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Buyers renegotiating asking prices

Journalist: Grace Gausden, i newspaper

ended 28. September 2022

Can any brokers advise if they have seen buyers renegotiating asking prices in light of the rising mortgage payments? I have heard from some they are seeing doing so by as much as 5 to 10 per cent. 

 

6 responses from the Newspage community

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Michael Webb
Managing Director at Mortgage Republic
We are currently not seeing a renegotiation of offer agreed prices, however enquiries from our clients over whether they should look at renegotiating are coming in today. What we are seeing is clients setting very hard deadlines for completions where their mortgage offers will expire, and they face no option to extend the offer, meaning they will face an extreme rate rise if they are to reapply for the mortgage. This is typically from clients who are deep in to 6 month mortgage offers, and sitting on offered rates in the low 2%s. Most are pointing out to estate agents that if the deadline isn't met, they will have no choice but to renegotiate, with the new mortgage payments increasing dramatically. The current situation is in direct conflict with what I believe estate agents thought would happen with the stamp duty changes. Some were suggesting to our clients that the vendor may wish to remarket to achieve a higher price. We are not seeing this as a possibility at all.
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Imran Hussain
Director at Harmony Financial Services
I have had one client renegotiate but they were already paying more than what the lender had valued the property for anyway, and this is likely to be the case going forward. Buyers are less likely to pay more than what a surveyor will value the property for, but even then demand is still outstripping supply. Vendors and estate agents will have to become more realistic with their valuations, especially with surveyors being more cautious.
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Rob Peters
Principal at Simple Fast Mortgage
Perception is reality and sentiment is everything. Even if the current mortgage volatility is very short-term, it certainly provides a great pedestal for current buyers to put an agreement forward for a reduced purchase price. How long this may last may depend on how high interest rates go.
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Mike Staton
Director at Staton Mortgages
Buyers may find themselves in a catch 22 situation if they negotiate the asking price of the property, some lenders could see that as a material change to the application and then make the applicant choose a new product from todays current selection. This could leave the clients in a "rob Peter to pay Paul" situation. Saving Money on the house, but paying more in interest.
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Graham Cox
Director at Bridging Hub
I've just had a client tell me this morning that they've managed to negotiate £13k off the asking price of £535,000 on a very nice property in South West London. It's a buyer's market now. The pendulum has finally swung.
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Alastair Hoyne
CEO, Finanze Capital at Finanze Capital
I have been seeing borrowers renegotiate prices whether this is because they will actually struggle with the monthly payments or whether they just know they are more likely to have an offer accepted below value I am not sure. There is a general air in the market that sellers are worried, worried their property wont sell for the price they want if it all, or the market will crash. I think buyers are sniffing out this fear like wolves preying on a scared dear and are making these lowball offers knowing the sellers think this will be their best option and accepting it. I had one of my buyers secure a property 17% below asking price this week. I am not saying buyers are in the wrong for this at all, its been a sellers market fo long enough its nice the buyers are having their turn.