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!

Just sold in North London for full asking price. Same amount as the house was valued at last summer. I’m not convinced that your stats are correct.

That's particularly shitty, the poor vendors!

Obviously it's not the same process everywhere, but in this area you complete and exchange at the same time (well exchange a couple of hours before completing). We've bought 3 times and it's always been done this way, I also used to work for an EA. You can of course request an exchange date other than the day of completion but I never met anyone who did.

Your situation would be even more of a bloody nightmare for the vendors in your case.

Jesus what a load of hysteria.

House buying is a stressful business,until the very last minute you brace yourself for the whole deal to fall flat. I have never assumed I'd be getting or selling any house.

First time buyers have been screwed for so long,finally things are starting to turn for them. They aren't in it for charity. It's a massive mortgage they'll be saddled with for years.

Op if you can get a better house for less now for god's sake pull out and don't think twice. Nobody further up the chain gave you any thought when you couldn't get on the ladder years ago. Round us the house building is insane and I think the market is getting saturated. Unfortunately however many houses you build ftb still can't get on the ladder until prices drop. Ftb calling the shots and pulling out will lower prices. All power to them.

Op it's business not charity and it's your debt. Pull out now if you're not sure. A doctor and teacher will always easily get mortgage offers and houses are like buses,another one is always round the corner.

We were forced into a difficult position by our buyers - a few days prior to exchange they suddenly decided they wanted to pay thousands less - we decided to go ahead with the sale as we didn't want to let down our vendors or the rest of the chain. It was right decision for us but like most of you I believe it is a despicable thing to do. Shame on you, OP, just because you don't believe in karma, doesn't mean it won't affect you one day.

It's the system that is the problem. And people do way worse than this. Sheesh!

Well, yes, people do do much worse - they steal and cheat and lie causing stress, upset and financial loss to others and I bet the OP and DH would consider themselves far removed from such behaviour.

Yet, for some reason, they are pretty relaxed about the idea of causing stress, upset and financial loss to the people involved in this property deal because they are trying (ineptly it seems) to game the market.

True enough that the system should change, it's wide open to this kind of abuse.

I don't get this- from looking at rightmove £1,200 rent pcm is a conservative estimate for a two bed flat or house. That's over £14k per year, gone. So even if your concern over this 6% drop is founded (which it isn't) you'd still be better off. Honestly the mind boggles that two professionals can't see this.

If you don't buy between now and this "move abroad" you'll have spent around 60k in rent with nothing to show for it. And that's before you start thinking about the obvious benefits of home ownership- security, being able to decorate how you want, no inspections or letting agents, etc. Those things may not be measurable in pounds, shillings and pence but they're incredibly valuable.

This is a starter home- you don't need to "love" it, especially if you're ultimately looking to move away. Having a property in a London suburb with a half decent rental market could really benefit you financially- you may well sell at a profit or it would give you the flexibility to maintain an income stream, rather than try and build a new life having spunked £60k on rent.

We’re looking to buy and anything decent is going for full asking where we are at the moment and we got 15K over asking for our London house- very recently sold. Things aren’t that stagnant. Pulling out is a risk.

Jesus christ some people need to get some perspective ffs. OP hasn't killed anyone, get a grip and stop being so bloody dramatic. Yes it's annoying when a buyer pulls out but the hysteria on this thread is just plain ridiculous.

How would you feel if the markets were moving the other way and the vendor gazumped? What would you think of the vendor? If someone gazumped or gazundered me there would be no circumstances in which I would go ahead with the deal. Undoubtedly you will find lots of people who will support you should you gazunder. I never fail to be dismayed by the number of Mumsnetters who reveal themselves to be , greedy, grabby, inconsiderate, ill mannered and otherwise despicable excuses for civilised human beings.

pretendingtobechilled agree with your summation of FanFckingTastic!

That poster sounds just like the person we bought our house from (I can't remember if there was an unflushed loo, but given the state the house was in, quite possible).
The vendors made it very awkward for us to actually visit the house (only managed to see it on 2 occasions) and didn't actually admit that the house had previously had subsidence until the last minute. Our mortgage lenders subsequently reduced their mortgage offer and we had to ask for £10k off our offer price. We couldn't pull out as I was 5 months pregnant and we had a buyer lined up for our house.
The vendors not only took every lightbulb, they took the majority of the light fittings, leaving bare live wires hanging from the ceilings. They also ripped out the fitted dresser unit in the kitchen (virtually all the storage there was in there) which had been wired for lights to the wall and so left bare wires hanging there too, together with a bare patch where it had been decorated around.
To top it off, the husband owed money left, right and centre & I had several visits from bailiffs whilst heavily pregnant for the 3 months after moving in.

Were we wrong to reduce our offer price? No, because the owners had not been completely upfront about the state of the house. The OP doesn't say anything about this in this case, just that she's got the wobbles.

Oh, and finally because the vendor was a complete shit, he had not continued the insurance with the original company who had paid for the underpinning works to the house. He had gone to Direct Line instead and got a much cheaper premium by not telling them about the subsidence (would be much more difficult nowadays with computer records). We had to go to a specialist company that dealt with properties of this nature, but had to pay through the nose for our insurance as we couldn't shop around.

Over dramatic much. Some of the language on here is hysterical.

If you're on the verge of making a financial mistake and can legally pull out you do it.Taking on debt ,which is what a mortgage is,should never be approached with a closed eyes and hope for the best approach.

Op you are not a charity and I think we're going to see a lot more of this over the next few years.

