can't sleep -should we drop out of purchase?

rollmop

We decided to use the money from my father-in-law's house to help our son buy somewhere to live - he has been living in shared rented houses and is ready to settle down somewhere on his own. We started looking in January and in March found the ideal property - a flat in a converted Victorian mansion with communal gardens, absolutely gorgeous!
Towards the end of March he made an offer which was accepted after a bit of negotiation and everything has been trundling on slowly but surely.
Now prices are falling so much that we don't know what to do. The other property he was interested in has been reduced by £24,000 as has the third choice [ though most houses in the area haven't gone down by as much].
We would never consider reneging on a verbal agreement normally but it is keeping us awake feeling that we are buying a property that now worth much less than it was three months ago. What shall we do - stick with the original price and lose lots of money, make a new lower offer, or drop out altogether? The vendors aren't buying anything at present to the best of my knowledge so there isn't a huge knock-on effect. Our son wouldn't be homeless [ though he would be unhappy to lose the flat ] . We just don't know what to do and would really appreciate some advice!!!

real1314

What would you do in a car showroom if you'd said you'd buy a car and then were told that you could get it cheaper by the same percentage?

Would you still pay the higher price?

esbo

rollmop wrote: »

We decided to use the money from my father-in-law's house to help our son buy somewhere to live - he has been living in shared rented houses and is ready to settle down somewhere on his own. We started looking in January and in March found the ideal property - a flat in a converted Victorian mansion with communal gardens, absolutely gorgeous!
Towards the end of March he made an offer which was accepted after a bit of negotiation and everything has been trundling on slowly but surely.
Now prices are falling so much that we don't know what to do. The other property he was interested in has been reduced by £24,000 as has the third choice [ though most houses in the area haven't gone down by as much].
We would never consider reneging on a verbal agreement normally but it is keeping us awake feeling that we are buying a property that now worth much less than it was three months ago. What shall we do - stick with the original price and lose lots of money, make a new lower offer, or drop out altogether? The vendors aren't buying anything at present to the best of my knowledge so there isn't a huge knock-on effect. Our son wouldn't be homeless [ though he would be unhappy to lose the flat ] . We just don't know what to do and would really appreciate some advice!!!

Work out a price you are happy with, call the agents and ask them if they will agree to the new price. If they turn you down that's their decision, not yours.
Tell them the market has changed, they will understand. If prices had increased they would be calling you saying a better offer had came in, there is no doubt about that.
Say you are sorry but it is causing you to lose sleep.
Don't let them put you on a guilt trip, if they do just say sorry, you can't go ahead, and pull out altogeather.
They might say yes they might say no, but atleast you will be able to sleep :T

You are going to have to do that sooner or later so the sooner the better.

esbo

Personally I would not be buying in the current market period.

Lyncroft

If it's gone down in value now, where do you think it will be in 6 months or a years time?

dopester

Toots wrote: »

If my vendor was to telephone me when things had been going through and tell me they were pulling out because they had received a better offer, I certainly wouldn't find it acceptable behaviour.
It works two ways.

The house buying and selling process is so stressful precisely because buyers and sellers aren't principled enough to stand by their verbal agreements.

I think I could suffer any sermon of high moral ground if the house market changed and I could buy next-door's near identical house for £20,000 less, or having serious concerns of much greater falls to come.

It's painful on the way up for buyers when they are gazumped. It's painful on sellers on the way down when they are gazundered or when buyers, still having signed no contract or missives, change their minds about proceeding. The OP is the most important person in this thread. Not some seller which the OP does not appear to be legally obligated to.

rollmop

Thanks for all the replies - I agree with all of them - we don't like letting people down but we can't afford to throw money away. Perhaps we should contact the vendors to discuss it.... any more advice very welcome!

Eon4

"It's painful on the way up for buyers when they are gazumped. It's painful on sellers on the way down when they are gazundered or when buyers, still having signed no contract or missives, change their minds about proceeding."

I think this says it all in a nutshell.....the sellers would probably take the highest offer if they were inundated, giving you the option to up your offer before finally agreeing another (I would hope)......so provided you are honest with them and give them the chance to renegotiate I don't think you should feel too bad.

Your gut instinct is telling you the deal you have going through is no longer a good one, so try and strike a deal that you feel happy with.... there are sellers out there so desperate to sell you WILL find a property at the right price...you are gold dust buyers at the moment remember!

wymondham

As it's not vital to get this flat, I would personally pull out and wait. The vendor is probably expecting a call from you to renegotiate the price...

It's a personal choice.....

simpywimpy

I agree. It's not life or death that you buy now. If they won't renegotiate, go for the second choice one and knock them down again. It's a buyers market at the minute as houses are just not moving. Look at it as a business deal if you can rather than a personal one. £25k is an awful lot of money.

PasturesNew

I would pull out. It's not just about money here in my opinion.

The money "lost" could be the catalyst of years of anguish and upset.

When you're left money, you feel a certain obligation to spend it wisely "in memory of" the person who bequeathed it. As for your son, it's nice you are paying for this flat, but this puts pressures on him as there is an unspoken obligation that goes with the money.

Should the property value fall (and I feel it will, by a lot), then he might feel trapped by the property, yet fearful of walking away and making a loss as it's disrespectful of your kind offer and the lifetime achievement of the FIL in gaining that equity for his family to benefit from.

Pull out. Wait. Take the pressure off. There will always be another house, but cheaper.