Did I just miss out on a bargain or dodge a bullet?

MobileSaver

Thomas12346 said:

ArbitraryRandom said:

Thomas12346 said:

ReadingTim said:

ArbitraryRandom said:

Realistically though, they might not accept your reduced or second offer, not because they don't think it's fair, but because they think you're a time-waster who's playing games and will try to negotiate a further reduction later in the process... 

Quite - I certainly would be very unlikely to entertain a lower offer from someone who's already messed me around at a higher price.  

OP - I think you have overthought the whole thing and as a result it's cost you a potential home in an area where there aren't too many for sale.  Nice one.  

Might just wait for the market to continue falling then....

In the meantime i'm getting a sweet penny in interest from selling my own house at the peak.

At the same time as this, the seller has been watching their house price fall for over 7 months.

If I may... 

It could be this situation has arisen because the EA was playing games - Or equally because you've reacted to something that might or might not have happened and made a quick decision that you might or might not come to regret. 

For what it's worth, I wasn't judging what you did (buying a house is a big thing and you have to be entirely comfortable), but it will be easy for you to read comments (and for people to post comments) that wind you up and make you react again in a way that will have you second guessing down the line. 

All I was trying to do was highlight the possible other perspectives this same situation could be viewed from. You know you weren't trying to mess them around, but they might think you were - the same as you might think they made up another offer when they didn't... 

Genuinely, I think the best thing for you to do is to look at the other options and think about what you want to do (give yourself the weekend you thought they should have taken), then maybe contact them IF you think the house is worth the offer you're going to make. 

You can sit and wait and hope the markets continue to fall (paying rent?) or maybe decide this house ticks your boxes and you'd rather have a simple chain free purchase so you can move in and enjoy your summer. 

BUT whatever you do please have a mind to how the other side of the transition might be viewing your actions the same as you're viewing theirs? 

I am currently paying very low rent on a nice rural property, but with the interest on a mortgage vs interest on investments of freed up equity I am still seeing very nice overall returns.

If everything is so rosy and your current living costs are essentially zero why do you still want to buy a house?

Thomas12346

MobileSaver said:

Thomas12346 said:

ArbitraryRandom said:

Thomas12346 said:

ReadingTim said:

ArbitraryRandom said:

Realistically though, they might not accept your reduced or second offer, not because they don't think it's fair, but because they think you're a time-waster who's playing games and will try to negotiate a further reduction later in the process... 

Quite - I certainly would be very unlikely to entertain a lower offer from someone who's already messed me around at a higher price.  

OP - I think you have overthought the whole thing and as a result it's cost you a potential home in an area where there aren't too many for sale.  Nice one.  

Might just wait for the market to continue falling then....

In the meantime i'm getting a sweet penny in interest from selling my own house at the peak.

At the same time as this, the seller has been watching their house price fall for over 7 months.

If I may... 

It could be this situation has arisen because the EA was playing games - Or equally because you've reacted to something that might or might not have happened and made a quick decision that you might or might not come to regret. 

For what it's worth, I wasn't judging what you did (buying a house is a big thing and you have to be entirely comfortable), but it will be easy for you to read comments (and for people to post comments) that wind you up and make you react again in a way that will have you second guessing down the line. 

All I was trying to do was highlight the possible other perspectives this same situation could be viewed from. You know you weren't trying to mess them around, but they might think you were - the same as you might think they made up another offer when they didn't... 

Genuinely, I think the best thing for you to do is to look at the other options and think about what you want to do (give yourself the weekend you thought they should have taken), then maybe contact them IF you think the house is worth the offer you're going to make. 

You can sit and wait and hope the markets continue to fall (paying rent?) or maybe decide this house ticks your boxes and you'd rather have a simple chain free purchase so you can move in and enjoy your summer. 

BUT whatever you do please have a mind to how the other side of the transition might be viewing your actions the same as you're viewing theirs? 

I am currently paying very low rent on a nice rural property, but with the interest on a mortgage vs interest on investments of freed up equity I am still seeing very nice overall returns.

If everything is so rosy and your current living costs are essentially zero why do you still want to buy a house?

Fair question. I guess it's personal reasons - renting limits what you can do with a place - pets, children, development.

I have seen some people in rental call their home their "forever home". There's no such thing when it comes to rental I'm sorry to say. It's very sad to hear when these people get handed their notice

You're not wrong though - the rosiness of our current situation did factor into the decision - if we were suffering as many renters in urban areas sound like they are, perhaps our decision would have been different.

KSS1991

Thomas12346 said:

KSS1991 said:

It sounds like you missed out on a nice house. There is no way the sellers would consider your offer again as you would have come across as a time waster. Also bear in mind there is a huge shortage of houses in England and this "mystical" house price crash might have already come and gone. There is not enough houses in this country and prices will only go up over time. Especially for the nice houses. The only reductions we've seen here has been for crappy houses/no gardens etc. Dont assume prices will go down as there are signs in the economy it might be bouncing back up again don't fool yourself that renting is better than buying as rent is dead money

You clearly missed my comment re renting - I'm making 5 figure returns vs buying a house even when rental payments are considered. This is assuming house prices don't go down any further - if they do, that's on top.

