How far will house prices fall [volume 5]

How far will house prices fall [volume 5]

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NickCQ

5,392 posts

96 months

Wednesday 8th July 2020
quotequote all
andyeds1234 said:
I personally would tell you to whistle, but I guess the market will decide.
Again, not a rational response to refuse to buy the property at a lower overall cost.

p1stonhead

25,549 posts

167 months

Wednesday 8th July 2020
quotequote all
andyeds1234 said:
NickCQ said:
andyeds1234 said:
+1
If you find out your buyer has received a pay rise, will you try and rinse him for some of that too?
One buyer's earnings do not change the value of the property. A 3% change in transaction taxes for all buyers clearly does.
I personally would tell you to whistle, but I guess the market will decide.
If it was me I’d say yes, drag exchange to as late as possible, then on exchange day either drop my offer back down or disappear never to be heard from again.

NickCQ

5,392 posts

96 months

Wednesday 8th July 2020
quotequote all
p1stonhead said:
If it was me I’d say yes, drag exchange to as late as possible, then on exchange day either drop my offer back down or disappear never to be heard from again.
Wasting your own time and money?

andyeds1234

2,280 posts

170 months

Wednesday 8th July 2020
quotequote all
NickCQ said:
andyeds1234 said:
I personally would tell you to whistle, but I guess the market will decide.
Again, not a rational response to refuse to buy the property at a lower overall cost.
Are you a soulless robot ;-)

I understand your point of view, you think you should get a cut of the windfall. Personally I think it has nothing to do with you.

Rationalise all you like, but it won’t work for everyone. House buying is an emotional process, maybe not for you, but it is for most.

p1stonhead

25,549 posts

167 months

Wednesday 8th July 2020
quotequote all
NickCQ said:
p1stonhead said:
If it was me I’d say yes, drag exchange to as late as possible, then on exchange day either drop my offer back down or disappear never to be heard from again.
Wasting your own time and money?
To stick it to you? Absolutely.

Wouldn’t be wasting any time really though as I’d be looking elsewhere from the second your request came in.

Sheepshanks

32,769 posts

119 months

Wednesday 8th July 2020
quotequote all
NickCQ said:
Again, not a rational response to refuse to buy the property at a lower overall cost.
Are you in direct contact with the buyer, or are you working through an estate agent?

If the latter, be interesting to hear their thoughts on the matter.

NickCQ

5,392 posts

96 months

Wednesday 8th July 2020
quotequote all
Sheepshanks said:
If the latter, be interesting to hear their thoughts on the matter.
Agent hates it but they are working for the deal at this point in time. The impact on their fee is minimal so why would they take any risk to completion for 1% of £7k?

Not sure I am getting an impartial read from them.

Earthdweller

13,554 posts

126 months

Wednesday 8th July 2020
quotequote all
SteadyAsSheGoes said:
NickCQ said:
Fundamentally I do not believe that the c. £15k windfall should accrue 100% to the buyer.
I can see why you might feel that way as a seller, but at the end of the day it's the buyers tax bill not yours. I'd think of it as an incentive for them to go through with the purchase given the market uncertainty at the moment, rather than a "windfall" of which half is due to you.
I agree

If I was buying I’d be a bit miffed if the seller pulled that stunt and would remove any trust Or faith in the seller for me




Pit Pony

8,563 posts

121 months

Thursday 9th July 2020
quotequote all
sambucket said:
Jobbo said:
Just found this myself. Not exactly as set out in the policy paper, unsurprisingly, but it does benefit everyone - including, to my surprise, second home buyers and buy-to-let buyers.
I'm confused now.

"The 3% higher rate for purchases of additional dwellings applies on top of revised standard rates above for the period 8 July 2020 to 31 March 2021."
So if you are buying a second home, you'll pay 3% up to £500k.

My son and his fiancee are looking for a house (In Bromsgrove, 2 beds or more, closer to station the better, must have garden, up to £300k)
And are trying to decide whether to sell HER apartment in Harbourne, Birmingham, or convert the mortgage to a BTL.
I have BTL experience so have some experience to pass on.
He's never owned a property.
It would simplify the buying process, but add 3% to the price.
Which is about the profit over the first year of renting out the apartment.

ToastMan76

530 posts

73 months

Thursday 9th July 2020
quotequote all
p1stonhead said:
To stick it to you? Absolutely.

Wouldn’t be wasting any time really though as I’d be looking elsewhere from the second your request came in.
Exactly. Most of the money on searches and solicitors will already be spent, so the buyer is in a bind. If the seller suddenly wanted to change the price, I too would do what you suggest. In fact if I was the buyer I would point out you may be benefitting from not paying stamp duty on whichever house you are moving into so you can afford to lower the price.

lampchair

4,362 posts

186 months

Thursday 9th July 2020
quotequote all
p1stonhead said:
andyeds1234 said:
NickCQ said:
andyeds1234 said:
+1
If you find out your buyer has received a pay rise, will you try and rinse him for some of that too?
One buyer's earnings do not change the value of the property. A 3% change in transaction taxes for all buyers clearly does.
I personally would tell you to whistle, but I guess the market will decide.
If it was me I’d say yes, drag exchange to as late as possible, then on exchange day either drop my offer back down or disappear never to be heard from again.
We kind of did this.

