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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

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

940 replies

TitaniumBev · 13/05/2018 17:24

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!

OP posts:
sweeneytoddsrazor · 13/05/2018 22:31

With morals like yours OP, I hope I never encounter either of you professionally or personally.

^^
This although given they both only have 4 year contracts neither of them sound committed to their jobs.

LellyMcKelly · 13/05/2018 22:31

Think of what you’ve already spent. If the vendor says no to your proposal (and I wouldn’t blame them) you’re stuck in rented for probably at least another 6 months, and quite possibly more by the time you’ve found something else you like in stagnant market where little is coming up for sale. Add to that the risk of being gazumped, your new vendor pulling out, or (once, in my case) the vendor dying mid sale without leaving a will. That’s your £13k gone, easily. Even if prices drop a bit, you’re still paying a mortgage, you have the security of your own home provided you can continue to pay for it, and the opportunity to make the house your home. You’ll already be in a decent area when the kids come along. If you do end up in negative equity and you want to move, you can rent it out and use that to fund your next home.

I know some people are waiting on a massive crash, but that’s unlikely, and even if it did happen, many of those would be snapped up by landlords who can move quickly, so you might not be able to get the kind of property you want easily. The other thing is, of course, you don’t know how many people are also interested in the property, or the vendor’s priorities for selling. It is a shitty thing to do, but if you do go ahead with it, be prepared to lose the house. If you like this house, and can see yourself in it for the next 5-10 years then pay what you’ve agreed.

GabsAlot · 13/05/2018 22:32

we couldnt give a shit about what u think will happen in 4 years time we're talking about now and the peple youre about to screw over

like i said its not an item of clothing youre changing your mind about this is peoples lives

ironic that your a doctor

TatianaLarina · 13/05/2018 22:33

For intelligent professionals you don't sound very savvy

Perplexingly naive.

pyramidbutterflyfish · 13/05/2018 22:34

“beyond heartbreaking...incredibly greedy and selfish”. Hysterical much?

OP there is nothing wrong, let alone worthy of all the drama here, with asking for a modest price reduction. You’re the one risking the sunk costs and losing the purchase.

I will say that every time I’ve bought in London i have had similar wobbles. Its just so much money to pump in. Even more worrying now, as I really do think Brexit hit prices, especially in the outer boroughs.

Anyhow, our last place we asked for a reduction pre exchange, got it and are still friends with our sellers. We like you were not trying to mess anyone around, just understandably concerned about paying over the odds.

Borisdaspide · 13/05/2018 22:34

A 30 year old doctor and teacher have got 440k to spend on a house? Pull the other one, it's got fucking bells on!

SheGotBetteDavisEyes · 13/05/2018 22:34

I honestly think that the OP and her H don't give a single shit about any of the attempts to persuade them to act with a shred of decency.

You might not believe in karma, OP, but if you treat people like shit, at some point that will affect how people treat you. That's not karma, that's just people not liking the company of morally bankrupt, money-grubbing chancers.

beachcomber243 · 13/05/2018 22:35

A teacher and a doctor behaving like this? What a vile self serving pair to be happy to treat other people and affect their lives like this and be moaning about losing a few quid. Clearly not intelligent enough to see the bigger picture and not waste money on renting...despite wanting a home and a family.

But the neighbours have been spared having such shitty people living besides them. Anyway why buy if moving abroad....just to make a big profit then so greedy as well as dishonourable.

Foxysoxy10 · 13/05/2018 22:35

I think the main problem may be that OP doesn’t actually have a clue what she is talking about with negative equity etc and is just going off her DP who for some reason has cold feet.

Could your DP not wanting to go through with the sale have an ulterior motive? Cold feet about a joint mortgage? It just doesn’t add up to anyone that understands London prices, the Economy and/or general house buying, mortgages, equity etc.

Fruitcorner123 · 13/05/2018 22:36

I wonder if you would tell your friends that you have done this? If any of my friends did this I would think less of them. A lot less.

balsamicbarbara · 13/05/2018 22:38

Do it. There is absolutely zero honour in property purchases. It's like playing Monopoly at Christmas where the most mild mannered people become unrecognisable monsters but that's the way it has to be played to not get yourself shafted.

MiddleMoffat · 13/05/2018 22:39

A different take from me.

It is a business transaction so you can't get personally involved although the seller will be slagging you off if you pull out..... but really, honestly so what? Don't go ahead for fear of offending. It's a big financial commitment.

In your heart of hearts, if you don't definitely don't want that house, (and it can't be about the money, 13k is pissing in the wind really) don't carry on....say sooner then later.

