Sale fell through, reasonable to ask to lower accepted offer?

mi-key

Sarah1Mitty2 said:

mi-key said:

Thanks for the info. On a £200K house there isn't a great deal of wiggle room for them to reduce it too much. Unfortunately flats are always the first to get hit with any drops in prices as they appeal to first time buyers and BTL landlords, whereas houses tend to hold their value a bit better.

£7K is only 3.5% of £200K so not much of a discount ( and on somewhere where the sellers are more keen to sell would probably be accepted ). For that sort of money I think I would still go for the house. Ask yourself if you would be £7K happier pulling out, the hassle of looking again, and if you do find somewhere for £190K in a year or twos time, would it have been worth the wait? 

The problem with that is you are looking at the house through the lens of the old borrowing rates, in a world of more normal pricing of borrowing it might eventually be worth half that? Why rush to buy it at all, why not wait until interest rates do their job of bringing down prices and then view/make offers?

The OP made their offer in November, borrowing rates haven't changed significantly since then. 

Yes, the OP can wait to buy it, and someone else can come along and buy it while they are waiting and they miss out on the house they want.

And it's not going to end up worth half what it is on for now !  and if it does, the OPs' flat will probably be worth less than half, so they lose out even more...

mi-key

lookstraightahead said:

mi-key said:

Thanks for the info. On a £200K house there isn't a great deal of wiggle room for them to reduce it too much. Unfortunately flats are always the first to get hit with any drops in prices as they appeal to first time buyers and BTL landlords, whereas houses tend to hold their value a bit better.

£7K is only 3.5% of £200K so not much of a discount ( and on somewhere where the sellers are more keen to sell would probably be accepted ). For that sort of money I think I would still go for the house. Ask yourself if you would be £7K happier pulling out, the hassle of looking again, and if you do find somewhere for £190K in a year or twos time, would it have been worth the wait? 

Serious question, are flats always the first to get hit with drops? 

Traditionally flats, very cheap houses, and properties for the mega rich ( for different reasons ). Mid range and family homes etc... have a different buying demographic who aren't so effected by changes in mortgage rates and can absorb increases more easily 

Sarah1Mitty2

mi-key said:

lookstraightahead said:

mi-key said:

Thanks for the info. On a £200K house there isn't a great deal of wiggle room for them to reduce it too much. Unfortunately flats are always the first to get hit with any drops in prices as they appeal to first time buyers and BTL landlords, whereas houses tend to hold their value a bit better.

£7K is only 3.5% of £200K so not much of a discount ( and on somewhere where the sellers are more keen to sell would probably be accepted ). For that sort of money I think I would still go for the house. Ask yourself if you would be £7K happier pulling out, the hassle of looking again, and if you do find somewhere for £190K in a year or twos time, would it have been worth the wait? 

Serious question, are flats always the first to get hit with drops? 

Traditionally flats, very cheap houses, and properties for the mega rich ( for different reasons ). Mid range and family homes etc... have a different buying demographic who aren't so effected by changes in mortgage rates and can absorb increases more easily 

Not really, anything aimed at FTB/BTL will be hit hard this time, that is why sales are falling through at a high rate.

mi-key

Sarah1Mitty2 said:

mi-key said:

lookstraightahead said:

mi-key said:

Thanks for the info. On a £200K house there isn't a great deal of wiggle room for them to reduce it too much. Unfortunately flats are always the first to get hit with any drops in prices as they appeal to first time buyers and BTL landlords, whereas houses tend to hold their value a bit better.

£7K is only 3.5% of £200K so not much of a discount ( and on somewhere where the sellers are more keen to sell would probably be accepted ). For that sort of money I think I would still go for the house. Ask yourself if you would be £7K happier pulling out, the hassle of looking again, and if you do find somewhere for £190K in a year or twos time, would it have been worth the wait? 

Serious question, are flats always the first to get hit with drops? 

