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!

We were potentially gazundered twice, yep twice, on two home sales within a ten year period.

Both times were on the day of exchange! How lucky are we?

One CF said they suddenly wanted to pay ten per cent less than the agreed asking price cos they wanted a new fancy kitchen.

The others were just random chancers.

Both times we told the CFs to fuck off.

My daughter and her husband are just about to exchange on their property and a few weeks ago they stat d this exactly same dilemma to the vendors. The vendors were extremely sweet and said they completely understood and as my daughter was 7 months pregnant agreed to drop the price. I think because they were honest and upfront (and didn’t leave it until the day of the exchange) they agreed! They complete on Friday🤞😃

My buyer pulled out today. Wonder if it's you? On the verge of exchange. SE London but a house more expensive than you describe. We've relocated and were so happy to go under offer. Our buyers were a pain with so many weird queries and expense incurred on our part to satisfy them. We're broken hearted. My kids are inconsolable. My oldest daughter literally screamed and fell to the floor in devastation as we had found a house we loved and were planning our future in. If you're not sure, pull out at the beginning not the end. And even if you feel you 'must do what's right for you' spare one minute's thought for the lives of the other family your trampling over. Selfish, thoughtless behaviour OP.

You will not lose in the long run by keeping with your original offer and the expense of starting a new search if the vendors then dump you would be unjustifiable.

We had this with our last house. Time wasting FTBs pulled out twice not long before exchange. Caused us huge amounts of stress, cost us money. The UK system is open to abuse. Hope the system changes soon, once you agree a price it should be put in the contract.

Zoopla says prices in Croydon rising

www.zoopla.co.uk/house-prices/london/croydon/

From what I understand the house price declines in London have mainly affected those at the top of the market - 900,000 + and those in the most expensive areas, like the South West, have decreased a little, but nothing drastic.

I hope you never manage to buy, OP. Or you end up buying a complete money pit. It would serve you right.

Good heavens.

This is a business transaction. Nothing wrong with renogiating. It’s not being nasty. The housing market has become far too wrapped up with emotions.

I was totally screwed over by a buyer who I later discovered had a TERRIBLE reputation for putting properties under offer and then p*ssing the vendor about.

A lot of the EAs knew she was capricious but they did nothing to warn us off.

I could still cheerfully throttle her now and this was two years ago.

Lower your offer if you must but I don't think the market in Croydon is as dire as you think.

Hollieboobieboo

Spot on !

OP - you must absolutely do the right thing for you. It is a huge sum of money to spend unless you are absolutely certain. Do the right thing for you, not what others perceive to be the morally right thing.

If you are going to be in the house for a long time then I think you should go-ahead. Croydon is a place where prices in even the medium term should go up, even with the uncertainty of Brexit. It may be south of the river but there are still many people who want to live there.

Rents will only go up.

I could understand if one or other of you had been ill or lost a job, not otherwise.

FanFckingTastic - you sound like a psycho.

^What the FTB's had not remembered is that they were moving into my neighbourhood. The neighbours were all friends of mine and, of course, I had told them what kind of shitty people were moving in. They were certainly less inclined to be neighbourly towards them and even less inclined to agree to the planning applications that the FTB's put forward shortly after moving. Before we left the house I made sure we took every last lightbulb. We also made sure that one of the kids took a very large shit in the toilet and I just must have forgotten to flush it.
I suppose what I am saying is think of the other potential consequences to your action.^

Did you also leave a horse's head in the bed?

They were buying a house, not jilting you at the alter, FFS.

Why on earth should they overpay if they don't have to?

As a FTB I had to pull out of a deal 2 days before exchange, though my circs were different. At the end of the day it’s a horrid thing to have to do to pull out, but if your preferred area is now available then pull out & buy there if it will make you happier. A mortgage is a millstone round ones neck and if you’re not totally happy with what you’re spending nearly half a million on then don’t bloody buy it! However, I would say that stop looking at a house as an investment if it’s going to be your home for a good long while. When myself and my ex husband did that, we ended up losing £50k initially but forgot it was our home. He bought my half out in the end when we split up & I wish I’d waited as it’s now worth £20k more than we paid for it. Property is a game of swings & roundabouts with lots of ups and downs - but you can’t forget it’s going to be your home first and foremost.

Are you buying a house to live in or resell? 440k is a good price right now unless you are an expert in properties.
To try to lower the price after the deal was done is horrible. I would tell you to f... off.
Or walk away (losing money for solicitor and surveys etc) or just buckle up sunshine- adult life requires sone tough balls and responsibility!

If you aren’t completely happy pull out, you have the right too.
Not saying this lightly, I have had it done to me the day before we were signing contracts,yes I was very pissed off. You just have to move on.
You have to be happy with the deal

I think you should at least give the seller a chance to reduce the price! When it comes to buying and selling property you have to do what is right for YOU but at the same time be honest! And that’s speaking as a recent seller. Put sentiment aside and think with your head! Good luck

I must confess that my curiosity got the better of me and I think I found the house and imho it is lovely . I can't see them having much trouble selling it again tbh , hope so anyway for their sakes.

It is probably politer to pull out than to ask for a cheaper price, unless you are now unable to get the mortgage you need. I'd be wary though. You will still have to pay quite a bit in fees and find yourself back at square one, as prices start climbing again and you could end up paying even more for a similar property.

It’s gazump. Gazunder is what they used to call ceramic potties they kept under the bed when the toilet was outside.

If your hearts not in it OP I’d pull out. You are spot on with prices dropping. I’m only 15 miles further south than Croydon and seeing them fall here quickly too. We bought this in 2007 at the start of the crash and saw the value stay stagnant for about 5 years

Mrsmadevans Surely it is not still on Rightmove? If it is OP, then they are not serious about your offer either.

No, it's gazunder.

Gazumping is when prices go up and sellers ask for more money at the last minute.

Which happens all the time in a rising market. I've had it happen to me, twice.

Wonder how many of those criticising the OP have themselves gazumped others with no compunction?

I'm with everyone that thinks it would be disgraceful. House purchase in England takes a while but you have agreed the price and both parties have incurred considerable expenses
... surveys legal fees etc ... which will still need to be paid and would be wasted.
You are thinking short term when you should be thinking long term

Shell4429. It's not gazumping, in fact it's the opposite of gazumping which is when a vendor agrees to sell and then later gets a higher offer so either accepts the higher offer or asks the original purchaser to increase their offer. Also very annoying.

I am so glad I now live in houses with inside loos and no longer need a receptacle under my bed.

OP - you would have got less personal abuse had you confessed to drink driving, torturing kittens, child abuse and supporting trans activists!!