About to exchange - should I lower my offer?

htcclub

With the base rate priced in to get to 5-6% in the next 2 years. I see this to mean that when you add bank margins, we could see mortgage rates of 8+% in a year or two.
This will exacerbate the likelihood of a price crash.
Should I gazunder now? is this a valid reason?
I think I found a home I could be in for 6+ years, so the price could cure by that time if it did fall. But the prospect of 10-20% down seems so scary.
I wonder if I should even ask my vendors to accept a lower offer and try to get their purchase lowered also?

london21

What interest rate did you secure?

If you lose his property, will they allow you to use for another property?

Is the property affordable?

What is the offer price compared to the sold price in the area?

Rachelredwood16

Did you offer over asking? How long is your fixed rate for? If 5 years, you plan to stay for 6 years and it could be less bleak by then or we at least know more about the situation then you may be fine. Is there a possibility of a pay rise at any point during the fixed rate? Are you buying alone? You may have a partner to contribute at a later date if you are.

How would you feel if your buyer did the same at the 11th hour? (This applies whether you're selling something now or hypothetically). I know I wouldn't be happy. You put in an offer of what you're willing to purchase the house at the time and whether you see yourself living there which you do. 

Really think about whether you're willing to lose the house over this. You can suggest they lower their offer but their vendor may not accept. Remember, not everyone who was selling at this time was doing it because they had to, some may have been downsizing whilst prices were high. Some may have just been fully taking advantage of the high prices do won't be as disappointed if the sale fell through.

Edi81

I can’t write what I want to but the words “don’t be a Turpin” come to mind. 

Gazundering is one of the worst aspects of the English property system. 

lookstraightahead

When anyone ever buys a property they should expect value and interest rates to go up and down. It's no different now to whet your could experience a few years down the line.

Personally if you did this to me I would remarket. 

I find it similar to vendors who want a bidding war. Did you pay over asking? Are you making up the difference between valuation and what you're paying?

jenni_fer

No.
Just no. 

housebuyer143

It's hardly the sellers fault you didn't give some thought to the future and think that rates could go up and house prices down.  The writing has been on the wall since march so there is no excuse for waiting this long to offer less. 

You can do it, but it's disgusting behaviour and your reasoning isn't based on anything real, just all assumptions of the next 6 years. 

Flugelhorn

no don't do it - you wouldn't like and maybe, just maybe they will remarket 

Woolsery

 We had a similar situation in 2009; vendors asking  too much in corners of the kingdom where news and new ideas took a long time for people to process. We offered realistic amounts and were laughed at. We didn't get those houses, but we found better elsewhere. The properties eventually sold for less or the same as our offers. However, this was  9months after the start of the market downturn, not a few days!

TLDR. You can't expect others to respond to changing circumstances as quickly or in the same way as you, so if you think the deal will be something you'll regret, go ahead, revise your offer in the full knowledge that it's likely you'll lose the house. If it's such a poor deal, you won't care.

lookstraightahead

Woolsery said:

 We had a similar situation in 2009; vendors asking  too much in corners of the kingdom where news and new ideas took a long time for people to process. We offered realistic amounts and were laughed at. We didn't get those houses, but we found better elsewhere. The properties eventually sold for less or the same as our offers. However, this was  9months after the start of the market downturn, not a few days!

TLDR. You can't expect others to respond to changing circumstances as quickly or in the same way as you, so if you think the deal will be something you'll regret, go ahead, revise your offer in the full knowledge that it's likely you'll lose the house. If it's such a poor deal, you won't care.

This is actually spot on.

htcclub

london21 said:

What interest rate did you secure?

If you lose his property, will they allow you to use for another property?

Is the property affordable?

What is the offer price compared to the sold price in the area?

3.6% for 2 years. So when I come out I will have to go onto SVR or fix for 6+% at that point.
Having negative equity on top of this seems crazy and somewhat irresponsible
I want this house badly, but I am playing devils advocate.
Now that I check, my mortgage would go from 1300 to 2000 if rates reach 7.5%, which is affordable with cut backs.

I am really going to have to crunch the numbers, is having a house worth it at that price vsr renting, maybe - having a house will give sanity

Rachelredwood16 said:

Did you offer over asking? How long is your fixed rate for? If 5 years, you plan to stay for 6 years and it could be less bleak by then or we at least know more about the situation then you may be fine. Is there a possibility of a pay rise at any point during the fixed rate? Are you buying alone? You may have a partner to contribute at a later date if you are.

How would you feel if your buyer did the same at the 11th hour? (This applies whether you're selling something now or hypothetically). I know I wouldn't be happy. You put in an offer of what you're willing to purchase the house at the time and whether you see yourself living there which you do. 

Really think about whether you're willing to lose the house over this. You can suggest they lower their offer but their vendor may not accept. Remember, not everyone who was selling at this time was doing it because they had to, some may have been downsizing whilst prices were high. Some may have just been fully taking advantage of the high prices do won't be as disappointed if the sale fell through.

Yes it was 1% over asking. mortgage 3.6% for 2 years. On the money side, a 9% interest rate would be affordable. But it makes me think at that point, why not just rent?



I see what everyone is saying, but if someone did this to me I would understand that this is a market like any other and prices and credit availability change. I understand that house buying is emotional, but really in my view, it should be less so. Especially because making a mistake can be life changing. I don't want to buy then in 2 years lose the house and deposit due to negative equity. I think I would be fine getting a lodger if rates did reach 2000, I am just playing devils advocate at this point. But thanks for your views I am considering the viewpoint, maybe I will just proceed as is.