Cold feet/pulling out of a purchase

trevbob

Got a purchase almost ready to exchange but having very cold feet.

Looked at objectively we're not in a house swap/trade-up situation so are not already invested in the market to a similar extent, although not cash poor first time buyers. Reason for purchase is due to job relocation.

No real objection to renting for next 6 months as an alternative & acknowledge certain sunk costs re purchase would be lost.

Property is good value in its local market. Howver just below higher stamp duty band so limited upside would appear to be available until at least next March's budget or well beyond. Downside is that a price fall up to 20% would not kill us but make life very unpleasant if we has to sell say 2 years down the line for another job move.

Given the limited upside and possible downside I'm inclined to pull out.

However we are only in a chain of two (vendor's vendor is vacant possession) so a price adjustment along the line might not be impractical to at least cushion partially any future market fall.

Anyone have any comments. It might seem reprehensible to pull out or ask for adjustment at the 11th hour but we feel thaere is a serious risk we could be buying a house that is worth £10k less by the day we move in.

Any advice re negotiating a down the line price adjustment?

Reaper

I'd say go ahead because:

1) My (purely personal) view is that house prices will stagnate or drift slightly down rather than fall.
2) Even pessimistic analysts are not selling their houses and moving to rented nor are they advising others to do so.
3) 6 months rent is 6 months you could have been paying off a mortgage.
4) I presume you are buying a place to live in not just as an investment. If you have found a house you like and can afford then that's all that really matters.
5) You say you have already spent money on the process which will be lost if you pull out.
6) Ethically (once again a purely personal view) I don't think you pull out of a deal without a very good reason.

If you think prices have fallen locally then you could try to renegotiate but since you say it is "good value in its local market" I don't think you should even do that.

I'd say Buy. But that easy to say with other people's money