To pull out of house purchase so close to exchange or gazunder?

[TitaniumBev]

Totally miserable - any advice/views/abuse welcome!

We're FTB's, both 30, scrimped for years to get deposit together. We both grew up dirt poor & wanted to have a bit of security before children so are keen to get going now and sick of private renting.

Offer accepted on house end of Jan, the asking price was kite flying given location (Croydon). They wanted 460k we settled on 440k, only now due to exchange next week after delays (both sides, minor errors).

Since then though all the news around the economy & housing especially around London has been terrible. Monthly drops of around 1 - 3.6%. Terrible rics reports & rightmove data etc. Similar properties in the area are coming on for less but there is not a lot coming on so hard to judge. Properties hanging around for a long time.

I now feel the agreed price is too high, a lot has changed in 4 months and I think it's best to walk away. I know this will screw over the vendors & the chain but don't like DH's suggestion of asking for a reduction so close to exchange. He thinks we should at least give them the chance. (How lucky!!!) Prices seem to be down around 6% he reckons split and ask for 3% off. (£13,000 ish)

Its such a big transaction, the market looks soooo bad and its not dream house or anything. Should I walk or offer lower? I'm not going to over pay for a house just to be nice/honorable unfortunately.

URGH!

[Biker47]

I'd tell you to fuck off if you tried to drop the price on me.

[Biker47]

Either pull out or go ahead. Trying to lower the price after a deal is scummy. Dropping out is the less scummy option.

*pressed send too soon.

[snewname]

You agreed a price. Don't be dishonorable.

[Sexykitten2005]

I think fuck off would be polite in those circumstances Biker. My language would be far more colourful especially if you are the bottom of a chain.
We desperately need to move to the Scottish system

[NewYearNewMe18]

You're the one that loses money - you've paid out for all the surveys. they'll find another buyer.

Your name will be mud with all the EAs in the area though, they do all tip each other off.

It's a completely shit thing to do

[TheHodgeoftheHedge]

I'd tell you to fuck right off. It's a really rude thing to do at this point of the transaction. It should be illegal like I believe it is in Scotland.

[Laineymc7]

If you are planning on staying in the property long term and you love it go for it. There’s a lot of redevelopment in Croydon and it still hadn’t reached its ceiling height. You will make money. I wouldn’t lower your offer. If you don’t want to do it pull out but don’t gazump them.

[Darcydashwood]

If house prices had risen in the same period would you have offered to pay more? Of course not. It's unfortunate but that's the way it goes really.

[ellsbells2]

You've only thought of this the week before exchange???

Honestly I think either of your suggestions are disgusting. You offered what you were happy to pay for the house and have gone with that for four months.

Now with just a few days before exchange you decide to jeopardise the entire chain and waste who knows how much of other peoples money. Beyond selfish.

You could have withdrawn at a much earlier stage or reduced your offer. But you didn't. Your preferred option is blackmail, reduce the price or we walk. Nice.

[AndersArms]

OP you know it's bad behaviour. I think unless the changed market impacts your lender's attitude to lending you the money you need for your mortgage it is very, very poor form.

If I were selling to you and you tried a price renegotiation for anything less than something revealed in a survey, then I would tell you to whistle even if it impacted my onward purchase.

[sparklefluff]

Who cares if the EA talk about you, 440k is a lot of cash, so if you think you could get better/the same cheaper then do it. Don't put yourself in a negative equity situation.

However, be aware OP, this will probably come up as a dilemma on every property you go to buy....

[MoodyTwo]

When they talk about sell price I always think ... it's my home I am going to spend at least 10-15 years in, so the sell price doesn't matter , if you love the house and was happy /could afford that house... what does it matter

[BitOutOfPractice]

As someone who had a buyer pull out 10 minutes before exchange earlier this year I'd say it is absolutely the lowest thing you can do to someone.

If you can live with that...

But it's a really shot thing to do.

[SoupDragon]

What do you plan on buying instead?

[NewYearNewMe18]

Who cares if the EA talk about you, no one will deal with her - EAs are actually quite choosy and vet time wasters

[abigailsnan]

You are obviously not in love with the house but it is a decision only you can make.

[LoislovesStewie]

Sorry but are you planning on making this your home or do you just want to make a huge profit? Surely you should be thinking in terms of it being a place you want to settle in?

[BitOutOfPractice]

My EA said they would be "very cautious" with my buyer in future and would advise others locally to do the same.

It's such a crap thing to do.

[Laineymc7]

If you are renting in Croydon that size of place you’d easily spend £13000 a year anyway. Your wasting money to continue renting.

[NeverTwerkNaked]

I would just go ahead with it. Even if prices dip a bit you will still make money in the longer term -you’ll be paying off the capital slowly rather than paying of a landlords mortgage.

Also think it is quite morally dubious behaviour.

[Walkingdeadfangirl]

Its been four months, I think its fair to ask for a lower price. If sellers dont like it they can get another buyer.

[sirfredfredgeorge]

You don't want to go ahead at 440k that makes sense, it seems to not be a good deal now, it's up to you if choose to offer for a good deal or just walk away. It's a business decision, don't listen to all the people trying to guilt you into paying an inflated price, and yes a system that takes 4 months from offer to exchange is the basic problem, but you can't change the system, you work within it.

[CheeseRollingChampion]

Honestly I think either of your suggestions are disgusting. You offered what you were happy to pay for the house and have gone with that for four months.

Now with just a few days before exchange you decide to jeopardise the entire chain and waste who knows how much of other peoples money. Beyond selfish.

You could have withdrawn at a much earlier stage or reduced your offer. But you didn't. Your preferred option is blackmail, reduce the price or we walk. Nice.

This ^ It's beyond heartbreaking when someone does either of the options you are considering. It's incredibly greedy and selfish. If you didn't think the house was worth the money you shouldn't have made that offer.

[Pickleypickles]

You are in a no win situation really, no ome wants to over pay for a house for obvious reasons BUT you would be pretty rubbish to pull put now having wadted a lot of peoples time and money.

Seen as its no win I would ask for a reduction or pull out. Some people will hate you but you will never meet these people so that doesnt really matter. £26000 is a lot of money to spend just so you dont offend anyone.