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RickyD

Tactics For Lowering Our Offer

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Hello all,

I've been a long time lurker... Here goes for my first actual post!

We are in the process of buying a house (FTB). Our only out-goings so far are the solicitors costs for searches. A surveyor is due to do a home buyers survey in 1 weeks time (we haven't paid him yet).

We do really like the house (it ticks a lot of boxes), but have decided that with the current situation (with a crash finally looking likely), we are going to Lower our offer. Anyone have advice on tactics? i.e. How to word it? And what would be the best timing? Should we wait until after the survey, or do it as quickly as possible?

I feel like we are in a strong position, as we are willing to pull out if they don't budge.

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Doesn't sound right, the survey happens before the searches in my experience.

If this is genuine you should only offer what you want to pay for it in the first place, if it was me selling I would put it back on the market if I had a time waster messing about even if that meant waiting another 6 months to sell.

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"Doesn't sound right, the survey happens before the searches in my experience." - neither the searches or survey has been completed yet (although we did pay the solicitor to do the searches). But yes, we are inexperienced with this, so perhaps we have done things in the wrong order. TBH, considering we are FTB's, the estate agent hasn't been very helpful with the process.

Our offer was/is genuine, but with the large majority of news reports being gloomy on house prices and Osborne himself saying that house prices could drop 18% in the case of a Brexit, it feels like a totally different landscape from when we placed our offer. We certainly didn't expect the Brexit vote to win. Obviously our concern is that the house will immediately be worth less than we paid for it, putting us into negative equity.

We don't want to mess the sellers around unnecessarily, which is why my inclination is to voice my concerns as quickly as possible, so they can re-list the property quickly if they so choose. But any advice would be very welcome, as we are new to this whole process. In a way, I'm surprised that the system here in the UK actually allows people to pull out all the way until the exchange, which in many cases takes months.

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If you are willing to pull out, what are you worrying about?

Just lower your offer - you don't need to give a reason or feel guilty.

If the survey finds any issues you would want to lower the offer regardless of market conditions.

So it's a case of whether you want to lower your offer in two stages, or one.

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What about the valuation, when is that due? Or is that what you mean by survey?

You can either offer lower now, and risk them saying no. Or you can try your luck with a valuation coming back saying it's overpriced. You're in a better position then, but it's also riskier to rely on the valuer.

Did you put in your accepted offer before or after Brexit result? If before, you're in a better position IMO. Tell the agent you're getting spooked, you didn't expect the result, and want to pull out. They'll try to keep you on board and suggest you offer a reduced amount. Maybe.

Honestly though, I know this forum is full of Armageddon predictions, but I really wouldn't, as a FTBer, be buying now... especially not with a high LTV.

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Thanks everyone. With a great sense of relief, in the end we decided to pull out. It was far too stressful as a FTB buying a house with all the uncertainties surrounding the Brexit.

We managed to get all our money back too, as the solicitor had not began to do the searches yet.

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Very wise.

I'm sure your decision will save you money in the long run. It's sensible to wait a while to see what happens. In the meantime it'll (quite rightly) spook the vendor that all is not well in house-selling land.

When the same house is still available in 8 weeks time you can think again about how much you want it. Hopefully something that is far more of a no-brainer comes along in the meantime.

Good luck!

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For future, it's not about the house, but the seller.

Look for probate, repossessions and obvious distressed sellers i.e. regular reductions in right move listings.

Make a low ball offer on a number of properties with same, and across, estate agents. Stress quick sale, and in cash - if you are.

Be prepared to walk away from any house. Treat them like buying a packet of crisps in terms of emotional attachment.

The survey will always come back with some problems - use those to get further discounts.

Consider if problems really are problems - ours has a public footpath (but we have now fenced it off so it is properly separate from garden)

Using the above, I got 18% off our last house (and 32% of the original asking price six months earlier). Cheapest house in the street for about a decade. Obviously, only likely possible if the local market is somewhat depressed/stagnant anyhow.

