It’s 33k cheaper!

[Whattodowithit88]

We put an offer on a house in March and we are are looking to exchange contracts and complete towards the end of august because the vendors can’t move before then. An identical house/layout on the next street has come onto the market and it’s 33k cheaper!! Decor doesn’t make a difference as we was redoing the whole house anyway so only difference is the garden is a bit smaller on the cheaper house, however the street is a lot nicer!

What shall we do? I think the estate agents are going to hate us because I can’t continue with this house knowing it’s about 23k over priced (been generous taking away 10k for the house we’re buying being a tad better decorated)

Any advice?

People don't tend to market their houses lower because they have dickhead neighbours. They normally keep the price high and hope no one finds out. They only lower it when the buyer has the proof.

Property prices aren't lower since March, not to any meaningful degree.

The house isn't 33k "cheaper", it's literally a different house, on a different street. It might not seem like a huge deal, but those things matter.

You could pull out and go for the "cheaper" one, or stay and complete on the first one, up to you.

There might be a reason the other one is cheaper,

Neighbours,
Planning issues,
Noise issues.
Problems with the property,
They need a quick sale,

Who knows, one way to judge is look at the prices of all houses for sale in the area, is theat house cheaper than all of them? If so, there's a reason for the reduction.

Nationwide’s House Price Index shows the average UK house price in June 2023 is £262,239 - down 3.5% when compared with June 2022.

Not enough to explain a 33k reduction but maybe the 33k reduction is because the people are desperate to sell or more likely, because the property is worse in some way that won't be apparent until the property is viewed.

See the other house. The vendors of the first one could decide not to sell between now and exchange for all you know.

You could renegotiate with your sellers?

Someone could easily offer over the asking price

I’ve only ever seen people market lower for a quick sale, could be a multitude of reasons for that though in fairness.

In real terms, not nominal, we have already had a hefty drop in values - and we are still at the start of the downward leg of this cycle.

www.gbnews.com/money/house-prices-zoopla-fall-uk-property-news

Prices may not have officially fallen yet but what is clear is that houses aren’t selling and if you need to sell you’re going to have to price low.

I’m in that position now and we are going to significantly reduce as we don’t have the option of not selling. There will be more and more people like us as time goes on.

When you view it might become apparent why there's a price difference. The cheaper one could be smaller, need a lot of expensive work or have a small garden that faces north or east etc.

Would definitely go and see the other house, but I would be more tempted to renegotiate with your current vendor. Presumably you have done searches, survey on this property? Also, still more likely to be in that house quicker.

Exactly - the vendors wanted their cake and eat it! Sell while prices were higher but not have to move out till later in the year. If I was selling at the start of the year, I’d have had you sign that contract as soon as possible and you wouldn’t have seen me for dust as I loved into the rental accommodation.

I would go see the second house and also look AT the both houses from the outside - roof, driveway, windows, changing all those easily amounts to 50k+.

Nothing unethical about it. Sellers demanding a delay. In that time the market has dropped. That's on them.

This ^^.

In a falling market you get the deal done quickly.

Otherwise you take your chances.

This

It's buying a house not the moral maze !
Bet the sellers have seen the other place up 33k cheaper and have got everything crossed it doesn't affect their sale

I disagree with lots of the PP here.

Let's say it was a rising market - if your sellers had asked to renegotiate, and said that because prices had gone up since your initial offer and they now wanted an extra £33k just before exchange, what would you think?

Would you think they were reasonable asking for more money just as you're about to exchange contracts? Or would you feel that they were being greedy and that they shouldn't get any more because you had an agreement in place?

If you would willingly pay your sellers more in a rising market without complaint, then by all means go ahead and renegotiate downwards.

But if you would feel mightily pissed off at being asked for more money at the last minute, then I think it's incredibly shitty to try and lower the price because the market has dropped.

You can't have it both ways - you should hold yourself to the same standards that you'd expect of your seller.

There have been occasional posts on here when the market was hot about sellers asking for more money very late on in the process due to increases in valuation - and almost unanimously posters have said that it's cheeky and unfair. So I really don't understand why it's OK in reverse.

I'm also not sure why you were continuing to look at houses - once you're committed to buying, it's a bad idea as the chances are you'll see something else and start doubting your decision! If you are happy with the offer you made, stop looking around. It will only unsettle you - as proven here.

But that DOES happen in a rising market? Prior to Exchange of Contracts, either party can increase or lower their offer at any time. I think we can all agree it's an unpleasant thing to happen if it happens to us. But it's also the reality of the house buying system in England. It's so common in a rising market, there is a type of insurance you can take to mitigate the wasted fees - home buyer protection insurance.

And people carry on looking around right up to Exchange of Contracts because it is the biggest financial decision of their lives so they want to feel 100% certain it is the right one. @Whattodowithit88 was only doing what thousands of other people do too and and as the saying goes: Don't hate the player hate the game.

I don't know - a decorated house (even if you will be redecorating it'll be nice for it to be ok for now until you get round to it) and a bigger garden is worth a good amount.

Have you already had surveys etc? When you add up the costs you've already paid out on solicitors etc you wont be that much better off, and there's a good chance you'll lose the house you have already got.

We viewed the property and the majority was right, too good to be true, so much needed doing that you couldn’t tell from the photos, electrics, boiler, etc and the biggest problem was mould that looked awful and the as someone else said- neighbours- one of the neighbors we was just not feeling and put us right off (judgemental really, but you have to go with your gut)

At least you viewed it so you can stop worrying now that you might have overpaid

This.

Why wouldn't you expect people to try to save money when prices are so ludicrous and people are having to stretch their affordability and compromise their lifestyles in order to secure a place to live ?

Anyway, glad the OP visited the alternate house and evaluated their options. From what they say 33K would go a long way in fixing those problems but still there is a risk. Plus of course the dodgy neighbour issue which is not resolvable at any small price (except probably moving or being lucky they move out).

I agreed on a sale of my house early this year with completion in October and we exchanged contracts back in April. My buyers were happy with this as they really want the house and weren’t in a hurry to move. We did make it clear from the start we couldn’t move until October. But exchanging early locked them in on the price and the purchase. With a long period before completion, it’s best to exchange early for all parties.

How did the EA react to you wanting to see the other house?

The Ea didn’t react much at all, both houses was with them so they get a commission either way I guess? To be honest probably one of the nicest EA’s. Very understanding and took a “this is your life, you choose what’s best for you” approach. Don’t know if that was some kind of weird sales tactic but if it was I feel for it and she is very good lol!