Buyer reduced bid by 9% before exchange

jonnydeppiwish!

housebuyer143 said:

sidneyvic said:

I've never seen-so many prices reduced as I have seen this week and it is going to get worse. Everything is getting more expensive and interest rates are only going one way. We are going to start seeing people coming tonthe emd of their fixed rates and not being able to afford the new rate and panic selling or even worse repo'd.... 

Yes they are going up, but so is inflation so house prices should rise with that at a minimum.

This week is a blip caused by speculators trying to bet against the market. The pound is already coming back to the level it was a week ago and predictions are looking to be back at what they were.

Give in a week and most the fixed rates will be back again also.

For the Op, given potential changes coming to the market, what can you afford to sell at now? Are you willing to get less (or more if you come back to market - though I don’t believe this will happen now)

 I’m not so sure it’s a blip. 5m radius from me Jun 22 730 odd houses, no reductions . Fast forward now 1130 with circa 10 reductions daily. Additionally, some of the house being removed from that list are not sold, just removed from market.

As for house prices rising with inflation, when has that ever happened before? Stagnation for 3-6 years 

housebuyer143

jonnydeppiwish! said:

housebuyer143 said:

sidneyvic said:

I've never seen-so many prices reduced as I have seen this week and it is going to get worse. Everything is getting more expensive and interest rates are only going one way. We are going to start seeing people coming tonthe emd of their fixed rates and not being able to afford the new rate and panic selling or even worse repo'd.... 

Yes they are going up, but so is inflation so house prices should rise with that at a minimum.

This week is a blip caused by speculators trying to bet against the market. The pound is already coming back to the level it was a week ago and predictions are looking to be back at what they were.

Give in a week and most the fixed rates will be back again also.

For the Op, given potential changes coming to the market, what can you afford to sell at now? Are you willing to get less (or more if you come back to market - though I don’t believe this will happen now)

 I’m not so sure it’s a blip. 5m radius from me Jun 22 730 odd houses, no reductions . Fast forward now 1130 with circa 10 reductions daily. Additionally, some of the house being removed from that list are not sold, just removed from market.

As for house prices rising with inflation, when has that ever happened before? Stagnation for 3-6 years 

Stagnation 3-6 years? House prices have almost always out performed inflation and more so over the longer term.

youth_leader

Good luck Op. 

For me, there was a definite emotional attachment, it was our family home and my husband had died on the front lawn.  I am a Londoner living in the NE and had a chancer of a buyer from the south, his EA negotiation was very ugly and I withdrew from the sale and the EA, and went to auction. Unfortunately he offered the most the day after the auction, it was the first week of lockdown, the auction had to go on-line, all future auction viewings stopped.  I did decide to sell to him at a loss as I realised my freedom from the worry of maintaining a listed building was priceless, the building would continue to deteriorate waiting for lockdown to be lifted, but it was a hard decision. It's a small village and he has now alienated local trades he invited to quote and rejected as 'too expensive', he obviously thought they'd be cheap too.  

jonnydeppiwish!

housebuyer143 said:

jonnydeppiwish! said:

housebuyer143 said:

sidneyvic said:

I've never seen-so many prices reduced as I have seen this week and it is going to get worse. Everything is getting more expensive and interest rates are only going one way. We are going to start seeing people coming tonthe emd of their fixed rates and not being able to afford the new rate and panic selling or even worse repo'd.... 

Yes they are going up, but so is inflation so house prices should rise with that at a minimum.

This week is a blip caused by speculators trying to bet against the market. The pound is already coming back to the level it was a week ago and predictions are looking to be back at what they were.

Give in a week and most the fixed rates will be back again also.

For the Op, given potential changes coming to the market, what can you afford to sell at now? Are you willing to get less (or more if you come back to market - though I don’t believe this will happen now)

 I’m not so sure it’s a blip. 5m radius from me Jun 22 730 odd houses, no reductions . Fast forward now 1130 with circa 10 reductions daily. Additionally, some of the house being removed from that list are not sold, just removed from market.

As for house prices rising with inflation, when has that ever happened before? Stagnation for 3-6 years 

Stagnation 3-6 years? House prices have almost always out performed inflation and more so over the longer term.

 Pretty sure they didn’t 1989 to 1996….. it’s possible we are headed for exactly the same now. Stagnation.

lisyloo

anselld said:

pollyp123 said:

anselld said:

All those reasons are probably true to some extent but they don't even need a reason.  Your choices are obviously to accept, reject or try to negotiate a middle ground.

Don't read too much into your EA comments, they are primarily interested in getting their commission.  Arguably if it is a property suitable for HMO conversion the current turmoil has minimal effect on developers and if one was interested there will be others.  Article 4 must be backed with specific planning criteria on what will be accepted so minimal risk if the developer does their homework.

Personally, I would reject and remarket on principle.  The current buyer still has the option to proceed at the agreed price unless someone else comes along first.

Rejected on principle is an emotional reaction and is the wrong thing to do. If you don't think you'll get the same price then just accept it.

Call in emotional if you like, not sure if I agree, but that doesn't automatically make it wrong.  We can't go through life making entirely unemotional decisions.

Yes you can - when it come to finance and money (maybe not relationships).

[Deleted User]

anselld said:

pollyp123 said:

anselld said:

All those reasons are probably true to some extent but they don't even need a reason.  Your choices are obviously to accept, reject or try to negotiate a middle ground.

