Accepted offer before stamp duty holiday, local prices now soared

Psycho Sonny · 12 Aug 2020 at 22:55

The_Arbiter said:
Pulling out may even provoke an increase money being offered. But i'm with Merc Key Warrior. Going renting in the mindset of finding your "dream" house is risky. But we don't know what your dream house looks like, you could be waiting several years. No house depreciation is a guarantee despite whatever's being said. We could still be at the current growth for another 5yrs.
I guess only you can do the maths on rent costs vs time, move costs, etc, vs potential hassles from renting, and potential ups/downs on prices. Accepting you could be at the very bottom or top.

Go look at the graph for growth in gdp on bbc news.

It's 10 times worse than 2008.

Im willing to bet house prices crash hard. He should sell and buy in 6 months time.

Goksly · 13 Aug 2020 at 00:57

^^ Love how selective people are, and how manipulative you can be with figures. Yes April was a shocker, but when you close an economy - obvious no? This was followed by 2 months of growth; looks like 2.5% in May and 8.7% in June. So factor in all of the others months and its more like -15%. Still not great, but the economy was still (and is still) opening up July so lets see where it is at the end of the year. At least its trending up...

Buffman · 13 Aug 2020 at 08:44

MarkeR said:
Anyone who is questioning the money side of the sale are absolutely crazy, I would like to see your morals cope with the loss that the OP has stated..

Yeah, it's a pain in the backside for the buyer.. In this case, do the right thing, pull the sale and relist it in a few months time. Do not for one second feel bad about it..

Do this, except id offer the buyer first refusal at an increased price (knowing that they'll likely say no but hey).

Psycho Sonny · 13 Aug 2020 at 10:02

Buffman said:
Do this, except id offer the buyer first refusal at an increased price (knowing that they'll likely say no but hey).

You honestly think his home has increased in value 40% in 2 months?

Also when you re list people become wary and ask questions and then he will either need to tell the truth and nobody will be interested or lie to them. Estate agents I'm unsure what they would say if asked.

Mercenary Keyboard Warrior · 13 Aug 2020 at 11:53

Seems this house price rise thing has been detected, interesting, but caution to some are saying boom and bust

https://www.bbc.co.uk/news/business-53755590

Buffman · 13 Aug 2020 at 17:17

Psycho Sonny said:
You honestly think his home has increased in value 40% in 2 months?

Also when you re list people become wary and ask questions and then he will either need to tell the truth and nobody will be interested or lie to them. Estate agents I'm unsure what they would say if asked.

No but the increase from 185k to 200k is more reasonable and what im suggesting.

Say OP went to their buyer along the lines of

"unfortunately we have reviewed the market and fear we are being positioned out of buying our new property due to the sale price. Due to this and reflecting on recent sales e.g. X EXAMPLE, we would like to renegotiate.

I apologise for it getting to this point but we would have to achieve a sales price of 192,500 to be able to continue with the sale. If this cannot be agreed we will have to either pull the sale or consider reentering the market for a new buyer."

OP selling at a low price to then pay to go into rented accomodation seems the worst of both worlds. I say this as someone who is currently wanting to sell my house for circa 325k to buy a circa 425 to 500k house, i would absolutely avoid doing that wherever possible. I would consider selling at a high price and moving to rented tho.

Psycho Sonny · 13 Aug 2020 at 18:16

Buffman said:
No but the increase from 185k to 200k is more reasonable and what im suggesting.

Say OP went to their buyer along the lines of

"unfortunately we have reviewed the market and fear we are being positioned out of buying our new property due to the sale price. Due to this and reflecting on recent sales e.g. X EXAMPLE, we would like to renegotiate.

I apologise for it getting to this point but we would have to achieve a sales price of 192,500 to be able to continue with the sale. If this cannot be agreed we will have to either pull the sale or consider reentering the market for a new buyer."

OP selling at a low price to then pay to go into rented accomodation seems the worst of both worlds. I say this as someone who is currently wanting to sell my house for circa 325k to buy a circa 425 to 500k house, i would absolutely avoid doing that wherever possible. I would consider selling at a high price and moving to rented tho.

The danger there is if the buyer says no. He then puts it on the market and prices will be dropping now. He then ends up with less than what they offered so doesn't sell at all and is now stuck in this home.

The prices going up is going to be very short lived. When they go down they will go down hard. This incoming recession will be no joke. Especially with all the QE and borrowing the government are doing. He's best selling now even if its slightly less than had he waited a few weeks. Because of he waits a further few weeks its going to start collapsing.

How much did house prices drop in 2008 this will likley be a lot worse.

The_Arbiter · 13 Aug 2020 at 18:40

The Tories are in power for some/few more years to come. Massive price drops are not something they want happening on their watch. So i expect prices to stay constant or drop very little until the government changes hands. Speculative, yes. But so is the brexit/covid/expected recession effecting house prices majorly in 1/2/5yrs.

OP has the option to stay put, which would be my choice vs renting then trying to find some dream home.