The most hilarious thing is that the OP will be causing themselves financial loss, over and above the amount of loss they are trying to cause the vendors. Yet they can’t see that. Talk about cutting off your nose to spite your face. They’re just not very clever

I'm in two minds about this. I have bought in Croydon 10 years ago and sold up 2 years ago. It took me 2 years to find the right property as a FTB and can understand the stress and worry about making the right decision. During the 2 years of searching I had to withdraw from purchasing, due to various reasons, such as a survey raising some major issues and a new build not complying by planning / building regs. I probably upset a few agents but that's just how it was. I did make a substantial profit when I sold up. I had to make the right decision for me and no-one else.

With regard to your situation, you are not legally obliged to purchase until exchange of contracts. You have the right to withdraw from the purchase at any point prior to exchange, which would mean you would incur charges, ruining a chain and upsetting your vendor. You need to make the right decision for you and your partner and not feel obliged to proceed if there is something niggling you.

If the survey has revealed something which you feel is worrying, you need to raise tjis with your solicitor who may suggest that it's brought to the attention of the vendors. Also speak to your solicitor about the price of the property and what your investigations have revealed about the value of the property. They may suggest approaching the vendor or they may suggest reconsidering about buying.

Not necessarily.

It costs shed loads to move now. More people are sitting tight. Op can now afford the area they really want. On top of the house value they'll save,they'll save moving costs and being ftb will potentially get a real bargain. Another house could be just round the corner.

I don't get this- from looking at rightmove £1,200 rent pcm is a conservative estimate for a two bed flat or house. That's over £14k per year, gone. So even if your concern over this 6% drop is founded (which it isn't) you'd still be better off.

But the person would be paying out at least 1000 in interest, and losing at least 75 quid a month in interest on their deposit, so now the "cost" per month is just 125 quid, and with no repayment on the mortgage principle, so actually they'll need to do that as well, particularly in any environment where negative equity could be a concern. On top of that is of course the higher costs you have from actually owning (insurance, maintenance etc. all to come out of just 125 quid a month.)

If the idea is to rent out such a property if there's a problem, then it's actually unlikely to cover the mortgage costs unless you get very lucky with low maintenance and no voids.

Whatthefox "They’re just not very clever" and yet they're fixing us up when we're ill and teaching our kids! God help us!!

You’re not committed - legally or morally - until you exchange. Things can go wrong for a number of reasons, market uncertainty being one of them.

Pull out if you think it’s a financial mistake. In my area of London the price drop since Christmas has been sharp so I can see where you’re coming from.

I’m selling at the moment and my buyer has pulled out for this very reason (not close to exchange though). Really frustrating and annoying but that’s how it is.

Sorry pressed post before finishing!

If you were to approach your vendor about renegotiating the price, they may say no and the sale then falls through as does the sales further along the chain. They can't force you to purchase at the agreed original price.

It's not a nice situation to be in but unfortunately until exchange there is no legal commitment, only a moral one.

OP, welcome to the real world. Houses go up. Houses go down. The economy goes up. The economy goes down. Nothing can stay stable 24-7. It's a constant wave. A rollercoaster. As is life.

In 6 months, 12 months, 5 years, whatever, that house will more than likely be worth more than £440k. There is also a chance it may be worth less as I don't know the details and don't have a crystal ball. But with the way housing is in this country it's pretty safe to say it will go up in value as that seems to be the trend. Especially in London areas. It's the supply vs demand.

Whatever house you buy it's the same situation. Back in the 90s rates went up literally over night making peoples mortgages 10-15%.

Then there was the crash. People 'lost' tens of thousands off the value of their house overnight.

Nobody can predict the future. But you wouldn't do anything in life if you thought what if what if.

what I can predict is you will spend thousands on rent for no gain whatsoever for your own future. Buying a house is an investment, security and of course a risk. But a risk worth taking in my opinion.

So, ask yourself. IF in 6 months for example prices go up and that house is then worth £475k for example, will you be able to afford it?

How would you feel if that house value had infact gone up in value and the seller was asking you for an extra £13k one week before completion? It's totally out of order and not how we operate. You agreed a price. It's not I'll offer this then later ask for £13k off. That is A LOT of money. Are you aware how much money the other families in the chain could lose too? Not to mention the upset & stress of it all?

I appreciate you may not give 2 shits about other people's lives. That's fair enough. If you only see it as a monetary/business transaction - well in business we agree and stick to it. It's an agreement. And people who break that agreement don't last long in business!

It’s rather worrying isn’t it betty

The tone of the OP is almost gleeful. Like a morbid enjoyment of the drama.

OP, you've admitted to changing your mind about the house. "it's not the house for us"... 4 months after making an offer. Deeply, deeply uncool.

This thread's hilarious.

Anyone would think the OP was planning to murder these householder's children, not pull out of a sale.

Carolynnnna nearly spat my drink out 🤣🤣

Okay I got it wrong with the gazump and gazunder but it still amused me. I haven’t owned a house since 2000 and quite honestly it was so stressful the last time I bought and sold I am quite glad I can’t afford to own property now.

I was expecting you to say you wanted to pull out because of vendors messing you around / your valuation came back too low / some structural issue with the property but you want to pull out because according to Rightmove the price might have changed? YABVVVVVU.

What would you expect decent vendors to do if the house had substantially risen in value in the last 4 months? Tell you that they want 13k more, or the deal’s off?

How much money do you stand to lose if you pull out? What about the vendors? What about everyone further up the chain? How much more money will you be spending out in rent if you delay buying?

Think about it.