FTB in a panic: Lender down-valued property by several thousand. How do I renegotiate price?

TXC

To be fair my parents have said nothing but that I am making a huge mistake buying at the moment due to house prices and that there will be "a crash" for the last 18 months - to which I've said if they can tell me exactly when that will be, and guarantee prices won't inflate in that time to crash back down to current levels - I will gladly wait. Oddly enough they're unable to provide me that date.

If you're planning to make a home for many years and not flip for a profit within 2-3 years, and as long as you can comfortably afford it - price is somewhat immaterial

Crashy_Time

TXC said:

To be fair my parents have said nothing but that I am making a huge mistake buying at the moment due to house prices and that there will be "a crash" for the last 18 months - to which I've said if they can tell me exactly when that will be, and guarantee prices won't inflate in that time to crash back down to current levels - I will gladly wait. Oddly enough they're unable to provide me that date.

If you're planning to make a home for many years and not flip for a profit within 2-3 years, and as long as you can comfortably afford it - price is somewhat immaterial

This is terrible financial advice IMO.

Crashy_Time

[Deleted User] said:

Crashy_Time said:

TXC said:

Crashy_Time said:

PirateSwan said:

@Carrot007 That's right, three bids in total including me. TBH I would have pulled out but the house was the only decent place I'd seen at the price point, plus I haven't seen one since. Prices are getting crazy where I live.

Feels to me that you are pressuring yourself to buy at a bad time (massive bubble, rising mortgage rates) and are not really in a financial position to "own" a house (the bank won`t fix things like a landlord) what are you going to do if there is big repair like roof or boiler etc.?

Depends why s/he's buying I guess? If its for a change of lifestyle (i.e. im buying because i live with parents currently and its about time I had my own space - to pay a rent i may as well pay a mortgage, stable job etc,) then the right time is whatever you personally say it is - some are lucky enough for this to co-incide with crashes, some not so with bubbles.

Its never really sat right with me on this forum that people take it upon themselves to tell others that they are not financially stable enough to be buying a house based on very limited information, and very rarely is that appraisal what the OP asked for in the first place!

I daresay the truth is very few homeowners would be comfortable enough with their level of savings to easily absorb the cost of a broken roof or a broken boiler without the slightest worry, but they manage, they cope. 

OP - if its the right time for you, you go ahead, hope this all goes your way.

Many people caught in the cladding/leasehold nightmare probably said similar but from the OP`s opening post it just seemed to me that they don`t have enough of a cash cushion for the unexpected and may be overpaying at the wrong time.

The wrong time being - anytime in the last 30 years? 

Last 30 years? I think it is obvious to most people that there are various issues happening now that make large mortgage debt for basic shelter very risky.

MobileSaver

Crashy_Time said:

This is terrible financial advice IMO.  ... I think it is obvious to most people that there are various issues happening now that make large mortgage debt for basic shelter very risky.

I think it is obvious to most people that what you consider to be "basic shelter" is anything but and there are lots of cheaper options around for anyone that genuinely wants actual basic shelter.

But let's humour you; when will a large mortgage debt be low risk enough in your eyes? In the New Year perhaps? Next summer? Christmas 2022?

It's all very well discouraging the OP from buying now but how long do you think they should hold off for? Do you think copying your example of not-buying for fifteen years is good financial advice?

lookstraightahead

MobileSaver said:

Crashy_Time said:

This is terrible financial advice IMO.  ... I think it is obvious to most people that there are various issues happening now that make large mortgage debt for basic shelter very risky.

I think it is obvious to most people that what you consider to be "basic shelter" is anything but and there are lots of cheaper options around for anyone that genuinely wants actual basic shelter.

But let's humour you; when will a large mortgage debt be low risk enough in your eyes? In the New Year perhaps? Next summer? Christmas 2022?

It's all very well discouraging the OP from buying now but how long do you think they should hold off for? Do you think copying your example of not-buying for fifteen years is good financial advice?

