Reducing Offer Price Due To COVID-19 Financial Uncertainty

petec22

royalmike said:

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.  

I totally agree with this I was in the process of selling my house, buyer had all his surveys, valuations done etc. We should have completed 23rd of march but he was just dragging his feet and coming up with excuses until eventually on monday he pulled out completely no reason given. We were using the equity from this house as the deposit for our new home so it could have stopped our house move too. Absolutely nothing we can do about him wasting our time though as due to the current situation the solicitors wanted to exchange and complete on the same day 

RelievedSheff

Dunbar82 said:

@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.

Having a mortgage offer now and getting another one in the future are two different things altogether.

RelievedSheff

Dunbar82 said:

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 said:

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!

Actually I would "call the seller out" in that case. I don't think what they did was right.

I don't believe in backing out on a deal and I believe in being fair both as a seller and as a buyer.

RelievedSheff

royalmike said:

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.  

I agree that the house buying process in England needs a good shake up to stop situations like this one occuring.

Splatfoot

I think there may be some disappointed people when this is over if you're holding on to hopes of a big market crash. I don't think it's going to go down much at all. 

jonnygee2

I think there may be some disappointed people when this is over if you're holding on to hopes of a big market crash

Only a complete idiot hopes for a market crash anyway. We all live in the same economy, a big crash is ultimately good for no one.

shinytop

jonnygee2 said:

I think there may be some disappointed people when this is over if you're holding on to hopes of a big market crash

Only a complete idiot hopes for a market crash anyway. We all live in the same economy, a big crash is ultimately good for no one.

The most sensible thing I've seen written on this topic for a while.

graphs

Ignore all the people saying stick to your offer. They have vested interests in the market and do not want to see house prices fall. Pretty disgusting advice really seeing as this is a money saving site.

You should be looking at a 10% discount. Go in with that.

GianBel

For what it's worth, we've just accepted a double digit percentage below asking price on ours (due to current circumstances). This will be considered in our onward purchase. I don't think demand is going to be that high for a while, and buyer confidence will be knocked for a while.

MaxiRobriguez

graphs said:

Ignore all the people saying stick to your offer. They have vested interests in the market and do not want to see house prices fall. Pretty disgusting advice really seeing as this is a money saving site.

You should be looking at a 10% discount. Go in with that.

Slight bit of hyperbole. People are offering their advice, and those suggesting sticking to the offer are presumably considering the sellers reaction to any reduction. Your suggestion clearly doesn't, and therefore isn't particularly helpful. 

The choices are:
1) Leave offer as is, get the house you have wanted for months, riskier financial situation.
2) Reduce offer, potentially lose the house you have wanted for months, better financial situation than if not reducing offer.
3) Walk away, definitely lose the house you want, better financial situation (assuming prices fall further).

Ultimately your call. There isn't a right or wrong answer, just one that you need to make that best suits you.