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AIBU?

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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:
JennyHolzersGhost · 13/05/2018 17:50

An additional factor you need to consider more broadly is whether you want to buy in a falling market at all. If you don’t then typo need to take into account the opportunity cost of making that choice, ie the additional months or possibly years of rent you’ll be paying, which won’t accrue to your mortgage. Many people fail to consider this when looking at when to buy.

Buglife · 13/05/2018 17:51

Walking away will also absolutely ruin their purchase so they will not not be able to buy their new home and have wasted all the time and money on this sale. You both still
have to pay your solicitors you know. I love in dread of our buyers doing this to us. What a horrible thing to do. You will lose more money on this and then going through another conveyancing then you would save as well, so it’s madness.

rabbitrabbit12 · 13/05/2018 17:51

Wow what a shit thing to do for every one in the chain! Prices ebb and flow it only matters if your selling in a few years time. Are you really serious about buying a house??

ikeepaforkinmypurse · 13/05/2018 17:51

It's disgusting and should not be allowed, unfortunately it's perfectly legal.

If you add the cost of your mortgage offer, the need for a new one - original mortgage offer will probably have expired by the time you are ready to exchange on another property, the surveys, the solicitor fees, the monthly rental costs, it won't be a cost-free decision.

I feel sorry for your sellers who are at high risk of losing their own sale, lose all the money they have already spent.

Don't wonder why sellers are very wary of FTB!

Anyway, if you will pull out anyway, yes, give a chance to the chain to save the sales. It might cost less to your sellers to reduce the price than starting from the beginning, just might.

Very shitty thing to do so late down the line, but at least give them a choice. I feel sorry for them, we have a terrible system.

UrsulaPandress · 13/05/2018 17:52

What a pity that sellers can't randomly increase the price in a buoyant market.

sunshinesupermum · 13/05/2018 17:52

I wouldn't walk away in your situation, nor would I lower my offer. You may well find that the market dips but it will rise again. I've bought in London (family home) at top of the market and lost value immediately afterwards but within three years the value has climbed back again.

As a PP said you will lose £13,000 in renting instead of going ahead with buying this property and you are causing untold grief to everyone else in the chain.

Nanny0gg · 13/05/2018 17:52

DO NOT WALK AWAY!

Go through with the purchase. That's the majority view.

ThroughThickAndThin01 · 13/05/2018 17:53

I hope it’s cost you a lot of money so far. Awful of me I know, but still.

You aren’t going to go ahead, it screams it in every word you write.

SamHeughansLeftEyebrow · 13/05/2018 17:53

Go back and read your reasons for buying now again. You want property before kids, which is the sensible way round. If you wait until after kids, the odds of you EVER being able to buy will be drastically reduced.

You have already spent money on this house, having surveys done etc. EAs in the are WILL circulate your name, offers from you will not be taken seriously.

Is it worth risking all that?

ToadsforJustice · 13/05/2018 17:53

Buy the house. Live in it. Enjoy it. Have your children. Move on. If you have just changed your mind and you no longer love the house, you have left it too late and you appear selfish and grabby. You will reap what you sow.

WomblerOfWimbledon · 13/05/2018 17:54

Stupid to walk away. You're always going to have this problem in a falling market. Did you expect to have your offer accepted and then complete within a few days?

CrackingEggs · 13/05/2018 17:54

Buy the house at the agreed price. From January to May for buying purposes is about normal I'd say. What would you be thinking if the house had theoretically gone up in price and the sellers asked you for another £40k?

Yes the market might be wobbly now but in 25 years time non of this will matter. So long as you can afford it, and you can or you wouldn't have got a mortgage.

Bluntness100 · 13/05/2018 17:54

You're both the kind of clueless first time buyers everyone dreads having the misfortune to deal with.

The propert isn't valued lower now is it? It's still valued the same. Seriously you think house values (not sale prices but actual valuations) have dropped six percent in four months? Sigh

Pull out. You're not grown up enough yet to buy.

Alternatively ask for another valuation. I can assure you it will be as it was four months ago.

Oh and yes, as others said, no other agent will want to deal with you going forward.

Rockandrollwithit · 13/05/2018 17:55

I wish people on both sides would only agree to a sale if they are very serious about it.

Our seller pulled out on day of exchange, said she had been thinking about it and actually she only wanted to move in a year's time, not now after all. She told our EA that she had only originally put the house up to see what she could get for it and had never been 100% sure. Cost us thousands 😡

Piffpaffpoff · 13/05/2018 17:56

It’s not illegal to do this in Scotland, it used to be the case that once your offer was accepted, it was just considered absolutely unethical to do. It’s is happening more regularly now though.

Quartz2208 · 13/05/2018 17:56

The money you have already spent is probably not that a dissimilar amount and then the money you will lose continuing to rent

So it comes down to this do you like the house do you want to live there for awhile - if so stop dithering and go for it. You got 20k off

Otherwise truthfully you are NEVER going to buy and never going to have the security that you want.

So in 20 years time do you want to have the house and no longer have to pay rent or do you want to be where you are now because based on your post if you dont do it now you are not going to

blue25 · 13/05/2018 17:56

Why are you "totally miserable?" It's just FTB nerves. It would be really crappy to try and lower the price now. House prices rise and fall. You can't obsess over that. Getting on the ladder is the important thing. Buy it and enjoy your new house!

Jonbb · 13/05/2018 17:56

Go for it. The owners of the house you are buying can go to the next in the chain and also seek a reduction. What have you to lose? Depends whether you had a survey and how much your solicitor's fees are . . ..

FancyADoughnut · 13/05/2018 17:56

Remember in a market that is rising you are going to have to fight to get an offer accepted and that's assuming the estate agents don't tip off the vendors that you have form for pulling out. You will be renting for at least another 6 months even if you found another house very quickly personally I would consider that money better spent on paying off a mortgage.

SamHeughansLeftEyebrow · 13/05/2018 17:57

And £13k is how many months rent? That you would still be paying? Haven't you given notice on your rental already? So will have to move anyway?

What about the people above you? Are they moving for jobs, schools? Things that you might screw over several entire families for your own selfish little ends.

How shortsighted can you get?

ikeepaforkinmypurse · 13/05/2018 17:57

If you have a mortgage ready on a property, it's not a low valuation, the bank wouldn't lend you the money otherwise. Mortgages are refused if the valuation was too high, that's why the bank has a basic survey done!

Homemenu1 · 13/05/2018 17:57

You have the chance to buy a home, to stop renting, renting is so horrible and you are so vulnerable. Grab the house with both hands

Cornishclio · 13/05/2018 17:58

If house prices were going up how would you feel if seller asked you for £13k more because market had moved in the 4 months it took to get to exchange? Totally disgusting behaviour and if you were willing to pay £440k for it 4 months ago you should honour that and pay it.

capturingdaydreams · 13/05/2018 17:58

I'm going to go against the tide here and say I wanted to pull out of buying my place at the last minute and didn't. I wish I had - now I'm lumbered with a flat I don't love and will have to sell at some point, which is a lot more hassle than if I'd just stayed in rented and waited.

Listen to your doubts. You don't love it. £440k is a decent budget. Go find something you do love. I wouldn't worry too much about the state of the economy though - we all need somewhere to live. Just make sure it's somewhere you want to stay for at least 10 years.

SoupDragon · 13/05/2018 17:58

Walk away, don't reduce

That’s what you took from this??