Going ahead with house sale amid recession ?

GDB2222

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

Of course, there are lots of sellers that don’t need to sell. Depending on the equity they have, they may well benefit from a drop in prices if they are trading up, but many don’t see it like that. 

However, in any case, there are sales that simply have to go ahead at whatever price the market will bear. In the early 1990s, when there was a major dip in prices, sales were  still going ahead at roughly half the number of the boom years. 

GDB2222

eidand said:

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 ....

It is interesting how emotional people get about this. The op said it was a house he wanted, and you have changed that to a house he really wanted. Like it’s as rare as rocking horse droppings to find a house for sale in Manchester. 

The op made it clear his original purchase was a compromise, and he really wants a better garden, etc.  Nobody knows for sure what will happen, and the op acknowledges he’s taking a risk in the hope of getting a significantly better house. 

eidand

GDB2222 said:

eidand said:

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 ....

It is interesting how emotional people get about this. The op said it was a house he wanted, and you have changed that to a house he really wanted. Like it’s as rare as rocking horse droppings to find a house for sale in Manchester. 

The op made it clear his original purchase was a compromise, and he really wants a better garden, etc.  Nobody knows for sure what will happen, and the op acknowledges he’s taking a risk in the hope of getting a significantly better house. 

every house is a compromise, who here has unlimited budget for everything? I sure don't. All I said is good luck, hope it works out for them. 

MobileSaver

GDB2222 said:

 In the early 1990s, when there was a major dip in prices, sales were  still going ahead at roughly half the number of the boom years. 

Exactly so if history repeats itself, all other things being equal, of the 50% of properties still on the market and being sold are they more or less likely to be the desirable "better" properties or the problem properties that no-one else wanted?

Another way to look at it is if transactions drop 50% again then half the posters on this forum who have pulled out of buying a house recently might end up renting for a very long time waiting for that elusive bargain perfect house. As has been said a hundred times, trying to time the property market is a mug's game.

MobileSaver

GDB2222 said:

The op said it was a house he wanted, and you have changed that to a house he really wanted. Like it’s as rare as rocking horse droppings to find a house for sale in Manchester. 

You may have missed a previous post from the OP where he actually said something like "I reallllyyy want this house, we could live in it for decades" and "it's in a perfect location for us."

leftism

MobileSaver said: 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? 

There are loads of houses I really want but don’t buy because they are too expensive. 

It wasn’t a lot. I tried to be fair and only asked for the amount that wouldn’t put us into debt after the money we’ve lost because of covid (4%) they said no so we’d asked them to meet us half way and they said no. So we walked away. 

I know you’ll say I lost out on buying over just 2%, but they lost out on selling over just 2%. 

And some houses that were were too expensive in February are no worries within budget so we’re feeling hopeful. 

GDB2222

MobileSaver said:

GDB2222 said:

 In the early 1990s, when there was a major dip in prices, sales were  still going ahead at roughly half the number of the boom years. 

Exactly so if history repeats itself, all other things being equal, of the 50% of properties still on the market and being sold are they more or less likely to be the desirable "better" properties or the problem properties that no-one else wanted?

Another way to look at it is if transactions drop 50% again then half the posters on this forum who have pulled out of buying a house recently might end up renting for a very long time waiting for that elusive bargain perfect house. As has been said a hundred times, trying to time the property market is a mug's game.

There’ll be a broad cross section sold. The usual reasons for forced sales are the three d's, death, divorce and redundancy. Executor sales - the houses often need updating, but it’s reflected in the price or they don’t sell. Divorce and redundancy- I can’t see why these would be what you term problem properties? 

MobileSaver

leftism said:

 I tried to be fair and only asked for the amount that wouldn’t put us into debt after the money we’ve lost because of covid (4%) they said no so we’d asked them to meet us half way and they said no. So we walked away.

Frankly your justification for a price reduction is bizarre, it's little wonder they said no. How is it "fair" for the sellers to cover any of the losses you have incurred that have absolutely nothing to do with them?

Have you asked for a reduction in your council tax or asked Tesco to give you a discount on your weekly shop because of the money you've lost due to covid? What response did you get?

leftism

MobileSaver said:

leftism said:

 I tried to be fair and only asked for the amount that wouldn’t put us into debt after the money we’ve lost because of covid (4%) they said no so we’d asked them to meet us half way and they said no. So we walked away.

Frankly your justification for a price reduction is bizarre, it's little wonder they said no. How is it "fair" for the sellers to cover any of the losses you have incurred that have absolutely nothing to do with them?

Have you asked for a reduction in your council tax or asked Tesco to give you a discount on your weekly shop because of the money you've lost due to covid? What response did you get?

That wasn’t my justification to them, it’s just the reason. 

My justification to them was the housing market is very different to when we agreed the price. My mortgage advisor said we’d be mad to pay the old price. The estate agent thought we were being more than fair. 

2 close friends have just had to discount their sales 5-10% and were just happy it wasn’t more. 

The only person who seems to think you should just pay whatever anyone asks in his market is you. 

eidand

leftism said:

MobileSaver said:

leftism said:

 I tried to be fair and only asked for the amount that wouldn’t put us into debt after the money we’ve lost because of covid (4%) they said no so we’d asked them to meet us half way and they said no. So we walked away.

Frankly your justification for a price reduction is bizarre, it's little wonder they said no. How is it "fair" for the sellers to cover any of the losses you have incurred that have absolutely nothing to do with them?

Have you asked for a reduction in your council tax or asked Tesco to give you a discount on your weekly shop because of the money you've lost due to covid? What response did you get?

That wasn’t my justification to them, it’s just the reason. 

My justification to them was the housing market is very different to when we agreed the price. My mortgage advisor said we’d be mad to pay the old price. The estate agent thought we were being more than fair. 

2 close friends have just had to discount their sales 5-10% and were just happy it wasn’t more. 

The only person who seems to think you should just pay whatever anyone asks in his market is you. 

look, everyone would rather pay less for their houses, however, to walk away from a house which was perfect, in a perfect location ( your words btw), over 2% feels a bit silly. If you look at your mortgage payments, I bet there's virtually no difference.
You have to understand that no one here is emotionally involved in your house, in other words, no one really cares. You're just getting people's opinions.