House Price Drop

andys15

What I did when I bought my house in 2008, was to write a nice letter to the EA, which was passed on to the owners. I basically said that we are nearly ready to exchange, but as it is not going fast enough due to the owners/owners solicitors, I wanted to renegotiate the price, which had roughly dropped by 3% since the offer was submitted. I said as a goodwill gesture would the owner be prepared to meet me halfway. I got a 1.5% reduction which paid for my flights to Florida.

I wasn't rude, or threaten. I just told it as it was.

Brock_and_Roll

At the end of the day it boils down down to:

a) how much do you want this house in particular
b) whether you are a cash buyer
c) whether you are bothered about your reputation

It is not unheard of for more ruthless buyers to have half a dozen offers or more on the go at the same time, then try and haggle down the price for one reason or another. They might get an f off from 3 or 4 sellers but the odds oare often in their favour that they will get lucky somewhere from a motivated seller. A bit naughty, but totally legal.

MobileSaver

Torchboy wrote: »

Well firstly, what other credible source of information do you have to go on? It's the most recent piece of house price information.

I gave you an alternative credible source, the Nationwide reported prices were up 0.1%. Why is that any less credible than Halifax's 3.6% drop?

So armed with a credible alternative that Nationwide said house prices went up 0.1% should the OP now pay more than his original offer or would that just be silly?

Please do answer the question.

hazyjo

I get very mad at gazunderers. Really rubbish thing to do to someone. A lot of people are in very vulnerable situations where they've waited months or even years for a buyer and already taken a huge drop. I'd be very worried if I was a gazunderer that the person who sold to me would always know where I live!

Jx

MobileSaver

Torchboy wrote: »

I don't think the Nationwide have released their house price stats for last month yet? I think you're using the August figures then?

Nationwide Sep 2010

You're not going to answer whether it would be silly for the OP to pay more than SSTC price based on Nationwide's +0.1% are you?

Perhaps that's because you've realised how ridiculous that would be?

tyllwyd

Torchboy wrote: »

Yes, but the knowledge of what happened in the last month has only become known now. All these housing statistics are lagging indicators so I don't see how this one can be dismissed just because it's a month old as all the house price indices are at least one month old. It's the most recent relevant statistic, any other statistic you choose to use is older and so less relevant.

I still don't understand the logic. OK, say that everyone had their houses on the market at a certain level. Then in September they all read in the papers that the housing market is falling, so they accept lower offers, including yours, at 3.6% lower. At the end of September the Halifax reports that 3.6% drop. So why would you go back in October and ask for another 3.6% drop in the agreed price, based on the Halifax figures? Doesn't that make it a 7.2% drop? What am I missing?

Eric1

pararct wrote: »

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?

then we would have had the vendor's post here asking for advice on gazumping

paul1964_2

The_Bag wrote: »

The Surveyor said the sale price of £160k is a satisfactory price for the house...

The price agreed would appear to be around the true market value for the property, so personally, I would not feel right about trying to reduce an offer at this stage of the buying process.

However, if I was a FTB and genuinely worried that falling property prices could push me into negative equity, I would consider pulling out completely and waiting until my confidence in the market returns.