Traditionally flats, very cheap houses, and properties for the mega rich ( for different reasons ). Mid range and family homes etc... have a different buying demographic who aren't so effected by changes in mortgage rates and can absorb increases more easily 

Not really, anything aimed at FTB/BTL will be hit hard this time, that is why sales are falling through at a high rate.

Yes, and the main market for FTB and BTL is flats and cheap houses. 

Sarah1Mitty2

mi-key said:

Sarah1Mitty2 said:

mi-key said:

lookstraightahead said:

mi-key said:

Thanks for the info. On a £200K house there isn't a great deal of wiggle room for them to reduce it too much. Unfortunately flats are always the first to get hit with any drops in prices as they appeal to first time buyers and BTL landlords, whereas houses tend to hold their value a bit better.

£7K is only 3.5% of £200K so not much of a discount ( and on somewhere where the sellers are more keen to sell would probably be accepted ). For that sort of money I think I would still go for the house. Ask yourself if you would be £7K happier pulling out, the hassle of looking again, and if you do find somewhere for £190K in a year or twos time, would it have been worth the wait? 

Serious question, are flats always the first to get hit with drops? 

Traditionally flats, very cheap houses, and properties for the mega rich ( for different reasons ). Mid range and family homes etc... have a different buying demographic who aren't so effected by changes in mortgage rates and can absorb increases more easily 

Not really, anything aimed at FTB/BTL will be hit hard this time, that is why sales are falling through at a high rate.

Yes, and the main market for FTB and BTL is flats and cheap houses. 

Which create the start of chains and will be the reason more expensive house sales also fall through?

Sarah1Mitty2

tsears said:

Long story, but I accepted an offer on my property back in August £10k above the asking price where I had multiple offers over the asking. 
I then had an offer accepted on a property at the end of September, just under the asking price but the sellers hadn't found anywhere.

3 months later they still haven't found anywhere, but have now offered to vacate the property to get the sale through, but my buyer has pulled out. 
My property has been back on the market for a few weeks, but due to the change of the market, I'm now only getting offers £20k-£30k under the offer I accepted back in August. 

In this situation would be acceptable to ask the people I'm buying from to reduce the price? 
The house I'm looking to buy is in a desirable area where not many at this price point come up for sale, but I've noticed that other properties in the local area are being reduced on Rightmove. What's the normal thing to do in this situation? 

Thanks in advance! 

Did you decide what to do yet?

fackers_2

Any update with this @tsears?

Sarah1Mitty2

mi-key said:

Sarah1Mitty2 said:

mi-key said:

Thanks for the info. On a £200K house there isn't a great deal of wiggle room for them to reduce it too much. Unfortunately flats are always the first to get hit with any drops in prices as they appeal to first time buyers and BTL landlords, whereas houses tend to hold their value a bit better.

£7K is only 3.5% of £200K so not much of a discount ( and on somewhere where the sellers are more keen to sell would probably be accepted ). For that sort of money I think I would still go for the house. Ask yourself if you would be £7K happier pulling out, the hassle of looking again, and if you do find somewhere for £190K in a year or twos time, would it have been worth the wait? 

The problem with that is you are looking at the house through the lens of the old borrowing rates, in a world of more normal pricing of borrowing it might eventually be worth half that? Why rush to buy it at all, why not wait until interest rates do their job of bringing down prices and then view/make offers?

The OP made their offer in November, borrowing rates haven't changed significantly since then. 

Yes, the OP can wait to buy it, and someone else can come along and buy it while they are waiting and they miss out on the house they want.

And it's not going to end up worth half what it is on for now !  and if it does, the OPs' flat will probably be worth less than half, so they lose out even more...

Sentiment has changed a lot since then, the expectation now is rates higher and staying higher, most people have now processed this reality I would think.

fackers_2

@tsears - Could provide them with data showing prices are dropping MoM as per this chart...

Sarah1Mitty2

They already know I would think, most sellers will try it on as long as possible, until sentiment and the media say No.