If you plan to leave the UK its not your forever house anyway so why are you getting so worried over £13k?

AlecTrevelyan006 · 13/05/2018 22:40

OP - do you like the house and can you afford the repayments? If yes, then go ahead with the purchase. Negative equity is only a problem if you want to sell. The long-term trend for house prices is alway up - there will be the odd blip, but the longer you continue renting the harder it will be to find a house you love.

And, like many others on here we've had someone pull out of a house purchase at the last minute and it almost cost me my job and my marriage as well nearly ending up homeless...

TatianaLarina · 13/05/2018 22:41

I think the ethics is slightly beside the point.

It’s ok to pull out of a house sale if you realise, for example, that you genuinely can’t afford it, or fundamentally it’s completely the wrong choice.

But these two are just pulling out because they’ve no idea what they’re doing and they’re panicking.

That panic will cost them a fuck load of money.

SuttonHooHoo · 13/05/2018 22:41

Every update makes the OP sound more and more heartless. Since she obviously doesn’t give a crap what anyone on here says and since she’s ready to decimate someone’s world this week I just hope she pulls out and walks away ASAP so that they can get on with finding a decent buyer. Also hope she and her dh get blacklisted by estate agents - I wouldn’t want them anywhere near a chain I was in.

We had buyers/a chain who messed us around endlessly, it was absolute bloody torture. If I’d had any doubts (and markets can be uncertain, I appreciate things can change) I would have pulled out MONTHS ago. How lucky Hmm for them that they will only lose £400 unlike the other poor people in the chain who will have spent thousands on conveyancing, surveys etc, not to mention the emotional investment.

Those poor, poor sellers.

TatianaLarina · 13/05/2018 22:42

I disagree, I think it makes her sound more and more clueless.

mikado1 · 13/05/2018 22:42

Would you really advise a friend to go ahead with this high cost sale, because it was the right thing to do, even though it wasn't the house they wanted (which is what seems is the issue)?

stressed3000 · 13/05/2018 22:42

A 30 year old doctor and teacher have got 440k to spend on a house? Pull the other one, it's got fucking bells on!

? Their combined income would be close to 6 figures I imagine

Fruitcorner123 · 13/05/2018 22:46

stressed3000 not if they were a junior doctor and a main pay scale teacher but i assume they are in more senior positions.

Rudi44 · 13/05/2018 22:48

Interesting that one of the posters defending the OP is someone who has done this themselves. I can assure you that asking for a price reduction once a sale is agreed is every bit as greedy and grasping as if the seller decided at the last minute they actually could do with another ten grand. Deluded yourself if you like but it’s shitty and greedy

stopfuckingshoutingatme · 13/05/2018 22:48

Hard times and some harsh comments

Look no one wants to pay over the odds for such a major investment .

But are you really sure you can get the same for less ?

stopfuckingshoutingatme · 13/05/2018 22:50

It’s business not personal

We have lost deals at work at the last minute at work . It’s shit and it’s frustrating

But it’s a business transaction at the end of the day .

SuttonHooHoo · 13/05/2018 22:51

@Mikado1 - no I wouldn’t. Agree this is, at the end of the day, a financial transaction (for them anyway, for most people it is a hugely emotional one too) but the lack of remorse or seeming comprehension of the decision they are making is what irks me. Also the shaky grounds on which it is being made (my Dad’s stepbrother’s tennis partner’s hairdresser told me the market is going to...).

I think it’s the leaving it this late which really sticks in the throat. There is just NO NEED to have done that and the slightly smug, well we’ll only lose £400 has made me Angry.

HarryLovesDraco · 13/05/2018 22:51

How much is your rent? Between now and next spring you'll probably be spending £13k or more paying off someone else's mortgage. Is it really worth it?

carlitamurray32 · 13/05/2018 22:51

People get far far to emotional about house buying/selling, it really is a business transaction. I work in property, not in London so not overly close to the figures but what you say about a slowdown and declining prices in London is correct. I haven’t actually seen any ‘gazundering’ in a while but I have seen two sales where the vendor has asked for more as values had risen in the during the life of the sale both about 18 months ago. Like I said I’m not overly close to the figures in Croydon but if they are as you are saying you would be in negative equity before even picking up the keys, which could be considered financially foolhardy. Have you looked at what the vendors paid for it when they bought, given the London market and the fact you’re saying it needs work I should imagine they are more than breaking even and running a pretty healthy profit, so in terms of the options you’ve presented both personally and professionally I think the option of a price reduction is by far the least shitty. Pulling out at this point would be disastrous for the whole chain.