Cold feet - FTB overpaying

amyr

MsACam said:

MaryNB said:

£15k is less than 2% of the accepted offer. If you think you're overpaying you should be asking for a lot more off.
What was your lender's valuation? 

£875, done in late June, desktop. But lender was still happy to lend the full amount (ie same rate as would be if they lent 75% of £920k). But I know that a near identical house (except had bigger bathrooms instead of bigger bedrooms) with same aspect and sq footage 3 roads down sold for over £940k in September. Yet a semi detached house on same road with same aspect and sq footage, but not as nice kitchen/diner extension sold for £900k in September. So I’m super confused (appreciate a house is only worth what people say etc etc but also don’t want to actually lose any money when I come to sell in 7-9 years). 

75% mortgage - if I've understood that right that's one heck of a mortgage to take on at a point where interest rates are likely to rise. London, I'm guessing? 

If I'm right and it is London, just my opinion but I wouldn't bank on prices rising hugely within 7 years. Where we used to live, prices have fallen during the past year as people started moving out of the area, and they've not bounced back as yet...

MsACam

Yep London. What area are you in (if London). 

gemma.zhang

We had similar experience (not the same), offered on a house back in June with plan to complete by end of Sep. We offered almost asking price (900k+, london ).

a few month passed, tenants couldn’t move out in time due to contract etc etc, more issues with survey boundary / extra 2 floors of 21 flats planning right opposite etc, last straw for us to pull out was the similar house down the road was sold for 100k less, that was 4 months on since offer accepted ..

It was a hot crazy market a few months back, now it’s still demand > supply, but more reasonable, you still get ppl to put down asking price though (first time buyers), but more so when the price is reasonable.

now that house we pulled out dropped asking price by 50k and still on the market. We made the right decision. 

if u still fancy the house just the price, then ask for deduction, worst case they will say no.. with close to Xmas and quiet market not likely there would be viewing queuing and crazy offers.

Wish you good luck, and make the right decision you feel happy with.

eidand

You're looking at it the wrong way. Buying a property has nothing to do with morality, feelings or anything else along those lines.
You want to pull out? Then pull out. 
Want to try to get a reduction then ask.

Just make a decision on what you want to do.
Don't think about sellers, if you do buy the property you won't remember them and you won't care anyway. The house is the important thing.

There's nothing more to it, anything else is just noise.

MsACam

It’s not just morality etc it’s the fact I had free time to move in past three months and not now. There’s a premium that was paid for moving quickly whereas we’ll move in within 6 months of process starting… they’ve cost us min £10k in delays (rent and SDLT holiday) and they’re not providing guarantees for things they’ve installed (water underfloor heating seems a weird thing to have no documents for, but I’m FTB).

There’s also a min £5k roof cost for fixing supports around velux. So it’s a question of cost / risk allocation and my mind is telling me to walk but heart says it’s been so exhausting to just put up with it and have our own roof over our heads. 

In past two months we tried to buy two other houses nearby and bid same price as for this one as they were very similar and we were outbid. We’ll see what next month brings. The vendors are saying they want to complete by start of December but highly unlikely as upper chain only just applied for searches.

eidand

buying a property is not exact science, things happen and sometimes it takes a while so when you're free to move is irrelevant. You should have started the process earlier then. You can't blame the vendor for that.

Considering what you just said about being outbid, maybe you should just keep it down and just get on with things. Don't cut your own nose for nothing.

london21

You can ask, they might say no, but you never know if you do not ask. 

turnitround

Presumably if you had been successful bidding on one of the other 2 houses you would have pulled out of this one and let the seller down.

You would have had to start the process all over again and would still not have been ready to move in the autumn.

Crashy_Time

gemma.zhang said:

We had similar experience (not the same), offered on a house back in June with plan to complete by end of Sep. We offered almost asking price (900k+, london ).

a few month passed, tenants couldn’t move out in time due to contract etc etc, more issues with survey boundary / extra 2 floors of 21 flats planning right opposite etc, last straw for us to pull out was the similar house down the road was sold for 100k less, that was 4 months on since offer accepted ..

It was a hot crazy market a few months back, now it’s still demand > supply, but more reasonable, you still get ppl to put down asking price though (first time buyers), but more so when the price is reasonable.

now that house we pulled out dropped asking price by 50k and still on the market. We made the right decision. 

if u still fancy the house just the price, then ask for deduction, worst case they will say no.. with close to Xmas and quiet market not likely there would be viewing queuing and crazy offers.

Wish you good luck, and make the right decision you feel happy with.

This one could quickly drop below 700k if rates move up IMO.

lookstraightahead

Personally I would pull out.