Another anxious post-Brexit first time buyer

TibblesMittens

It feels wrong that the first contribution to make to this forum is to ask for thoughts rather give them, but here it goes. Its tempted me out of being a lurker at least.

We're London first time buyers, both in stable middle income jobs, both early in our careers - fortunate enough to have a 20% deposit for a flat in the £250-270k range. We were fortunate too to find the right place for us in NW London, on the tube, in budget and a place we like, with a 150 year lease.

We had an offer accepted at £260,000, at asking price, pre-Brexit. Another buyers offer of the same price was turned down, they went with us as we were chain free and the seller is motivated for a quick sale (the property is ex rental, currently unoccupied).

The question is - does Brexit give us scope to negotiate the price down? Even to £250,000 - the seller seems motivated, the offer was some weeks ago so the other buyer has hopefully lost interest. Has anyone had any experience of playing hard ball and negotiating a price down? Do we have anything to lose asking? And when's the right time to negotiate? I don't want to mess the seller about, but also don't want to increase the potential loss on the property in the short term either...

We have 5-year fixed term agreed, so we're in it for the medium term by which surely, prices will have increased?

And are we mad to even be going ahead the way things seem to be heading?

kinger101

upsides to going ahead;

over the medium term, less risk of price falls (assume you're staying put with 5 yr fix)
you're not renting anymore
your five year fix might be at a much higher rate if you wait a year to see what happens

downsides;

market likely to be much more volatile now, therefore more negative equity risk.
might be cheaper if you wait a year


Overall, as long as you don't enter negative equity, you next move actually becomes easier if prices stagnate or even drop slightly.

Your buyer might put the property back on the market if you attempt to drop the price. Depends how confident they feel.

Money_saving_maniac

Depends how much you want that particular flat, cos they could just say no and remarket it.

phatbear

I keep seeing a lot of threads about people wanting to reduce their offer post brexit and i keep wondering if there would have been posts about sellers increasing the price post bremain if it had gone the other way?

9ja4life

Our buyer asked for 10% off yesterday when we were supposed to exchange on Friday and she pushed it to yesterday. We've very politely told her to bog off.
We will be renting the house out for the next forseeable future. We currently live in rented so it's no skin off our nose. We've had to pull out of our own purchase but hey ho, cest la vie! It hasn't even been put on Rightmove for rent yet and we have 2 tenants wanting to take it already as it is near a very good secondary school.
It's your call and a gamble only can decide if it's worth it.

keith969

TibblesMittens wrote: »

Do we have anything to lose asking?

You risk the vendor reopening negotiations with all parties... and your revised offer may be rejected.

TibblesMittens wrote: »

And when's the right time to negotiate?

When there is a good reason - up until your offer was agreed, or if you find something unexpected during a survey that you weren't aware of when making the offer.

csgohan4

9ja4life wrote: »

Our buyer asked for 10% yesterday when we were supposed to exchange on Friday and she pushed it to yesterday. We've very politely told her to bog off.
We will be renting the house out for the next forseeable future. We currently live in rented so it's no skin off our nose. We've had to pull out of our own purchase but hey ho, cest la vie! It hasn't even been put on Rightmove for rent yet and we have 2 tenants wanting to take it already as it is near a very good secondary school.
It's your call and a gamble only can decide if it's worth it.

Some people will blame anything for a free lunch

kilby_007

keith969 wrote: »

When there is a good reason - up until your offer was agreed, or if you find something unexpected during a survey that you weren't aware of when making the offer.

Or the economy takes an unexpected nose dive, and the house is worth 10% less?

theGrinch

The vendor may have the wobbles and withdraw it or the mortgage may tighten.

As a first time buyer, I would have thought your personal circumstances over the next 5-years more important than short term froth.

Blue22

TibblesMittens wrote: »

We have 5-year fixed term agreed, so we're in it for the medium term by which surely, prices will have increased?

A little anecdote for you. In 1989, a newly married friend bought her dream home with her new husband. It was a cute but small 2 bedroom new build (think box for the second bedroom) in the South East.

Prices dropped soon after but believing that the downturn wouldn't last much longer, they started a family and went on to have two children. By the mid 1990's my friend started to talk about being trapped and the house was totally unsuitable for two young children but with negative equity of 10 000s there was nothing the family could do.

I will spare you the details of the angst the family suffered over the next few years but if is suffice to say that the couple spent years hating their 'dream home'

It wasn't until 2001 that the house increased enough to pay off the remaining mortgage balance. They sold as soon as they could and moved into rented accommodation and they are still in private rented today.

So my advice to any FTB would be not to even think about buying unless you intend to stay put for at least a decade.

indianabones

phatbear wrote: »

I keep seeing a lot of threads about people wanting to reduce their offer post brexit and i keep wondering if there would have been posts about sellers increasing the price post bremain if it had gone the other way?

Nothing dramatic, but possibly a slight increase if it were Bremain. However house prices are absurd, you know it, I know it and everyone else knows it. They had to come down, simply had to come down.