First time buyer - COVID what time do??

jaredhealey

Hi,

Hoping you could give me some advice?

Myself and my partner are currently in the middle of purchasing our first home £220K in Stoke-on-Trent. This price was agreed in February before the Coronavirus crisis kicked off.

There is a chain but a small one. We are purchasing from a couple who are buying a bungalow off someone who has recently gone into a home with the family member now having power of attorney.

A few questions:

Should we still go through with the purchase? We both have secure jobs and are key workers in the civil service? 

Should we see if there can be any negotiation on price with the current situation? 

Thanks 

Semple

jaredhealey said:

Hi,

Hoping you could give me some advice?

Myself and my partner are currently in the middle of purchasing our first home £220K in Stoke-on-Trent. This price was agreed in February before the Coronavirus crisis kicked off.

There is a chain but a small one. We are purchasing from a couple who are buying a bungalow off someone who has recently gone into a home with the family member now having power of attorney.

A few questions:

Should we still go through with the purchase? We both have secure jobs and are key workers in the civil service? 

Should we see if there can be any negotiation on price with the current situation? 

Thanks 

Yes I think you should ask for a 50% discount because of the current situation.
What are you proposing? With some evidence to show that the housing market has collapsed?

Currently no one knows what the market will do when things go back to normalish. There's still a number of factors that keep driving up pricing that won't change when we get back to normal. 
Also bear in mind if you lowball an offer just because, then don't take offence if the vendor tells you to stick it and sells it to someone else. 

Hermann

£220k sounds quite pricey for Stoke on Trent.

Average for the area is nearer £143k.

Maybe do some more research on current house prices and see if the price looks appropriate?

It's a gamble to ask for a reduction, but it also a gamble to continue as is since you could be in negative equity the day you complete.

Galloglass

Has anyone exchanged contracts? If there has been an exchange then there is a contract with costs if it is breached. 

If there has been no exchange then you can decide your next step but I'd agree that there should be a price reduction as that is what the banks think give the change in the LTV ratios.

P1

BACK THE !!!!!! AWAY!!!!  Rent somewhere for 6 months or a year.  If you can pay a landlord will love you.  Rebid on the house anywhere in 6 to 18 months.  You may save a up to 100k.  Seriously, only a mad man would buy a house now.  The west may well end up following Japan economically.  Their house prices never recovered from the 1990's Nikkei crash!  You don't want to live that experience!

P1

You may have dodged a caliber financial bullet here