Frustrated FTB

C1996

As you may be able to see from my previous posts I have been looking to buy a property for two years now. I understand the current climate has impacted the market making it difficult for many other potential buyers. 

But currently I just can’t help feeling fed up! I’m from a small city in Derby, I have had many experiences of being out bid or being turned away from EA due to vendors already accepting offers. 

I have now widened my search to all areas of Derby and to up to £140k. I have a good job and I have managed to save a 15% deposit. 

I am searching Rightmove daily, I have contacted at least 11 EA’s so that my details are registered with them, yet the properties coming onto the market remain low.

I know that nobody knows what the market will be like, but I am interested to know 

1. are there any other FTB’s facing the same situation as myself 

2. do people think the supply and demand issue will correct itself 

3. does anyone have any tips to enable me to secure my first home? 

Thank you for reading 😚

TXC

My twopence worth...worth as much or as little as anyone else's opinion:

1. are there any other FTB’s facing the same situation as myself
Yes, tonnes - its very hard yards out there market wise. Prices are rising faster than people can save and the housing market is continuing to defy all logic. I was searching for a year and have had two purchases fall through before finding this house on which I'm hopefully completing in 3 weeks or so. Its a very difficult market.

2. do people think the supply and demand issue will correct itself 
No I personally don't - the huge imbalance between supply and demand is the real driving force of market behaviour here I feel. There has always been an imbalance and this is likely to increase 

3. does anyone have any tips to enable me to secure my first home?
Sounds like you're already doing a lot of what I would say but..

1. Ingratiate yourself with all local EAs, get on their good list and youll get preferential treatment around viewings for new properties.
2. Build on what little leverage you have: make it clear you are chain free and can move as quickly as desired. Keep bolstering your deposit - bigger the better.
3. Widen your search area and go to view as many houses as pssible, a lot of this is a numbers game with viewings and you need to go and see ones you may even initially write off from photos (I wrote off this current house initially because it had a flagged yard and I wanted a garden - only by virtue of the fact the first purchase fell through and I decided to give it a chance am I in the position I'm  in now) - make a list of what you will not compromise on and what you can compromise on.
4. Find common ground with the sellers in the viewings, again ingratiate yourself. People often sell to people they like or get a good vibe from. Regardless of what some say, buying and selling a house is very emotional and people want to sell a home where they've been happy to people they like.
5. If you want a higher risk strategy, use one of the few bargaining chips you have- offer considerably above asking to get the vendors to take notice and potentially accept your offer, then use the inevitable downvalue from lender to negotiate the price back down. A lot on this board don't agree with this approach and it is just as likely not to work as it is to work - but in a seller's market where higehst offers are being accepted and FTBs especially have very little leverage you maybe have to play a little dirty. 

Out of interest, how much do you earn (ballpark)? I only ask because 140k with a 15% deposit points to about £119k mortgage? If you're on c.26k as I assume you might be (4.5x salary rule) - have you tried using a mortgage broker to align you to lenders who may be able to lend you more than 4.5x your salary? they certainly exist.

GentleGiant01

Aside from the helpful hints here, my only hint would be consider houses that have been on the market a while, like this one maybe: 

https://www.rightmove.co.uk/properties/116133326#/?channel=RES_BUY

would take a lot of work, but has been on the market and already reduced, you’d be able to get a good deal, etc 

propertyhunter

Firstly, congratulations for getting that deposit together. It's not easy. 

@TXC provides very helpful hints. Definitely worth making the time to nurture relationships with EAs so they call you first when there is a new listing. To get to this point it sometimes means going to see lots of properties and being really keen to see things they suggest. Making an offer and losing the bid on the property is also going to get you noticed. This makes you a high priority buyer. 

Offering high to get the offer accepted is a dirty trick, and you might not be the only person playing it. What I would do is really get a sense of the local market - speak to estate agents about what houses are going for in relation to the asking price. They are more likely to reveal this information if you've spent the time to see properties with them or you'll deduce this if you offer and lose. 

Don't rely on just registering with them, you need to call - probably about once a week, or once every 10 days. Ask them about new instructions, and if there are any viewings coming up that weekend. Not all properties make it onto Rightmove. The best ones don't, and they typically go to people the EA calls on their high priority list. 

youth_leader

I agree that going into the EA office, now they are open again, is a very good idea.  I had seen about six properties with mine and got to know them.  After a few weeks, after another unsuccessful viewing, they told me about a bungalow coming up. I viewed it first and offered asking.  Vendor continued the viewings over the weekend but said I could have it if I offered over, which I did. 

