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!

I can't fucking believe that people actually do this a week before exchange. Do you have NO conscience about screwing other people over?

It sounds like your mind is made up so pull out. However, you will either be in a similar position next time or even worse not finding a property because of competition. Most of us that have bought and sold understand this.

If you have doubts about the house do not like it much, I would say walk away, but if you feel the price is too high, after you have agreed to the price with the vendor, you have to go through with it, bad behaviour not to. YOu can't keep doing that.

Reading your update, it sounds like you don't want the house at all any more, especially if you think you can buy somewhere you'd prefer. In that situation it would be stupid to ask for £13k off because there's a pretty chance they'll say yes, and it doesn't sound like you'd actually want this house at £427k.

If you pull out and then leave it until next spring before looking, that’s nearly a years worth of renting which would be almost equal to the amount you are trying to save...

Plus, who knows what will have happened by then. If you like the house and we’re happy with the price, that’s enough. It’s a long term purchase anyway, not a quick way to make money.

Disgusting, morally indefensible behaviour. I can't stand people who place no value on integrity.

You have no justification to ask for a lower price. None whatsoever.

You’re head is turned by the prospect of better. You should at least be honest about it. However you risk the market picking up just as suddenly as it has dropped so if you offer in the desirable area than another 4 months down the line they may drop you for the prospect of a better offer or you could get gazumped.

because prices are going down our preferred area we were previously priced out of is now in range.

Have you been to look at any houses there that are “in range”?

I think the right and probably sensible thing is to go through with the sale as agreed. But if you are determined that your only options are reduce price or walk away, then I would go for reducing the price. Because it gives the sellers the option of accepting it and getting on with their lives without going through the whole process again, while walking away means that their own plans may be completely screwed up and they will have to start all over again with selling.

Only you can decide. Is this a last minute wobble (totally understandable - I had one and I was spending a fraction of what you are) or a genuine change of mind? Of course the vendor will be put out but it's such a huge amount of money - you have to do what's right for you.

Nope, not only seem a rising market. Seen the London market fall to shattering effect in the late 80s and early 90s. I still say buy the property.

God. You can't even do maths, you stand to lose the rent you will now be paying as well as your 400 quid.

Yes it's first time buyer nerves, but also not understanding the market and hoping the grass is greener. Seriously you will now wait a year?

The house valuations have hardly changed in the last four months.

Your posts are crazy. You clearly just don't want the house. Terrible behaviour to do this. I hope karma doesn't bite your arse off somewhere down the line.

Shitty behaviour! Completely shitty🤬

Morals aside (and this is a spectaculary shitty thing to do to someone now) but how much would you actually save?

Rent between now and next spring could easily be the best part of £13,000.

Plus interest rates might have gone up so it would cost more to borrow what you need, even if the capital is lower.

The real question is whether you love the house or not and whether it is a 'reasonable' price, all things considered.

You really are a bit of a shit aren't you? I'm in Scotland, so none of these chains reliant on people like you thank god! Still karma is an amazing thing - next offer you have accepted might be pulled for someone else's better one and basically it would be hell mend you !

Thank God I live in Scotland and people that do things like this are responsible for all fees in the chain. You have made a contract already, paper is just that paper you have verbally agreed to do something and should be a decent person and uphold that. Can’t believe England hasn’t put a stop to this rubbish!

Sounds as though a lot of posters here have only ever seen a rising property market OP.

Nope. I bought my first flat many years ago, have seen many changes in the housing market. I also had this kind of shit done to me three days before we were due to exchange and you wouldn't believe the heartache it caused.

Oh and OP, I'm not sure how you manage to garner a 'just what I thought, walk away' vibe from this thread as a vast majority have said that they absolutely do not think you should do this. Having said that, if you're even considering doing this, I shouldn't think you give a shit about anyone else.

I can't believe such disgusting and scummy behaviour.

My EA advised me not to accept one of the offers I received when I last moved. I hope your EA passes on your info to all the others in the area.

Here's hoping karma bites, hard.

Also agree the market in a London and SE hasn't declined rapidly in the mast 4 months.

And your name will be mud when you try to buy again, now or in 12 months time.

Then I really hope karma bites you properly in the backside.
People like you are the reason House buying/selling is so horrific and stressful.

Not only is this a shady thing to do, you're basing your comparison on houses you've not even seen. We saw lots of houses before we bought ours and there were others that looked as good if not better online, until you get there and smell the damp or realise a wife angle lense has been used or every ceiling is artexed. If you don't want the property and have cold feet, pull out, but don't bank on getting something better for less

Ethics aside it's a big mistake. At that price in London you're never going to love a house because it will never be all that. You're panicking about short term fluctuations in the market, losing sight of the bigger picture - there are far more people who want to live and work in London than there are houses so prices long term will always rise.

Sounds as though a lot of posters here have only ever seen a rising property market OP.

Hahahahahaha. I wish...

PMSL at wife angled lens