Would you feel guilty pulling out of a sale

Leeds_Fella

Hi,
We agreed a sale price for a house back in early Jan this year, we have also spent the best part of £800 on mortgage valuations and surveys and we are 2-3 weeks from completion.

We are very nervous now regarding going through with the sale due to the news on a daily basis about falling house prices. We did manage to negotiate 10% of the original price, but it needed so much modernisation, it was not really a saving in our eyes.

The couple we are buying off are really nice and have signed up to a bridging loan for their new property (ouch !) We are seriously thinking of pulling out due to the thought we could possibly get so much more for our money in 6 -12 months time. Would you feel guilty of puilling out at this late stage? - Thoughts please

otter1_2

Leeds_Fella,

If you bought the property, would you be intending to sell it within the next year, the next 2-3 years, the next 3-5 years, or 5 years +? And would you expect to make a profit on your purchase?

The future value of your house is only important when you come to sell it. Also, the value of any property you intend to 'upgrade' to will also be affected by across-the-board deflation in prices.

barnaby-bear

Leeds_Fella wrote: »

Hi,
We agreed a sale price for a house back in early Jan this year, we have also spent the best part of £800 on mortgage valuations and surveys and we are 2-3 weeks from completion.

We are very nervous now regarding going through with the sale due to the news on a daily basis about falling house prices. We did manage to negotiate 10% of the original price, but it needed so much modernisation, it was not really a saving in our eyes.

The couple we are buying off are really nice and have signed up to a bridging loan for their new property (ouch !) We are seriously thinking of pulling out due to the thought we could possibly get so much more for our money in 6 -12 months time. Would you feel guilty of puilling out at this late stage? - Thoughts please

Yes I'd feel guilty but financial markets have shifted and would ou feel guilty lumbering your family with a bad buy now in afew years time? Bridging loans are a stupid idea - you didn't make them do that, they are grown-ups - they knew you can pull out so it's their responsibility to have accounted for the possibility. A lot of people lie and say it's the mortgage company that have insisted on a LTV or impending redundancy/job move mean things have changed.

jackomdj

Hello Leeds-Fella,

I would feel so guilty, but still do it if it was right for me! At the end of the day it is one of the biggest commitments you are going to make & you have to be 100% sure about it.

However as otter1 said it depends upon your long term plans. If you are looking to buy, do it up & sell then I would say now is a bad time to buy. If you were looking to stay in it for a longer period of time then the price is only part of the picture, if (once done up) it is your perfect house then waiting 6 months for a market to (hopefully) change is not necessarily ideal. Also where are you regards current living arrangements? Have you sold or are you renting?

Good luck with whatever you decide.

Nicky

merlinthehappypig

Yes - I'd feel incredibly guilty, but no so much that I would spend hundreds of thousands of pounds on a mistake.

The advice from otter1 is sound, but you also have to take into account that if prices do fall considerably (and that's still a big IF) you won't have to borrow anywhere near as much to buy.

We are facing the same dilemma.

poppy10_2

If you pull out, you'll avoid the guilt, but it might cost you tens of thousands of pounds. Depends how much this is worth to you.

otter1_2

Leeds_Fella,

I would add that I agree with these fine people that it is more important to make the right decision for you than to save face or take pity on the people you were going to purchase the house from.

Now would be a really good time to analyse why exactly it is you want to buy a house. For us, it was because I have lived in rented accommodation for seven years and it never feels like home to me, coupled with the fact that I have now lived with my OH for 3 1/2 years, so I know that things are stable enough for us to commit further by buying together.

Gorgeous_George

My word is my bond and I would only agree a sale/purchase if I intended to complete. Then I would complete. The commitment (for me) is the handshake but these days, sadly, that's no a widespread opinion.

Do whatever you feel is right. Pity you hadn't done it earlier. It's not your fault, it's our stupid house-buying process.

GG

benood

If you pull out fair enough it's your prerogative, however, IMO you should be straight up with the vendors and tell them why and also, although it will initially probably make them mightily fed up, give them a price at which you would do the deal.

However, buying your first house is a nerve racking thing and there's always a time when you get the collywobbles - if you don't buy now perhaps you just aren't cut out for it. Who's to say that next year you won't think perhaps we could wait another year and buy something cheaper still.....

Leeds_Fella

Gents, Ladies,

Thanks for the words of advice - our current situation, we sold 5 months ago. banked the equity and we are in rented until we found the next house

We have a young family and want to find the house to make into a home for our v young girls and to settle down. Is this the right house, well it ticks most of the boxes but not all. Also, saving perhaps a further 30K in 6 months time on a 500K house - if experts are proven right on house prices, would go a long way to our girls education.

Yes we want to settle down, its not meant to be a quick win, but with current market concerns, should we continue to rent for a little longer?

I would feel guilty, I'd like to think I am a man of my word, but I'd feel alot more guilty to my daughters, if I could have put aside a large chunk in the bank for the girls, and rented for a while longer and didn't.

barnaby-bear

Leeds_Fella wrote: »

Gents, Ladies,

Thanks for the words of advice - our current situation, we sold 5 months ago. banked the equity and we are in rented until we found the next house

We have a young family and want to find the house to make into a home for our v young girls and to settle down. Is this the right house, well it ticks most of the boxes but not all. Also, saving perhaps a further 30K in 6 months time on a 500K house - if experts are proven right on house prices, would go a long way to our girls education.

Yes we want to settle down, its not meant to be a quick win, but with current market concerns, should we continue to rent for a little longer?

I would feel guilty, I'd like to think I am a man of my word, but I'd feel alot more guilty to my daughters, if I could have put aside a large chunk in the bank for the girls, and rented for a while longer and didn't.

You must have a gut feeling - an instinct - I'd go with that.... you might save you might not but is it the right house at a price you can afford and get on with life and forget about it