Asking for a Reduction on House Price

Crashy_Time

Mickey666 said:

I agree that negative equity is not such a big deal.  The most important thing is to be able to afford the repayments.  If you can do that it doesn't really matter what the market price of the house is.  And if it's your 'forever house' then it definitely doesn't matter.

Having said that, if the OP thinks they should ask for a price reduction then ask.  There's no need to justify why they're asking, could be a million reasons.  Besides, the seller won't care about the reasons they'll simply agree or refuse . . . whatever the elaborate economic forecasts and reasoning might be.  Just do it . . . . but also be prepared to lose the purchase.

Most people are not buying a "Forever House" (well many actually are, they just don`t know it yet) so negative equity does matter, it matters quite a bit actually.

leftism

The original post hasn’t been deleted so I don’t know exactly what she asked but it seems really strange everyone is telling her not to try and get a reduction. From what I can see, she agreed the price before covid and now we’re about to enter an enormous recession and the professionals are predicting a 5-30% price drop. I thought this was a money saving site!

Mickey666

Crashy_Time said:

Mickey666 said:

I agree that negative equity is not such a big deal.  The most important thing is to be able to afford the repayments.  If you can do that it doesn't really matter what the market price of the house is.  And if it's your 'forever house' then it definitely doesn't matter.

Having said that, if the OP thinks they should ask for a price reduction then ask.  There's no need to justify why they're asking, could be a million reasons.  Besides, the seller won't care about the reasons they'll simply agree or refuse . . . whatever the elaborate economic forecasts and reasoning might be.  Just do it . . . . but also be prepared to lose the purchase.

Most people are not buying a "Forever House" (well many actually are, they just don`t know it yet) so negative equity does matter, it matters quite a bit actually.

It mostly matters because people panic about it.  In practice, house prices don't 'plummet' because hardly anyone is going to sell their house for significantly less than they paid for it - they simply stay in it and don't move.  \Yes, the house market may slow down, but it won't plummet.

Mickey666

leftism said:

The original post hasn’t been deleted so I don’t know exactly what she asked but it seems really strange everyone is telling her not to try and get a reduction. From what I can see, she agreed the price before covid and now we’re about to enter an enormous recession and the professionals are predicting a 5-30% price drop. I thought this was a money saving site!

Well I for one didn't say don't try to get a reduction, quite the opposite.

As for 'professionals' predicting the markets, has anyone ever analysed the accuracy of their previous forecasts of doom and gloom?  From what I've read the recent monthly house price drop is essentially a meaningless figure because there were so few house sales during lockdown.  In fact, because of this, the Office for National Statistics has suspended its own House Prices Index for the time being.  Quite sensible I'd say.

And, as I've previously suggested, who would sell their house for 20-30% less than they paid for it?  They'll simply stay put.

bristolleedsfan

AdrianC said:

Crashy_Time said:

AdrianC said:

ChloeParrish said:

We are aware that house prices are going to fall leaving us in negative equity.

No, you THINK they'll fall. Nobody knows. 

Most people think they are going to fall.

Tell us, Crashy... How long have you been swearing blind they're about to fall? Is it three decades now? And what's actually happened to them in that time?

House prices fell in 1990 and took until 1998 to recover to the same price. Again in 2007 not recovering until 2014 (economicshelp.org)

dani17

bristolleedsfan said:

AdrianC said:

Crashy_Time said:

AdrianC said:

ChloeParrish said:

We are aware that house prices are going to fall leaving us in negative equity.

No, you THINK they'll fall. Nobody knows. 

Most people think they are going to fall.

Tell us, Crashy... How long have you been swearing blind they're about to fall? Is it three decades now? And what's actually happened to them in that time?

House prices fell in 1990 and took until 1998 to recover to the same price. Again in 2007 not recovering until 2014 (economicshelp.org)

situation was a bit diffrent in 2008 . we were in a huge credit bubble. the crash sent back the prices to the 2006 level ( 2 years ago ) . Now, a such drop will send the prices to 6 or 7 years ago level. the market was already slowing because of the brexit uncertainty.
what i found strange in most reports, they are talking about a big drop this years ( betwenn 0 and 6 months ) and then a recovery after that. So if i am a seller, why not just simply wait for a year before selling? 

dani17

another point. when the houses prices dropped 18% in 2009, the ftse dropped almost by more than 30%. Now the ftse is only -13% than pre covid level. Do you thini really that houses will drop more than the ftse? i will be very very surprised. 

Catwales

I'm in the middle of buying, middle of May I went back to the Estate Agent and explained that I was wanting to revise my offer that had been agreed, I was polite and explained my reasoning, I'm buying a house on my own with 5% deposit, I loved the house and that it ticked all my boxes but I'm nervous about the upcoming recession, the very likely drop in prices and that I didn't feel happy to proceed at the previous price offered. I asked for a further small reduction, I didn't want to take the ****, wanted to keep it fair and we met in the middle. I'm definitely glad I asked the question

Crashy_Time

Catwales said:

I'm in the middle of buying, middle of May I went back to the Estate Agent and explained that I was wanting to revise my offer that had been agreed, I was polite and explained my reasoning, I'm buying a house on my own with 5% deposit, I loved the house and that it ticked all my boxes but I'm nervous about the upcoming recession, the very likely drop in prices and that I didn't feel happy to proceed at the previous price offered. I asked for a further small reduction, I didn't want to take the ****, wanted to keep it fair and we met in the middle. I'm definitely glad I asked the question

Sounds like you didn`t ask for a big enough deduction.....

Crashy_Time

leftism said:

The original post hasn’t been deleted so I don’t know exactly what she asked but it seems really strange everyone is telling her not to try and get a reduction. From what I can see, she agreed the price before covid and now we’re about to enter an enormous recession and the professionals are predicting a 5-30% price drop. I thought this was a money saving site!

It is, except when it comes to the massive Elephant in the room, the most expensive purchase most people ever make! You don`t have to dig too deep to figure out the reason though.