Under what circumstances does a property go to a closing date?

[Deleted User]

MovingForwards said:

Going to closing date is for popular properties with at least a few people interested. I've seen some properties go up with the closing date already in the advert, others have the advert updated to say when the closing date is.

If you're planning on living in the property for 10+ years it's worth the risk of slightly overpaying as in theory the price could catch up to your offer. However there's always a ceiling price and it's worth looking at historical sales to see how they've moved over the various market blips.

Remember to have an overlap with buying and returning your rental keys, takes a lot of stress out of moving.

Mine didn't go to closing date and I paid less for the property than my seller did when he got it.

Thank you, this is really insightful. I guess what I'm trying to figure out is how much I should go over the valuation price of £68k. I was planning to offer £76,200 as I think this is a fair amount over. However, given the circumstances at the moment, I'm not sure if it's enough. In theory, I could go to £80k but this seems excessive - £12k over the valuation. However, still lower than a lot of properties I've seen.

davidmcn

How much you have to offer over really depends on the local market. If there are comparable properties, have a look at recent completed sale prices (versus the asking price/HR value) for an idea.

[Deleted User]

Nebulous2 said:

We have just sold in Scotland and the interest was much better than we expected. If there genuinely is a lot of interest, then be prepared for it to move very quickly.  

Our timetable went something like: House was advertised on the Tuesday - two viewings. Wed four viewings.  By the end of the day on the Wednesday we had one offer and three noted interests and our solicitor said to go for a closing date. Closing date set for the next Tuesday.  Seven viewings over the weekend.  People viewing were very interested - but some were clearly wrongfooted by the speed, some of them didn't have a solicitor, one had the same solicitor as us and had been told he needed to find another. We received no more noted interests, but then they didn't need to as they knew when the closing date was.

People are torn with the dilemma of wanting it, and not wanting to overpay, so they were looking for guidance.  When they asked what we expected for it we said we didn't know, we expected it to go over valuation, but we didn't know by how much "Consider what it is worth to you." 

We received five offers, all above valuation.  That was a week from advertising to closing date.

Your solicitor will be a better source of advice than an estate agent. He / she will also have hard facts to work on, how many noted interests there are for instance. It is fairly brutal however. We had five people wanting it and clearly only one can be successful. We are also in an area where a lot of properties go under valuation, so it was a leap for buyers to accept that was not going to happen here. 

Wow...thank you. Really good to read about your experience of selling and how quickly it moves. Honestly, I'd be delighted if it moved super quickly as I have a mortgage in principle and a solicitor already. The one I'm interested in seems very similar to your sale in terms of interest and how quickly it has moved (this time last week, it wasn't even advertised yet). When I went for a viewing, I didn't ask what the seller expected which would have been a good question to ask. However, I think even he was slightly flummoxed by the speed and interest. I viewed the house the day after it was posted on RM, and by that time, he'd already received an offer (£3k over the valuation - was rejected because it was so early in the process). 
A lot of what you say really reflects my experience at the moment. The area I'm hoping to buy in (remote village) doesn't get much interest. In fact, I've seen properties stay on the market for 6+ months in the past. However, this situation is completely out of the ordinary and I guess we have to adapt to the fact that what we thought we knew about this process is being blown out of the water! On the plus side, it's great you got so much interest in your property and hopefully a good selling price!

[Deleted User]

sheramber said:

I moved last year.  The house went to a closing date.
 The seller had already had an offer accepted on his next house with entry in 4 weeks. 
I had sold and was moving in with my son until I bought a house near him. 
I Offered 16% over the home report price and was one of two offers considered. It is a popular town with a lot of demand.
My offer was accepted as I was able to accommodate the sellers entry date.
My solicitor did the negotiating with the seller’s solicitor.

Love reading these experiences, thank you for sharing. 16% is a lot but possibly even more relevant in the current circumstances. Glad you were successful in getting your house!

[Deleted User]

davidmcn said:

How much you have to offer over really depends on the local market. If there are comparable properties, have a look at recent completed sale prices (versus the asking price/HR value) for an idea.

I think the local market has historically been pretty slow (small, remote village, no amenities apart from a museum and pub). In the current market, things seem to be different though so I'm not sure to what extent I can go on past sales at the moment...

