Keep losing out - current market experiences (Scotland)

JenST84

Hiya
My husband and I are first time buyers - it's taken us about 10 years to get financially fit and pull a deposit together.  Everything lined up for us just prior to lockdown and then we couldn't do anything about it as the market stopped.  Now the market is moving we are struggling and so disillusioned with it.  We're buying in Scotland and have made offers on 4 properties now, all either rejected at closing date or just rejected straight away.  We refuse to offer much above the home report value (and don't have the money to do so either) and right now properties are selling at times for £10k over value, not even over asking.  Is anyone else finding this?  There seems to be such a high demand and so few properties it's like a free for all.  We tried to view one property and an offer was made before the buyers had even viewed it.  I am well aware estate agents talk up the interest on a property, but we have viewed houses and there are queues of people waiting to get in, so we know the demand is there.
Anyone else in the same boat?  Don't even get me started on our experiences with estate agents.  I know they get a bad rap, but seriously - the inefficiency and poor service is driving me crazy.  
Anyone got any insights as to what might happen with the market as we get further into the recession?  Anyone else feeling the pain too?

Vestraun

Also looking in Central Scotland just now, but I'm taking it slow as I don't personally think the market will continue as it is. I've been watching a lot of properties and have seen quite a few come back on to the market which is unusual in Scotland (my guess is mortgage didn't come through, especially when having to bit over HR brings up your LTV). 

In my view, I'm going to watch the market and even if it does rise then so be it, but I'm not going to get caught up in the craziness and add more fuel to the fire.

HummingBird76

I am buying and selling in Edinburgh and the market is crazy!  You will most likely have to offer over HR valuation if you want to get anything.  My flat sold for £15k over the HR valuation (which was 20k over the offers over) and on the house I'm buying I offered 10k over HR.  I always think something is worth what you are willing to pay for it.  If you see a house you really really love, you will go as high as you are comfortable doing to try and secure it.

davidmcn

I don't have any particular insight into the current market, but is something is going to a closing date, you have to expect it to sell at significantly above HR value. If you can't afford that, you may need to be looking at cheaper properties - or concentrate on less popular ones which aren't going to go to closing dates.

getmore4less

There was a thread here just yesterday on a house in Glasgow.
https://forums.moneysavingexpert.com/discussion/6178544/found-a-property-we-love-how-much-should-we-offer#latest

 I could not believe how good the for sale and SSTC were in favour of the sold ones were on rightmove.
for sale 2,300/4400 SSTC(under offer) over a large area for all types 2/3 SSTC is on hte upper end. 

when you narrow down on price and type stock levels for sale  can get very low in some areas places are getting snapped up very quickly..

it looks like it very much the sellers market and you need decent offers to get anything as there is a shortage of properties.
That's Glasgow Edi not so hot  1221/1507 but still good.


Looks like our resident Crashy has missed  yet another dip in the market over the winter, must be fuming at all the crazy people wanting to buy rather than have a life time renting.

[Deleted User]

Yup, we are in the exact same position we have lost out on 2 properties by a massive margin. Just yesterday we offered on a property. O/O 144K HR 160K. We were 1 of 12 other bidders, the second highest bidders. The highest offered something in the region of 190k!

RelievedSheff

Just keep looking. Something will come up that you like eventually.

If properties are selling for over the asking price and valuations by some margin then you perhaps need to look at properties in a lower price bracket to be in with a chance of securing one.

MovingForwards

I didn't even look at the county I was renting in as I knew anything listed near my budget would go over it. Instead I looked at bus / train timetables and season tickets, ruled areas out due to the limited transport links.
Found a lovely place in another county, very frequent trains, frequent buses, much better value and I've settled in well. I got it under the HB valuation.
To buy a similar property near where I was renting would have cost £100k more. For me to spend that in commute costs I will be long retired and probably dead before using it all up.

Expand your areas and work out costs, unless you can vastly increase your deposit you can't afford the area you are looking.

orangecrush

Hi,

I'm not in Scotland but we found the same thing with our hunt!  Complicated by us having to sell too. 

We live in one of "those" areas where people get hysterical about getting a house near a particular school, and we found - like you - people were offering asking price and above on properties without having seen them.

We also refused to offer over the asking price, mostly out of fear that prices would crash but also out of principle - if the vendors wanted more, why not list at a higher price and save wasted effort? - and all that happened was we just kept missing out.  We decided we'd have to play the game.

We have now found a property and are in the waiting for searches and mortgage approval stage.  What we did to secure this one was to find the least-worst person at each estate agent and build up a rapport.  In this case, we went to our chosen person when we saw a house come on the market and just said we will offer on this property, it will be a good offer and we're well underway with our sale - can we get a sneak peek before it goes to block viewings.  You need to just grit your teeth and go with it.  It's hideous.  But worth it when you get that offer accepted!

JenST84

Thanks all for your replies, I just wanted to hear what everyone else is finding.  I totally agree with paying what you think something is worth.  Because we're not in a position we desperately NEED to buy right now, I just don't feel comfortable offering way above the home report value when ahead the market is so uncertain.  Even looking at properties way below our budget/where we're comfortable, I just don't want to pay £10k of our own savings on top of our deposit that we're never going to get back.  We seem to be up against people who have sold properties and have equity to put down so can make higher offers and NEED to get into a new house.  We don't have that level of urgency in buying and as much as it pains me to keep on paying private rent, it feels like waiting might be the best thing.  I just needed to know I'm not the only one tearing my hair out with it!

orangecrush

I last bought in Scotland in 2004, so a long time ago, and I'm not sure how the HR valuation stacks up compared to mortgage valuation, but we're pretty much putting our faith in the mortgage valuer to knock down any super inflated values.  That may be unwise, but we do need to move so kind of have to go with it!

In terms of how the recession may impact, and when, it very much depends where you are.  Edinburgh for example wasn't massively hit by the 2008 crash, there was a brief dip in prices but it recovered fairly quickly.  So if you're buying there, I wouldn't put your hopes on a recession correcting the hype.  If you're in a less desirable area, then once the longer term economic effects of covid are apparent then yes there may be impacts, but I'd be surprised if there was widespread tank-age of property prices.