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!

There’s no “blacklist”. But estate agents do warn if they know a buyer has form. Ours did, as I said up thread. They advised us against an above asking price offer from a flakey FTB and told us why.

In Croydon, the OP won’t be looking in a vastly different area - that’s not what the OP meant. If you don’t know the London market I see why this may be confusing, though. So they’ll end up dealing with the same agents, I expect. If OP’s dream house gets marketed by the same agent, it may cost them.

It may not, but it should be something to think about anyway.

I did once get lost in the Croydon one-way system for 1 1/2 hours so I can see how some may think London commuters get sucked in and trapped there - the Op has already stated that one of the factors causing their wobbles is the possibility of buying in a more desirable (to them at least) area.

It's your money, you have to make the choice
I get the feeling a lot of ppl here have been in the sellers position so are projecting.
My sister and BIL are both EA - this happens a lot, you won't be shunned and you will still be worthy of entering an estate agents I mean honestly, some of the comments on here are bordering on tragic and scaremongering

You could ask to go lower; chances are they won't accept as they'll have bought based on your initial offer. Best bet would be to pull out and offer lower somewhere else.

If you have spent a lot on fees/surveys etc though that might be worth considering as sticking with house might save you going through that all again.

One more quick point; if house prices have dipped significantly your mortgage won't even still stand. A few recent buyers of my sisters had houses valued at less than they were being offered at so mortgage companies wouldn't lend more than House was technically worth to them so you might need to check that anyway

You're not a bad person for wanting to invest hard earned money sensibly

Given the delays I would try and renegotiate with the understanding it may all unravel. While it is a bit shit, it is understandable.
Base you new price on recent sales/listings and check how much the estimates on zoopla and housprices.io have changed since the start of the year.

What is the absolute best part of Croydon to live in, as an aside? What postcode should I be looking at?

On a week of nights so hard to read every post but here is an update for those who wanted one.

We called up to pull out yesterday afternoon, the EA didn't say anything for a bit, sighed and told us our vendors vendor who had delayed exchange and pushed for a very late completion had pulled out of the sale via solicitor that morning.

Our vendors lost their buyers and onward purchase on the same day. I can only assume they must have done something TERRIBLE at some point previously and this is that bad karma so many have been mentioning...

This process has been a steep learning curve for us, it's a shame this came at others expense but we're secure in our decision and feel like a weight has been lifted.

Thanks for the update OP.

But if we were left in any doubt that you are a deeply unpleasant person, this sums it up. Have some sympathy, your humanity needs a retune.
Our vendors lost their buyers and onward purchase on the same day. I can only assume they must have done something TERRIBLE at some point previously and this is that bad karma so many have been mentioning...

I assumed the OP was being sarcastic?

I'm sure you'll take comfort from the fact that you were not the only person in the chain lacking moral fibre...

So it would have fallen through anyway

But if we were left in any doubt that you are a deeply unpleasant person, this sums it up.

The bit you quoted was sarcasm. After all the comments about Karma causing something bad to happen to the OP.

I think the OP made an error by offering in the first place and should (hopefully) be more considerate in future; but the threshold for a 'deeply unpleasant person' is not withdrawing an offer on a house.

It's still a pretty shitty thing to allude to Boom. Especially when one is half of the problem being caused to the other party.

OP! Amazing. YOUR POOR VENDORS. You're right though. According to mumsnet law fuck em. They must have screwed over an innocent family while buying previously. Maybe they dared to offer below asking price something You've made the right call. Think hard & be sure next time!!

It's still a pretty shitty thing to allude to Boom. Especially when one is half of the problem being caused to the other party.

That is how sarcasm works. It's silly to suggest that their vendor's buyer is at fault for their vendor pulling out- this is being used to mock the idea of Karma which has been used in a similar way about the OP upthread. The OP doesn't actually mean the sentence which offends you.

Thank you for your patronising explanation of sarcasm, Don. So glad you were there to help silly old me out ;)

Thank you for your patronising explanation of sarcasm, Don. So glad you were there to help silly old me out ;)

You are welcome.

Someone did this to my parents on moving day. Mind you papers were signed and the guy just did a bunk due to huge debt that somehow no one knew about? Nearly caused my dad to have a nervous breakdown and the guy lower down the chain trying to buy the debt guy's house ended up getting divorced, partly due to the stress of it all. He was a ftb and did end up with the house eventually but got loads of debt summons in loads of different people's names.
However it was slightly different I suppose, my parents ended up with two houses as they had to resell and had to get a bridging loan etc. It was not a good time. Because everything had exchanged they had to take on the house they were buying too.

It makes me question slightly dubious behaviour such as this though. I don't think I could do it to someone. I guess you are 'lucky' that the people above them backed out too so it isn't your fault that they lost the house they wanted.

Honestly, those of you calling the OP disgusting etc really need to get a grip. Anyone with an ounce of sense knows that a house sale can fall through at any stage whether you’re buying or selling. Hugely disappointing for all concerned and sympathy to those losing out but the reactions to the op on here are just ridiculous.

thank you “don” 😁

Our vendors lost their buyers and onward purchase on the same day. I can only assume they must have done something TERRIBLE at some point previously and this is that bad karma so many have been mentioning...

Having lost their purchase, losing a bad buyer like you is a blessing. They can now accept an offer of full asking price and get a better house. I bet in a few weeks they will celebrating how well it turned out for them!

and yes FontSnob a purchase can fall through at any stage, but when it's so last minute and for the flimsiest of reasons because the buyer really wasn't into it, it is disgusting.

There was a thread about a buyer pulling out, a bit earlier in the process, because the catchment wasn't the best for the schools. Why putting an offer on a house and messing people around for something that you should have checked beforehand?

It's high time we make the system more reasonable and binding to avoid people messing things around simply because they can.

It’s pre exchange people
They have NOT exchanged

This happens and it’s shit but OP can’t make a major life decision she doesn’t want to not screw over some strangers

You have a low threshold for what’s disgusting in this world!

I bet OP's vendors are mightily relieved their purchase has fallen through as well, that makes losing their buyer irritating rather than catastrophic. I hope they sell again very quickly to someone who doesn't fuck them about.

You have a low threshold for what’s disgusting in this world!
not everybody can afford to lose so much money because of a non-serious buyer.Of course it's a disgusting attitude. There's no reason whatsoever why the OP couldn't have pulled out of the sale earlier. As it happens, it's a good thing for the seller. I bet that the sold price that will eventually be on zoopla in a few months will show that it was a bad move and a great one for the seller, prices are so not falling down in that area

And not everyone can afford to spend that much money on a house they no longer want. Nice to see we’ve downgraded from the op actually being disgusting to only having a disgusting attitude though.