Almost ready to exchange - now worried

willis

Hi everyone,
I am selling my house and buying another and we're a long way in the process. We should be exchanging next week (don't have a date yet).
However, I'm now really worried about what to do after reading the news today. I'm now buying a house for more than it's currently worth (and selling one for the same possibly, but we took quite a low offer).
I'm so confused!!
Any advice very welcome. Is it too late to ask for a reduction of 2.5% in order to bring it in line with the price reductions in the press today?
Should I just pull out, sell my house and move into a rented house?
Please help! I have very little time to make a massive decision.

Thanks.

Tesco_points_addict

Personanly i would still go for it as long as you have some equity and your mortage is not 100%. who knows how long this while price drop is going to last, get yourself settled. The bank would not have loaned you the money if they thought it were a risk
TPA x

Dunstan_2

If you're buying it as a short-term investment, pull out now. If you are buying it as a more long-term plan, you like it and really want to live there, and you can afford it, then go for it. I believe that house prices will go back up to their current value, whether it takes 2, 5, 10 or 15 years.

pinkshoes

Is the house you're buying a home or an investment? How long are you planning on living there? IF you're buying a home and you really want this place, and are planning on staying there for a long time, a slight drop in the price would only be an issue if you wanted to sell shortly after you bought.

Chances are if you pull out now, or ask for 2.5% discount, then your buyer might pull out too, or ask for an equal reduction. So long as you're prepared for that, then go for it.

Prices have been dropping in SOME areas for a few months, so if you've only just seen it in the news today then you ought to do some more research.

Conrad

Pull out, rent, and wait for the prices to drop by 20%. Forced sellers may even take a 40% reduction.

Biggie

Sorry to sound a bit harsh...

But why are you taking what you read in the press so litterally......

If your brain is saying this isn't right then by all means pull out but reported (average drops) in the paper shouldn't be your deciding factor...

If the papers said house prices up 2.5% then would you be sitting there worried incase your seller asks for a 2.5% increase.....

if you can afford it and it's a home you desire then go for it...


btw - if prices have litterally dropped by 2.5% then in theory you've only lost the difference between the two house.

PasturesNew

Stuff has been in the press for everybody since August last year, with Northern Rock's famous run at the bank.

Every day there have been reports, programmes, discussions, figures.

Why are you just worried now?

If you love the house, go for it as it stands
If you are prepared to annoy the seller and risk good relations (they might nick all the lightbulbs or leave the place dirty) then go for a reduction

But don't knee jerk reaction a big decision like this based on one report.

Do more research and think how pushed your finances will be, how perfect the house is, what your long-term (10 year) plan is.

Then decide.

P.S. Everybody's scared at exchange no matter what state the market's in

gotskills

I would say continue as you are as your so far down the line that if you do pull out now all the stress of the process you have been through would be for nothing. 2.5% is hardly worth worrying about unless your looking to sell in the near future. i sold and bought recently and found a great conveyancing website if you havent sorted that already http://www.cheap-conveyancing-online.co.uk it does ease the stress of the whole process, hope this helps.

if you do decide to continue i would recomend


your house will only decrease in value. i sold and bought recently and was happy for the whole process to be over, stressful stuff! one tip i do have to make the whole thing easier
have sorted out your conveyancing costs yet? if not i found www.cheap-conveyancing-online.co.uk to be extremely stress free.

TBeckett100

pull out citing concerns over fallen prices. they will want to negotiate, especially as their backs will be to the wall. I pulled out of one property and went back in 10% lower in an afternoon. she accepted cos she was very upset and desperate.

littlesos

TBeckett100 wrote: »

she accepted cos she was very upset and desperate.

Did this make you feel good? I'm all for getting a bargain, but holding people to ransom is disgusting and I really hope that someone does it back to you someday.

pickledtink

littlesos wrote: »

Did this make you feel good? I'm all for getting a bargain, but holding people to ransom is disgusting and I really hope that someone does it back to you someday.

It might seem harsh but nobody in the middle of buying right now could really have seen just how drastic this latest plunge would become. To pay thousands of your hard earned into a now overpriced plummeting asset would be utterly stupid however 'honourable'.
Would you be so glib if it were 'your' 10 or 20 or whatever K to be handed over to a stranger?
This is not monopoly money.