Don't read too much into your EA comments, they are primarily interested in getting their commission.  Arguably if it is a property suitable for HMO conversion the current turmoil has minimal effect on developers and if one was interested there will be others.  Article 4 must be backed with specific planning criteria on what will be accepted so minimal risk if the developer does their homework.

Personally, I would reject and remarket on principle.  The current buyer still has the option to proceed at the agreed price unless someone else comes along first.

Rejected on principle is an emotional reaction and is the wrong thing to do. If you don't think you'll get the same price then just accept it.

Call in emotional if you like, not sure if I agree, but that doesn't automatically make it wrong.  We can't go through life making entirely unemotional decisions.

Not sure the dictionary agrees either. Principles are based on values. Nobody acts out of principle based on anger or happiness - do they! The FCA list principles of business such as financial prudence, diligence. In fact principles help us to avoid emotional knee jerk reactions.

GDB2222

housebuyer143 said:

jonnydeppiwish! said:

housebuyer143 said:

sidneyvic said:

I've never seen-so many prices reduced as I have seen this week and it is going to get worse. Everything is getting more expensive and interest rates are only going one way. We are going to start seeing people coming tonthe emd of their fixed rates and not being able to afford the new rate and panic selling or even worse repo'd.... 

Yes they are going up, but so is inflation so house prices should rise with that at a minimum.

This week is a blip caused by speculators trying to bet against the market. The pound is already coming back to the level it was a week ago and predictions are looking to be back at what they were.

Give in a week and most the fixed rates will be back again also.

For the Op, given potential changes coming to the market, what can you afford to sell at now? Are you willing to get less (or more if you come back to market - though I don’t believe this will happen now)

 I’m not so sure it’s a blip. 5m radius from me Jun 22 730 odd houses, no reductions . Fast forward now 1130 with circa 10 reductions daily. Additionally, some of the house being removed from that list are not sold, just removed from market.

As for house prices rising with inflation, when has that ever happened before? Stagnation for 3-6 years 

Stagnation 3-6 years? House prices have almost always out performed inflation and more so over the longer term.

House prices are very dependent on the cost of borrowing, too. You can’t just ignore that side of the equation.

wilfred30

[Deleted User] said:

I'm selling my late mother's unoccupied property. The accepted bid in April was from a property developer who converts houses to HMO. They bid 7% over the asking price and above all other bids. They are using a bridge loan to finance the purchase.

They said the reduction is due to:

1. Article 4 being introduced in the area, meaning they will need planning permission to convert the property (higher risk)
2. Increased interest rates

Other potential reasons:

1. This is a tactic they always use when purchasing
   
2. They are capitalizing on the market switching from a seller's market to a buyer's market, and know I wouldn't get as much if I re-marketed the property
   
3. They think I want to get rid of the property ASAP and will accept the lower bid

Afterall, the buyer is purchasing the property to add to their BTL portfolio. This won't be their home. I am not surprised that they attempt to improve their position (I suppose I wouldn't be surprised if anyone did this actually).

The EA said it's unlikely we would get as many or as high offers as we did in April (rising mortgage rates, mortgage products being removed).

How would you handle this scenario?

Personally, I would accept the offer and move on.  Afterall, it's only a reduction of 2% below the asking price which is not worth worrying about especially as you didn't pay for the house in the first place (presumably) so it's all profit for you.

Also, if you remarket, you can't be sure of getting anywhere near what you want from another buyer given the changes since April.

Sarah1Mitty2

loubel said:

The reality is that if the numbers no longer add up for the developer then they won't buy and you'll have to re-market and start again. In the current climate you need to consider whether you are likely to get another offer above your original asking price. What does your estate agent say?

Exactly, as others have said you need to grab this offer and just hope things don`t get worse before the sale goes through.

Sarah1Mitty2

GDB2222 said:

housebuyer143 said:

jonnydeppiwish! said:

housebuyer143 said:

sidneyvic said:

I've never seen-so many prices reduced as I have seen this week and it is going to get worse. Everything is getting more expensive and interest rates are only going one way. We are going to start seeing people coming tonthe emd of their fixed rates and not being able to afford the new rate and panic selling or even worse repo'd.... 

Yes they are going up, but so is inflation so house prices should rise with that at a minimum.

This week is a blip caused by speculators trying to bet against the market. The pound is already coming back to the level it was a week ago and predictions are looking to be back at what they were.

Give in a week and most the fixed rates will be back again also.

For the Op, given potential changes coming to the market, what can you afford to sell at now? Are you willing to get less (or more if you come back to market - though I don’t believe this will happen now)

 I’m not so sure it’s a blip. 5m radius from me Jun 22 730 odd houses, no reductions . Fast forward now 1130 with circa 10 reductions daily. Additionally, some of the house being removed from that list are not sold, just removed from market.

As for house prices rising with inflation, when has that ever happened before? Stagnation for 3-6 years 

Stagnation 3-6 years? House prices have almost always out performed inflation and more so over the longer term.

House prices are very dependent on the cost of borrowing, too. You can’t just ignore that side of the equation.

That is right, for the inflation notion to work people would need chunky pay rises, and be willing to put this into property, something that they won`t do if they see a softer market, but mortgage rates rises are already outstripping pay rises so the inflation just makes a higher monthly mortgage even harder to pay! This certainly isn`t a re-run of the 70`s for wage rises in my opinion.