Purchase price "subject to approval"

[The Bobster]

Hi

I wonder if anyone could offer some insight or advise please.

I have been looking round for a new home and found a really nice one on a new Wimpey site. It was one of only a few lest and also just happened to be the show home. I played the game with the sales rep over about 2 weeks, feeling as I am not in a chain and had my finance in place I had a strong hand. Eventually we agreed a price (£150,000) that was significantly less than the asking price (£175,000) but one with which we both seemed happy. I said I would go down that weekend and pay the reservation fee.

When I did, I took my girlfriend as she hadn't seen the place (we dont live together). She was gushing about the house and area in front of the rep and I was relieved at the time that we had already done the hard bit. Anyway, she filled out the reservation forms and wrote in handwriting "subject to 28 day exchange of contracts and directors approval" next to the agreed sale price.

Everything seemed fine until late the following week when I got call saying that the sales director had refused the sale and wanted an additional £5,000. I of course said that was impossible, I had already allied for my mortgage based on the agreed figures etc.. over the course of several calls that day she basically said the director wouldn't budge and she would have to return my reservation fee and cancel the sale. I said I would think about it and call back the next day. So next day I offered an additional £1,500 saying it was all i could raise without reapplying for my mortgage and incurring the fee's all over again.

Since then she has called every day to say she is still waiting for the director to come back to her with an answer. Now, this all seems to odd to me. I cant believe in the current climate that a house builder is prepared to lose a sale over such a relatively small amount of money, or that Directors of Wimpey get involved in tiny details of sales like this. My suspicion is that either someone has offered more, or that based on how much my girlfriend liked the house she is just trying to get some additional money on the excellent deal I originally negotiated.

I appreciate either side can pull out before exchange of contracts, but I dont want to lose the house, but equally dont want to purchase with a bad taste being forced to pay more than agreed.

Any insight, suggestions and advice would be very welcome.

Thanks Bobster.

[Tony]

Hi Bobster,

You could play them at their own game and make your offer time-bound and let on that your girlfriend has found another house that she is keen on that is cheaper etc. You have to be prepared to lose the house though.

Tony

[The Bobster]

Thanks Tony

I have considered those options, but really dont want to lose the house, so need to be careful about how hard I play I think. If push comes to shove I will pay the extra as I still think the house is brilliant and represents a bargain.

I think this Sunday I will tell her she has no valentines present as I had to spend it on the house. Haha