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Hi,

I am just about to exchange and complete on a flat near Brighton in Sussex. It is a 2 bedroom apartment and we negotiated a 5% price reduction and agreed on 230,000 pounds in January. I am now wondering if I should go back and ask for a price reduction in light of the looming recession. The price was reasonable at the time and I accept this could just seem greedy, but after years and years of torment of being frozen out of the market by greedy speculators , I don't think I would feel too guilty about doing so. Any thoughts?

 

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Are the sellers in a chain?

My point being that if so, their asking price reflects the inflated state of the market  and they kind of have to price accordingly to get their new home. I'll get flamed for saying this, but it isn't really their fault. 

Otherwise if part of a buy to let exit strategy  or to a lesser extent probate: screw 'em.

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8 minutes ago, btd1981 said:

Are the sellers in a chain?

My point being that if so, their asking price reflects the inflated state of the market  and they kind of have to price accordingly to get their new home. I'll get flamed for saying this, but it isn't really their fault. 

Otherwise if part of a buy to let exit strategy  or to a lesser extent probate: screw 'em.

Surely if it is part of a chain they will  just ask for a similar reduction from the next seller.

Personally I would love to say "My buyer wants a cut of 10% - so I need the same".   As obviously if I am moving up I would be saving money.

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Dont buy now. Stay in rented (assuming thats your situation). Very soon you will be able to rent for free...seriously!

What is the LL realistically going to do...take you to court?

A hostile Beak is already booked for him and I wouldnt mind betting that extraordinary renters rights are not far off in the future.

Pop down the letting agents and explain that you are now unemployed and want a 75% reduction in a new 6 month contract. Actually make that a year.

Its better to have some rent with the property occupied and maintained.

We are all going to have to make sacrifices Mr LL!

Else you will with hold rent with no end date.

What choice does the LL have now??

He will not be over whelmed with new renters just yet!

As for your references when looking to rent again...that will be in the brave new world that emerges and I think that your potential new buy will be at least half current price.

If not you can reasonably explain away your actions.

 

This aint just blowing off steam...come rent day I will be doing this.

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If you think it is a nice home in which you can  live buy it.

If you want to own a home how are you going to buy one when no one will be accepting viewings.

you will  just be paying a landlord's mortgage while you carry on renting

All the indications were that the market was moving after the new year.  Prices are not going to plummet because no one will be interested in moving to another home now as they will not want viewing on their own home and will not want to view other homes.

As soon as it is over the market will return.  

Prices were apparently going  to plummet to unforeseen levels after the referendum - then when the 3 year hiatus occurred - then after we left the EU

The UK had  home buying culture they may fall slightly then will rise again.  

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1 hour ago, Roman Roady said:

I think that your potential new buy will be at least half current price.

I will be happy to wager against that

1 hour ago, Roman Roady said:

Pop down the letting agents and explain that you are now unemployed and want a 75% reduction in a new 6 month contract. Actually make that a year.

LOL

 

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2 hours ago, Roman Roady said:

Dont buy now. Stay in rented (assuming thats your situation). Very soon you will be able to rent for free...seriously!

What is the LL realistically going to do...take you to court?

We are all going to have to make sacrifices Mr LL!

 

Yes sacrifices indeed for landlords now, because, as I mentioned on another thread, if Sky News twitter is right, there is going to be no taking tenants to court for them now.

Quote

Sky News understands the Government is going to issue new guidance to the courts to prevent anyone being evicted due to the economic impact of Covid-19

 

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3 minutes ago, moonriver said:

Yes sacrifices indeed for landlords now, because, as I mentioned on another thread, if Sky News twitter is right, there is going to be no taking tenants to court for them now.

 

In that case, GAME ON.

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2 hours ago, iamnumerate said:

Surely if it is part of a chain they will  just ask for a similar reduction from the next seller.

Personally I would love to say "My buyer wants a cut of 10% - so I need the same".   As obviously if I am moving up I would be saving money.

No sadly that is not how people see it. They perceive their own (the on they are currently selling) as having a specific value and screw anyone who says any different. To some extent this "protects" those further along the chain from waves of reductions, too.

That said: no-one else is going to feel guilty in any way about squeezing every last penny our of you ... so I am not sure there is any grounds for playing on that playing field based on the shape, slope, and general nature of that playing field.

Please remmeber that however you finance this ... if you give anything more than you absolutely have to for the home you need then you are "losing" those funds for your loved ones (family members ... esp ... now and in the future) ... so ina way you could (should?) feel guilty if you don't get the best deal you legally can ... within bounds of morality (though estate agents are not above lying) ... 

Edited by Aidan Ap Word
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1 hour ago, richmondtw said:

If you think it is a nice home in which you can  live buy it.

If you want to own a home how are you going to buy one when no one will be accepting viewings.

you will  just be paying a landlord's mortgage while you carry on renting

All the indications were that the market was moving after the new year.  Prices are not going to plummet because no one will be interested in moving to another home now as they will not want viewing on their own home and will not want to view other homes.

As soon as it is over the market will return.  

Prices were apparently going  to plummet to unforeseen levels after the referendum - then when the 3 year hiatus occurred - then after we left the EU

The UK had  home buying culture they may fall slightly then will rise again.  

Slow day in the EA office today?

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I reckon prices will come down as it’s going to dawn on first time buyers that the future is not promised. Anything could be around the corner to trash your economic value. Feels crazy now how predictable the last 20 years have been. 

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So I take it no one is looking for a house again. Are EAS still working or have they shut up shop?  I was thinking now might be a good time to start looking again and grab a bargain.? If they are dead and the seller is distressed, might get something at a big discount.

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Depends on your future plans really, if you are happy to stay there for the longer term and like the property, why not.

If the shorter-term there may be a real probability the market may 'gap down' against you, ie. the price of 2-beds going from £225k to £200k. At the lower levels of the market I believe there is less differentiation possible and hence comparables are easier.

Maybe compare everything else nearby: I'd want the best deal to be going ahead now. I presume 'near Brighton' is not city centre, so you have 2-beds like this in competition. 

https://www.rightmove.co.uk/property-for-sale/property-52099215.html

That seems like a bit of a panic reduction which we could see more of if things get bad, does it offer better value? If no then why not, go ahead. 

 

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FWIW we were looking at a 3-bed detatched house that had "sold" twice first for £750k, then at £720k - both chains collapsed. Have just told the EA that even if the owner were to come back and agree £650k - we would struggle to see the value in the current market.

He was quite speechless. Anyway, be interesting to see if we get any feedback.

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On 17/03/2020 at 12:48, Si1 said:

Don't feel guilty. Do it.

To be fair you can feel free to feel guilty. I sometimes felt guilty when negotiating a deal.....but they could walk away. 

In terms of the decision it really depends on the deal and how much you want something. 5% discount is sometimes good and sometimes bad. I would factor in what you know now....less about ‘taking advantage’ and more about acknowledging things have changed and changed rather exceptionally. 

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21 hours ago, 50sQuiff said:

Quicker than you would if you just discovered "she" used to be a "he".

In that case you might as well enjoy yourself...after all you have already been in there and now there is the bonus of no pregnancy

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  • 417 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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