Reducing house offer after months of waiting for completion

[Deleted User]

Sarah1Mitty2 said:

MobileSaver said:

simon_or said:

MobileSaver said:

LLM000 said:

A lot of houses that were put on the market at the beginning of June and are being reduced by £25k and some even £50k after just a few weeks on the market.. seemingly lovely houses from the pictures with no obvious work needing done.

The obvious thing to do is to pull out of your current purchase and buy one of the £50,000 cheaper houses instead... is that what you're going to do?

If the OP is planning to pull out anyway, then it would make sense to check if the vendor is willing to renegotiate before doing that. Who knows, the vendor might prefer that as well over losing their buyer. Don't ask, don't get.

If the OP is planning on pulling out anyway then I agree, there's nothing to lose.

However the chances of the seller agreeing to knock £50,000 off the price agreed just two months ago is slim in the extreme... I'm not sure even the HPC zealots would bet on the chances of that being successful.

PropertyLog is full of 50,75 and 100k price drops.

Indeed, take a look at this: https://www.rightmove.co.uk/properties/132773018#/?channel=RES_BUY

29/06/2023	Price changed from £250,000 to £235,000
22/05/2023	Price changed from £275,000 to £250,000
09/05/2023	Price changed from £285,000 to £275,000
26/04/2023	Price changed from £300,000 to £285,000
19/04/2023	Price changed from £285,000 to £300,000
05/04/2023	Price changed from £300,000 to £285,000
21/03/2023	Initial entry found: £300,000

£65k off since March, and you could probably talk them down even further.

tooldle

[Deleted User] said

Indeed, take a look at this: https://www.rightmove.co.uk/properties/132773018#/?channel=RES_BUY

29/06/2023	Price changed from £250,000 to £235,000
22/05/2023	Price changed from £275,000 to £250,000
09/05/2023	Price changed from £285,000 to £275,000
26/04/2023	Price changed from £300,000 to £285,000
19/04/2023	Price changed from £285,000 to £300,000
05/04/2023	Price changed from £300,000 to £285,000
21/03/2023	Initial entry found: £300,000

£65k off since March, and you could probably talk them down even further.

Being familiar with the area, I wonder where the figure of £300K came from initially? It would seem an optimistic number to me.

Sarah1Mitty2

GDB2222 said:

Bigphil1474 said:

You'd be unlucky if you paid 6% interest for the next 35 years. Our mortgage varied from about 8% down to 1.8% over the 22 years we paid it.

https://www.bankofengland.co.uk/statistics/yield-curves

Yield curves indicate bank rates around 4-5% for maybe 20 years. Borrowers would normally pay say 1% more. So, not all that far off 6% for the next 35 years is quite possible. 

The implied inflation rate is around 4% for the foreseeable future.   

Actual rate more than double that at the moment?

Sarah1Mitty2

tooldle said:

[Deleted User] said

Indeed, take a look at this: https://www.rightmove.co.uk/properties/132773018#/?channel=RES_BUY

29/06/2023	Price changed from £250,000 to £235,000
22/05/2023	Price changed from £275,000 to £250,000
09/05/2023	Price changed from £285,000 to £275,000
26/04/2023	Price changed from £300,000 to £285,000
19/04/2023	Price changed from £285,000 to £300,000
05/04/2023	Price changed from £300,000 to £285,000
21/03/2023	Initial entry found: £300,000

£65k off since March, and you could probably talk them down even further.

Being familiar with the area, I wonder where the figure of £300K came from initially? It would seem an optimistic number to me.

True, many people just got silly/greedy with their initial asking price, but with some lenders coming out today saying that people in trouble with their debt should start selling up before things get worse the pressure is definitely on to reduce prices.