Offer accepted, now buyer wants to drop offer

AFF8879

Unless you're selling in prime central London (which at 180k, I would assume not), then I would personally go tell the buyer to Foxtrot Oscar....there is a fundamental shortage of housing in this country, so prices are NOT going to free fall. Even if we do end up Brexiting, then the supply of new homes will diminish which may even offset any effect of a slowdown in population increase. I would say London is probably an exception given the proportion of homes used here as investments!

Of course that's just me though. If the property you have found is your dream home, then you may just have to bite the bullet on this one or negotiate up the chain as has been suggested...but there's no need to panic thinking your house value is going to drop 50pc in 6 months.

Glover1862

I exchanged on the 24h June, could have delayed but went ahead 3 bed semi less than 1 hour from London by train for £140k how much cheaper can they get.. Depends what price bracket you are in and what area.

cashbackproblems

AFF8879 wrote: »

Unless you're selling in prime central London (which at 180k, I would assume not), then I would personally go tell the buyer to Foxtrot Oscar....there is a fundamental shortage of housing in this country, so prices are NOT going to free fall. Even if we do end up Brexiting, then the supply of new homes will diminish which may even offset any effect of a slowdown in population increase. I would say London is probably an exception given the proportion of homes used here as investments!

Of course that's just me though. If the property you have found is your dream home, then you may just have to bite the bullet on this one or negotiate up the chain as has been suggested...but there's no need to panic thinking your house value is going to drop 50pc in 6 months.

Price of homes is not solely determined just by supply and demand and as we saw in 2008-2010 there were much demand but prices were falling. Confident, job prospects, lending rules etc are all key factors. If both parties "foxtrot oscar" then chain collapses and new offers will come in lower. Maybe not a 50% drop, but with all the messages we'r getting from potential Tory PM's, Brexit is not going to be rushed which simply means the uncertainty drags on for many more years which will impact prices/jobs etc.

Money_saving_maniac

Thanks for all your thoughts.
I've contacted the vendor to see if he can reduce price.

It's a risky business - my EA says that it's hard to know what to do because they have done no valuations in my area in the last week, so when these properties that are available are sold the law of demand and supply will apply, on the other hand they also say that there have been a marked slowdown in enquiries.

My vendor's EA says she is also dealing with another buyer who has had the same thing happen to them so I know that this isn't a one off.

Athough house prices here have gone through the roof I am in a bad area, so only FTB or investors will buy mine. Generally it is the 'poorer quality' housing stock that feels the shocks first, I believe. This guy is an investor rather than a FTB.

Well i guess I will have to wait and see what tomorrow brings - depends if my vendor is willing to drop and if so how much. i'll let you know what happens and what decision I make.

If we decide to put it back on the market I'd probably wait a couple of months and try again in the Autumn.

9ja4life

Our buyer asked for a 20k reduction the Monday after the brexit vote which was also the day we were due to exchange. We told her no. She came back with 15k off and the answer was still no. We didn't however put it back on the market. We have rented it out - have CTL and we also live in rented.
What we will be doing is remortgage it in Sept - when our fix period ends - and release equity to buy the house we've offered on. We have a 50% equity in it.
We've given our vendor some options - put back on the market (we'll lose our survey costs but hey ho), rent to us till we remortgage or wait till we remortgage. His property is empty and has been since last year. He says he will get back to us today. We're lucky to be in a position to ride out the uncertainty. We were selling to buy a residential and BTL but will now leave that one as a BTL. It's 5 hours away from us hence trying to sell up

Ours rented out in 24 hours for £75 more than we were getting before. We had a choice of 4 tenants and picked one.

hammergirl28

We are in a similar and oposite position at the same time, we have received offers on our property post brexit that are massively under the asking price (£50k) and given that pre brexit our EA expected us to get over the asking price based on all other sales in our road we are out of pocket. At the same time we had an offer accepted on another property pre Brexit that we were willing to stick to as we had made an agreement with the vendor. Found out that over the weekend we have been gazumped (seriously !) so not only is our propert worth less than before but apparantly the property we wanted to buy is now worth more ! Needless to say we are not prepared to get into a bidding war so are pulling out. Should this house come back onto the market there is no way we will be offering as high as we did before !

satchef1

If you've been watching the local market for any length of time then you should be able to work out where things are headed.

Local to me, there's been a distinct slowdown, certainly at the bottom of the market, and possibly further up (I only watch <£150k). Post Brexit, that slowdown has been met with price reductions from sellers who need to shift their houses. The other thing to note is there's a dearth of decent homes on the market compared to a year ago. It seems the only people selling right now are those that need to move, and those who have inherited property. Compared to recent years, there's a much higher proportion of overpriced, rundown houses that need £10k-£20k+ spending on them. Those sellers are in no rush, and aren't budging.

So in a nutshell, the market is slow. Most people are playing the waiting game, either not selling or refusing to lower prices, while some are dropping their prices out of necessity. Buyers are holding off, hoping for glimmers of certainty and financial stability. Seems like a decent time to buy if the right property turns up, but I expect confidence will return to the market before long.

sheff6107

satchef1 wrote: »

I expect confidence will return to the market before long.

Yes, when people realise the 24 month pre-Brexit doesn't affect most things and they're sitting on their hands for no good reason.

indianabones

sheff6107 wrote: »

Yes, when people realise the 24 month pre-Brexit doesn't affect most things and they're sitting on their hands for no good reason.

That's not how it works. Organisations are already planning and changes are being made.

If you think they are not, then you need to do some deeper research.

brodawel

satchef1 wrote: »

If you've been watching the local market for any length of time then you should be able to work out where things are headed.

Local to me, there's been a distinct slowdown, certainly at the bottom of the market, and possibly further up (I only watch <£150k). Post Brexit, that slowdown has been met with price reductions from sellers who need to shift their houses. The other thing to note is there's a dearth of decent homes on the market compared to a year ago. It seems the only people selling right now are those that need to move, and those who have inherited property. Compared to recent years, there's a much higher proportion of overpriced, rundown houses that need £10k-£20k+ spending on them. Those sellers are in no rush, and aren't budging.

So in a nutshell, the market is slow. Most people are playing the waiting game, either not selling or refusing to lower prices, while some are dropping their prices out of necessity. Buyers are holding off, hoping for glimmers of certainty and financial stability. Seems like a decent time to buy if the right property turns up, but I expect confidence will return to the market before long.

I agree although I'm not convinced the vote is causing reductions. Houses that were listed Feb, March, April, May, and haven't yet sold, will be reducing anyway around now, i.e. June & July, if they want to try and sell before the market naturally slows down as it does every year in late summer/Autumn. Typical scenario of deluded seller = vendor puts house up for sale at stupid price in Spring, refuses sensible offers, then reduce it 3 or 4 months later as they realise time is running out as Autumn approaches. Unfortunately the house is now cursed and stale, all genuine buyers have seen it for several months and no one wants it. They end up selling it for less than the sensible offers they refused back in Spring. The vote is just a coincidence IMO, these houses would be reducing anyway.