House Price Drop

The_Bag

On the strength of the news that house prices dropped in September by 3.4% would anyone reduce there offer on a sold subject to contract sale??

I'm a 1st time buyer & the property I'm in for was advertised by the Estate Agent for £169,950 & my 2nd offer of £160k was accepted. The Surveyor said the sale price of £160k is a satisfactory price for the house in a homebuyer report that I received yesterday. :beer:

sonastin

If the news next month reports that prices rose in October, would you go back and increase the offer you put in during October?

henpecked1

depends if you want the house. I had the same through yesterday but then realised a lot of goodwill can disappear.

henpecked1

sonastin wrote: »

If the news next month reports that prices rose in October, would you go back and increase the offer you put in during October?

actually a very good view.

pararct

I would not try and re-negotiate at this stage. The price was agreed and ones word is ones bond and all that. Your lender is happy with the valuation hence your mortgage offer.

Put the boot on the other foot. If yesterdays figure had shown a 3.6% increase would you have entertained the vendor adding that to the price you had agreed?

FTBFun

Torchboy wrote: »

What may or may not happen in November is hypothetical though, it could well show a further drop. And won't the house have been effectively purchased by then anyway? The 3.6% drop is a fact and relevant to today.

Although it is an average nationwide - the OP could be in an area with negligible price changes.

tyllwyd

But that reported drop relates to what happened in the last month or so - the OP will have been negotiating the price based on what he saw happening in his local area, whether prices had generally gone down, how quickly houses were selling. So the changes in market conditions reported by the Halifax yesterday were already factored into his offer.

Jackinbox99

As a buyer, I certainly am not going to go back to the vendors of the house im purchasing and offer less based upon some prices dropping in some areas over the last month.

And as a seller if a buyer did that to me, I would seriously consider telling them where to go.

For me, buying / selling a house is a long winded stressfull process and there is a large amount of goodwill and give / take by both sides during the process, I certainly wouldnt want to jeapadise a sale just for being a bit greedy.

MobileSaver

Torchboy wrote: »

What may or may not happen in November is hypothetical though, it could well show a further drop. The 3.6% drop is a fact and relevant to today.

The reported drop was for prices last month, how is that relevant to prices this month?

If you think it is relevant then the Nationwide reported that house prices went up 0.1% in September so surely the OP should be increasing his offer?

Or would that just be silly perhaps?

FTBFun

Torchboy wrote: »

Or indeed much greater. It could have been a 5 or 6 % fall in his or her local area.

Indeed - I suspect the OP has already thought this through.

MobileSaver

The_Bag wrote: »

On the strength of the news that house prices dropped in September by 3.4% would anyone reduce there offer on a sold subject to contract sale??

Only those who seriously like to gamble and are prepared to lose both their solicitor and surveyor fees (and their dream home) would try reducing their offer based on one lender's one month's national price index movement.