I think Brexit will reveal some bargains. You aren't interested in the kite flyers or those willing to sit it out - you want the small fraction of people who have to sell.

Edited by StainlessSteelCat

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Can't agree with the probate bit, in my experience these are amongst the most stubborn and deluded vendors of all.

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Spunko - Yea! It's ironic really - I'm the one who's been telling everyone there's a crash coming (for the past 5 + years), and I (almost) bought at what looks to be the peak!

SteelCat - Thanks for the advice.

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Agree with the probate greed angle. Did put in an offer on one a few years ago but they decided they wanted the full asking price. Only went under offer about 6 weeks ago....

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I have noticed a definite change of mood since Brexit around my way. Before we put in our offer, anything half decent around here was selling within a week or two. Now, it's almost stagnant. I'm also seeing a lot of properties that were "sold", back on the market. There's quite a few reductions too - a couple of places slashed off £20,000, a few others £5-10k.

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RickyD, whereabouts is your area?

I don't want to be too specific, but it's one of the villages quite near Cambridge. We were also considering Ely, which is also showing a few price reductions and properties coming back on the market.

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I don't want to be too specific, but it's one of the villages quite near Cambridge. We were also considering Ely, which is also showing a few price reductions and properties coming back on the market.

Thanks. The reason I asked is because I'm seeing the same thing round here in Kent. But a few people on this forum and particularly other forums like MSE keep saying it's still as crazy as ever in their neck of the woods. I don't know why the situation would be any different in my area (or yours) to their own, we are both in the SE.

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Thanks. The reason I asked is because I'm seeing the same thing round here in Kent. But a few people on this forum and particularly other forums like MSE keep saying it's still as crazy as ever in their neck of the woods. I don't know why the situation would be any different in my area (or yours) to their own, we are both in the SE.

Interesting. I'm generally seeing a lot more houses coming onto the market (compared to before the Brexit), quite a few reductions and properties re-appearing after being 'sold'. Central Cambridge itself still looks insane mind you. Does anyone know how to get the data on reductions and re-listings from rightmove? Would be interesting to see..

A little update - the house we almost bought has also been reduced, although nowhere near enough to temp me.

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So it's 6 months since we pulled out of buying the property. With hindsight, did we make the right decision? Do I have any regrets?

That's a tough question to answer. It seems that the HPI has continued it's (insane) upward momentum, despite the looming Break from the EU, although it remains to be seen what will happen after March and in the continuing years ahead. Will the banks move away from London? Will strict immigration controls be imposed? Will interest rates increase? There are a lot of unknowns ahead, that could well impact house prices, although for now they continue steadily on their upward trend. Although the house was advertised at £5k under what we paid when it was re-listed, so I can only assume that it sold for that (could be wrong). 

The big plus, thanks to some wise folks on here, is that I've completely re-organised my investment strategy. My investments are already over 4% up (this could of course change in a heartbeat!), and gives me some sense of relief from my money simply wasting away in savings accounts. I've also adopted a much stricter approach to what I spend money on. I've always been reasonably frugal, but you could say I've taken another step away from the consumerist mindset. Also, while it was a nice property, with retrospection there were things about it that bothered us and it certainly wasn't the perfect home I perhaps thought it was at the time.

So do I regret pulling out? A little bit yes, although there are enough good things that came out of the whole process that I am much wiser because of it. And I do feel much more prepared for when we eventually do buy a home, since the whole process is much clearer to me now. We have lived abroad before, and another potential plus to the situation is that if we get itchy feet, we can move elsewhere at click of a button.

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11 hours ago, GreenDevil said:

You'll find yourself priced out of a 4 bed, then a 3 bed then a 2 bed, quicker than you can say "Carney is a c##t"

We were already priced out of a 3 or 4 bed where I live! lol 

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On 10/01/2017 at 9:37 PM, GreenDevil said:

 

Hpi is forever. 

You'll find yourself priced out of a 4 bed, then a 3 bed then a 2 bed, quicker than you can say "Carney is a c##t"

 

Or perhaps not.. ?

 

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