Drop 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

[Deleted User]

It could be any amount between 0 and 195k.  Drop it by an amount that feels right to you. 

That will be based on your circumstances and the value of the particular property you're buying.

EverythingIWant

Pull/drop offer at your peril. Yes we are in the midst of a pandemic crisis but we still have a house shortage crisis too.

csgohan4

reduce your offer only if your willing to pull out, otherwise your just trying to take advantage

We had lots of threads on here about reducing offers due to the brexit, guess what, didn't happen on a large scale

Windofchange

As above, only try to mess with the agreed price if you are actually willing to walk away. Even then, think very carefully. What actual difference is 5k or 10k going to make on a £195k purchase over 25 years? 20 quid a month or something? Would you also need to go back through your mortgage offer and advice them of a new price. Will the bank want to recheck your application alongside that? Will they pick something up when re-calculating the figures that they didn't previously due to tighter lending criteria? 

If I were a seller I would tell you to go stick your new offer corona crisis or not. There may be a blip in prices in the short term, but depending on which part of the country you are talking about, demand is still strong, and the market will recover once people can get out again. Why are you all of a sudden going to need to pull out? Change in circumstance? Job not looking secure? If you like the property, buy it. In the long run you'll come out just fine. 

ACG

From a broker perspective, all of our purchases are holding in there - literally not had one person pull out (yet). 
We are also still receiving enquiries from people. 

There is no evidence property prices have dropped, it is very different to 2006/07 as there were literally 10,000 people being made redundant every month if not every week. With the exception of TUI that has not really happened yet and most of those people will get their jobs back next summer anyway most probably. Reducing your offer at the minute looks more like you are trying to take advantage of the situation - which is understandable - but the evidence does not support your thoughts and an agent will likely see through it. 

If agents start advising their vendors to accept lower offers that is not good for them in the long run, it makes sense for them to just replace you with a new buyer offering a higher amount. 

Personally, I think if you want to offer a lower amount because of this situation we are in I think you need to hold off and see some evidence that house prices are actually dropping. 

bell

I will only drop my currently accepted offer if the valuation (when it's done) comes in short. Otherwise I'm happy to pay what I offered. I won't be moving again anyway 

Thrugelmir

Only the vendor can say what. if any reduction is acceptable. Not a question for an internet forum to answer. 

dunstonh

 how much do you think is acceptable if any, otherwise I may have to pull out. 

If you tried that with me as the vendor I would tell you to get stuffed and put the price up.

graphs

dunstonh said:

 how much do you think is acceptable if any, otherwise I may have to pull out. 

If you tried that with me as the vendor I would tell you to get stuffed and put the price up.

and be stuck with an unsellable house. Pick your dummy up, the market is falling

dunstonh

graphs said:

dunstonh said:

 how much do you think is acceptable if any, otherwise I may have to pull out. 

If you tried that with me as the vendor I would tell you to get stuffed and put the price up.

and be stuck with an unsellable house. Pick your dummy up, the market is falling

All houses are unsellable at the moment.  However, there is nothing on this thread that suggests it is actually unsellable when the market is open. Indeed, the op was buying the house.  So, clearly is sellable.

There is nothing to suggest that house prices are falling.  The market has paused.  What theoretical prices may do when no-one is buying or selling does not matter.  It is what happens when the market reopens that will dictate pricing.

When it reopens, there will still be the same shortage of supply that has fuelled rising house prices for decades.  Some people think prices will fall up to 3% as people wont have the money.  Others have said that some areas may well see prices rise because of the virus as there will be a surge as many people will be fed up of being couped in the same house all summer long  and want a change.  Many of those that were planning to move but hadnt started will then start again.  There could be a rush for the supply available and when there is demand prices will rise.     It is quite likely that some people will reassess the property they are looking to buy taking the idea of being stuck in that house for months into account.  Trends may change and pricing may hit some houses but boost others.

Gazundering is morally wrong.   However, it is up to the individual what they decide to do.   It is equally up to the vendor how they react and we know from past periods where gazundering was attempted that some vendors did pull out or even countered it with an increase.