Sistergold

GentleGiant01 said:

Aside from the helpful hints here, my only hint would be consider houses that have been on the market a while, like this one maybe: 

https://www.rightmove.co.uk/properties/116133326#/?channel=RES_BUY

would take a lot of work, but has been on the market and already reduced, you’d be able to get a good deal, etc 

I agree with @GentleGiant01, I had to buy a house  which needed a lot of work as this reduced competition. Before that it was high offer after high offer with all of them going back and forth with estate agent asking me to offer more as another person had offered more. This was 2019 and it felt stressful then. Now the competition is worse. Find a house needing work then you take time to renovate it. Even back then in 2019 I still had to pay more than the house was worth just to secure. It’s all very ridiculous. Now that the renovations are done plus the overpricing I can still tell you I don’t regret it. What you lost feels less traumatic the longer you live in the house. 

[Deleted User]

You are not alone, there are thousands in the same position.

It probably won't get better. The economy is struggling. Interest rate rises make it hard to get a big mortgage. High inflation makes people want to invest in property. There is no national house building strategy and the supply problems won't get any better.

Have you looked outside England? Scotland is still somewhat affordable, or maybe Ireland. Ireland is really nice.

ABFG

I was in the same position, losing bids and not even getting to see properties last year despite all my best efforts last year (Summer into Autumn). Then suddenly it all came together, although admittedly your 2 years trumps my 6 moth search. There's some good advice on here, I have a couple extra to add:

• If you haven't, get a mortgage broker lined up and an AIP in your hand. Be ready to press the go button as soon as offer is accepted. Make it obvious you're ready to the EAs.

• When searching on Rightmove/Zoopla, look for places just above your budget (one bracket up) and then sort by length of time on the market. Some of the ones in the bracket above there for a long time are ripe for an affordable offer. Obviously, do your due diligence as there may be a reason for a sale falling through, but it might be unrealistic pricing and no more (as the one I bought was).

• Pick priorities - decide the key things that will impact your happiness, and try to focus on those. Often, it is the things you can't change that really matter - how good/close is the parking, garden size, overall size, location etc. Much can be changed in a property fairly easily or at a later date, for example my new place has a bit of a naff kitchen, but with a new hob and oven it is serviceable for a few years and that sacrifice secured me a lovely location with good parking.

All the best and good luck.

C1996

GentleGiant01 said:

Aside from the helpful hints here, my only hint would be consider houses that have been on the market a while, like this one maybe: 

https://www.rightmove.co.uk/properties/116133326#/?channel=RES_BUY

would take a lot of work, but has been on the market and already reduced, you’d be able to get a good deal, etc 

Thank you, I have read similar comments where people have advised to look at properties that have been listed for longer

C1996

propertyhunter said:

Firstly, congratulations for getting that deposit together. It's not easy. 

@TXC provides very helpful hints. Definitely worth making the time to nurture relationships with EAs so they call you first when there is a new listing. To get to this point it sometimes means going to see lots of properties and being really keen to see things they suggest. Making an offer and losing the bid on the property is also going to get you noticed. This makes you a high priority buyer. 

Offering high to get the offer accepted is a dirty trick, and you might not be the only person playing it. What I would do is really get a sense of the local market - speak to estate agents about what houses are going for in relation to the asking price. They are more likely to reveal this information if you've spent the time to see properties with them or you'll deduce this if you offer and lose. 

Don't rely on just registering with them, you need to call - probably about once a week, or once every 10 days. Ask them about new instructions, and if there are any viewings coming up that weekend. Not all properties make it onto Rightmove. The best ones don't, and they typically go to people the EA calls on their high priority list. 

Thank you 😊 

I have offered high before & it’s not always helped me as they have used my over the offer asking price to maybe get even higher offers, 

You raise a good idea about calling the EA’s weekly, I might call around every ten days as u don’t want to seem annoying - thank you for the advice 

C1996

ABFG said:

I was in the same position, losing bids and not even getting to see properties last year despite all my best efforts last year (Summer into Autumn). Then suddenly it all came together, although admittedly your 2 years trumps my 6 moth search. There's some good advice on here, I have a couple extra to add:

• If you haven't, get a mortgage broker lined up and an AIP in your hand. Be ready to press the go button as soon as offer is accepted. Make it obvious you're ready to the EAs.

• When searching on Rightmove/Zoopla, look for places just above your budget (one bracket up) and then sort by length of time on the market. Some of the ones in the bracket above there for a long time are ripe for an affordable offer. Obviously, do your due diligence as there may be a reason for a sale falling through, but it might be unrealistic pricing and no more (as the one I bought was).

• Pick priorities - decide the key things that will impact your happiness, and try to focus on those. Often, it is the things you can't change that really matter - how good/close is the parking, garden size, overall size, location etc. Much can be changed in a property fairly easily or at a later date, for example my new place has a bit of a naff kitchen, but with a new hob and oven it is serviceable for a few years and that sacrifice secured me a lovely location with good parking.

All the best and good luck.

Thank you for your advice, I have a mortgage advisor, decision in principle & solicitor so I’ll definitely stress this to the EA when I do eventually find a property. 

I will take on board your other recommendations thank you