Should we pull out of house buy

john_w_2007

Hey All

We need some advice on whether to pull out on a house buy or not, we put in an offer last week and it was accepted. Offer was 3% lower than current asking price.

Having seen tonight that Nationwide now expect house prices to fall 25% and there not to be a recovery until sometime mid 2010 I think where as we had previously thought...its probably not going to get too much worse now it is looking like it actually will get quite bad.

We were prepared to go in with the expectation something would improve in 2009, but to fall by up to 25% by 2010 makes me think we should pull out now before anyone spends any money on the costs of moving.

Really stuck on what to do...wish id never watched the news tonight!

Running_Horse

Nobody on here (or at the Nationwide) knows what house prices will be next year or the year after.

Do whatever is right for you and your family.

GDB2222

You have no real obligation to your vendor, so pull out. If you want to say sorry, send some flowers.

greenface

what do you think you will be doing in 2010 will you be looking for another property if not no problem really.
why did you only offer 3% below asking price
If you have the funds and are ready to move you are in a good position to deal you hold the aces. I would have started 25% possibly more below the asking and worked from there

m1ntie

Running_Horse wrote: »

Nobody on here (or at the Nationwide) knows what house prices will be next year or the year after.

Do whatever is right for you and your family.

This is true, but most experts are agreed that prices will drop much further before they bottom out - so why take the chance. If I were you I would rent for 12-24 months and see what happens.

Good luck whatever you decide.

ad44downey

john_w_2007 wrote: »

Hey All

We need some advice on whether to pull out on a house buy or not, we put in an offer last week and it was accepted. Offer was 3% lower than current asking price.

Oh dear, I think the current average is 90% of asking price so you should have got another 7% discount. Factor in further 25% houseprice falls you'd really want another 32% off the asking price

john_w_2007

The reason we asked only a certain amount below is that we are bound by the valuation we have been given on an affordability assessment by Catalyst.

Basically it is a homebuy equity share scheme where they pay 15% of the value of the house as a deposit (Its for people who dont have deposits). They give you a range...ours was 187 -230. They also say your only allowed 1 bed more than u need (So for us a FTB a 2 bed). Its not really hard to find a 2 bed property for between those figures...but then we are outer london.

We would stay for at least 5 years...but the 25% thing worries me..though some say they have fallen 12% already so only have technically the other 12% to fall. Urgh I dont know...I was really excited until earlier.

ad9898_3

I think we can safely say there will be no recovery in 2009, prices are down 12.7% from peak already and things didn't start to go really pear shaped until March. Of course you must do whats best for your family, like someone has already said, you aren't losing anything by renting for 12-24 months, last month for instance you saved approx £3300 on the average house. Not bad work if you can get it.

ad9898_3

john_w_2007 wrote: »

The reason we asked only a certain amount below is that we are bound by the valuation we have been given on an affordability assessment by Catalyst.

Basically it is a homebuy equity share scheme where they pay 15% of the value of the house as a deposit (Its for people who dont have deposits). They give you a range...ours was 187 -230. They also say your only allowed 1 bed more than u need (So for us a FTB a 2 bed). Its not really hard to find a 2 bed property for between those figures...but then we are outer london.

We would stay for at least 5 years...but the 25% thing worries me..though some say they have fallen 12% already so only have technically the other 12% to fall. Urgh I dont know...I was really excited until earlier.

Ok I posted before you posted this ^^^^, now I would say run and don't look back, shared equity schemes do the buyer absolutely no good at all, you are basically been given a 100% mortgage, when the banks have withdrawn every single one of them. Beware.

chewmylegoff

john_w_2007 wrote: »

The reason we asked only a certain amount below is that we are bound by the valuation we have been given on an affordability assessment by Catalyst.

Basically it is a homebuy equity share scheme where they pay 15% of the value of the house as a deposit (Its for people who dont have deposits). They give you a range...ours was 187 -230. They also say your only allowed 1 bed more than u need (So for us a FTB a 2 bed). Its not really hard to find a 2 bed property for between those figures...but then we are outer london.

We would stay for at least 5 years...but the 25% thing worries me..though some say they have fallen 12% already so only have technically the other 12% to fall. Urgh I dont know...I was really excited until earlier.

does this mean that in order to qualify for the scheme you're forced to bid at least £187k for a property even if you think it isn't worth that much?

if that is right it sounds like you're being forced to pay more than the market value of the property which is crazy.

ad9898_3

John, you say your range is 187-230, offer them 230, thats £230 and then give 'em the bird !