.

Finding a Conveyancer

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