Offer rejected on a house we love, should we increase?

[BrummyMummy26]

Our house offer has been rejected. Gutted. We’ve seen a lot of houses and this is the first house we’ve both loved, and thought could be a forever home. All other houses we would outgrow in 5/10 years but this one has so much potential. Ticks all our boxes, except the price.

It’s up for 475 and we offered 450. Our deposit is in LISAs so if we go over 450 we would lose 25% of our deposit.

EA said lots of other interest, but is from people who have houses to sell. We’re FTB. Got the impression from EA that vendors want a quick sale (house is currently vacant and chain free), so we thought us being able to move quickly would swing it.

Don’t know what to do. Should we stand strong on 450? If we really pushed we could get to 460, but would then be a smaller deposit and bigger mortgage so would be a stretch. Although worried about stretching ourselves given current cost of living / uncertainty etc. But we love the house! We’re so torn.

Any advice appreciated!

Your right to stand firm, the way things are headed your probably already overpaying a bit at 450k. Wish you luck

Good decision OP. That genuinely is the max you can afford and you can actually buy the house, there's no guarantee about anyone else.

You've made the right decision. It would be foolish to lose your deposit.
There is no such thing as a forever home and no home is worth putting yourself into financial difficulties for.

It's in the first post that the house is vacant....

Just wanted to post an update… our offer has been accepted!!!!
Over the moon we can’t believe it!

What a great idea!

Is it a great idea though, or is it fraud on HMRC?

Congratulations OP.

Congratulations!

We were in the same situation. They rejected the 450, we said ok but we literally can't offer a penny more as we would lose too much not using the LISA scheme. Possibly they didn't realise it was such a hard line (though we had told the EA) as they then came back to us after the weekend and accepted!

Congratulations, OP. Well done on your negotiations.

Brilliant news , well done and hope the rest goes as smoothly as possible.

Well done, OP !

Ohhh fab news!!

Sit tight if you can.

You are first time buyers.

The market is going to slow down massively and it's already sluggish.

It's looking like interest rate rises are highly likely in the next couple of months so keep this in mind too.

As soon as the autumn hits, I can see prices getting slashed for people who really want to move.

Honestly this summer has been dreadful locally. Nothing is shifting. Chains keep collapsing and houses that seem to have sold are back on the market

If what I'm seeing today is anything to go by in terms of economics it's not pretty. Lots of warning signs.

@BrummyMummy26 Congratulations, I hope you will all be very happy in your new home!

@BrummyMummy26 - congratulations! Very happy for you 💐

Congrats on holding your nerve and getting agreement. Estate Agents are the most slimy bunch of people on this earth - next to debt collectors.

Woo hoo; congratulations!

Chatter today on financial media of the US Ten Year Yield going to 6%! If that happens UK house prices will take a big hit, quite possible a lot of the other "interest" won"t materialise, especially if they have not even sold yet! Stand firm, they will probably back down if they need a quick sale.

So in around a week they backed down to reality? Nice outcome.

Congratulations ... hope the exchange goes smoothly

Like buying a singular sofa for £10k definitely would be!

Congratulations, OP, good result.

ETA: https://wards.uk.com/news/chattels-stamp-duty/

https://financialpost.com/investing/global-bond-selloff-yields-highest-level-2008

Can't you just borrow the extra money from family?

Financial professionals are saying the cost of borrowing is going up.

https://londonlovesbusiness.com/investors-warned-portfolios-are-built-for-a-world-that-no-longer-exists-as-bond-yields-surge/