Mad London market

pinkpiglit

Just a bit of a rant really. We put our flat on the market in early September and accepted an offer a few days later. Several weeks later we're still unable to find a property to move to, and it's not that we are being picky. We've bid on two properties (at asking price, we didn't bother to quibble) and didn't even get a look in as there were cash buyers willing to pay over asking price.

The market is going up so fast right now that we're worried the price we've accepted for ours will soon be below market value. Everything that's coming to the market is getting snapped up in a matter of days if not hours. (Unfortunately the places that aren't moving quickly are hanging around for a reason)

We haven't exchanged, so that's not a problem, but we might end up having to back out of our sale if we can't find anywhere to move to. So frustrating !

Turnbull2000

If you haven't exchanged yet, I suggest you inform you buyer that your asking price is now higher. London values are some 7-10% higher than seven weeks ago. You need to be ruthless.

pinkpiglit

Thanks Turnbull. How easy is it to do that in practice?

I'm asking as I realise we might also be stuck with the (not cheap!) estate agent commission if we were to pull out. Can they say we're pulling out of a sale if we actually ask for an increase in the price we had previously accepted?

I_have_spoken

Yep, tell the EA to put property back on market and hope to gazump your buyer, prices are going to the moon!

HAMISH_MCTAVISH

While I'll admit to loving rising house prices more than a fat kid loves cake, I think gazumping and gazundering are both equally despicable.

And I still have no idea why you English people accept such a poor system for buying and selling houses.

Perhaps next time, OP, you should find a house first before accepting an offer.

That way you won't need to disrupt your buyers plans if it subsequently turns out you needed to get more for your house than you first thought.

JencParker

HAMISH_MCTAVISH wrote: »

While I'll admit to loving rising house prices more than a fat kid loves cake, I think gazumping and gazundering are both equally despicable.

And I still have no idea why you English people accept such a poor system for buying and selling houses.

Perhaps next time, OP, you should find a house first before accepting an offer.

That way you won't need to disrupt your buyers plans if it subsequently turns out you needed to get more for your house than you first thought.

It's all very well saying that, but in the SE estate agents are not accepting offers unless you have already sold your house.

pinkpiglit

HAMISH_MCTAVISH wrote: »

Perhaps next time, OP, you should find a house first before accepting an offer.

That way you won't need to disrupt your buyers plans if it subsequently turns out you needed to get more for your house than you first thought.

We actually tried that route first. In a normal market I expect it would be fine, but we were told by more than one estate agent that we would not be viewed as a "serious" buyer because of our situation. Sure enough, we bid asking place on a property and the vendor rejected it on the basis we still had a property to sell which was not yet on the market.

Initially we were going to break the chain to put us in a better position, however given the sky rocketing London prices it's no longer an option. If we were looking to downsize it wouldn't be a problem, unfortunately we are not.

HAMISH_MCTAVISH

JencParker wrote: »

It's all very well saying that, but in the SE estate agents are not accepting offers unless you have already sold your house.

If the OP had actually sold their house, they wouldn't be able to pull out.

They've accepted a meaningless, non-binding, offer from which either party can walk away at any time.

That's not "selling" under any sane definition of the word.;)

As I said, I have no idea why you English put up with such a system....

Rosee58

I know exactly where you are coming from pinkpiglit. I am in exactly the same position; accepted an offer on my flat over 9 weeks ago, had to pull out of a purchase because of a very bad survey and now can't find anything. The market has been flooded with first time buyers and there are just not enough properties to go round. I have been thinking of putting my property back on the market, but don't want to be one of those people that mucks people around. I spoke to an estate agent friend who said that it would be unsual for an estate agent to charge you fees if the sale hasn't gone through, but you should check your T&Cs.

Any advice from anyone about whether or not I should put my flat back on the market?

Vetyver

Oh my. I know it's every-man-for-themselves in this cutthroat world of property, but as an FTB who just guttingly lost a London purchase that has taken up considerable time and investment because the seller is doing exactly that (pulling out and remarketing for higher), I really feel for your buyers on the other end

I_have_spoken

Unless your number is on the right Rolodex, you may never even know a London property is for sale!

Off-market property sales: the whisper spreading across London

"... increasing numbers of buyers and sellers are circumventing the public arena in favour of an off-market sale. Discreet and calm, these deals progress not by listings on high-street windows and open viewings, but by quiet phone calls to the right people."