Offer accepted but having second thoughts

hellouwal

I made an initial offer on a house. The vendor tried to increase my offer but i didnt budge. After a couple of days the vendor accepted. However i am now having second thoughts about whether the property is worth as much as i offered.

I dont want to annoy the vendor and i would rather back out now before either of us incur any costs but do you think this will have a detrimental effect if i come back with a lower offer at a later date?

Thanks for your help.

Idiophreak

hellouwal wrote: »

I dont want to annoy the vendor and i would rather back out now before either of us incur any costs but do you think this will have a detrimental effect if i come back with a lower offer at a later date?

Well, I doubt they'll be thrilled about it, will they. And some people might cut their nose off to spite their face as a consequence. Other people are "beggers" that can't be "choosers"...so you're just risking what kind of character you're dealing with.

Catblue

So you like the house but just aren't sure about the price?

Look at actual sold prices for similar properties in the area. How do they compare with your offer? If they are generally in line with what you offered then there should be no problem.

Remember that the survey will give a valuation so that should either set your mind at rest or (if less than you offered) will give you room to negotiate the price downwards.

If you have decided that you're not keen on the actual house now (irrespective of the amount offered) then that's a different matter and you should withdraw your offer immediately.

mungobella

I know that I would consider someone who submitted an offer and then pulled out for no particular reason to be unreliable. I would not consider selling to such a person at a later date simply because of the uncertainty involved. I don't know how you would expect them to trust you. I certainly don't think you are under any obligation to stick with the property at this point, but don't expect that you'll be able to go back to the same property and offer something lower at a later date and be taken seriously.

LisaW123

Take a couple of days to think about whether you actually want the house. If not, pull out. The vendor will probably not be best pleased but it happens. If you are thinking of this as a bargaining tool to get the vendor to lower the price, I wouldn't go there. As Catblue has said, check out the sold prices in the street on Zoopla or another property website if you are concerned you have offered over the going rate. As to whether the vendor would refuse an offer from you should you pull out this time and then submit a lower offer at a later date, who knows. If I were the vendor and I had other offers I would choose them over someone who had pulled out in the past, but it is a buyers market.

jee

How long has this place been on the market?

Did you do any research prior to the offer? For example checking how much offers went for on the same/next road?
If your plan is to carry on and then drop the price closer to exchange I would say withdraw your offer. Your costs are more than the vendor's so they are likely to refuse especially if they've already refused to drop the price.

Caveat_Mortgagor

Perhaps tell them that the news the country is back in recession has dented your confidence about buying your first house / paying so much.

It gives you a way out right now, but may be more easily accepted by the vendors than simple buyers remorse. As such, it might be easier to pull out without burning any bridges.

ognum

You know I don't think you need an excuse, you simply have to say you have decided not to proceed. The EA will ask why, you simply say you don't now believe it is worth the price and you don't want to annoy the vendor by suggesting a lower one. All that is true!

No need to make up reasons the truth is the best way.

Over 50% of house sales fail so don't worry better to drop them now than later, just be honest.

hellouwal

Thanks for your responses.

Its not the house that im having second thoughts about. It's just that as i am buying alone i dont want to risk negative equity from day one, i have to be certain that im getting it at the right price.

i have looked at zoopla etc and done my homework and whilst i dont think i am far off its incredibly difficult to tell.

Whilst the house isnt an investment property per se, it is not a family house which i will live in forever and therefore i am aware that at some point in the not too distant future i may need to sell and i dont see the market recovering for a good number of years.

mungobella

I think it's important to acknowledge that you're never going to be 100% certain about the price of a house, or that it won't slip into negative equity. It simply isn't possible. If you genuinely think you may need to move soon, either because you want to start a family or maybe for a job change (I get the impression you might be on the youngish side?), you're probably better off renting until you're a bit more settled.

hellouwal

28 so not that young! just want to take advantage of low interest rates and potentially low prices and get on the ladder. also have a reasonable deposit that isn't earning much in the bank!

Thanks for all your help.