To be disappointed about house hunting?

[Shellym13]

We are looking in an area where not many houses come up for sale and we have been pipped at the post on closing dates for 4 properties that I've loved.
We have a decent budget, no chain and our mortgage all agreed but we can't secure a house.
I know people will say look outwith the area but we love it here and our budget is more than enough to secure a property. Think out competition might be buy to let it second home owners with a lot more free cash to pay o we the valuation.
Sorry for the rant I'm just gutted, our rental is up in April and I'm beginning to think we will never find anywhere.

What do you mean pipped at the post please? They are offering more than the asking price?

We offered over asking price on several houses before securing ours, we had no chain and had our sale agreed but kept losing to higher offers as our area is popular. In the end though we had our offer accepted and actually one of the others we'd offered on fell through so they approached us but we were happy the other property.

It's gone to a closing date so usually over the valuation price for mortgage purposes. We have a 15% deposit agreed and some save gs. We can afford to go a couple of thousand over which is still substantial but I think the other buyers may have more ready cash. The last house was offers over 145k, the mortgage valuation was 155k so we bid 158500. Meaning we need nearly 20k to purchase it with fees etc. It went for well over 160. Feels like we dont have a chance.

are you being outbid?

Yes by a significant amount. 10k over valuation in some cases, we actually lost cash on our flat sale so had to save the deposit like first time buyers again. Just keep saving up hoping we will get something but over 170 for a 2 bed in this area is so expensive, think it's the lack of properties driving up the price x

Are you in Scotland?

Otherwise it is very unusual to go to closing bids

Sorry I'm in Glasgow in Scotland, not London where I know that's nothing for a house

You will be pushing it to buy somewhere and complete the purchase by the end of April, even if you find the ideal place and have an offer accepted tomorrow. It's doable but you need to have a contingency plan. My last move took four and a half months to complete - even with it being a vacant property, no chain, me a first time buyer and with the mortgage approved within the first week of my offer being accepted.

In areas with high demand it is common for people to make an initial offer that is above the asking price. Unfortunately even if your offer is accepted the estate agent is legally obliged to pass on any subsequent offers until the contracts are exchanged - so realistically it sounds like you need to make an offer that is a few percent above the asking price in future (you say you've got more than enough cash).

Sellers don't usually care about whether the buyer is purchasing the home to live in or to rent out, or whether it's a cash buyer or one with an approved mortgage - they just go with the highest bidder.

Shit, frustrating, infuriating even - but basic supply and demand.

Yes I understand that, contingency plan is storage and back with the inlaws until we get somewhere as a majority of the leases are long term and we are hoping to be out asap. Worried it might cause a divorce but it's the best option even if I am loathed at the idea. We moved up to Glasgow for work to see if we liked it before buying and now we love it. I'm excited at the thought of our new life, Just hope it happens soon!

A few years ago we were looking to relocate to Scotland. I hated the "offers over " dictate and would only look at fixed prices or "offers in the region of". It severely limits your options but you may not be so frustrated.

Ah Scotland. That makes more sense.

My understanding is that typically offers are frequently twenty percent or more over asking price in the Scottish system.

In the last case it was just over ten percent.

It's really tough and frustrating.

Can you look at places with lower starting prices?

Also really envious if you are actually going to buy a house and not a cupboard!

Put some notes through any doors you like the look of - if someone is about to sell you could save them some money and yourself the stress.

Is your surveyor tied to your lender? When we were looking at property in Glasgow (years ago, admittedly) our mortgage adviser said the surveyor would... well let's say, they would take your planned offer into account when they were arriving at the valuation. I don't know if that's all been tightened up these days but it might be worth speaking to your solicitor to see if there is a way round the problem?

our budget is more than enough to secure a property.

Apparently not if you're being outbid by such amounts.

I've learnt all I know about the scotch system from Kirsty and Phil, but doesn't it come down to common sense, if you're being outbid every time and you're at your maximum then you don't have enough money.

My selling agents in Edinburgh puts property on market for £5k less than valuation with expectation to get £5k more ...at least. One near me went for £15k more. It depends on desirability whilst valuations tend to be guided by square footage. The sellers market is v strong at the mo though. More property will appear over warmer months and will dilute the market in theory meaning fewer bidders per property.
Wait a few months.
You could also research the market by keeping a note of asking prices then final selling prices (ros.gov.uk).
Or go for something smaller.

I've sold two properties in Scotland, I'm Scottish, both in Glasgow, but well over a decade ago. one went for double the offers over price, but that was because of a certain uniqueness to it and someone wanted it very very badly and the first went for about 30 percent over. Ten percent over asking price isn't that much. Both mine were priced artificially low and generated a bidding war , one I took to sealed bids as I had so much interest.

I think you need to look at lower priced properties. The valuation bore no relation to the sale price in either of my properties, it seldom does in Scotland, its no more than an indication and many other factors can impact that valuation not least how much interest there is.

It's a horrIble system but the bottom line is you're not offering enough. If you keep working to the valuation I doubt you're going to find a property any time soon. im sorry.

We can afford the value Of The house it's the amount it goes over the valuation. If the valuation for mortgage is 160k that's all you can borrow, if it goes for 175 you need 16k plus 15k which is mental! I could buy a 310k bouse and get a mortgage. We have always offered over the asking price but you have to weigh up what it's actually worth.
2 properties going to closing dates this week, we've bid our maximum. Fingers crossed!

Is it East Renfrewshire by any chance?

It's always extraordinarily competitive.

Some get around it by finding would be sellers via word of mouth/local buy and sell/ local news pages and cutting out the estate agent/hassle of arranging viewings etc.

....Scotch is a drink.

I know there are some good bits to the Scottish system but this horrible guessing at prices game is awful! So stressful for buyers. Vendors - just bloody well ask what you want for the property and don't be greedy!

Not east renfrewshire but the west end. Only looking at 2 bed houses don't really want anything smaller so we will just keep plodding on. Sold our flat after months of it being in the market. Flats aren't shifting but houses are snapped up so quick.
I've just registered with a load of agents so hopefully we will get updates. There isn't a lot of property coming on in our area and I'm sure that's the problem. So much demand.
Will see how it goes o we the weekend. We have 25k in savings and no house to buy, the more we wait the more we save I suppose.

I think the offers over system is fair enough as sellers want to make as much capital as possible. However I have seen bog standard semis that are grotty inside going for the same price as an executive new build in other areas. It is odd. But if that is the reality of the area then you just need to suck it up.

West end housing stock is even thinner on the ground than East Renfrewshire!
I feel for you op. It took my friend 2.5 years to find a house there.

It might be worth finding a really good flat for the interim and taking two steps instead of one. At least you know that flats always sell in the area so it won't be difficult to remarket if a house comes up.

Yep, we've expanded out a wee bit and found a couple more properties. At the moment I can run to work and my hubbie cycles, it's saving us a fortune in commuting and we are much happier. I used to have an hour each way in the car. Will just keep saving and hoping we are the highest bidder soon