Reducing Offer Price Due To COVID-19 Financial Uncertainty

Dunbar82

@RelievedSheff - Nope, newbuild has been ready to go since November last year. I was absolutely ready to go when I put the offer in and we were originally hoping for a January move in date. To be frank, a lot has happened since the originally anticipated move in date for me and I am sure a lot of other people on here. It's also now dragged on long enough for me to be worried about the potential impacts of the single weirdest period of financial uncertainty in living memory. 

Had I already moved and been settled in for the past three months, I would've been quite happy accepting that the value may dip in the medium term, especially as I would've had the past month isolating in the house doing it up
As it stands, I have no financial attachments, still have my deposit and have the potential to either buffer myself a little (I know 5% is hardly a lot, but I couldn't stomach asking for any more than that), or drop out entirely and start again when things look a lot less unstable.

Originally I actually offered above the minimum asking price (not by a lot at all, but still), as it's in the area I wanted to be with a lot of the features I like. I still like the place a lot. If I wasn't at this stage already though, I would wait until things settle down or prices dropped. I don't want to just drop out and leave the seller having to resell at this uncertain time, but also don't want to pay late 2019 prices if things are about to go all 2008. If I exchange now, I'm losing all my 'power' as a FTB in an uncertain time. 

RelievedSheff

So put in the lower offer. Just be prepared to walk away if they don't accept it.

Keep us posted how you get on.

Personally I don't think it is the right thing to do and I would be ashamed of myself for even considering doing it.

Dunbar82

Okay, that's fair. 
If you were the seller, would you prefer someone in my position just backed out?

numbercruncher8

Dunbar82 said:

Okay, that's fair. 
If you were the seller, would you prefer someone in my position just backed out?

No-one can really tell. 
I was a seller who had someone who changed their offer to something less. I couldn't care less if they backed out or not, because I wasn't going to entertain their bids anyway after that, for fear of being messed around. 
But then again, I was pretty sure I would have other interest.... I had a lot of viewings.

Then again, if the house had been on the market for ages, I had barely any interest, I was still priced at the optimistic price that it initially went on at, I may be quite keen to keep a proceedable buyer.

I think what is shameful is people trying to put a guilt trip on to you for it. There isn't enough detail here to really say whether it is right or wrong. I believe I'm an honourable person but if I saw that surrounding prices were falling and because of that I could get a better deal elsewhere, I would be off. It's dragged on long enough. It cuts both ways - in an improving market many people got gazumped in this fashion.

Kind of reminds me of that bit in Peep Show where Mark gets married even though he didn't want to, just because he had to uphold a weird sense of pride.

RelievedSheff

Dunbar82 said:

Okay, that's fair. 
If you were the seller, would you prefer someone in my position just backed out?

If you were trying to get money off the agreed price now, then yes I would and sooner rather than later.

comeandgo

Do you think you will be able to get a mortgage in the future?  Is your deposit good, is your job stable?  

royalmike

If I was in your shoes would definitely be looking for a large discount, probably more than 15 percent though.
That being said though the house buying process in England needs changing, think all offers should be legally binding like in most of the world.  

Dunbar82

I guess if I was a horrible person and just wanted to get away with chipping a bit off the price in uncertain times, I wouldn't come on to MSE to seek opinions on just how evil it would be hah. 

I got gazumped before (a property on the same street in fact), but I don't think many people would call the seller out for 'leading me up the garden path' for accepting £4500 more. 

Just to note as well, the actual exchange date isn't yet set, it is simply what the seller has proposed to my solicitors. I had originally instructed my solicitor to put things on hold due to the latest government guidance, but they have been nudged to get things moving. It seems to me like the seller wants to lock the deal in while things are still advantageous for him. I totally don't blame him at all, but likewise won't suffer the same sense of pride mistake that Mark in Peep Show had!

Dunbar82

@comeandgo Haven't had my mortgage offer pulled, so think I may be in an okay position to get one in the future too. Job is secure and income is good, but an extra unforeseen expense (circa £50 a month) will be coming into play next month. Deposit increasing monthly still.

jonnygee2

Personally I don't think it is the right thing to do and I would be ashamed of myself for even considering doing it.

I couldn't disagree more. There is nothing morally wrong with making a new offer. The seller has a right to accept, reject or pull out altogether. No one is forcing anyone into anything, nothing is immoral here. 

When you buy or sell or house you ought to know and accept the risks, changing offers is one of them.