Gazunder or not?

Kez100

I'm with Mr218. A sensible approach to a very difficult situation.

Captain_Mainwaring_2

Yes, that's true, don't use the fact that you cannot get a reduction to stop you buying a house that in truth you don't really want.

Wanting to buy the house is one thing, the price is quite another.

arthur_dent_2

Captain_Mainwaring wrote: »

Yeh, fair enough.

So why did the prices go up then? because joe blogs listened to everyone else telling them etc?

Ok yep I'll agree with that. I just don't like the aggressive posts that revel in others misfortune, or those that are saying things like offer 50% of the asking price on a £100,000 house

clobber_2

I got gazundered last year. I met him halfway because a) I was desparate to get rid and b ) I felt that house prices in my area were ludicrously inflated and I was bloody lucky to get what I was getting.

I didn't leave poo under the carpets or anything like that.

I think you have the jitters though and need to either pull out or put up with it.

Captain_Mainwaring_2

arthur_dent wrote: »

Ok yep I'll agree with that. I just don't like the aggressive posts that revel in others misfortune, or those that are saying things like offer 50% of the asking price on a £100,000 house

I didn't notice anyone owning property crying when the prices went up.

We can hardly say that this is a surprise, we all knew it would happen didn't we?

If you weren't greedy during the rush then you won't suffer now.

I'll be honest, if I go and look at a property I lift price paid data and work by that, if the price paid was high then the only way you will get that property is at a repo sale. I'm not gloating, but I'm not losing much sleep either.

Interest rates are still very low and people are bleating.

ginvzt

toothwiz wrote: »

I am about to exchange next week on a 3 bed property in london. However back in Feb we agreed a price of £497k, since then the price had fallen by 5k which we negotiated in april.

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I have already had to battle with him about a completion date as they want 2 move in 3 wks time. I am renting out my house and will be away so I managed to delay it to end of july. Now I will have to battle with EA again.
I feel bad about doing it before exchange but feel I have to as I dont want to buy a property thats worth less than it is.I know gazundering is bad but why shoud I be a fool and pay more than its worth. any advice for me about how to proceed. what would you do?

So, closer to july, when the prices fall some more (or not) you will be renegotiating again? You made an offer. The seller accepted it. You, of course, being wise, accounted for the fact that prices might be going down, and made your offer accordingly to what you think it was reasonable.

So, now, because you don't think you are getting a good deal naymore, you want the price to be lower. Have you thought, that the seller have waited for you to be raedy to move since February? He may have accepted a lower offer initially from someone who was raedy to move sooner.

In my opinion, you made an offer. They accepted it - go stick to it. If by any chance (not saying it will happen) the prices started rising - would you be prepared for seller to come to you and say 'hey, prices are rising, I want £10k for my house'?

arthur_dent_2

Captain_Mainwaring wrote: »

I didn't notice anyone owning property crying when the prices went up.

We can hardly say that this is a surprise, we all knew it would happen didn't we?

If you weren't greedy during the rush then you won't suffer now.

I'll be honest, if I go and look at a property I lift price paid data and work by that, if the price paid was high then the only way you will get that property is at a repo sale. I'm not gloating, but I'm not losing much sleep either.

Interest rates are still very low and people are bleating.

I live in a modest house on which I owe a small mortgage. (much less than the rent on a similar place) Despite the fact that I will lose value on the price I paid for my house I do not regret buying it and to be honest negative equity is a big big big fall away. If we ever got to a stage where my house was in negative equity half the country would have had theirs taken away. I don't see why we should all seem to be wanting others to get into difficulty or encouraging offers on houses which quite simply most sellers even in the current climate would laugh at.

Captain_Mainwaring_2

ginvzt wrote: »

In my opinion, you made an offer. They accepted it - go stick to it. If by any chance (not saying it will happen) the prices started rising - would you be prepared for seller to come to you and say 'hey, prices are rising, I want £10k for my house'?

But they did, it happened. People were viewing and making preparation to exchange for the vendors to do just that.

lostinrates

Personally I would not gazunder. I'm afraid my ethics would prevent me. If I were sure it was now a poor financial choice I woul pull out. (I they came back to me with an offer that would of course be up to them).

I am with those who feel that when solictiors get involved and the survey is one that is the end of negotiation. I realise there are those who feel differntly and so be it.

Captain_Mainwaring_2

arthur_dent wrote: »

I live in a modest house on which I owe a small mortgage. (much less than the rent on a similar place) Despite the fact that I will lose value on the price I paid for my house I do not regret buying it and to be honest negative equity is a big big big fall away. If we ever got to a stage where my house was in negative equity half the country would have had theirs taken away. I don't see why we should all seem to be wanting others to get into difficulty or encouraging offers on houses which quite simply most sellers even in the current climate would laugh at.

Negative equity has no meaning - if you bought with a 100% mortgage on an overpriced property then surely NE can creep up very quickly. If however your had a more modest mortgage and have made attempts to reduce what you owe, then you may never see NE.

It's not a question of wanting anyone to get into trouble, but I shan't be pompous and say that I won't buy a repo or a bargain house because of some sort of false principals. I've been there, I know what it is like, but not with tiddly 5% rates, with proper man sized rates. If you didn't need to sell then you grinned a paid up, those who had to sell got offered silly money - it was the way it was. If the house is worth the money, then it will sell for the money, it is as simple as that.