Going ahead with house sale amid recession ?

Crashy_Time

Good move.

Thrugelmir

leann91 said:

Just to update you all, we walked away. Thanks for all your advice! 

We put together a revised offer taking in to account some repairs the survey highlighted and the current climate, but unfortunately they weren’t willing to renegotiate at the price we wanted, which was one we were more comfortable with in all that’s going on. It’s a shame as it was a really reasonable offer & still way over the asking price. But I guess it wasn’t to be! 

If you offer well above asking price then start back tracking. The vendors might have become wary. Sounds as if there was other interest in the property. This might now have been resurrected. 

Crashy_Time

Who cares if the vendors become "wary"? Finding desperate vendors will be like shooting fish in a barrel soon.

NameUnavailable

I have just had an offer agreed on a house. It was just reduced by about 15% from it's previous price. I'd say it was a tad overpriced before but now represents a good purchase. The vendor wanted a quick sale - I guess they're thinking was along the lines of selling at a discounted price now rather than holding out and having to possibly drop the price later if it didn't sell.

I've been watching a lot of properties on Rightmove from pre Covid days and whilst some have sold, most are still there, have been taken off the market or are now starting to show price reductions. I offered on another property before agreeing the one above. I'd seen it earlier in the year and it went under offer whilst I was considering it. The sale fell through and it's back on at its pre Covid price. I offered a little less, about 5%, and I was declined. The agent said the vendor wanted the asking price and told me I would miss out as they were getting a lot of viewings on it. 3 weeks later it's still there, up for sale at the same price...... (and empty so it's costing the seller money every day).

I'm still nervous about my purchase, I'm getting it for maybe 10% less than what others seem to be selling for in the area, but I do think it's possible that prices will fall more than that.

The big tests will be the autumn when the furlough scheme ends and companies either have to pay their staff themselves or make redundancies, and then the big B in January and who knows what might happen with that!

I keep thinking I should sit tight until next Spring, but then I risk losing the chance to buy my house.

The problem with the 'wait and see' approach is that there is likely to be less property available. Unless people have to move they'll proabably stay put. People with spare properties will rent them out rather than sell. If prices do drop they will certainly come back up again so it's a matter of whether you're buying a home to live in for some years, or purely buying an investment that you need to see a return on in a short time.

MobileSaver

Crashy_Time said:

Who cares if the vendors become "wary"? Finding desperate vendors will be like shooting fish in a barrel soon.

When is "soon"?

This month? Next month? By the end of 2020? How long do all these people wanting to buy a home have to wait if they are going to follow your advice?

Will you be buying a home any time "soon"?

GDB2222

I imagine prices will adjust relative to each other, according to property type. Gardens have suddenly become a great idea, and flats without outside space a very bad thing indeed. 

It’s interesting that the Chinese economy has rebounded very strongly since theIr lockdown ended, but their exports are suffering badly, as worldwide trade is diminished. In the UK there have been 600000 job losses, but most of those could return if the economy rebounds as strongly as the Chinese one. 

[Deleted User]

Also closely monitoring the South Manchester property market and buying now. There are many more properties for sale now than during the lockdown when it was just a handful per day. Prices seem to be dearer now. There is certainly no evidence of any reductions on a grand scale, yet. There will still be plenty of people in decent employment to snap up desirable properties in greener areas going forwards.
Possibly some decreases around the airport  depending on the demand for rentals but I think S. Manchester prices will hold in the nice areas and increase. Believe me I'd love to see a drop in prices as it would purely benefit me as a buyer.
Not really sure if what you have done here is logical in reducing your offer and thereby killing the deal for yourself. Reference to the 'current climate' appears to be a meaningless soundbite. The climate was in fact multiple persons interested, you went big on your offer, but your committment dwindled. 
There was no evidence of price crash yet so you were making reference to something which is purely a speculative view of the future of the market and 'current climate'.
Most of S. Manchester housing stock is old so it is arguably to mess about when you start to try to re-negotiate after the survey, just a ploy to get money off (unless there was a really serious undisclosed structural issue). It would have been better to make an offer in the first place which would anticipate some repair costs.
Folk on here interested in a price crash will often encourage others to reduce offers and here is an example of losing the deal. You will be told by some that you have done the right thing.
How you feel about that is up to you but you now really must hope for the price crash because my fear would be prices continuing to go up.

leftism

leann91 said:

Just to update you all, we walked away. Thanks for all your advice! 

We put together a revised offer taking in to account some repairs the survey highlighted and the current climate, but unfortunately they weren’t willing to renegotiate at the price we wanted, which was one we were more comfortable with in all that’s going on. It’s a shame as it was a really reasonable offer & still way over the asking price. But I guess it wasn’t to be! 

It sounds like you’re in a very similar position to me. I’ve just walked away from a house (also south manchester) because the seller refused to knock a penny off the price we agreed way before covid. 

I suppose you could say we’ve lost out because we lost the house we’d wanted. But we’ve noticed way more are being reduced and we might end up with a better house. 

I know its a gamble. And a lot of people on here will tell you to just pay the higher amount because it won’t matter in ten years. But to me, it would be life changing to have an extra bedroom or a decent garden to enjoy for the next ten years. 

I know you can’t predict prices, but a huge recession, mass unemployment and a no deal Brexit on top, would suggest they are heading for a dip. 

If i’m wrong, I won’t feel stupid for taking that gamble. 

Oh, and the house we walked away away from is still sitting there unsold. 

MobileSaver

leftism said:

the seller refused to knock a penny off the price we agreed way before covid. 

I suppose you could say we’ve lost out because we lost the house we’d wanted. But we’ve noticed way more are being reduced and we might end up with a better house.

How much did you try to knock off the price? I'm guessing it must have been a lot for you to miss out on a house you've previously said you really, really wanted? Have you made an offer on any of the "way more being reduced"?

How long are you prepared to wait for this better house at a cheaper price to appear as obviously every month that goes by you are paying your landlord's mortgage instead of your own?

The biggest problem with your approach is that if house prices do start to drop then two things generally happen:

1) The decent properties get taken off the market and the sellers just wait until the market inevitably picks up again.

2) Lenders tighten their lending criteria making it even harder to get a mortgage, even for a lower amount.

eidand

leftism said:

leann91 said:

Just to update you all, we walked away. Thanks for all your advice! 

We put together a revised offer taking in to account some repairs the survey highlighted and the current climate, but unfortunately they weren’t willing to renegotiate at the price we wanted, which was one we were more comfortable with in all that’s going on. It’s a shame as it was a really reasonable offer & still way over the asking price. But I guess it wasn’t to be! 

It sounds like you’re in a very similar position to me. I’ve just walked away from a house (also south manchester) because the seller refused to knock a penny off the price we agreed way before covid. 

I suppose you could say we’ve lost out because we lost the house we’d wanted. But we’ve noticed way more are being reduced and we might end up with a better house. 

I know its a gamble. And a lot of people on here will tell you to just pay the higher amount because it won’t matter in ten years. But to me, it would be life changing to have an extra bedroom or a decent garden to enjoy for the next ten years. 

I know you can’t predict prices, but a huge recession, mass unemployment and a no deal Brexit on top, would suggest they are heading for a dip. 

If i’m wrong, I won’t feel stupid for taking that gamble. 

Oh, and the house we walked away away from is still sitting there unsold. 

you gave up on a house you really wanted because a better one might appear? I hope it does and you won't regret this move ....