Should I reduce my offer?

LadyIndecisive

I am still not sure what the current offer is as OP has not replied.

Seems the OP underestimated costs of modernising property and realised this after the survey hence the very large drop in offer. I have previously had a survey (didn't buy the flat) which forewarned me not to underestimate the cost of plastering the entire flat. As a FTB it's easy not to spot what would be obvious to some & he's no experience of costing repair work. Fair enough.

This story seems long-winded when looked at over 4 pages of threads but it's not a circus scenario IMO. Property on at 265K, buyer offered 235K subject to survey, then reduced to 206K, this rejected and upped to £215K, vendor attempted to accept but not able to and now offer is at TBA.

Property was clearly never going to achieve above 250K SDLT level and vendor aware of this from day 1. IMO Vendor was likely to have been hoping for in the region of 220K.

I don't think there's much here to support theory that vendor is desperate, or any more desperate than any other seller. Delays on vendors part possibly due to dispute among relatives as to what the property should sell for.

geoffky

all the bitter sellers have jumped on this one....gazundering is a tool that should be used to save yourself money..use it...at the end of a day its you who has to work for the money..most of these owners think they earned the price increases...they did not..

lostinrates

Could the issue with the survey simply have been a value one in the opinion of the surveyor? I wonder if we'll ever know?

pawpurrs

Sellers are bitter? Nope,any decreases in the sale of mine can be passed up the chain, moving to a bigger/better place. I would have been better off, if HPI hadnt gone mad, gap between houses would be less.

I see much more bitterness on this board from would be buyers, that due to HPI havent been able to get on the so called Ladder. (maybe Justified) but its not the fault of those that are older or perhaps those that were in a postion to buy ten or more years ago!

monkeymaster

Steve78 wrote: »

Hi Guys,

We are first time buyers. One and half month ago we made an offer (235K) on a property (property needs modernization) that was reduced to 265K from 277K.

Our offer was accepted. We had the survey and based on the survey report, we decreased the offer to 206K and our offer was rejected two weeks ago. Area is very nice and similar properties were sold at around 195K in 2001.

Last week I made a final offer of 215K and told them that the offer was valid for a week, they rejected the offer. Now after one week deadline has passed and guess what, EA called me in the afternoon and told me that the seller wants to accept our offer. He said he discussed with the seller and advised him that due to christmas time it will be difficult to sell this property and they should consider quick sale. Now after hearing what he said about quick sale and difficulty in selling the property I want to reduce my offer. It would indeed be a quick sale as our mortgage is agreed and survey has been done on this property as well.

Do you guys think, it is alright to reduce the offer now (keeping in mind that time line that I gave them finished yesterday)?

Seems reasonable to me. These people accusing you of gazundering are missing the point. No valid offer has been accepted, you put a weeks deadline on your offer which is very sensible in my opinion and now they have come back to you. If you're prepared to walk away then make a final reduced offer taking into account the BoE have said today that we're going to be in recession for most of next year. At the end of the day you've got to think about your finances and your family and with the outlook uncertain at best you need to give yourself some protection.

Edit - sorry just re-read that and you had made an offer and renegotiated because of the survey... makes it a bit more iffy imo. Your call.

mewbie_2

Just doing some simple sums. 200k, 1% (minimum) falls per month, equals 2k per month. Very strong likelihood of this being the case for the next year at least. So what can you rent for 12 months at say 1k per month, thereby saving another 12k deposit, plus the interest on whatever deposit you currently have? Oh, and not feeling sick as your new property falls in value by at least another 15%.

The sums seem very easy to me.

pawpurrs

But we are forgetting that at the price the OP is now offering on the property (should it get accepted), takes the property down to near 2001 levels, now prices may fall more than that, but I am not sure they will, and none of us really know. Should the offer be accepted, he will be pretty well protected. As he would be way ahead of over offers being accepted,most of which are no where near that level at the moment, not that I can see any way. His offer is pretty damm cheeky!

mewbie_2

When the boss of the Nationwide, a vested interest if ever I saw one, predicts further falls all next year into 2010..

http://www.financemarkets.co.uk/2008/09/09/nationwide-chief-predicts-25-fall-in-house-prices/

then I happy to stick with my mini and cautious prediction of 1% a month into 2010.

I don't know, or care about the comparison with 2001, it seems meaningless. They would accept whatever money now, they or their neighbours or someone else will accept 15% less in a year or so's time.

Sit on hands - save 2k a month. Its got to be the easiest way of saving money ever invented.

Gorgeous_George

leviathan wrote: »

... As a FTB, when I come to market I fully intend to make several offers on different houses and play them off against each other till I get the reductions that I want.

Point of order.

When you come to market, you will be a FTB. Until then, you are a tenant.



GG

StevieJ

Gorgeous_George wrote: »

Point of order.

When you come to market, you will be a FTB. Until then, you are a tenant.



GG

It would be funny if he waited until prices were rising, someone accepted his offer, then some shark comes in and gazumps him just before the signing of the contract.