Help - Desparate Cash Buyer has nothing to buy!

littlejon2009

We managed to sell our house just beford Christmas 2007 - extremely stressful as we had no communication from our buyer until 2 days before he wanted to Exchange and Complete on the same day (incidentally, 5 days before Christmas!) To make sure the sale went through we agreed a last minute drop in price, threw away stacks of stuff, found storage in three different places for most of our furniture, and found a tiny shoebox to rent for 6 months - and we moved out before Christmas. Sometimes, you just have to make that effort!

However, we have now had our 2nd Christmas in our tiny rented shoebox, and we are now utterly desperate to find something to buy! Yes, we have cash waiting in the bank, but because we are looking to move 15 miles from Staffordshire to South Cheshire, our bank account has only one third of the amount needed to buy a similar property. We are frustrated, and incredibly angry that both sellers and agents alike are still trying to get 2006 prices, and will not budge - no negotiation.

Are we the only ones in this position ? - cash in the bank, but no new properties coming on the market to choose from, and everything already on is overpriced. Let me know that we are not alone! We have worked hard, we were prudent in our borrowings over the years, and we were fortunate to sell before the market really turned downhill. Now we have belongings scattered over two counties, no prospect of moving on, and we are now facing our third year of having our life on hold.

This whole situation is not just hell for sellers who face negative equity, or who just cannot sell - there are buyers desparate to buy, but the market conditions tell us not to use our cash to buy just yet as prices are falling. Someone has got to break this cycle - and I really believe that Agents and Sellers have got to be realistic.

I would love to know what other forum members think - you may hate me, you may sympathise, but something has got to give to re-start this market

Littlejon2009

minnie123

I wish I had your problem

maninthestreet

littlejon2009 wrote: »

We managed to sell our house just beford Christmas 2007 - extremely stressful as we had no communication from our buyer until 2 days before he wanted to Exchange and Complete on the same day (incidentally, 5 days before Christmas!) To make sure the sale went through we agreed a last minute drop in price, threw away stacks of stuff, found storage in three different places for most of our furniture, and found a tiny shoebox to rent for 6 months - and we moved out before Christmas. Sometimes, you just have to make that effort!

However, we have now had our 2nd Christmas in our tiny rented shoebox, and we are now utterly desperate to find something to buy! Yes, we have cash waiting in the bank, but because we are looking to move 15 miles from Staffordshire to South Cheshire, our bank account has only one third of the amount needed to buy a similar property. We are frustrated, and incredibly angry that both sellers and agents alike are still trying to get 2006 prices, and will not budge - no negotiation.

Are we the only ones in this position ? - cash in the bank, but no new properties coming on the market to choose from, and everything already on is overpriced. Let me know that we are not alone! We have worked hard, we were prudent in our borrowings over the years, and we were fortunate to sell before the market really turned downhill. Now we have belongings scattered over two counties, no prospect of moving on, and we are now facing our third year of having our life on hold.

This whole situation is not just hell for sellers who face negative equity, or who just cannot sell - there are buyers desparate to buy, but the market conditions tell us not to use our cash to buy just yet as prices are falling. Someone has got to break this cycle - and I really believe that Agents and Sellers have got to be realistic.

I would love to know what other forum members think - you may hate me, you may sympathise, but something has got to give to re-start this market

Littlejon2009

So what's wrong with getting a mortgage for the money you need to bridge the gap between what you have in the bank, and what you need to buy a house??

brummybloke

why not put an offer on a house you like? if they turn it down view another?

i was in a simular sort of situation, sold my house and moved to another county. renting albeit in a lovely detatched cottage having had to survive in a family members small place with my family for 4 months first.

i went and saw some properties and no one down in devon wanted to believe that their prices are coming down, after all .. people retire so pay cash..blah blah and all the other excuses estate agents came up with.

now though i have had an offer accepted on a house which has come down £35k in 2 months, yes it will probably come down another 25% before the financial problems resolve themselves but i want a house, i like it and despite the seller being reluctant to accept my offer, the estate agents have advised her that it is a good offer.

you need to really stress to an estate agent when you see a house you want, what a position you are in.. i had the mortgage in place, no chain and am ready to move asap.
why not look at houses not in a chain? thay may be more likely to be open to offers as possibly were btl, repos or people wishing to get out now and rent, all of these types are motivated sellers and will be more likely to negotiate.

mystic_trev

Your choice, why are you moaning?

Rent a larger property, prices will soon be tumbling in a few months. If you can't wait, get a mortgage and buy somewhere - you seem to have plenty for a deposit, so it shouldn't be a problem.

Swipe

Why not buy a nice place in Staffordshire and commute the extra 15 miles? Is it really worth paying 2/3 more for a different postcode?

poppysarah

Get yourself out there with the EA. Visit them all. Give them details of your requirements. Tell them you want a good deal, are genuine buyers ready to go and see what they say.
Lot of prices still stuck at insane prices.

GDB2222

I have huge sympathy for the OP. I persuaded my grown-up children not to buy anywhere on the basis that prices were bound to fall. Prices in fact continued to rise, although they have now fallen back to where they were at the time. Prices are clearly going to drop a lot further over the next couple of years, but it would be nice (for my kids) if the drop all happened now, rather than being spread over a couple more years.

All I can suggest to the OP is move to a larger rented place that you will be happy in for the next couple of years, and watch prices continue to go down. Eventually, something will come up at a realistic price. The last property crash took around 7 years from peak to trough. I have no idea whether history will repeat itself, but we are only 18 months into the present drop.

LisaLou1982

Just out of interest, why do you think the estate agent is the one to blame for you not finding a house??

The SELLER makes up their mind as to whether or not to accept an offer!

Keep looking at the houses that are up for sale - sooner or later the prices will drop. Either that or you are being unrealistic about the price of the house you want to buy.

Claremac

I, too, am in rented and looking to buy. The difference is that I love my rented house and, although it's costing me more than the interest I'm getting from the cash from the sale of my house I'm still gaining from the house prices dropping. I think that I may be here for another year or so if prices continue the way they are going.
Rather than rushing to buy anything isn't it worth moving to a bigger place that you would be happier in? Rental prices at the moment are very negotiable as there seem to be a lot of people who can't sell so are renting their place out which is creating competition. Obviously, that may be different where you are but it must be worth a look?

besonders1

I am in the same boat, I am a FTB looking for a home but the only type I can find are homes that I don't really like and I think by next year will be going for pennies (dodgy areas etc) so I have chosen to wait. I just wish the prices would come down sooner as offering 2000 prices now, will not exactly go down well today as most average homes in my area were only going for around 35K then --ouch!!