Ready to exchange on house purchase - should we reduce our offer due to COVID-19?

jimbog

If you are uncertain about purchasing in the present circumstances it would be wise to withdraw altogether and look to buy again once prices start to rise

SouthLondonUser

Loanranger21 said:

I don't think my conscience would allow me to let someone down like you are proposing to do. But, if you have so little in the way of moral compass go ahead. I don't believe in karma but you may do. 

I fail to see what would be immoral in withdrawing in light of the worst global pandemic of the last 100 years, but maybe you can elaborate?

Even if your crystal ball tells you all will be fine in the end, surely you must appreciate that it is not unreasonable to have a different view or to worry about things like negative equity, difficulty in refinancing etc

[Deleted User]

Loanranger21 said:

I don't think my conscience would allow me to let someone down like you are proposing to do. But, if you have so little in the way of moral compass go ahead. I don't believe in karma but you may do. 

Its not YOUR money though is it ? 

Chetnick

There is a common misconception that house prices are dictated by supply and demand. That is not the case. They are sustained only by the cost and availability of credit - by people’s ability to borrow money to buy a home.Offer them 25% less..

SouthLondonUser

It's a combination, though, isn't it? Even if banks lent at 0.2%, not many people would want to live in Nowheresville-on-sea...

ToxicWomble

How would you feel if at the last minute they said “hang on, we’re putting the price up 20%”

would you be happy ? If so, go ahead with your idea - if as I suspect, you would not be happy, why do you think they would be.

pay what you have agreed to pay or drop out completely- dont mess them around d

SouthLondonUser

So the fact that we are witnessing the worst global pandemic of the last 100 years is irrelevant, right?

The fact that, because of that, buyers may lose their jobs, house prices may go down etc, all of that is irrelevant, because... of some misguided sense of morality? Because of a verbal, and non-legally binding agreement to buy at a certain price?

MobileSaver

Chetnick said:

There is a common misconception that house prices are dictated by supply and demand. That is not the case. They are sustained only by the cost and availability of credit

Utter nonsense, the only misconception is in your head. The "demand" part of "supply and demand" already accounts for someone's ability to pay, it always has done and always will do.

You need two things for there to be demand; someone wants something and someone can afford it. I might want a second home on a private island but as I can't ever afford it my want has no impact on the price. Similarly interest rates may be at the lowest they've ever been but if no-one wants to live in certain parts of Liverpool then the council still has to sell off houses there for just £1.

SouthLondonUser

PS Not to mention that a global catastrophe like this is a perfectly valid reason for buyers to pull out or to slash the price. Please remind me, what would be an equally valid reason for a seller to gazump? Other than pure greed, of course

Chandler85

It is only just the worse pandemic in 100 years if you go off the start dates (Spanish Flu killed 17-50 million between 1918 and 1920).

This pandemic is not on that scale, yet at least and let's hope it never gets there.

Offer less, offer more if you want.  No one here can advise you properly, we don't know how secure your job is, how long you are definitely going to stay in the property.  If you offer much less the seller might rather take the risk.  A blanket reason of, there is COVID-19 is basically using an excuse to get money off a property.  If you are concerned about the house prices falling then pull out because you don't want to take the risk.  What if you offer 10% less then the house prices dropped 30% in 3 months.  It' all a risk.

If you are risk adverse, do nothing.  Literally nothing, delay the exchange, potentially lose the house and re-visit it in a few months (probably).