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Property/DIY

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Original poster

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

111 replies

AniAfri · 02/04/2020 19:28

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!

OP posts:

Tonyaster · 02/04/2020 22:08

You cheeky mare!

Original poster

AniAfri · 02/04/2020 22:22

@WhatTiggersDoBest sell to who? I doubt very much that many people would buy right now .. they need me more than I need them

OP posts:

LolaSkoda · 02/04/2020 22:53

One of the elements to consider, is that in a recession you generally find people mainly move because they have to, rather than want to. If mass repossessions fail to appear, then the supply will be low.

In addition, new home builders will strangle supply and either build very slowly or not at all to push up prices.

Add into that the element of help to buy - I don’t have up to date stats for the volume of people who currently have a charge on their property to the government as a result of the scheme. With the government (tax payers money) heavily invested, it is not in their interests to see the housing market decimated if this can be avoided. Slashing stamp duty and devising other schemes are not beyond the realms of possibility.

Ultimately, ten years in this home is a relatively long time. You may decide to take the risk and ride out the economic impact of covid. It may be worth seeing whether there are any ten year fixed rates still available - more expensive but more certainty for you.

Five thousand in rent is what, a few months worth? Only you can decide whether this is the right decision for you, based on the info you have now and assessment of the probability of the risks ahead.

All of us here will probably have a different take on it, and lots of people have given you great advice and points to consider.

Personally, I’m going ahead with my purchase because my broader financial position helps to cushion me from a lot of the risks. If I was putting everything I had into a house and had an uncertain job, I would consider whether to pull out or find a cheaper property in a cheaper area and keep some savings in the bank.

ChicCroissant · 02/04/2020 23:15

OP, I really wouldn't have the attitude that they need you more than you need them! Think about looking back on this in 5 or 10 years time, your timescale - what would you regret, losing the house or buying it?

flamed we'll have to agree to disagree.

ElephantsAlltheWayDown · 02/04/2020 23:20

The point a PP makes about how much you'll spend in rent (if you don't already own) is a good one. If you pull out you'll be renting for at least another six months -- add up the total cost of that and mentally deduct it from the negotiated price.

If I was renting, I would definitely go ahead with the purchase, especially if there was any doubt as to whether I'd be able to obtain a decent mortgage in the near future.

QuakingQuiche · 02/04/2020 23:26

Where abouts is the house based OP? If in lively cities, house prices are probably less likely to be affected but no one knows for sure.

Lightsabre · 02/04/2020 23:27

Is this property in London or some other hot spot? It seems expensive for a 1.5 bed otherwise. Can you link?

I think you said you were living with your parents. I'd hang on a bit longer if your'e not paying loads of rent.

cstaff · 02/04/2020 23:27

I would be very reluctant to buy right now. I would pull out and see what happens. You could lose your job, prices could fall dramatically amongst other things.

Lightsabre · 02/04/2020 23:28

'You're'

mochajoes · 02/04/2020 23:49

On mumsnet pulling out of a property sale/lowering your offer is akin to eating babies. Interestingly gazumping seems fine. In the real world it's absolutely normal to want to pay less or pull out.

OntheWaves40 · 02/04/2020 23:57

With house prices in your are that high i’m guessing you are currently spending around a grand a month on rent so I wouldn’t pull out as the rent is going to be dead money.

mochajoes · 03/04/2020 00:02

Op lives at home!

blue25 · 03/04/2020 00:05

Really bad time to buy a house. I really wouldn’t buy anything right now.

FinallyHere · 03/04/2020 00:11

Agree that this is not the time to buy a house unless you have to. For example, if you were renting and the mortgage would be less than your rent, I might go ahead anyway. I would certainly negotiate pretty hard, but in a likeable, thus hurts me more than it hurts you kind of way.

It might be a home, but it really is one of the most important financial decisions you will ever make. Don't continue just to be 'nice'.

The really important thing is that you can't move now anyway, can you? If you are comfortable living at hone, I would definitely withdraw and see what the market looks like in six months. The chances of someone else buying it in the meantime are low.

timeisnotaline · 03/04/2020 00:13

When buying houses to live in, if you have the money, think you will continue to have the money to pay the mortgage and would regret missing out on it, then it’s worth it to you. How will you feel in a week if you’ve pulled out and there’s nothing else around? And if any of those aren’t true, then don’t buy, and definitely not in a recession.

Luci459 · 03/04/2020 00:27

You cheeky f.

I hope you lose the house. How horrible to ask for a reduced price. Poor people!

Luci459 · 03/04/2020 00:28

Really poor etiquette!

Luci459 · 03/04/2020 00:30

Firstly. The banks aren't lending because they can't get valuations.

Secondly. I've lived through two recessions and houses always bump back up.

Thirdly. This isn't a recession. Is a social issue.

People are so thick. You won't be in negative equity! The housing market isn't going to decline.

I'm in property.

mochajoes · 03/04/2020 00:32

People are so thick. You won't be in negative equity! The housing market isn't going to decline.

😵

I'm in property.

Landlord or developer perhaps? Ooh we can't have people talking the property market down!

DroppedBoxxedRuth · 03/04/2020 00:40

Thirdly. This isn't a recession. Is a social issue

A social issue that has caused a LOT of people to lose their jobs already.

It's not going to just go back to normal once lockdown is eased. The knock on effect can't be stopped now.

AmelieV88 · 03/04/2020 00:40

This reply has been withdrawn

This has been withdrawn by MNHQ for breaking our Talk Guidelines.

Luci459 · 03/04/2020 00:42

Bad advice.

House prices may fall but good luck when you can only borrow X and you need a 30-40% deposit.

Interest rates are low. Check with your mortgage adviser as I bet this mortgage isn't available for new applicants now.

Bdms are emailing all advisers to stop products.

You just won't get a mortgage.

This is such bad advice!

cstaff · 03/04/2020 01:10

Your vendors are presuming that you are going to go ahead with the purchase because you have made up your mind on their house. With the market turned upside down in a matter of weeks as a result of a probable worldwide recession this really is not the time.

CatAndHisKit · 03/04/2020 01:25

newbie111 you say 'in this price range' - just curouos, do you think the lower price range would be affected less?

CatAndHisKit · 03/04/2020 01:46

Luci I think you are right - and I hope so too as I need to sell.
But hiilariously, I imagine your posts as read by Trump, the style would work for him.
Bad advice. This is such a bad advice

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