Due to exchange today

[Zarah123]

We are first time buyers and now in complete turmoil, as our vendor said this week he wants to exchange today.

The property is £470k for a small terrace in greater London, and I think we're over paying anyway, but not sure what to do now. Should we delay exchange? Should we ask for a discount? Why is he so desperate to exchange today?!

Maybe he's buying elsewhere and wants to get on with it. Or moving to another area and not nearby to run to the solicitors and sign. If you don't want the house then drop out. Delaying when everything is ready is messing other peoples lives around.
As my Gran used to say. "Piss or get off they pot"

If you are having cold feet I say don't go through with it. You are going to be tied to this nearly half a million mortgage (I assume) and if the house prices slump who knows how long that slump will be?

It does seem like he's trying to push this sale through which isn't odd considering what's just happened.

It's fairly obvious why the vendor wants to exchange today- to tie you into the price agreed pre-referendum.

If you have doubts then delay, especially if you thought you were paying over the odds anyway. If you're happy with the house at 470k then proceed.

We are due to exchange today and I'm worried the chain will collapse. We aren't tied into a mortgage as large as yours though. Go with your gut feeling.

Check with your solicitor they will only exchange if all the searches and file checks have been completed and your nearing your completion.
Most vendors don't understand the full conveyancing process and defend exchange for that added security when neither side are actually ready. Call your solicitor when they open and they should advise where your sale is upto and when to expect to exchange and complete (usually a week or so apart)

I will be holding off our exchange

Thanks everyone. Gut is saying to buy the house, purely because very little is coming on to the market within the radius I'm looking in (want to be close to elderly disabled mum). Vendor doesn't live in the property, it's a buy to let.

I do think we are overpaying as semi-detached houses nearby cost less than this small terrace.

But I also realise we agreed this price. Would it be risky to ask for a £10k discount? Would be back out? He is almost desperate to exchange today.

Zarah - chains all over London (particularly) are being pulled today as people are worried about a house price crash.

There will be plenty of semis for sale soon. Much less expensive.

If when you did searches of sale prices nearby they showed it was overpriced, why didn't you offer lower? If semis are cheaper, just ask for the reduction showing the nearby prices for the reason why. It's worth a try then.

He's desperate to exchange today because he knows that there is a real risk he will lose a lot of money if you either pull out, or renegotiate, both of which are very likely options given what's happened with the referendum.

That's because house prices have long been forecast to crash in the event of a Leave vote.

If I was you, I'd be pulling out. He's on the back foot and he knows it. Big time.

I will give you the same advise i gave on the other thread.
If its a home you want to live in for years to come, still buy it. If its an investment you want to turn in the next couple of years, don't. If its the right house, the right area and like i say, you want to live in it for a good few years buy it - although I would maybe ask for a slight reduction if i was feeling brave and cheeky.

Thanks everyone. The property was in the market for £500k, and we offered £470k, which was accepted very quickly. The house next door sold for £500k in Nov 2015 but it has a garage which could be developed into a 2 storey extension.

We were thinking of moving out of London after 5 years or so. If it was our long-term home, I would be more comfortable.

I think I will ask for a discount, on the premise of 'you don't ask, you don't get'.

it's just hard seeing all the bigger houses that are worth less.

Sounds like you have the vendor by the balls
Don't let him bully you when you actually have all the power, take your time make him sweat

Think Baboon has hit the nail on the head there.

Also, consider whether your work prospects are secure and that you can afford the mortgage payments irrespective of potential temporary negative equity. It may be something you have to ride out in the short term.

You're in a great position. Don't be pushed into doing this if you're not absolutely sure. Houses may not have come in the market in the last few months because people were waiting to see which way the vote would go. There is already volatility in the financial markets, and this is an uncertain time to be investing in terms of interest rates and stability.

You already know it's over priced, I'd be worried about house prices now. I'd ask for a reduction in line with other local prices, ie cheaper than a semi or walk. Yes he will be pissed off but it a lot of money in a time of uncertainty.

So what if he is pissed off?
His descion to invest in property, investing is always a gamble, if he is over leveraged then he's made a bad investment, don't let him offload his mistake onto you op

The "Remain" campaign predicted house prices to fall by 18% so I'd be offering circa 20% off.

Sellers will be very scared.

Other than that I'd pull out and wait for the prices to come down. It won't take long.

I'm very near exchange too,

I will be delaying/considering asking for a reduction. I'm not in a chain, basically like a ftb. Buying from a developer and my survey said I'm overpaying, so I.will wait to see what is happening.
Haven't had chance to digest this mess

Our house just went on the market today. This doesn't sound positive does it...

I'm confused why you offered on this house when you say there's all these bigger ones going for less? You've got this far in the process why hang back now - you must have invested in fees etc all the while knowing about the bigger cheaper houses - what's suddenly different for you today? I think using his desperation to exchange to get a discount is low, you have no idea whether it's brexit related

Did you exchange OP?

Hi all, thanks everyone for your advice. We decided to exchange in the end. Sent off signed contracts to solicitor. We did ask for a discount but were told no. However, the vendor will be carrying out repairs we thought we would have to do so there's a silver lining

We have been waiting 2 years for a house within a 1/2 mile radius of my mum to come on the market (so that she can walk over to our house whenever she likes). We've spent £25k on rent on that time. We thought we're better off spending that money on a mortgage and taking the risk with a possible propert crash.

I think the road is a bit nicer than the surrounding roads with semis, hence why a small terrace is more expensive than the semis.