About to exchange - should I lower my offer?

nicknameless

lookstraightahead said:

Ath_Wat said:

lookstraightahead said:

jimpwarsop said:

The girl child (offer accepted at offer price) wonders whether she should lower her offer.

I asked her what she thought I would do if someone tried that with me.

"OK, I'll forget that" .

Its despicable, dishonourable and shows a distinct lack of morals.

Sure some will do it, it might work.

Is it any worse than a multitude of other scenarios that buyers have been facing?

eg - actively seeking a bidding war, saying you'll move into rented and then keeping the buyer waiting for ever when you don't, limited prospective purchasers to 1 or 2 viewings and 20 mins max?

all of these things have been happening because of market conditions. Now everything's changing. What goes around comes around, or is it what comes around goes around ....

Well for a start, yes it is worse.  And for second, the fact that some other people behave badly in some situations doesn't justify someone else behaving badly in a different one.

As to splitting the world into two groups of "buyers" and "sellers" and suggesting that one group has done something that means the others are just getting their own back, surely you can see what's wrong with that.  We are all buyers and sellers, sometimes at different times, sometimes at the same time.

But it is the way people behave.

And if we're talking morals, there ain't many where the housing market is concerned.

What a fantastic justification ............ not.  Moral philosopher at the weekends perhaps?

Sarah1Mitty2

TheJP said:

htcclub said:

lookstraightahead said:

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?

payed 1% over asking, valuation was spot on. Ok that's a fair point about how things will go up and down. I suppose I am trying to rationalise why I should own a house with an 8% interest rates, when I can rent instead, I suppose I may have to suck up this isn't a short term investment?

housebuyer143 said:

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. 

Sorry, but this is mostly untrue. The tax cuts from the government last week meant markets have priced in worse prospects for the economy, and swap/mortgage rates have gone up in the last few days. So it is a very recent thing, things are even more bleak.

Well I would argue that assumptions and forecasting are the basis for pricing in most markets.

Having said this, its definitely a lesson learned that I should have fixed at 5 years and not 2

The interest rate on rented houses will be passed onto the renter. Id rather pay off the house and the rate rather than have the liberty of doing it for someone else's gain.

If we get a recession I doubt it, but even in a recession your mortgage debt stays the same and you have to pay the current interest rate while your job prospects may be diminished, people should think very carefully about the amount of debt they are getting into now.

Sarah1Mitty2

MobileSaver said:

lookstraightahead said:

The interest rate on rented houses will be passed onto the renter. Id rather pay off the house and the rate rather than have the liberty of doing it for someone else's gain.

But most of it isn't paying off the house, it's interest to the lender.

If you are paying rent instead of a mortgage then none of it is paying off the house!

lookstraightahead said:

The interest rate on rented houses will be passed onto the renter. Id rather pay off the house and the rate rather than have the liberty of doing it for someone else's gain.

And there is no way that rents will go up that much so quickly anyway.

The majority of mortgages are fixed for five years or more so that's five years where you are guaranteed your mortgage payments won't increase - compare that with renting where your rent can and probably will increase every year...

What about people coming off 5 year fixes?

jonnydeppiwish!

I’ve said this before but take the emotion out of it. This is a business transaction and that’s it. If you think it’s no longer worth it, then lower your offer or withdraw from sale.

Morals? Vendors were happy to take maximum cash when the going was good, now the market has changed (and it has), they have to take the bad or withdraw from market.

As to whether the vendor will accept a lower off is another matter.

jonnydeppiwish!

sidneyvic said:

I have seen so many houses reduced by 20k this week., the market has absolutely died in just a couple of weeks. (300k down to 280k) so quite big drops.
I would give your vendor the option of dropping the price or you pulling out as the market is clearly not the same as when you made the offer. 
BUT if you do agree a new price, you will need a new mortgage offer at the new price and most probably at a new interest rate.
I remember the 90's market with so many people repossessed or stuck in negative equity. Prices bumped along unchanged by very little for years, people had long memories back then......

Within 5m of my place there are now 1186 properties for sale, compare to 700is in June and 900 at the beginning of September.

