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Price reduction after initial offer

26 replies

Gamergirl86 · 11/07/2024 16:03

Just an observation really but I've noticed what seems to be a worrying trend of buyers asking for reductions before exchange and sellers agreeing to %reductions.

I've been reading the property threads for a few months due to our own situation (selling and purchasing a new house) and I've noticed a huge number of people commenting of either thinking about asking for a reduction or sellers casually mentioning they agreed to a reduction.

When I move last, 7 years ago, this was unheard of. Perhaps I just got lucky?
Is this the norm now?
It worries me because if our buyer doesn't pay what the agreed sale price is we won't be able to afford our onward purchse: a choice we.made directly related to the sale.price on our current home.

Should we have anticipated that our buyer will ask for reduction down the line? Am I being naieve?

It seems that the agreed sale price is now just a starting number and the Real negotiation starts after all all the paperwork/surveys/queries are back.

Anyone more experienced got any insights?

OP posts:
KievLoverTwo · 13/07/2024 12:48

Gamergirl86 · 12/07/2024 16:45

I agree to an extent if the survey shows major structural isues reductions should be discussed bit ay thay point, id probably just pull oit of a sale. It reads more and more as though buyers are refusing to accept that older houses (anything other than a new build really) expect a zero issues property which is highly unrealistic. All houses need maintenance over time.

As for the mortgage valuation, the only reason to reduce an offer price on this account is of the over all valuation is lower than the mortgage ie a 500k house is valued at 480 and the buyer is relying on a mortgage of 490 ( which is very unlikely to happen)

If your mortgage is lower than the valuation, what difference does it make? A valuation is just an estimate of the proce and the banks valuation is solely on the purposes of mortgage.

A down valuation really only affects folks with high mortgages 80%+. There's absolutely no reason to reduce offer price based on a bank valuation if the total still exceeds the loan amount.

Nah. Saying “we’ll pay whatever because we want the house” is exactly how house prices got so insane in the first place. Hopefully, with debt being far more expensive now, this mindset will continue to fall out of favour.

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