Reducing an already agreed price

MobileSaver

blue_max_3 said:

There are likely developers with projects being finalised who are looking to sell quickly.

You may get lucky with small developers who have cash flow problems but traditionally the big boys are very reluctant to reduce prices as it directly affects what they can get for all their other properties on each particular development.

Besides you may get a discount on the headline "asking price" of a new build but that rarely equates to actually getting a cheap property!

blue_max_3

jimbog said:

New builds are sold at a premium and build quality is of a concern so be vigilant

I'm actually looking at a conversion. Have little appetite for new build estates. 

[Deleted User]

Crashy_Time said:

brett19852010 said:

[DELETED USER] said:

Do it. At least 10% off, if not more. Prices are crashing and will hopefully not recover for a long time and you don't want to be in negative equity.

I appreciate the nature of your point but I am in exactly this position too and it is still guesswork that prices are crashing. It's tremendously difficult when you actually have to decide. I've been waiting for a similar property at a lower price or better property at a reduced price for a month. There's been nothing!

A month isn`t long enough, everything has been on hold for a month.

Indeed, my offer was accepted not long before lockdown. Like anyone i would like a bargain. But I think it will be a long time coming especially for an in demand area. 
My analysis is that in certain areas the economic carnage will have a faster impact on prices. Other areas will see steadier prices if economic activity bounces back pronto.

Comms69

Always negotiate from a position of power, never make a threat you aren't willing to carry out.

Reducing your offer is a risky game. If you're willing to lose the property, fair enough. I've done it myself.

Semple

[DELETED USER] said:

Do it. At least 10% off, if not more. Prices are crashing and will hopefully not recover for a long time and you don't want to be in negative equity.

Can I borrow your crystal ball? 

Crashy_Time

MobileSaver said:

Crashy_Time said:

brett19852010 said:

 I've been waiting for a similar property at a lower price or better property at a reduced price for a month. There's been nothing!

A month isn`t long enough, everything has been on hold for a month.

Something we agree on!

Anyone hoping to pick up a cheap property this year is living in dreamland. If the coronavirus causes a financial crisis like last time, it took 18 months for house prices to drop significantly. Add on a couple of months from when someone agrees a price to when they complete and get the keys and you would be lucky to actually move in by Christmas next year.

So basically it means putting your life on hold for approaching two years and, of course, keeping your fingers crossed that by then there's still a decent house in a decent area on the market, with a desperate seller and that you can still meet the stricter mortgage lending criteria...

Financial data is not on hold though, it is being pumped out on the media channels 24 hours a day, anyone can form a picture on a daily basis of where the economic outlook is heading, that shapes sentiment which in turn shapes future spending/borrowing habits, we are already getting a very good idea where the economy could end up. The idea that someone would make a large financial mistake just now (they can`t even if they wanted to due to banks delaying/reducing funds and lockdown) to avoid looking out for a much better deal over the coming months is not very good financial planning IMO.Also the idea that someone`s life is "On Hold" just because they have not moved from set of walls and a roof to another is a strange notion to say the least!

MobileSaver

Crashy_Time said:

Financial data is not on hold though, ... we are already getting a very good idea where the economy could end up.

Really? So as you apparently already have a "very good idea" of where things are going please can you tell the rest of us so we can see whether you are proved right or not... Very roughly how much will house prices fall, by when and for how long?

Crashy_Time said:

the idea that someone`s life is "On Hold" just because they have not moved from set of walls and a roof to another is a strange notion to say the least!

People move for a whole myriad of reasons and yes many of them are so they can get on with their life; moving in with a new partner who already has kids (not really possible to do in a bedsit in Edinburgh is it?), for a particular school catchment area, to be within commuting distance of a new job, to enjoy their retirement in the country, to start paying off their own mortgage instead of their landlord's for years on end...

Windofchange

MobileSaver said:

Crashy_Time said:

Financial data is not on hold though, ... we are already getting a very good idea where the economy could end up.

Really? So as you apparently already have a "very good idea" of where things are going please can you tell the rest of us so we can see whether you are proved right or not... Very roughly how much will house prices fall, by when and for how long?

Crashy_Time said:

the idea that someone`s life is "On Hold" just because they have not moved from set of walls and a roof to another is a strange notion to say the least!

People move for a whole myriad of reasons and yes many of them are so they can get on with their life; moving in with a new partner who already has kids (not really possible to do in a bedsit in Edinburgh is it?), for a particular school catchment area, to be within commuting distance of a new job, to enjoy their retirement in the country, to start paying off their own mortgage instead of their landlord's for years on end...

I think this is exactly it. I have said in a few threads already here that I am buying a house to put down roots and finally own something that I can call home having rented for 15 years. Sure, I've got on with life whilst renting, I've progressed my career, I've met my future wife, we've planned children, but we want stability. Our current landlord is an absolute tool. Took him 8 weeks when we moved in two winters ago to even come and look at the boiler let alone fix it - it's new he said, no problem, why are you complaining. Turns out the cowboy he had paid to install it hadn't plumbed it in properly, and we went three months without hot water. For reasons like this and many others, we want our own place. 

There appear two types of people on property forums - those who say this is what I think, and those who are so adamant that their position is right, they can see nothing beyond their nose. You joined here in 2014 - how much Crashy Time has there been? I'm at a point in life where I want to own. I've saved and worked hard to make that happen, as has my other half. There is far more to this than money, and this is why guessing the property market is a fools game. It's irrational, it's emotional and it is driven largely by sentiment. It's now or never for me in my early 40's - the time for trying to guess what property is going to do is gone. 

MovingForwards

@Windofchange I'm around your age and had to start over due to marriage breakdown.

There are many of us who want stability, want freedom of making a home a home, it's the small things like being able to decorate, get things fixed instead of waiting and waiting, knowing no-one will ask for their property back because they want to sell it / having family move in / because of daring to ask for a repair.

We all need somewhere to live in retirement and for me that's not a rental, the idea of moving at 70 or 80 isn't something I would want to do.

Based on my 'half' of the rent, shared flat, and on today's 'half' monthly rent, my soon to complete mortgage works out around the same over the mortgage term. When the mortgage is paid off its just upkeep of the property.

I know I've repairs / upkeep to fund too, even that will work out cheaper than my rent liability.

At least I know I will get them done and not be waiting for an electrician and plumber to come out after reporting it the day after getting the keys, still waiting a few months after a professional tradesperson came out.

For me there are loads of positives and I know I'm one of the lucky ones able to buy, many of my friends can't / won't due to income, age or other reason. 

I also made a decision not to max myself out with a mortgage and buy a suitable place for my wants and needs.

Buying a home isn't based on a whim, a lot of thought, planning and saving goes into it. 

Crashy_Time

MobileSaver said:

Crashy_Time said:

Financial data is not on hold though, ... we are already getting a very good idea where the economy could end up.

Really? So as you apparently already have a "very good idea" of where things are going please can you tell the rest of us so we can see whether you are proved right or not... Very roughly how much will house prices fall, by when and for how long?

Crashy_Time said:

the idea that someone`s life is "On Hold" just because they have not moved from set of walls and a roof to another is a strange notion to say the least!

People move for a whole myriad of reasons and yes many of them are so they can get on with their life; moving in with a new partner who already has kids (not really possible to do in a bedsit in Edinburgh is it?), for a particular school catchment area, to be within commuting distance of a new job, to enjoy their retirement in the country, to start paying off their own mortgage instead of their landlord's for years on end...

Can`t see any of that persuading someone not to step back and take stock before they dive into a big financial decision in this climate TBH.