house selling know-how - bloody hell

Jennifer_Jane

I dislike the Scottish system, it only benefits the seller. The buyer is at huge risk.

A better scheme would be that of Sweden, South Africa, and various other places - where you go to see a property, put in an offer subject to mortgage approval/survey/searches, etc. An agreement to purchase is signed by both (can't remember if a deposit is paid or not). This is then binding. The process then gets put in place and gets completed. In addition, the buyer and seller agree a time when it's convenient for both for the one to move in and other out. Occupational rent is then paid until completion.

Easy peasy, no stress, no gazumping, no gazundering....

Just too easy for this Country's various Governments, perhaps?

It may be the system in other countries, I only know about South Africa really. It works.

Jen
x

tyllwyd

harrup wrote: »

Ok...so, after reading through a plethora of websites and as a 1st time totally-green-behind-the-ears wannabe seller let me see whether I understood the salient points correctly:

* consciously put a higher price than one thinks is reasonable & fair on the property - because everybody WILL make a lower offer than the asking price, never mind HOW reasonable. Dumb question: to avoid the to-ing and fro-ing of offers and counter-offers couldn't one just say " realistically priced, no offers accepted". Or is that a no-no?

No reason why you couldn't say that to the estate agent. But I've been through the house buying/selling process a few times and there is always a bit of discussion, it's just part of the process. We've found it's best to roll with the punches, give a little on the things that don't matter - there is enough to get stressed about without starting off badly.

* accepting an offer is essentially meaningless since the prospective buyer doesn't have to honour the offer...nor am I, the seller, obliged to sell the house for this or any other price if I change my mind.

Yes, they can walk away after making an offer, but unless you accept an offer at some point then you will never sell.

* indeed, at any given point prior to final completion can the seller or buyer walk away without a rationale.

I think that if they walk away after exchange the buyer would lose their deposit. Even before then, there are surveys & other fees which they will have paid out for, so after a while walking away becomes less of an option. Yes, it can happen though.

* despite the above, the moment an offer is accepted, the EA will stop advertising the property or sending other prospective buyers to the house

I think this does depend on the EA and the situation to some exent (I know we were sent to see properties that were under offer once because the EA got frustrated that sales weren't progressing). But the buyer will get annoyed if they think that the EA is still advertising a property they've had an offer accepted on, so they tend not to. Sellers aren't usually in the mood to show a house once they've had an offer either.

* prospective buyers don't have to demonstrate that they either already have or definitely will obtain the financial means to purchase my property - so half of the people coming round are likely to be time wasters, who prefer to snoop through people's houses. Or, perhaps, see what's worth stealing. Beats trundling round the garden center, I suppose.

Yes, this happens, but you could ask the EA only to send around people who are in a position to proceed - depends how fussy you feel you can be.

* gazumping and gazundering abounds depending on the market. Currently we are in the gazundering era.

Listen....if this is REALLY what is going on...how is anyone still selling or buying a house still remotely sane? Can this be right? Or have I misunderstood something here?

Or should I prepare myself for spending the next few month to show people through my home who haven't got the dosh nor the inclination to buy it or who are likely to drop the agreed price 5 minutes before handing over the keys by thousands of ££££££?

Is there a way to minimize the pitfalls of this apparent snakepit?

Nothing you've said is new! We've bought & sold houses at times when prices were going up & going down, this stuff all goes on & has done for years, just different things are more common at different times. Good luck!

baileysbattlebus

lostinrates wrote: »

I've always wondered what happens on survey results in Scotland? If it looks fine but is then found to have significant problems?

You get your survey done and usually have your finances sorted before you make an offer on the house

Quite a few houses up there are "fixed" price - this was the route we chose a both a buyer and a seller - as a buyer because we couldn't be a**** with sealed bids and potentially losing the house we wanted - so we never looked at houses advertised as "offers over".

As a seller because it gave the buyer an indication of what you wanted for the house and weren't expecting a 20% uplift.

The problem comes when houses are "offers over" and you don't get the house - you have already paid for a survey and have no house - so you move on to the next one and the next one....

There was talk about get one survey that would cover all interested parties - but I'm not sure if anything came of it

Thrugelmir

* indeed, at any given point prior to final completion can the seller or buyer walk away without a rationale.

On exchange a deposit of 10% is payable which the prospective purchaser would lose if walked away after this point. However the purchaser is contracted at this point to buy the property at this point.

There was a story a few weeks back where an investment banker and his wife were unable to complete as couldn't raise the finance to complete. So was heading for bankruptcy as property value had dropped so seller could sue for recompense. Difference in property valuations I believe. Perhaps somebody else recalls the precise details?

Bf109

Jennifer_Jane wrote: »

It may be the system in other countries, I only know about South Africa really. It works.

