Chipping on London flat before exchange

nowabarca

Hello all,

1/ Before Brexit I offered the full asking price on a flat in London. I am feeling very nervous about the uncertainty of the economic situation and for the future, therefore I have decided to withdraw my offer and re open the price negotiation starting at a price 20% lower. Of course my agent is telling me that the vendor would pull out and they would be able to find another buyer for the full price. I do like the flat but I also do not want to take too much risks in case the property market crashes. Has anyone had any experience of chipping in London? What are your thoughts on the market?

2/ Has anyone any experience in sub letting a shared ownership with the agreement of the Housing association? Under which circumstances?

Any advise welcome! Thanks!

AndyBSG

nowabarca wrote: »

Of course my agent is telling me that the vendor would pull out and they would be able to find another buyer for the full price.

Your agent is probably pretty much spot on.

Speculating on post Brexit house prices is completely pointless because no one knows. All the tales of stock market woes already seem to be proving false with the FTSE actually closing at the highest it's been in nearly a year.

If you felt the price was fair when you made the offer and you could afford then what on earth has changed since to make you think that wiping 20% off it's value is a good decision?

ReadingTim

So you want to gazunder your vendor whilst landlording your HA property which you don't even fully own?

You sound like a charming individual....

cloo

Generally I disapprove of chipping because it's basically messing with other people's lives, and 'because Brexit' is not a good enough reason. People dropping their offers by 20% when there's no solid reason is how the market falls apart.

marksoton

:rotfl:

Good luck with any of your plan.

BJV

cloo wrote: »

Generally I disapprove of chipping because it's basically messing with other people's lives, and 'because Brexit' is not a good enough reason. People dropping their offers by 20% when there's no solid reason is how the market falls apart.

Completely agree. If you had chipped at the beginning ( I think that you should always chip but then agree a price and stick to it) then fine. But to use Brexit??? No-One has a clue about how this will affect the housing market.

I would ask yourself two questions.
1. how would you feel if you where the vendor?
2. are you prepared to lose the flat?

Ok so there is your answer.

P.s we are just about to complete on a very large commercial building and no the thought did not cross my mind. We haggled before we agreed a price and are happy.

loufsun

I suppose it's a lot of estate agents posting here, always talking about how wrong it is to ask for reductions, how it would put other people in difficulty etc. I completely disagree with all of these points. This a transaction involving large sums and there are no consumer rights here, you can't return a house and you cannot complain afterwards.

That being said, you cannot re-negotiate unless you are willing to walk off. If the vendors say no what will you do? If you just then say ok, what if they even up the price? If you cannot walk off it shows that you really want the property and you will put yourself in a weak position.

I recently lowered the purchase price of the house I am buying for 3% of the original agreed price post Brexit vote. The vendors still have more than 10% increase year on year though. So it worked and I managed to secure a bit of safety in case things change. It all depends on the demand and the situation of the sellers.

Also, where I live no one can expect reductions of 20% at the moment unless the place is in ruins and needs lots of cash to renovate.

HiToAll

Ahhhhh, an 'I would like to scr*w the vendors, whilst scr*wing the taxpayer' thread. Wonderful

leachyd

If if was the vendor i'd tell you to sod off and remarket

ReadingTim

loufsun wrote: »

I suppose it's a lot of estate agents posting here, always talking about how wrong it is to ask for reductions, how it would put other people in difficulty etc. I completely disagree with all of these points. This a transaction involving large sums and there are no consumer rights here, you can't return a house and you cannot complain afterwards.

That being said, you cannot re-negotiate unless you are willing to walk off. If the vendors say no what will you do? If you just then say ok, what if they even up the price? If you cannot walk off it shows that you really want the property and you will put yourself in a weak position.

I recently lowered the purchase price of the house I am buying for 3% of the original agreed price post Brexit vote. The vendors still have more than 10% increase year on year though. So it worked and I managed to secure a bit of safety in case things change. It all depends on the demand and the situation of the sellers.

By the same token you'd be perfectly happy for the vendors to demand an additional 3% because we have a new prime minister, because there's an R in the month, or some other such flimsy reason, and dump you as a buyer if you didn't stump up with the reddies...

Didn't think so....

AnotherJoe

nowabarca wrote: »

Hello all,

1/ Before Brexit I offered the full asking price on a flat in London. I am feeling very nervous about the uncertainty of the economic situation and for the future, therefore I have decided to withdraw my offer and re open the price negotiation starting at a price 20% lower.

For such a size of drop, I feel confident they will start their side of the negotiation with a new buyer.