Dropping offer on house?

Jakeh1983

I'm in the middle of purchasing a property for 195k I'm considering dropping the offer due to the current Corona crisis, how much do you think is acceptable if any, otherwise I may have to pull out. Regards

Vestraun

How much do you think it is now worth in the current situation? I’ve seen reports of 20-40% off now, but whether the seller accepts that is another question. 

jimbog

Probably best to pull out if you are having cold feet and start looking again when prices rise 

wazza07

Vestraun said:

How much do you think it is now worth in the current situation? I’ve seen reports of 20-40% off now, but whether the seller accepts that is another question. 

Lol you’re not being serious are you? We’re currently in the process of selling/buying and close to exchange. The property we’re buying is £450k. If we turned around now and offered £270k - £360k (20-40%) we’d be laughed out of the door and told to jog on. 

daivid

The value of my house has risen considerably in the last month according to Zoopla (no guarantee this is accurate obviously). Who knows what will happen to house prices when the country settles back down. There will be increased unemployment most likely (short/medium/long term who knows) but also there will be a lag in completion of new builds and possibly less investment in housing development which would act to drive values of available quality housing positively. 

If you want the house, and can get and pay the mortgage (if needed) then do you want to risk annoying the seller to the point they tell you where to go? Do you think they actually want to move now or in the next month or two? If you mess them around now do you think you will be top of their list to sell to when things settle?

numbercruncher8

We all go on about 'who knows' but there many reasons to be bearish on house prices rather than bullish currently. 
Personally I think it is quite naive to believe that once we are allowed out of our houses again, mortgage lenders will magically restore 90% LTV loans. Or that employment will go back to previous levels straight away and there will not be a massive fall.
I believe that house prices are sensitive to availability of finance, and even after 2012 (where interest rates did not move) there have been a large number of props to boost the market (help to buy, guarantor mortgages, 30,35,40 year mortgages) that don't seem possible this time around.
At the same time it seems obviously moronic to take a projected house price decline like 20 or 40% and immediately pretend it'll happen all tomorrow. If it does happen, it'll be a slow path down. London has dropped from peak (in the areas I am looking) by around 5-10%. This has taken 2 years.

Back to the OP, without more information, nobody knows. If 195K is massively above the prevailing prices for the area why not, if you have already ground out a bargain and have no job worries, it might be different.

Chetnick

wazza07 said:

Vestraun said:

How much do you think it is now worth in the current situation? I’ve seen reports of 20-40% off now, but whether the seller accepts that is another question. 

Lol you’re not being serious are you? We’re currently in the process of selling/buying and close to exchange. The property we’re buying is £450k. If we turned around now and offered £270k - £360k (20-40%) we’d be laughed out of the door and told to jog on. 

Or would you?? 

diggingdude

I think when it comes to large purchases, if you are not contracted to proceed then you have to protect yourself at the moment. Offer what you feel comfortable with and nothing more.  If that is harsh it is harsh.  That being said the person selling will also be protecting themselves and will likely to tell you to do one. But this is life right now

Crashy_Time

Jakeh1983 said:

I'm in the middle of purchasing a property for 195k I'm considering dropping the offer due to the current Corona crisis, how much do you think is acceptable if any, otherwise I may have to pull out. Regards

How many other offers did they get?

[Deleted User]

I was buying BTL for £330k
I ran as fast as I could in the opposite direction until I know whats happening with prices 

GDB2222

I can’t see a typical owner occupier, who is part of a chain, being able to accept a large reduction. It’s more likely that the chain will simply collapse. However, that’s not to say that it’s wise to proceed at the pre-COVID price. It simply means waiting until prices adjust or finding somewhere to buy that is not part of a chain.