When we buy we always try to meet the sellers to say hi and that as far as we’re concerned, once a price is agreed thats it, no funny business from us. The suggestion being that we’d like the same from them.

Only had one vendor play silly buggers and ask for £10k extra the day before exchange. I assume they thought this would start a negotiation, arriving somewhere in the middle.

We waited until EOD and then just said that it was fine, there was a new property on the market which looks nice and we’re not really in a rush, we’ll break the chain.

Agents and solicitors worked hard the next day hehe


ooid

4,088 posts

100 months

Thursday 9th July 2020
quotequote all
I feel like we have been completely robbed really. Completed my purchase literally 13 months ago, the STAMP duty was around 16000 GBP. With the new reductions, it would have been only 3000 GBP?


lampchair

4,362 posts

186 months

Thursday 9th July 2020
quotequote all
ooid said:
I feel like we have been completely robbed really. Completed my purchase literally 13 months ago, the STAMP duty was around 16000 GBP. With the new reductions, it would have been only 3000 GBP?
Tell that to our friends... who completed last Friday on a £550k place!

UpBeats

122 posts

51 months

Thursday 9th July 2020
quotequote all
Im sure you were robbed more on the price you paid for the house. Imagine a 30pc fall in that price?

number2

4,308 posts

187 months

Thursday 9th July 2020
quotequote all
UpBeats said:
Im sure you were robbed more on the price you paid for the house. Imagine a 30pc fall in that price?
13 months is too long to think about. The house bought is unlikely to have still been on the market now.

Six weeks, fair enough but not over a year.

I bought 13 months ago and the 15k saving then would have been nice. But that was then.

NickCQ

5,392 posts

96 months

Thursday 9th July 2020
quotequote all
Well... if you don’t ask you don’t get.

As of this AM the buyer and I have agreed to split the windfall so that he is up £10k and I am up £5k. As you might expect, he is still on balance pretty happy about the whole thing!

I am glad he showed a little more maturity than those on this thread that would have thrown their toys out of the pram to ‘teach me a lesson’

p1stonhead

25,549 posts

167 months

Thursday 9th July 2020
quotequote all
ooid said:
I feel like we have been completely robbed really. Completed my purchase literally 13 months ago, the STAMP duty was around 16000 GBP. With the new reductions, it would have been only 3000 GBP?
8 months for me. Paid £22k stamp. Would be about £6k now I think.

Sheepshanks

32,769 posts

119 months

Thursday 9th July 2020
quotequote all
NickCQ said:
Well... if you don’t ask you don’t get.

As of this AM the buyer and I have agreed to split the windfall so that he is up £10k and I am up £5k. As you might expect, he is still on balance pretty happy about the whole thing!

I am glad he showed a little more maturity than those on this thread that would have thrown their toys out of the pram to ‘teach me a lesson’
I think you said you'd already dropped the price £15K? You've left money on the table there, but if you're happy.....

Vanden Saab

14,089 posts

74 months

Thursday 9th July 2020
quotequote all
ToastMan76 said:
p1stonhead said:
To stick it to you? Absolutely.

Wouldn’t be wasting any time really though as I’d be looking elsewhere from the second your request came in.
Exactly. Most of the money on searches and solicitors will already be spent, so the buyer is in a bind. If the seller suddenly wanted to change the price, I too would do what you suggest. In fact if I was the buyer I would point out you may be benefitting from not paying stamp duty on whichever house you are moving into so you can afford to lower the price.
The buyer would easily recoup any money spent on searches and solicitors with the reduction in stamp duty on the alternative house they bought. So still many thousands up on the deal. As you say I would also be looking for another house the second the request came...

kingston12

5,481 posts

157 months

Thursday 9th July 2020
quotequote all
andyeds1234 said:
p1stonhead said:
NickCQ said:
caymanbill said:
Wow. Are you always this stingy?
I am clearly not as rich as you. £15k is real money to me.
It’s not your money in any way shape or form. I hope your buyers tell you to go jump. I would.

Edited by p1stonhead on Wednesday 8th July 20:24
+1
If you find out your buyer has received a pay rise, will you try and rinse him for some of that too? rolleyes

Edited by andyeds1234 on Wednesday 8th July 20:38
I’ve actually had close to that before.

We offered on a house and it was accepted even though our place wasn’t sold. The acceptance was conditional on our place going straight onto the market with the same EA.

Ours went on the market, went to sealed bids and achieved more than asking price. The EA, perhaps predictably. immediately suggested that we should increase the offer on our purchase ‘now that there is more money available’.

We didn’t of course, but it shows that if people are aware of your financial situation, they won’t hesitate in asking for more.

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