Cant buy house due to stupid offer games!

bouicca21

The market in London has gone crazy. Houses go instantly, without even a second viewing. People are spending hundreds of thousands with less thought than they would put into buying a coat or even choosing a sandwich for lunch.

It's at least meet offer price, often beat it, especially in the sub 250k level. It has become really difficult to work out what to offer. Past selling prices are no help. I am about to look at a property 'guide price' 325-375k. What the hell help is that in working out where to pitch an offer?

Thrugelmir

bouicca21 wrote: »

The market in London has gone crazy. Houses go instantly, without even a second viewing. People are spending hundreds of thousands with less thought than they would put into buying a coat or even choosing a sandwich for lunch.

Maybe time to stand back and watch. Don't get drawn into the must buy one now syndrome. With the stamp duty threshold at £250k. There's a huge barrier on the upside potential of properties just beneath this level.

bouicca21

Well you'd think 250k would act as a huge barrier, but it isn't. Too many buyers, too few houses.

CLAPTON

Blogger wrote: »

Tancred


I meant below 250k mark when I said affordable. My partner and I do not want to get large mortgage so smallish houses seem to be in high demand. To be honest I have not really looked into flats due to complicated leasehold structures and high charges my friend's are experiencing so I've made my mind that I wont buy a flat.

During attempt 2 the house was sold ABOVE asking price of 220. I think this is just a EA's game of putting house at below market value to attract sellers...Either that or the market is going crazy again.

ThemeOne

I did not realise how difficult it would be. I thought if I pay the asking price the seller should be happy about it but I was wrong.

Hopefully you are right and I will get something soon .

For the London area you have left it a bit late: six months ago the asking price was OK but now people are panicking a bit and prices are rising
plus of course there are not a massive number of houses in London in your price band.


and best to avoid the use of the word 'affordable' :
although politicians use the word all the time they often fail to mention that in 'planning' speak 'affordable homes' mean rented properties to council tenants.

Thrugelmir

bouicca21 wrote: »

Well you'd think 250k would act as a huge barrier, but it isn't. Too many buyers, too few houses.

Like lemmings.................

Starside

I have found a silimar situation to the OP.

I am a first time buyer looking to buy a house for £165-180k in the Midlands.

I have £85k deposit (10 years of savings) and my history so far in 12 months of looking is:

Attempt 1
House advertised for £165 with no chain (going through probate). Offered £155, but beaten within 12 hours by soemone else who offered full asking.

Attempt 2
House was advertised for £165, offered £160 since the house was on the market 6 months before for £157. Offer refused, house never sold because the house had tenants.

Attmept 3
House was advertised for £167. Offered £167, only for the EA to tell me that an offer for full asking had already been made.

Attempt 4
House was advertised for £175, offered full asking price wich was accepted. 8 weeks later EA informed me that the chain had fallen through and our vendors could not find anywhere to live, therefore they were pulling out. (I had not spent any money of surveys etc)

Luckiliy I have not lost any money in this house buying game, and one thing I do not really want is to get into a bidding war.

I find it very frustraiting that I am in demand, and there is no supply. (Although I am quite area specific).

Paul

Thrugelmir

Starside wrote: »

I find it very frustraiting that I am in demand, and there is no supply. (Although I am quite area specific).

Most likely the result of a more normal market. During the credit boom a property was changing hands every 4 years. As people traded up on the back of rapidly rising prices and incomes which enabled huge mortgages. Already property changing hands, is now over 7 years, which is closer to it's long term average prior to the credit boom.

2010

makeyourdaddyproud wrote: »

I'm sorry but it's people like you that inflate the market at every turn and I have no sympathy.

I would say that the main cause of inflated prices is EA closely followed by builders.
Cheap lending of tax payers money doesn`t help either!
The price of a property has already been inflated by these people so I would always offer less.

2010

Tancred wrote: »

Look for a flat instead!

Never ever buy a flat.
You`ll have neighbours above, below and at the sides of you.
On top of this you`ll be ripped off every year by a thing called "service charge", ground rent and management fees.

olias

OP, you should move north! For £200k I'll let you have my 4 bed 3 bath stonebuilt townhouse in a conservation area with 2 receptions, a utility and a garage. In fact I'd snap your hand off!!!!:(

Olias