Lost a sale due to low mortgage offer for first time buyers

Rover

Perhaps the posts are representative of current sentiment, that and the dawning realisation that HPI is not the tangible financial juggernaut people would have us believe?

pamaris

Best wishes to the OP, but this is how I see it...

Perhaps several months ago the buyers could afford more because they were being lent more. Now the lenders have tightened up, so the buyers' affordability is crunched. I think the OP should cut her losses, because in 6 months, her potential buyers may be able to afford even less.

I was in a situation a few years ago where we were selling (in the USA)– two deals fell apart and we ended up barely breaking even (we made $500) after we were told our house was "worth" $1000's more. It was incredibly difficult but it was a relief to have the noose loosed from around our necks (we had already relocated for a job and our house was a liability).

We should all assess the situation, read the writing on the wall, and make the decision best for our families. A HPC may be "boring" according to some, but if that is the way things are going, sellers who recognise it early on will lose out the least.

HenryWeston

Your house is only worth what someone will pay.

Dead_Eye_Jones

Melissa177 wrote: »

I don't understand why everyone is saying that the OP is over-valuing her house.

Oh, that's easy to explain! They are saying it because they are think all house prices are over valued and that if a house doesnt sell - there is only one reason!

We can sit here and point out that (apparently) other houses are selling in that area for around that price all day long. But some peeps are a bit bitter about house prices.


If I were the OP Id work really hard at making the place look attractive to potential buyers, change EAs etc.

120k doesnt seem too out of reach to a working couple. Whats that, about £700 a month. So between two thats £350 each. A struggle, but possible on minimum wage.

Hopefully most buyers would have a deposit too, so the real borrowed figure should be lower.

GL to the OP, it takes time and effort to sell a house, but you'll get there .

Melissa177

HenryWeston wrote: »

Your house is only worth what someone will pay.

Not strictly true - it worth what someone is prepared to pay, AND what someone is prepared to sell it at.

lynzpower

Melissa177 wrote: »

Not strictly true - it worth what someone is prepared to pay, AND what someone is prepared to sell it at.

I disagree. in most cases, its also dependent on what lenders will lend on that specific property too.

Melissa177

That's also true Lynz, but I suspect that someone won't be prepared to pay an amount that they can't get a mortgage for..

I'd be interested to know what the mortgage company value the property at, although we won't know until there is an offer in place.

lowbudgetlife

pamaris wrote: »

Best wishes to the OP, but this is how I see it...
We should all assess the situation, read the writing on the wall, and make the decision best for our families. A HPC may be "boring" according to some, but if that is the way things are going, sellers who recognise it early on will lose out the least.

Yes, outside the screaming media headlines about soaring prices there's quite a few regions where prices have been flat for a couple of years or more and the same houses ar for sale month in month out, perhaps with the odd trivial price cut.

Clearly some are in no hurry to sell and feel they 'need' to hit some kite-flying price to afford their next home or clear debts or whatever. Of course, some people will want to sell sooner and sell at a lower price. Those asking last year's prices when neighbours are selling cheaper will have to lower prices.

That inconsistency of pricing is already apparent in my area. You can often see a better house at 249k than something on a 269 or 275k so what are these bumper price tags supposed to achieve if the house sits there unsold?

dolce_vita

All the requirements for a crash are slowly but surely falling into place.

It's not a matter of IF but WHEN.

This crash is going to be quicker and bigger than the last one.

Hold on to your seats it's going to be a bumpy ride.

njwd

Melissa177 wrote: »

That's also true Lynz, but I suspect that someone won't be prepared to pay an amount that they can't get a mortgage for..

I'd be interested to know what the mortgage company value the property at, although we won't know until there is an offer in place.

Yeah it would be a bit of a shocker for the surveyor to say it was 'only' worth £105k, after all it's still nearly 20% greater than the original purchase price.

I definitely think we are approaching a buyers market again, aided and abetted by the credit crunch and interest rate hikes.