MovingForwards

Is this a stepping stone property or would you plan on staying in it for life?
If the former, how many years?
If any of your offers were accepted, would you be sitting in your home thinking 'its all mine' or 'OMG why did I pay this much'?
Have you looked at sold prices over the last 20 years to see how they rise and fall?
If so, how do they all compare with each other?
If there was a crash the day after you moved in, your property dropped to a value of £40k, what would you think?

I'm not suggesting either of your figures are right or wrong, but perhaps you need to weigh up options and see how you think you would deal with each one. What I posted above, and on your other threads, are things I mentally ran through and had answers for before viewing my home.

The main ones I questioned were how long am I staying for and would I be upset if I didn't get it. My answers were life and yes. There wasn't anything else on the market, in my budget, which had everything this flat has eg a private garden and the views.

When's the closing date on the property?

[Deleted User]

Hi @MovingForwards,
Thank you for your questions. Definitely food for throught...
Is this a stepping stone property or would you plan on staying in it for life? Somewhere in the middle I suppose! I imagine I'd want to move to somewhere bigger eventually, but I can see myself there for 10 years.
If any of your offers were accepted, would you be sitting in your home thinking 'its all mine' or 'OMG why did I pay this much'? The former. I am trying to come up with a figure that is pretty much in line with what I am paying for rent at the moment because I know that works for me.  
Have you looked at sold prices over the last 20 years to see how they rise and fall? Yes, as much as I can. The sellers bought in 2019 for £40,000 but have done a lot of work to the property and now selling for excess of £68k. It was rebuilt completely in 1999 and sold I believe around 2004 for very little. 
If there was a crash the day after you moved in, your property dropped to a value of £40k, what would you think? Obviously I'd be disappointed but I would also feel quite assured in the knowledge that, for the length of time I intend to be there, house prices would likely rise again. 
I'm not suggesting either of your figures are right or wrong, but perhaps you need to weigh up options and see how you think you would deal with each one. What I posted above, and on your other threads, are things I mentally ran through and had answers for before viewing my home.
The main ones I questioned were how long am I staying for and would I be upset if I didn't get it. My answers were life and yes. There wasn't anything else on the market, in my budget, which had everything this flat has eg a private garden and the views.
Totally agree with this approach. This place ticks all my boxes for now (apart from being detached, but I think that's reflected in the price). I would actually be pretty upset if I didn't get it, come to think of it. I think it's a balance between the head and the heart. My heart is saying I love it, would be happy there. My head is saying 'for goodness sake don't throw silly money at it!' It's a difficult one.
When's the closing date on the property? The closing date hasn't been set yet as it'll go to a discussion between the agent and seller on Tuesday. Not sure how long the closing date will be after the decision is made, but I have a solicitor arranged for when that happens!

theoretica

Don't you need a solicitor to put the offer in?  You should hear the same day about the decision via your solicitor.  Your solicitor may also be able to comment on your offer as they will see what is happening with the local property market.

I divided my house purchase price into two, mentally.  Most of it was what the house was worth - paying for a place on the housing ladder.  I then paid some extra to live in the place I liked - I would rather have a garden every day for 10 years than a few expensive holidays.

MovingForwards

It's not just this property price you need to check, but similar ones on the road / area, then you'll get an overall picture as to how the property prices work during the good and bad times.

Has your solicitor noted your interest in the property? It's not to say you will make an offer but so you / solicitor are told when things change eg going to closing date and anything else.

[Deleted User]

theoretica said:

Don't you need a solicitor to put the offer in?  You should hear the same day about the decision via your solicitor.  Your solicitor may also be able to comment on your offer as they will see what is happening with the local property market.

I divided my house purchase price into two, mentally.  Most of it was what the house was worth - paying for a place on the housing ladder.  I then paid some extra to live in the place I liked - I would rather have a garden every day for 10 years than a few expensive holidays.

You're right, I secured a solicitor but he's quite reserved and advised me not to throw money at it, i.e. stay around 10% of the valuation. He obviously knows more than I do but I feel that's a little low. I like your approach. Frankly, I would much rather have my own little haven and forego some of the luxuries in life to be able to pay for it!