FTB - Should we reduce offer?!

gemmalouise93

Hi everyone, 

We were due to exchange contracts last week and complete 08/04 although this has all been put on hold during the lockdown (by our solicitors). 

There is no onward chain with the property we are buying, the seller is moving in with a relative. 

We are so confused with what to do -do we reduce our offer before exchange in case house prices fall? 

Our purchase price is already less than what the seller paid in 2016 (only 3k less). Although wouldn’t say we are getting a ‘bargain’ for the local market. 

Any advice? I know it’s difficult as no one knows what will happen to house prices but what would other people do?! 

Thanks 😊 

Also to add - we are both key workers (Midwife and Police officer) so jobs should remain secure. 

numbercruncher8

Of course you're within your right to decrease your offer - but the risk is the sellers would tell you to get fecked. How badly do you want the house or the move?
I don't suppose if interest rates went negative, that you would increase your offer to reflect that house prices may rise? IMO what might happen in the future is poor reason for reducing unless you can demonstrate to the seller that they are overpriced for the area. But in that case, why offer in the first place?

hazyjo

Bit soon to make decisions now. It's on hold so there's no need to declare anything.

However, if I was a FTB right now, I would pull out and say I would love to be back on board once this is all over but, for now, my job, health, the economy, the future etc are all too sketchy to commit. Once it's all over, I will reassess and be in touch, say I still really loved the house, and really hope to be able to pick things up again in the future and wish them all the best. Just my personal opinion though. If I wasn't a FTB and the chain was complete, I would sit tight.

Chavy89

what do you want the house for??? 
if its to buy then sell with in the next few years i would say wait and see how the market is 
however if you plan on living init for long then why would you try lower the price to be honest if i was the vendor i wouldnt take any reductions you risk loosing the house altogether 

[Deleted User]

There will be no evidence regarding the any decrease in house prices, it is just speculation at this time.
If you want to benefit from a decrease then you need to play the long game (if you can).
You risk being told to get lost by the seller, a risk that is not likely to be worth taking to save a grand or two. Any feeling of satisfaction re money saved would be insigificant if in the year to come prices decrease by 10/20/30% far beyond any money you might save.

Vestraun

How much deposit are you putting down, ie how much equity will you have? If 40% or more you are likely to be fine, but any less you may be at risk of negative equity and could get trapped in that property for a long time. 

[Deleted User]

I pulled out last week - Im not paying full price for something I could possibly buy at a big discount next year 
I think a lot of landlords will be running for the hills and dumping properties left right and centre when this is over ! 

Sncjw

You will need to have a new mortgage offer in place and that means more paper work and time. If your all ready to go and have said you are completing on the 8th then I guess it’s a bit too late now 

Purplezinc

We are in a similar position having had an offer accepted and have paid the reservation fee. We haven’t yet exchanged. It’s a new build and there are still units lefts to sell on the development (approx 5). Would it be reasonable to try and negotiate a discount to at least match about the lowest others have paid (Nov19)? We’re  worried that they’ll sell the last few units at a much lower price (It’s only 16 in total) and remortgaging at the end of term won’t be pretty. 

MysteryMe

gemmalouise93 said:

Hi everyone, 

We were due to exchange contracts last week and complete 08/04 although this has all been put on hold during the lockdown (by our solicitors). 

There is no onward chain with the property we are buying, the seller is moving in with a relative. 

We are so confused with what to do -do we reduce our offer before exchange in case house prices fall? 

Our purchase price is already less than what the seller paid in 2016 (only 3k less). Although wouldn’t say we are getting a ‘bargain’ for the local market. 

Any advice? I know it’s difficult as no one knows what will happen to house prices but what would other people do?! 

Thanks 😊 

Also to add - we are both key workers (Midwife and Police officer) so jobs should remain secure. 

You can reduce your offer but be prepared to accept that the vendor may refuse

Either way, up to exchange you can pull out of any sale.

No one knows with certainty what will happen. What I will say is that if there is significant change in one area it will also affect other areas. For example, don't assume that if house prices fall by X% everything else, such as housing stock, interest rates and lending criteria will remain as they are now as they wont. 

Crashy_Time

Densol said:

I pulled out last week - Im not paying full price for something I could possibly buy at a big discount next year 
I think a lot of landlords will be running for the hills and dumping properties left right and centre when this is over ! 

Good advice.