I know this was directed at crashy, but what do you think the op should do?
do you really think it wise to pay over lender valuation just to get a house? There are times when buying just isn't the best option (for sone people) especially short term. The statistics currently cannot be relied on, so either way I suppose you are taking a risk buying 'now' as prices can go up or down.
what is clear is that the lender won't lend the money needed. In the short term, should anyone really be that desperate to buy a house? Ok the market might not crash, but it's hardly going to go up much either - where are suddenly all these extra people going to come from who want to pay over valuations for properties?

[Deleted User]

Crashy_Time said:

[Deleted User] said:

Crashy_Time said:

TXC said:

Crashy_Time said:

PirateSwan said:

@Carrot007 That's right, three bids in total including me. TBH I would have pulled out but the house was the only decent place I'd seen at the price point, plus I haven't seen one since. Prices are getting crazy where I live.

Feels to me that you are pressuring yourself to buy at a bad time (massive bubble, rising mortgage rates) and are not really in a financial position to "own" a house (the bank won`t fix things like a landlord) what are you going to do if there is big repair like roof or boiler etc.?

Depends why s/he's buying I guess? If its for a change of lifestyle (i.e. im buying because i live with parents currently and its about time I had my own space - to pay a rent i may as well pay a mortgage, stable job etc,) then the right time is whatever you personally say it is - some are lucky enough for this to co-incide with crashes, some not so with bubbles.

Its never really sat right with me on this forum that people take it upon themselves to tell others that they are not financially stable enough to be buying a house based on very limited information, and very rarely is that appraisal what the OP asked for in the first place!

I daresay the truth is very few homeowners would be comfortable enough with their level of savings to easily absorb the cost of a broken roof or a broken boiler without the slightest worry, but they manage, they cope. 

OP - if its the right time for you, you go ahead, hope this all goes your way.

Many people caught in the cladding/leasehold nightmare probably said similar but from the OP`s opening post it just seemed to me that they don`t have enough of a cash cushion for the unexpected and may be overpaying at the wrong time.

The wrong time being - anytime in the last 30 years? 

Last 30 years? I think it is obvious to most people that there are various issues happening now that make large mortgage debt for basic shelter very risky.

I think you input will only have value if you tell us the right time to buy. Your predictions never change. There are many home owners here who have disregarded your advice. Personally im hundreds of thousands better off.

TXC

lookstraightahead said:

MobileSaver said:

Crashy_Time said:

This is terrible financial advice IMO.  ... I think it is obvious to most people that there are various issues happening now that make large mortgage debt for basic shelter very risky.

I think it is obvious to most people that what you consider to be "basic shelter" is anything but and there are lots of cheaper options around for anyone that genuinely wants actual basic shelter.

But let's humour you; when will a large mortgage debt be low risk enough in your eyes? In the New Year perhaps? Next summer? Christmas 2022?

It's all very well discouraging the OP from buying now but how long do you think they should hold off for? Do you think copying your example of not-buying for fifteen years is good financial advice?

I know this was directed at crashy, but what do you think the op should do?
do you really think it wise to pay over lender valuation just to get a house? There are times when buying just isn't the best option (for sone people) especially short term. The statistics currently cannot be relied on, so either way I suppose you are taking a risk buying 'now' as prices can go up or down.
what is clear is that the lender won't lend the money needed. In the short term, should anyone really be that desperate to buy a house? Ok the market might not crash, but it's hardly going to go up much either - where are suddenly all these extra people going to come from who want to pay over valuations for properties?

If its a house you love and you foresee yourself staying there an extra 3% or so I think is feasible? I personally wouldn't go any higher.

Sunsaru

TXC said:

lookstraightahead said:

MobileSaver said:

Crashy_Time said:

This is terrible financial advice IMO.  ... I think it is obvious to most people that there are various issues happening now that make large mortgage debt for basic shelter very risky.