I remember when my mum bought a flat in Cape Town while I was at Uni back in '99. Took about 2 weeks from offer to completion.

vendor: "Do you want to buy my flat"
buyer: "yes"

What is so farking difficult?

harrup

Feline_friendly wrote: »

Honestly...is it worth selling right now??? I have seen 2 houses that are in a nice area that were previously out of our budget...i have yet to put ours on the market (currently trying to find a mortgage)...but is it worth it...are people actually selling succesfully at the moment??

Is it worth selling right NOW? Probably not.

But you know;

a) I'm sick of my house

b) we have lost out big time on the good ol' property boat, anyway. Why? Because we never house hopped. We never traded up a bit here and there and then sold and moved on. 10 years ago we saw a house I really liked. At the time our house was worth perhaps £ 150 000 or so. The other house was on the market for £ 325 000. It was within our budget, in an area I liked ...except in an act of intergalactial studpidity I decided I DIDN'T want it after all. Because - I can't believe I even admit to it - the inside of the house failed to thrill me ( and, yes, I AM bashing my forehead with a hammer as we speak). 8 year later that same house was on the market for £ 750 00. And waaaaaaaaay outside of our budget. Too much of a differential. Each time I walk past it now I give myself a good clout around the chops.

c) who knows by how much house prices will fall and until when. I thought 5 years ago that they were ridiculous....and they kept on rising. And rising.

So how long do I wait? Only to miss the boat again.

Perhaps we ought to do what many of our friends did - emigrate. They all sold high and went on to New Zealnad, Spain, France, Canada. Seemingly only moronic muggins me is left to wrestle with house prices. Blargh...

harrup

tyllwyd wrote: »

Nothing you've said is new! We've bought & sold houses at times when prices were going up & going down, this stuff all goes on & has done for years, just different things are more common at different times. Good luck!

Thanks for a really helpful reply.

At the end of the day one just has to roll with the punches.

I suppose what it all boils down to in the end - what is a given house worth to US. Do we have the money to sensibly afford it - whatever its price - or not.

We are not looking to make an investment to sell on for a profit - we just want a home we like and where we can grow old in.

But I WOULD hate to loose a hundred grand or more on it. I am not savvy enough about house prices OR the economy to know whether this is likely. And, seemingly, nobody else knows either.


I do need those good luck wishes!:p

Bf109

harrup wrote: »

* consciously put a higher price than one thinks is reasonable & fair on the property - because everybody WILL make a lower offer than the asking price, never mind HOW reasonable. Dumb question: to avoid the to-ing and fro-ing of offers and counter-offers couldn't one just say " realistically priced, no offers accepted". Or is that a no-no?

House prices are subject to haggling and negotiation. Just like a shirt at a market.

harrup wrote: »

* accepting an offer is essentially meaningless since the prospective buyer doesn't have to honour the offer...nor am I, the seller, obliged to sell the house for this or any other price if I change my mind.

Accepting an offer costs a vendor nothing. For a buyer to proceed, he must fork out for solicitors, surveys, mortgage fees etc...

harrup wrote: »

* indeed, at any given point prior to final completion can the seller or buyer walk away without a rationale.

Except the buyer will incur very big financial loss... the vendor can do what he likes...

harrup wrote: »

* prospective buyers don't have to demonstrate that they either already have or definitely will obtain the financial means to purchase my property - so half of the people coming round are likely to be time wasters, who prefer to snoop through people's houses. Or, perhaps, see what's worth stealing. Beats trundling round the garden center, I suppose.

Neither do vendors have to demonstrate that they have any intention or even the means to move somewhere else. Therefore all the houses I am going to view are likely to be time-wasters who want to get money for old rope by selling the same house by more than they paid for it.

harrup wrote: »

* gazumping and gazundering abounds depending on the market. Currently we are in the gazundering era.

Tough for you at the moment, nice for the buyer at the moment. Previously it was the other way round. Swings and roundabouts

harrup wrote: »

Or should I prepare myself for spending the next few month to show people through my home who haven't got the dosh nor the inclination to buy it or who are likely to drop the agreed price 5 minutes before handing over the keys by thousands of ££££££?

Sure, because everyone wants to spend their precious free time wandering around your grotty, overpriced, mis-described poop-hole.

harrup

Bf109 wrote: »

Sure, because everyone wants to spend their precious free time wandering around your grotty, overpriced, mis-described poop-hole.

?????????????????

WHAT exactly is your problem? Why the gutter language and hostility?

I asked some questions because I've never sold a house before. What in my post made you conclude that I have any desire to overprice the house or to describe it inadequately or deceptively? Because....ALL current home owners are greedy, deceptive !!!!!!!s by default?

The current system is clearly a minefield for the buyer AND the seller and needs improving.

harryhound

harrup wrote: »

* indeed, at any given point prior to final completion can the seller or buyer walk away without a rationale.

*[buyers] who are likely to drop the agreed price, 5 minutes before handing over the keys, by thousands of ££££££?

It is "exchange of contracts" that freezes the price. If the buyers pull out after that they lose not just their deposit but they are also liable for the seller's subsequent expenses and losses.