reduce offer before exchange - COVID19

peppapig14

I am due to exchange contracts in about 2 weeks , and we want to ask for a reduction of approx 5k ( offer accepted at 240k ) due to concerns over job stability/ childcare now schools are closed etc ) 
If we discuss with estate agent and the Sellers agree , would we need to resubmit our mortgage offer?

MysteryMe

 Yes, you would need to advise your mortgage lender and depending on various factors it might affect how much you can borrow.  However, if your finances are going to be so affected by such a relatively small amount you should consider whether you are in any sort of financial position to be buying in the first place. What are you going to do once the £5000 is spent?

ACG

Good luck with that one. 

Would you be offering £5k more if you got a pay rise and free childcare? Why would the vendor reduce the price because you have now decided you might struggle financially and over a very small small amount on a monthly basis - £5k is about £10 a month. 

Windofchange

I really don't get people who haggle over such small amounts this close to completion. As per above, what is £10 a month going to actually do to your finances? If it is going to have a huge impact, then you probably shouldn't be buying a house at all. We sound like we are at a similar stage in the process, and I'm not about to start messing around with a few grand here and there. The whole process is stressful enough, and I just want it done. If you were talking about a loft conversion or something that wasn't completed properly, and a 50k down valuation then fine, but 5k? Your decision I suppose, and they can only say no, but as a seller it would cheese me right off this close to completion and I would immediately lose any respect for you as buyers. This could be particularly bad if there were other parties interested as I might just say screw it, I'm selling to them. 

diggingdude

If the survey has found a hole in the roof I might consider it,b otherwise if I was selling you would likely be looking for a new house

societys_child

peppapig14 said:

. . . we want to ask for a reduction of approx 5k ( offer accepted at 240k ) due to concerns over job stability/ childcare now schools are closed etc ) 

Lol. You expect the seller to subsidise you? If you can't afford it, buy something you can.

GoingOn30

I don't think it's unreasonable to adjust the offer given that new information has come to light likely since the initial offer was made about the trajectory of house prices over the next 18-24 months. It is less likely than usual that a seller would object to a renegotiated offer since viewers and potential buyers have now all dried up. 

hazyjo

GoingOn30 said:

I don't think it's unreasonable to adjust the offer given that new information has come to light likely since the initial offer was made about the trajectory of house prices over the next 18-24 months. It is less likely than usual that a seller would object to a renegotiated offer since viewers and potential buyers have now all dried up. 

Why? They're buying a home not an investment. Maybe a FTB - not sure if the OP is? Certainly not someone in a chain.

FtbDreaming

I wonder if everyone is reducing their offers or just those on MSE forums worrying about a drop in 12-18 months time. The amount you want to drop it by is insignificant and all these people (usually FTB) pulling out will spend the next 12 months paying £600+ pcm rent (£7200) to save on a potential drop in price of a couple of grand. It all seems like cutting off your nose to spite your face. If you find a house you like and are going to live in then just go for it. 

MovingForwards

@FtbDreaming I'm not reducing my offer, I've previously worked out how much I've already paid in rent and how much it would have cost me if I stayed in a rental for 5 years from when I first moved, would nearly have cleared my mortgage.

SmithColin

Both house prices and rents are already falling in other European countries in this current emergency. However the drop in the corresponding wages to pay these bills means that although there will undoubtedly be bargains available in the coming months it will inevitably only be the cash rich that will benefit from this dip in the market.