Thinking of pulling out/asking for a reduction?

[peardroplets]

We're buying a house for £265000 and the surveyor had already said it was overpriced. We decided to go ahead at that price nonetheless. But obviously with brexit spooking the market I'm getting very nervous that we're overpaying. Would you renegotiate and if so by how much? We're not really experts at this game and I was worried enough about it as things stood before the Brexit vote...

My house is up for sale so it's worried me a lot, read up on the predictions today, it's expected to fall over 3 years, loss of about £3000 over that time, which doesn't seem a big drop really, but then the figures may be well different. You can try, you will risk losing the house though. It's up to you, how much do you want to risk it.

As for being negative equity, depends what you mean by that, it's unlikely you will end up with negative equity because I assume your deposit will be more than 10%, however you may lose money, but you can't ever ever be 100% that isn't happen unless your likely enough to buy a house well under market value.

Good luck!

Another property lawyer here. I've not had any deals fall through today. Clients are still wanting movement on their transaction with a view to exchanging and completing ASAP. People panicking is what will cause the market to crash.

Lonecatwithkitten... Half the properties in your area all went under offer in one day?
That's quite an interesting and unusual occurrence, can I ask roughly what part of the country your area is?

It's perfectly reasonable to reassess give the situation. The pound has fallen steeply - so your assets may not be worth as much as they were, in which case it would be unwise to pay over the odds for something which might drop sharply in value soon. The last thing you'd want to commit to is negative equity.
Your seller may pull out if you do, but if you are polite and regretful and explain why instead of coming across as chancers, then you might be able to renegotiate, as might they, wherever they are buying next.

I would ask. Why not? You're buying a house from them, not trying to make a friend.

They are predicting an average £7,500 drop in London if that helps

"People panicking is what will cause the market to crash."

You say a crash as if that would be a bad thing. The housing market needs a crash, the prices of properties are insane right now.

My buyer pulled out today, we were almost ready to exchange, they had already signed their contract. Gutted

user try telling that to everyone who would be dropped into negative equity. The market needs to correct, slowly, but a crash would be disastrous for a whole generation of those in their 20s and 30s who had to borrow large amounts just to get a foot on the lowest rung of the ladder.

The pound has rallied already. Plenty of cash buyers and foreign buyers waiting to pounce. There is so much pent up demand that I wouldn't wait too long.

Property is worth what someone is willing to pay. If there was a house price crash then anyone in negative equity would be less likely to sell which would reduce the amount of houses for sale. That suggested price fall for London is minute compared to the cost of the property!

OP, I asked what it was about the property that made you willing to pay over the odds in the first place - I know you said you were worried beforehand but I'm assuming that it must be a house you like to have considered paying more than the valuation, and that you won't be mortgaged up to the hilt because the valuation would have affected the mortgage if that was the case? It's a good idea to think about things over the weekend and I'm sorry for the poster who lost her house sale today too.

Disclaimer - I'm not buying or selling a house!

The examples I've seen referring to the £2-3k loss (£7.5k in London) still have an increase overall. House prices still expected to rise next two years but the loss relates to comparison in price if we'd remained in EU Example given of average house price 2016 £278k = 2018 £300k (would have expected to be £303k if remained in EU giving the £3k loss referred to).

Before the vote, the Government said that an 18% fall in house prices would happen. I'd be reducing my offer to 20% off / withdrawing my offer and waiting for the crash.

Unless you plan to sell again within a year or two it will level out again.

Thanks everyone. Cotdwoldstrife we didn't know we were paying over the odds as we knocked £20 grand off original asking price and thought we were getting an ok deal so were a bit shocked when the surveyor said it was overvalued but decided not to act on it as neither DH nor I had an appetite to renegotiate.

We are in a new town currently renting so we don't know the market intimately. DH would like this to be out forever home that is why he is more relaxed. I think if we have another child which we are hoping (but as I'm nearly 40 not a definite) we may need to move in 10 years or so. There is a lovely primary school nearby so it wouldn't be before then

So if as pps are saying a drop of a few thousand ££ are on the cards we can absorb it. It was someone else not me who mentioned negative equity. We have a large deposit so this is not a danger unless things seriously tank. We are buying a semi in a sleepy town in Shropshire so I'm not sure if those foreign investors capitalising on a weak pound will have much influence on the local market!

It was the big crash double figure drop stories that scared me yesterday which combined with our surveyor report to make me think again.

Despite the snarky comments earlier on I'm a little bit more reassured by this thread and glad I asked the question.

Sal - I am in the South east commuter belt, I am due to complete in a week, but my purchase is very precarious for a number of reasons ( my sale is rock solid). So I have been keeping a very close eye on my local market for my price range on Wednesday there were 14 properties in my price range on the market yesterday there were 7 when I checked the other 7 had gone under offer.

I chatted with my agent yesterday who has seen a surprising movement in our market lots of viewings booked for this weekend.

that's interesting lonecatwithkitten - maybe people are viewing with the hope that they can put in a low offer? that's what i would do if there was even anything to view in my area!

Nope. Lots going under offer in our area of London. It's not just viewings.

People who have to move usually just get on with it. Life's too short to wait for a house price fall that may never come.

You could always try it on and see what happens. Personally, I wouldn't be buying an overpriced house in the first place, though.