Renegotiating price due to down-valuation

themilkman

[Deleted User] said:

themilkman said:

[Deleted User] said:

It sounds a bit obvious, even before the bank informed you, that the vendor was kite flying. It sounds like the vendor made a questionable decision to buy in November, but as he is wealthy does not have to listen to reason and sell at a loss. He is at liberty to keep the asset which may be the best remaining choice for him. You are finding bigger cheaper properties, so less chance of making an excessive offer like before.

Yeah, he bought at peak of market and didn't care (or know), but the house was just a stop-gap house in between moving out of London and finding the 'forever home'.

It sounds like he will be happy to hold and leave it empty, though has invited us to make another offer  We're going to wait until we've seen this other house tomorrow.

He has paid additional stamp duty on his new house which is somewhere between £2m-£3m...so if he sits on the current house too long then he won't be able to reclaim the £70-90K additional rate he could otherwise reclaim. It keeps getting better!

I think he has a few years but in any case reduced prices at the top end of the market seem likely. 

The rule is 3 years, but he's already 3 months in - 33 months will go quickly in a market where interest rates will hit 8% (BOE base 7%) this year.

[Deleted User]

I suppose something you still need to be careful about is that anything will seem a bargain now in comparison. Prices are still predicted to drop, even in relation to other houses you will view.  But if you are planning to stay for a while, it is a home after all.

MultiFuelBurner

Now you have moved on from this house will you share the listing?

Sarah1Mitty2

MultiFuelBurner said:

Now you have moved on from this house will you share the listing?

Did you post the link to those 1100 pm flats, I couldn`t find it?

RelievedSheff

themilkman said:

RelievedSheff said:

Are there any other properties on the market that you would be as happy living in?

Sometimes a home purchase isn't just abouts its monetary value. 

Yes, viewing arranged for tomorrow. House is 25% bigger and 15% cheaper, within a mile - proves the bank's point on the valuation of current offered house, but not enough to make the vendor understand the market 

Values can change massively over a 1 mile distance. Where we live a mile can make the difference between a £40k property or one worth several million.

themilkman

MultiFuelBurner said:

Now you have moved on from this house will you share the listing?

Not ruled it out yet - can do if/when we do!

themilkman

RelievedSheff said:

themilkman said:

RelievedSheff said:

Are there any other properties on the market that you would be as happy living in?

Sometimes a home purchase isn't just abouts its monetary value. 

Yes, viewing arranged for tomorrow. House is 25% bigger and 15% cheaper, within a mile - proves the bank's point on the valuation of current offered house, but not enough to make the vendor understand the market 

Values can change massively over a 1 mile distance. Where we live a mile can make the difference between a £40k property or one worth several million.

Are you in Sheff? We are - original house S11, one we're looking at S10, so both very nice postcodes.

twoLou

themilkman said:

Invested around £3K so far probably, survey, solicitors, searches etc. I'm more worried about paying over the odds than the £3K!

I’m a little confused as to how you have managed to spend that much money so far and why?

I assume you require a mortgage hence the bank valuation so why was the mortgage application made so far into the process?

Gavin83

themilkman said:

[Deleted User] said:

themilkman said:

[Deleted User] said:

It sounds a bit obvious, even before the bank informed you, that the vendor was kite flying. It sounds like the vendor made a questionable decision to buy in November, but as he is wealthy does not have to listen to reason and sell at a loss. He is at liberty to keep the asset which may be the best remaining choice for him. You are finding bigger cheaper properties, so less chance of making an excessive offer like before.

Yeah, he bought at peak of market and didn't care (or know), but the house was just a stop-gap house in between moving out of London and finding the 'forever home'.

It sounds like he will be happy to hold and leave it empty, though has invited us to make another offer  We're going to wait until we've seen this other house tomorrow.

He has paid additional stamp duty on his new house which is somewhere between £2m-£3m...so if he sits on the current house too long then he won't be able to reclaim the £70-90K additional rate he could otherwise reclaim. It keeps getting better!

I think he has a few years but in any case reduced prices at the top end of the market seem likely. 

The rule is 3 years, but he's already 3 months in - 33 months will go quickly in a market where interest rates will hit 8% (BOE base 7%) this year.

The BOE rate won’t hit 7% this year, or anytime soon.

RelievedSheff said:

themilkman said:

RelievedSheff said:

Are there any other properties on the market that you would be as happy living in?

Sometimes a home purchase isn't just abouts its monetary value. 

Yes, viewing arranged for tomorrow. House is 25% bigger and 15% cheaper, within a mile - proves the bank's point on the valuation of current offered house, but not enough to make the vendor understand the market 

Values can change massively over a 1 mile distance. Where we live a mile can make the difference between a £40k property or one worth several million.

I imagine you’re talking vastly different types of houses though.

Regardless distance does make a difference. Where I live a mile will make a £100k difference for the exact same house.

fackers_2

CSI_Yorkshire said:

themilkman said:

Now we don't feel comfortable paying such a high price in the current market state of which interest rates continue to rise, and property prices continue to drop.

That's the only bit of the post that's really important.

You are not comfortable with the price.  Ask for whatever reduction is required to make you comfortable, and if they say no, walk away.

Agreed however, many people take for granted that the headline national drop relates to their property too, this is wrong way of looking at it. 

OP have you got a solid list of comparables to use for when the sellers ask. It's best to be honest and upfront, present the info because otherwise they'll laugh at you and see it for just trying it on. If it's a long-term home, pfftt, negligible.