I think it is obvious to most people that what you consider to be "basic shelter" is anything but and there are lots of cheaper options around for anyone that genuinely wants actual basic shelter.

But let's humour you; when will a large mortgage debt be low risk enough in your eyes? In the New Year perhaps? Next summer? Christmas 2022?

It's all very well discouraging the OP from buying now but how long do you think they should hold off for? Do you think copying your example of not-buying for fifteen years is good financial advice?

I know this was directed at crashy, but what do you think the op should do?
do you really think it wise to pay over lender valuation just to get a house? There are times when buying just isn't the best option (for sone people) especially short term. The statistics currently cannot be relied on, so either way I suppose you are taking a risk buying 'now' as prices can go up or down.
what is clear is that the lender won't lend the money needed. In the short term, should anyone really be that desperate to buy a house? Ok the market might not crash, but it's hardly going to go up much either - where are suddenly all these extra people going to come from who want to pay over valuations for properties?

If its a house you love and you foresee yourself staying there an extra 3% or so I think is feasible? I personally wouldn't go any higher.

The problem is that a growing number don't plan to stay for that long and see houses as a stepping stone/cash generator. But I agree with what you say. Only pay over if it's worth it LONG term.

People need to think very long and hard when buying a house and weigh up what is best for them not what the averages necessarily say.

propertyhunter

Suffice to say it's fair to say that no one knows what will happen to the property market in future. We do know that transactions were front loaded due to the SDLT holiday, and so now we are in a position when new stock isn't forthcoming and prices are remaining elevated for that reason. Predicting a future crash is wishful thinking for those looking to buy - me included. Just buy the right house for you and make sure you can afford it at the time. 

The question as to whether prices are too high or not - well surely the price is what people can borrow and are willing to pay - and clearly people are willing to pay, so it's not too high on that measure. What people will be willing to pay will change should broader economic conditions change. The thing is, what economic catastrophe will underlie the next house price crash? One person's guess is good as anyone else's right now. They predicted a fall in prices when the pandemic hit - so much for those predictions. 

nicknameless

Crashy_Time said:

[Deleted User] said:

Crashy_Time said:

TXC said:

Crashy_Time said:

PirateSwan said:

@Carrot007 That's right, three bids in total including me. TBH I would have pulled out but the house was the only decent place I'd seen at the price point, plus I haven't seen one since. Prices are getting crazy where I live.

Feels to me that you are pressuring yourself to buy at a bad time (massive bubble, rising mortgage rates) and are not really in a financial position to "own" a house (the bank won`t fix things like a landlord) what are you going to do if there is big repair like roof or boiler etc.?

Depends why s/he's buying I guess? If its for a change of lifestyle (i.e. im buying because i live with parents currently and its about time I had my own space - to pay a rent i may as well pay a mortgage, stable job etc,) then the right time is whatever you personally say it is - some are lucky enough for this to co-incide with crashes, some not so with bubbles.

Its never really sat right with me on this forum that people take it upon themselves to tell others that they are not financially stable enough to be buying a house based on very limited information, and very rarely is that appraisal what the OP asked for in the first place!

I daresay the truth is very few homeowners would be comfortable enough with their level of savings to easily absorb the cost of a broken roof or a broken boiler without the slightest worry, but they manage, they cope. 

OP - if its the right time for you, you go ahead, hope this all goes your way.

Many people caught in the cladding/leasehold nightmare probably said similar but from the OP`s opening post it just seemed to me that they don`t have enough of a cash cushion for the unexpected and may be overpaying at the wrong time.

The wrong time being - anytime in the last 30 years? 

Last 30 years? I think it is obvious to most people that there are various issues happening now that make large mortgage debt for basic shelter very risky.

It is obvious to most people that your housing-related advice and counsel is worth less than that of scooby doo's.

Why do you feel it is okay to derail every single thread on this board for your own amusement?

You are not helping anyone, only some bizarre personal agenda (IMO of course).