The supply demand argument holds no salt at a national scale (perhaps regional/local) except in the long run. In the short to medium terms real terms inflation adjusted income holds sway. Interest rates are almost irrelevant by comparison.

Once inflation has hit, it doesn't 'bounce back' unless there is a real terms increase in take home pay at a national scale. The corporations and government are irrevocably too greedy for that. Tax thresholds are frozen until 2028, and that date keeps on being pushed back. We have borrowed 104% of GDP... the government can't borrow more to bail out anything or to save the economy. Food prices are only going in one direction due to the level of imports in this country and the persecution of the global food supply by war and by our governments. The BoE is mirroring the Fed - if they drop the base rate then we lose the pound, the latest inflation figures show inflation is rising - not falling as Sunak claimed.

5 figure returns? A month? A year? Then there is no incentive for you to buy at all. You might as well just keep renting. If your returns figure is true then the house price whether it was 550k or 500k should make no difference to you but yet again why are you still thinking about it? I am sure someone else will buy that house as like I said it sounds like you missed a good deal. I am myself waiting on a house to complete, 5months and counting been watching the market, there is literally zero reductions on decent homes. Some are flying off within a week. Not sure anyone in real life would pretend renting is better than owning 👍

mi-key

Fair question. I guess it's personal reasons - renting limits what you can do with a place - pets, children, development.

I have seen some people in rental call their home their "forever home". There's no such thing when it comes to rental I'm sorry to say. It's very sad to hear when these people get handed their notice

You're not wrong though - the rosiness of our current situation did factor into the decision - if we were suffering as many renters in urban areas sound like they are, perhaps our decision would have been different.

Agreed, there is a LOT more to owning your own home than just financial considerations. I also bet that whatever 'profit' you are making at the moment from your interest minus rent costs, if you owned a house you would make more over the next 5 years once interest rates drop, rents increase etc...

mi-key

jonnydeppiwish! said:

The peak of the market was probably actually Jun/Jul. Interest rates had already started to increase by October. This, coupled with the traditional slow down prior to Xmas,  means that is was quite possibly over valued when you made an offer.

Dependent of area, how much you like the house, I would definitely go back with another offer in the region of £475k and then see what response you get.

I can imagine what response dropping an offer by £45K for no reason a few days later would get... 

mi-key

Yes Crashy, of course they will knock £150K off a £550K house   

  ...why not.. afterall, they added on £120,000 last year! I could build you a house for that

Not with buying the land as well and not for anything decent.

Thomas12346

mi-key said:

jonnydeppiwish! said:

The peak of the market was probably actually Jun/Jul. Interest rates had already started to increase by October. This, coupled with the traditional slow down prior to Xmas,  means that is was quite possibly over valued when you made an offer.

Dependent of area, how much you like the house, I would definitely go back with another offer in the region of £475k and then see what response you get.

I can imagine what response dropping an offer by £45K for no reason a few days later would get... 

Their loss I guess, nothing is real until it's in the bank

Thomas12346

mi-key said:

Yes Crashy, of course they will knock £150K off a £550K house   

  ...why not.. afterall, they added on £120,000 last year! I could build you a house for that

Not with buying the land as well and not for anything decent.

Typical build costs are £1000 - £2000 per square metre... so easily a 100m2 house on a £20,000 plot... which is possible in Scotland and some other areas of the UK... 

The plot on a house I sold for £325,000 was valued by a surveyor at £30,000 - it was 5miles outside a major cultural/economic city

Essentially though, the notion that £150k up is realistic and £120k down isn't, is not a sane one.

jimbog

Thomas12346 said:

mi-key said:

jonnydeppiwish! said:

The peak of the market was probably actually Jun/Jul. Interest rates had already started to increase by October. This, coupled with the traditional slow down prior to Xmas,  means that is was quite possibly over valued when you made an offer.

Dependent of area, how much you like the house, I would definitely go back with another offer in the region of £475k and then see what response you get.

I can imagine what response dropping an offer by £45K for no reason a few days later would get... 

Their loss I guess, nothing is real until it's in the bank

and it will be your loss too I would suggest 

Thomas12346

mi-key said:

Fair question. I guess it's personal reasons - renting limits what you can do with a place - pets, children, development.

I have seen some people in rental call their home their "forever home". There's no such thing when it comes to rental I'm sorry to say. It's very sad to hear when these people get handed their notice

You're not wrong though - the rosiness of our current situation did factor into the decision - if we were suffering as many renters in urban areas sound like they are, perhaps our decision would have been different.

Agreed, there is a LOT more to owning your own home than just financial considerations. I also bet that whatever 'profit' you are making at the moment from your interest minus rent costs, if you owned a house you would make more over the next 5 years once interest rates drop, rents increase etc...

...5 years is an eternity - i'm not staying in rental long term... as it stands i could buy a 3 bedroom detached outright in an affluent area in my search region. This said, I have no intention of rushing back into a falling market.

Why snuff the 'profit'... it's after rental costs? Cash is cash. You wouldn't turn it down if i gave it to you