Ever feel you will never get to buy your own place

Pixie5740

TrickyTree83 wrote: »

No it doesn't. The sooner the system is changed so that the valuation is done by the seller prior to sale the better.

That way everyone knows what the valuation is, then if you choose to pay more than the valuation then you need to understand how it will affect the LTV before you even take that decision. At the moment the process is wrong in my opinion. It still won't help the OP's situation, OP just need to keep going.

That's how it works in Scotland just now but if your in an area of high demand such as Edinburgh or Aberdeen (well when oil was $100/bbl+) then things still go for way over the valuation.

I started my search to buy somewhere in Aberdeen when house prices were rising faster than in London. A property valued at £300k on the home report would be advertised at offers over £300k and would go for 20%+ over the asking price, I remember one house I really liked went to closing and I put in an offer of 20% over the valuation....I was 19th of 19. I bid a bit more than I was comfortable with and I felt so relieved when I missed out. I was even more relieved when the price of oil tumbled.

So having the vendor pay for the home report doesn't really help in that respect. However, it does stop potential buyers wasting money on surveys only to find out the attic conversion wasn't done properly and those sorts of things.

TrickyTree83

Pixie5740 wrote: »

That's how it works in Scotland just now but if your in an area of high demand such as Edinburgh or Aberdeen (well when oil was $100/bbl+) then things still go for way over the valuation.

I started my search to buy somewhere in Aberdeen when house prices were rising faster than in London. A property valued at £300k on the home report would be advertised at offers over £300k and would go for 20%+ over the asking price, I remember one house I really liked went to closing and I put in an offer of 20% over the valuation....I was 19th of 19. I bid a bit more than I was comfortable with and I felt so relieved when I missed out. I was even more relieved when the price of oil tumbled.

So having the vendor pay for the home report doesn't really help in that respect. However, it does stop potential buyers wasting money on surveys only to find out the attic conversion wasn't done properly and those sorts of things.

Yeah I was aware of how it works in Scotland, I agree with the system.

It's a much fairer way of property buying/selling. And yes there is still the possibility of the property selling for well over the valuation but I would think only by those that can afford to do that leading to less ridiculous offers which then cannot complete later down the line. Surely that's better for the seller, much more certainty once the offer comes in and better for the buyer, no need to pay for a survey over and over again when it comes to light that there are issues with the property that weren't disclosed.

To me anyone who wants to maintain the existing system in England and Wales like the system because you can bulldoze people into being ripped off and paying way over the odds even after the survey comes back and tells you it needs a new roof, or has subsidence, or some other problem. By which time you've wasted hundreds, possibly thousands if you pull out.

anto164

Just be careful - When you're buying with 10% deposit and offering over the asking, you may need to stump that extra up over the valuation.

This may be an issue when borrowing as mortgage lenders base it on a loan to value, and if you have 10% of a 100k house (£10k), but offer 110k, if the mortgage valuer comes back and says yes, it's worth £100k, then the mortgage company will only lend 90% of that value, 90k, leaving you with a 20k deposit required.

This is just something to bear in mind, and may not be an issue, depending on lender.

ThePants999

Are you sure that valuations are coming in lower than what's being offered?

On our recent transaction, we sold at £10K over asking, and the valuation matched the offer price. We bought at £17K over asking, and the valuation matched the offer price. There's no reason to assume that the asking price is anything other than a starting point.

sann420

Thorson,

Dont be disheartened. Its just the herd mentality of the buyers. This was happening on my side of town(Zone 2) last year and now a lot of properties are just sitting there waiting for buyers. If you think it has become insane atm then try waiting it out for about 6 months. Hopefully your area will stabilise then. But until then just keep trying but dont take it to heart

All the best.

Bluebirdman_of_Alcathays

So why don't you look for properties marketed around 180/190k, and then you have the wiggle room when the bids start increasing?

Thorson

Thanks sann420, I understand what you are saying it's just disheartening and there's not much else coming on the market.

Thanks for your replies it's appreciated and I'm sure something will come up when we least expect it.

Take care all

lincroft1710

I'm sorry, Thorson, but it seems as if your budget is not sufficient for prices in your area. So you may have to look outside your preferred area.

AnnieO1234

Yes! For the best part of a decade between gazumping and market increasing at a stupid rate.

We finally decided to look further afield and hit upon a charming market town close to m1 that ticked almost every box. It was only 15-20 minutes out from where we grew up but may as well be in another country.

On the one hand we've paid more than the local populace but we're all transplants from nearby cities. The area is gentrifying, and we probably bought at the right time with the crash.

Xxx

MerrilyA

You have to be proactive and do what the majority aren't doing.

Building up relationships with estate agents is a start, you've got to be searching aggressively. If you must, use other means to search for a place. Some people put ads up on gumtree, post some notes in houses that you're interested in politely stating what you're looking for and a contact number you're happy to share, post a few notes in houses that have 'for sale' boards up, put up a note in a local corner shop or local business. Talk to people in the area, even tradespeople who would be in and out of houses.

You still may need to compromise on certain things like location or work needed but doing different things should provide you with different results.