Reducing house offer after months of waiting for completion

GDB2222

Unless there’s a compelling reason to buy now, I am not clear why a FTB would take the plunge just at the moment? 

MFWannabe

GDB2222 said:

Unless there’s a compelling reason to buy now, I am not clear why a FTB would take the plunge just at the moment? 

1) Because they really want their own home 
2) Because they can afford to 
3) They’ve found the property they’ve been searching for after a long time looking 
4) They’re fed up of paying someone else’s mortgage
5) Rental costs are increasing 

Any of the above are good enough reasons imo 

CSI_Yorkshire

[Deleted User] said:

It's not unreasonable to expect the person creating the delay to cover the cost of it. As interest rates go up, prices must go down.

Who's creating the delay here?  It's not one-sided, the OP isn't ready to exchange.

Bigphil1474

OP, if you have a mortgage offer in place from April, then your interest hasn't gone up has it. The property value is unlikely to have sunk so much in 2 months either. If it was me, I'd be speaking to the seller and letting them know that you can't afford the agreed price if you lose the mortgage offer you currently have. Have the sellers actually put an offer in somewhere else yet? If not, your chain is currently 1. 

We're selling my dad's old house to FTB's after a cash buyer pulled out. We'd done all the paperwork for the previous buyer, so we only had a few other forms to sort out for the new buyers. Still been 2 months and counting. 

MultiFuelBurner

MFWannabe said:

GDB2222 said:

Unless there’s a compelling reason to buy now, I am not clear why a FTB would take the plunge just at the moment? 

1) Because they really want their own home 
2) Because they can afford to 
3) They’ve found the property they’ve been searching for after a long time looking 
4) They’re fed up of paying someone else’s mortgage
5) Rental costs are increasing 

Any of the above are good enough reasons imo 

Just to put some meat on the bones of point 5.

Properties we were renewing at £750pcm are now advertised for £900pcm and talking to the local letting agents they cannot deal with the calls when they put a property online

20% jump in the last 12 months and no signed it won't keep going up and up. Simply demand and supply.

GDB2222

MFWannabe said:

GDB2222 said:

Unless there’s a compelling reason to buy now, I am not clear why a FTB would take the plunge just at the moment? 

1) Because they really want their own home 
2) Because they can afford to 
3) They’ve found the property they’ve been searching for after a long time looking 
4) They’re fed up of paying someone else’s mortgage
5) Rental costs are increasing 

Any of the above are good enough reasons imo 

All of that is true, but supposing that house prices drop 10% in the next year, the FTB would surely be better off waiting a year? Of course, nobody knows whether prices will drop, or by how much, but being 'fed up' doesn't seem a compelling reason. 

simon_or

GDB2222 said:

MFWannabe said:

GDB2222 said:

Unless there’s a compelling reason to buy now, I am not clear why a FTB would take the plunge just at the moment? 

1) Because they really want their own home 
2) Because they can afford to 
3) They’ve found the property they’ve been searching for after a long time looking 
4) They’re fed up of paying someone else’s mortgage
5) Rental costs are increasing 

Any of the above are good enough reasons imo 

All of that is true, but supposing that house prices drop 10% in the next year, the FTB would surely be better off waiting a year? Of course, nobody knows whether prices will drop, or by how much, but being 'fed up' doesn't seem a compelling reason. 

I don't know, but being sufficiently fed-up seems like a great reason to do something different!

As for house prices, if house prices were to fall 10% and that applied to the area and property the OP is looking at, and they are able to have an offer accepted on such a property that ticks their boxes, then it may make sense to wait.

Will all that happen, no one knows, it's all guesswork.

But it's just as likely that when all the stars align, they'll be wrestling with lots of others who were waiting to get back in the market so might not make much of a difference anyway.

You could time the market by pure luck but much harder to do deliberately.

[Deleted User]

Sarah1Mitty2 said:

[Deleted User] said:

It's not unreasonable to expect the person creating the delay to cover the cost of it. As interest rates go up, prices must go down.

Yes, but the difficulty is in working out how much the discount should be in a fast moving situation?

Go on Rightmove with the Property Log extension installed, and look for similar houses. See how much they have been discounted, and then add a bit extra.

[Deleted User]

GDB2222 said:

MFWannabe said:

GDB2222 said:

Unless there’s a compelling reason to buy now, I am not clear why a FTB would take the plunge just at the moment? 

1) Because they really want their own home 
2) Because they can afford to 
3) They’ve found the property they’ve been searching for after a long time looking 
4) They’re fed up of paying someone else’s mortgage
5) Rental costs are increasing 

Any of the above are good enough reasons imo 

All of that is true, but supposing that house prices drop 10% in the next year, the FTB would surely be better off waiting a year? Of course, nobody knows whether prices will drop, or by how much, but being 'fed up' doesn't seem a compelling reason. 

As much as I'd love to see a 10% drop, it probably won't be that much. And even if it is, they will go back up shortly after anyway.

Eventually we will come out of recession, and neither of the two potential next governments have a credible plan to ease the shortage. At best they will build more over-priced, under-sized rubbish that pushes prices up even more.

Newbie22FTB

I'm a FTB and also had my offer accepted and mortgage offer approved in April. Since then, my onward seller's purchase has fallen through (due to survey) and it's back to square one for her to find another property. To be honest, it hadn't even occurred to me to consider reducing my offer after 2 months! l think that due to the lack of available houses (in the area I'm looking at), nothing appears to be dropping in price/value.

Whilst I've seen some reductions, the starting prices have been much higher than I expect them to be, so the reduction appears to be less impressive/sincere to the area. Wishing you all the best, but to be honest, I am very suprised that you would consider a reduction so early in the process. I am still keeping an eye on other properties, should she have to pull out altogether and double checked that I am, thankfully, able to use my mortgage offer for another property, before it expires in October.