House prices are falling ,should we reduce our accepted offer after 3 months?

[ganesh]

We bought a house and are renting until the seller finds somewhere to buy. The trouble is we are stretched to the limit financially and now that house prices in our area have supposedly fallen by 10% the house we are buying is worth a lot less.
We haven't signed anything although we've spent a lot on surveys,searches and solicitors already and will exchange soon.
Is it ethical to back out now or offer a reduced amount. ?
We don't want to get into trouble financially but if the house she's buying will be cheaper,then shouldn't hers be cheaper as well.?

[redcrx]

you of course ask to lower the offered price but if she hasnt found anywhere to move to yet then a reduced budget is hardly gonna get her moving is it?

And of course, you risk her pulling out and marketing her property again.

[EmEd1984]

you haven't signed anything, you can do what you want. gazumping is the seller upping the price, gazundering is what you're looking at doing. the thing is, as you're renting, the vendor would rather have you than a new buyer who could well be in a chain - flipping the roles of the waiting game you're currently in. don't forget, you're paying rent while she picks a house.

better the devil you know an' all...

[ganesh]

Yes, but while she's looking she'll probably get a bargain when she does finally find something and be making over the odds on her sale at our expense.
It certainly wouldn't endear us to her if we did it but we are talking quite a large amount of money,and I almost feel like I'm being ripped off if the house is now not worth the same amount as it was three months ago.
I know this is not her fault ,I don't want to be mean or unethical and she would most likely say well **** off then ., and we would both lose out.
However, I do think gazumping is immoral so I'm tempted not to rock the boat, what would you do?

[EmEd1984]

i know exactly what you mean - perhaps it might be worth asking whoever valued the property to suggest what they think its worth now, she can't really argue with that. all that said, what she makes out of the deal isn't a factor, but you'd be quite within your rights to lower your offer, especially if its taken her say 3 months to find a property. Property is a horrible game i'm afraid :( personally, i'd get another valuation done (which will reflect the market conditions) and re offer that. Like you say nothings in writing, legally you're just an interested party at this stage!

How long have you been renting waiting to exchange...?

[ganesh]

Thanks Em,good idea.
Only been renting a month , after our sale went through but made an acceted offer on her house 3 months ago. The valuation at that time from both private and B/society said it was a FAIR PRICE .