5k reduction.. are they taking the p***

[AniAfri]

Evening all,

Hoping some from advice regarding a recent property purchase.

I had an offer accepted on a property just over a month ago and are nearing completion. For context I am a first time buyer - the agreed sale price pre covid-19 was 323k on a house that has an asking prices of 330k. Despite thinking I’d offered to much, I decided to continue anyway.

I’ve recently gone back to the buyer to request a reduction i.e. due to the economic climate that will follow. I requested a reduction to 309k but was refused and told that the best and final they’d accept is 318k.

Would you continue with the purchase based on this amount? The property is a small 2 bed which is probably stay in for 5-8 years.

I think this is quite unreasonable but I’m a novice in the property field.

Is this the norm? Would you pull out? All opinions welcome!

@MontysOarlock I’m on a 2 year fixed mortgage. I’m currently living at home so pay minimal rent. The house is more 1.5 beds rather than 2. I could see myself living there no more than 10 years at an absolute push. I do want more kids so space could quickly become an issue

@Goingtogetflamed I agree with this, I guess I’m just concerned that I won’t find something I like, or prices won’t crash as much as people believe

I’ve gone back to suggest we settle at 315k which they have declined. I think I’m going to pull out in the morning. It seems too much of risk to me

OP, on another thread didn't you initially offer £7k over asking - so £337k?
You're now getting it for £318k so that's a £20k saving.

You said previously it was a really good property, you'd not seen anything else suitable and were gutted to have lost it first time round.

Yes, as a FTB buying a property is scary - especially with CV19 but you are buying a HOME for you and your family. Don't niggle over £5k.

Noone knows what's going to happen in the future, with house prices, the economy etc. You can just do what's right for you: right now. From what you've said in previous posts you need to buy, this is the only property you like and you're paying less than you initially offered. Go for it. Good luck!

Please don’t listen to people asking you to make the biggest financial decision in your life based on emotions. Negative equity is real. The fears over a global recession are real - in the last 2 weeks, 10 million people applied for unemployment insurance in the US (this has never happened since the Great Depression) - this will have a knock on impact globally (people defaulting on US mortgages and loans will create a credit crunch globally and all major banks will be wary of lending to each other similar to 2008, the rise in unemployment will reduce demand for consumer goods and services affecting companies that offer them etc.)

I’d advise caution.

Will things really be as bad as people say?

No one can say for sure, but it's very possible that substantial restrictions will last for 6 months or more.

That's depression territory. It will make any recession in living memory look like a walk in the park.

No way would I buy right now.

Sorry I think you are the unreasonable one here - why should they take the hit just because you are worried about house prices falling? It hasn't happened yet

Carry on or pull out, but I don't think you should just expect them to be happy about you knocking the price down by an arbitrary figure, it's not like it's based on something like a survey

Don't buy now. That's all.

5k reduction.. are they taking the p---

No but I think you are OP

If they don’t drop as much people say then you’ll have the same spending power you have now (because they sure won’t be going up!) but in a market where fewer people are buying.
You’ll find other houses you like (unless you’re buying in a village of 3 houses and you only want the pink one )

Would you continue with the purchase based on this amount?

An amount £5K less than your accepted offer and £12K less than asking?

What do you expect exactly? For them to give it to you for free?!

I understand your concerns, but before pulling out I would ask your mortgage advisor if you'll be able to get a good interest rate with your current deposit and credit. If you have 40% to put down and excellent credit, it will be a great time to buy going forward, but if you don't you may find the interest offers are worse than they were. Think it over carefully.

You can’t use covid to get a price reduction either pay what you agreed at the outset or withdraw.

Don’t buy now if you don’t have to. Wait and see how much prices go down. The problem at the moment is that the housing market is on pause and both you and the vendors are having to guess how much the property might be worth at the other end. If you can wait and see then do that.

No one can say for sure what will happen to the market in this uncertain time, you can o lay de ice what is right for you right now.

You are in your every right to pull out since you haven’t exchanged yet,, but it is entirely up to them how much they sell their house for, so no it’s not unreasonable. I certainly wouldn’t agree to the reduced rate you wanted. You’re lucky they offered a reduction at all.

YABU - buy the house at the price you agreed. If I was the seller I would pull out!!!

Sorry my autocorrect done something weird in my last post! I meant. To say your can only do what is right for you right now’. 😂

YABU for suggesting they are taking the piss for not accepting a lower price. We are in the process of selling at the moment, I totally understand if the buyer pulls out but if they offer less then the answer would be no. We don't need to sell so I'm not doing someone else a favour with my equity!

It isn't an investment it's a home. I would proceed.

I read recently that it may be harder to move after all this, because banks etc will require a bigger deposit.

YABVU. You already agreed a price. Just pull out and let them sell to someone who actually wants the house at the agreed price instead of stressing people out right now. What a chancer.

How much will you have spent on searches and the survey, OP?

If you are going to pull out, do it ASAP. You don't sound as if you want to buy a property, looking again for a fall in price that didn't happen after Brexit and I don't think it will happen now either.

If I was your vendor I would be really annoyed tbh. I think you should go ahead, but you seem to be waiting for a fall in house prices that is unlikely to happen. Your choice.

Zonkin said: "why should she throw her money away for a moral reason?!"

The answer is the same reason you would do anything else for a "moral reason" - because it's the right thing to do. Attitudes like this are what makes home buying stressful.

@ChicCroissant
You say you don’t think house prices will fall. What are basing your opinion on?
The UK economy is juddering to a halt. The % unemployed is likely to be higher than in 80s. Some form of social lockdown is expected to go on for months (possibly in an on/ off pattern). Many people won’t have jobs. Many people won’t be able to pay their mortgages.
The economic effect of Covid 19 will be the worst financial event seen by any of us in our lifetimes.

And to all those saying OP should pull out rather than try to renegotiate; why? Surely it’s better to give the vendors to sell at the reduced rate than taking that option away from them without their input. OP is giving them a choice. She isn’t forcing them to say yes.