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

propertyhunter

I think the media whips things up into a frenzy. All of the house price changes get so much press attention. Politically, it goes down well with the government and apparently it works in their favour at the polls (whichever party). In fact, government policy just fans the flames - shared ownership, help to buy - these are schemes that just push up prices because it keeps the bottom rung within reach for the FTB, but in reality saddles them with a lot of debt and costs. 

Crashy_Time

propertyhunter said:

I think the media whips things up into a frenzy. All of the house price changes get so much press attention. Politically, it goes down well with the government and apparently it works in their favour at the polls (whichever party). In fact, government policy just fans the flames - shared ownership, help to buy - these are schemes that just push up prices because it keeps the bottom rung within reach for the FTB, but in reality saddles them with a lot of debt and costs. 

Keir Starmer called this out in his budget response speech, BJ and his chancellor just sat there trying to pretend they didn`t really get it, but obviously there are a lot less votes in the HPI forever policy than there used to be?

[Deleted User]

lookstraightahead said:

[Deleted User] said:

MsACam said:

Sales have crashed because there is no stock. Everyone who was potentially thinking of moving has done so to take advantage of SDH. Sales were frontloaded. Most who are selling now need to do so rather than electing to do so. 

Not around here sadly. Tiny 2.5 bedroom terrace houses go for £350k before the EA can put the sign up.

We need a severe crash to bring prices back to sane levels, but there is no sign of it yet.

We don't need a crash. When interest rates go up, when buyers stop panicking, when banks value properties realistically (which they've started doing by the posts appearing on here), when buyers stop believing the sales hype from the EAs, and when vendors have a word with themselves, things will appear real again (not that we have proper stats anyway to go by).

That won't be enough. We need houses to be affordable, not ridiculous schemes that allow people to borrow ridiculous amounts of money.

lookstraightahead

[Deleted User] said:

lookstraightahead said:

[Deleted User] said:

MsACam said:

Sales have crashed because there is no stock. Everyone who was potentially thinking of moving has done so to take advantage of SDH. Sales were frontloaded. Most who are selling now need to do so rather than electing to do so. 

Not around here sadly. Tiny 2.5 bedroom terrace houses go for £350k before the EA can put the sign up.

We need a severe crash to bring prices back to sane levels, but there is no sign of it yet.

We don't need a crash. When interest rates go up, when buyers stop panicking, when banks value properties realistically (which they've started doing by the posts appearing on here), when buyers stop believing the sales hype from the EAs, and when vendors have a word with themselves, things will appear real again (not that we have proper stats anyway to go by).

That won't be enough. We need houses to be affordable, not ridiculous schemes that allow people to borrow ridiculous amounts of money.

I agree that people borrow ridiculous amounts - always been the same. But you don't have to.
You buy what you can afford, when you can afford it.

[Deleted User]

[Deleted User] said:

MsACam said:

Sales have crashed because there is no stock. Everyone who was potentially thinking of moving has done so to take advantage of SDH. Sales were frontloaded. Most who are selling now need to do so rather than electing to do so. 

Not around here sadly. Tiny 2.5 bedroom terrace houses go for £350k before the EA can put the sign up.

We need a severe crash to bring prices back to sane levels, but there is no sign of it yet.

There probably wont be a severe crash. There is clearly demand for entry level property at that price point. It is an affordable price point to many obviously. It may be a pity to think that you cannot get more house for that money, but you cant. I agree with MSaCam. It does not feel like there is an abundance of people selling or needing to sell. I noticed this as a buyer last year. Interest rate rises may be the biggest disruptor to people sitting tight on the property that they have.

lookstraightahead

[Deleted User] said:

lookstraightahead said:

[Deleted User] said:

MsACam said:

Sales have crashed because there is no stock. Everyone who was potentially thinking of moving has done so to take advantage of SDH. Sales were frontloaded. Most who are selling now need to do so rather than electing to do so. 

Not around here sadly. Tiny 2.5 bedroom terrace houses go for £350k before the EA can put the sign up.

We need a severe crash to bring prices back to sane levels, but there is no sign of it yet.

We don't need a crash. When interest rates go up, when buyers stop panicking, when banks value properties realistically (which they've started doing by the posts appearing on here), when buyers stop believing the sales hype from the EAs, and when vendors have a word with themselves, things will appear real again (not that we have proper stats anyway to go by).

That won't be enough. We need houses to be affordable, not ridiculous schemes that allow people to borrow ridiculous amounts of money.

The first property I bought was a studio flat on a busy main road in a not very nice area just inside the m25. I couldn't afford a bedroom, let alone 2.5 of them. Then I made my way up to a one bedroom flat. Then a two bed terrace.

in those days you could borrow 100% with at least 5x joint salary - couldnt afford it otherwise. And interests were high - can't remember exactly - this was early nineties. 

My commute took about 1.5 hours each way door to door. I walked 2 miles to and from the station, left at 6.30am got back about 8pm. 
I moved 4 hours away from home 

In the end didn't actually benefit from that purchase financially at all. - wish I'd never bought that young.m, wish I had rented for a few more years and lived more centrally.
Most people at 22 would think that too much effort. I saw it as normal.

Reginald74

So much is about timing. I bought a modest 2 bedroom end of terrace in the 90s, not long after the crash, whilst in my early 20s, on a 100% mortgage for £39k and sold it 10 years later for £125k, which got me enough deposit for my next house. And then the one I am in, which is finally decent. 

No way I could have lived here otherwise. 

I do really feel for FTB at the wrong point of the curve.

lookstraightahead

Reginald74 said:

So much is about timing. I bought a modest 2 bedroom end of terrace in the 90s, not long after the crash, whilst in my early 20s, on a 100% mortgage for £39k and sold it 10 years later for £125k, which got me enough deposit for my next house. And then the one I am in, which is finally decent. 

No way I could have lived here otherwise. 

I do really feel for FTB at the wrong point of the curve.

But if they bide their time there will be a right time.
Everyone wants it all nowadays.
I bought before the crash - it's no different now to then.

Crashy_Time

How are you getting on with the re-negotiation OP?

PirateSwan

I have composed a polite email to the estate agent but I have not sent it yet. I am going to offer the valuation amount with the hope that they might meet me halfway.

The whole thing is making me so nervous that I have been a massive wuss not sending the email yet. I am considering holding off until the building survey takes place (this Wednesday) as that might come up with a few bits and pieces that I can use to add weight to my price reduction argument. 

My fear is that they will pull out of the sale and flounce out of the room leaving me high and dry. There is nothing near my price range in my town. I guess I can always back down if they don't go for my revised off though.