So many reductions as well. Market isn’t crashing, just going back to pre CoVID levels where it’ll probably stagnate for 4-6 years.

[Deleted User]

Sarah1Mitty2 said:

MobileSaver said:

lookstraightahead said:

The interest rate on rented houses will be passed onto the renter. Id rather pay off the house and the rate rather than have the liberty of doing it for someone else's gain.

But most of it isn't paying off the house, it's interest to the lender.

If you are paying rent instead of a mortgage then none of it is paying off the house!

lookstraightahead said:

The interest rate on rented houses will be passed onto the renter. Id rather pay off the house and the rate rather than have the liberty of doing it for someone else's gain.

And there is no way that rents will go up that much so quickly anyway.

The majority of mortgages are fixed for five years or more so that's five years where you are guaranteed your mortgage payments won't increase - compare that with renting where your rent can and probably will increase every year...

What about people coming off 5 year fixes?

They are screwed. Renters are actually in a very slightly better position in that they can refuse rent increases and can't be evicted just because the landlord wants more money now.

They might even get lucky and be able to buy the house cheap if the landlord defaults on the mortgage.

Linton

jonnydeppiwish! said:

I’ve said this before but take the emotion out of it. This is a business transaction and that’s it. If you think it’s no longer worth it, then lower your offer or withdraw from sale.’

Morals? Vendors were happy to take maximum cash when the going was good, now the market has changed (and it has), they have to take the bad or withdraw from market.

As to whether the vendor will accept a lower off is another matter.

Successful business transactions require a level of trust between buyer and seller. Trying to squeeze out a lower price at the last moment destroys that trust and makes a mutually beneficial result less likely. It could also adversely affect your reputation with other people involved in the process such as EAs and solicitors.

if a deal no longer makes business sense call it off immediately explaining the reason. Leave it up to the vendors to offer a lower price if they want to.  The end result is likely to be better.

jonnydeppiwish!

Linton said:

jonnydeppiwish! said:

I’ve said this before but take the emotion out of it. This is a business transaction and that’s it. If you think it’s no longer worth it, then lower your offer or withdraw from sale.’

Morals? Vendors were happy to take maximum cash when the going was good, now the market has changed (and it has), they have to take the bad or withdraw from market.

As to whether the vendor will accept a lower off is another matter.

Successful business transactions require a level of trust between buyer and seller. Trying to squeeze out a lower price at the last moment destroys that trust and makes a mutually beneficial result less likely. It could also adversely affect your reputation with other people involved in the process such as EAs and solicitors.

if a deal no longer makes business sense call it off immediately explaining the reason. Leave it up to the vendors to offer a lower price if they want to.  The end result is likely to be better.

Hence the 2 options - lower offer or withdraw.

MobileSaver

Sarah1Mitty2 said:

MobileSaver said:

The majority of mortgages are fixed for five years or more so that's five years where you are guaranteed your mortgage payments won't increase - compare that with renting where your rent can and probably will increase every year...

What about people coming off 5 year fixes?

They can fix for another 5 years safe in the knowledge their mortgage payments won't increase during that time while renters can continue to look forward to their rent increasing year after year?

[Deleted User] said:

Renters are actually in a very slightly better position in that they can refuse rent increases and can't be evicted just because the landlord wants more money now.

Are you referring to the situation as it is now or what it might be in the future? You're wrong on both counts anyway but I was just curious as to what you meant...

eidand

jimbog said:

eidand said:

Do it. Let us know how it goes!

What usual happens when a poster attempts to gazunder, and the seller decides to remarket and sell to somebody else, is that we never hear from them again #awkward 

I know, in situations like this I usually say, don't do it.

The OP can only lose, there is no win there for them. Even if the vendor accepts a reduction, they will need a new mortgage at a much higher rate which means they'll be paying more anyway.

So for once, I say ... do it, if you don'tr realize these things yourself then just do it and see how it goes .
I do hope we'll get an update but, I am with you, we are more than likely not going to hear anything.
It would still be hilarious though!