Anybody keep losing out to cash and FTB in london?

[Linny88]

We’ve been looking to move (from Hackney to Leyton) and have now lost out three times to cash buyers or FTB (we have our flat under offer to a FTB so are in a small chain). Even when we bid higher and have a very good sized deposit we still lose out. We’ve also been told at other viewings that there’s cash buyers interested so have stopped bidding on those ones. I’ve spoken to friends who live outside london and they seemed surprised. I’m not sure if it’s a lockdown thing or maybe Leyton specific as it’s gone up a lot in value recently? Just wondered if anybody has experienced this. One agent advised us to sell, move out and rent and then search as we would be in a better position. Most people I know who have moved in london in the past couple of years have been in a chains and haven’t had a problem. Just wondering if anybody sold theirs, rented and then bought for this reason.

Hi, we are selling and buying in a similar area of London (although a bit further out) and yes, we found this problem too. You do sometimes have to offer a bit more money if you have a chain and there are others buyers without a chain who are bidding. Having said that, I'm also seeing lots of houses go back on the market having previously been SSTC. It can also help if you're clear with the estate agent that you really like the property and are motivated to make the sale work - as a seller I wanted a really committed buyer who wasn't going to pull out following a third viewing etc. I think you've been unlucky losing out on places so fingers crossed you get the next one

If I had the option, I would always pick to both buy somewhere and sell to somebody chain free over somewhere/somebody in a chain, even if I had to pay a little bit more or sell for a little less. It’s such a stressful process anyway, and a chain just opens up so many more possibilities for things to go wrong.

Virtually everyone I know who has moved in London in the past couple of years has sold first and gone into rented to give themselves an edge.

Thanks so much. We’ve been expressing how keen and motivated we are, have been putting in higher offers but then in swoops a cash buyer or a FTB (this has happened three times now). With the latest one we lost out on it did feel like the agent was up to something as he extended ‘best and final’ by a week and then suddenly there was a cash buyer in the running despite him saying he wasn’t doing further viewings and it was just us and another couple on the bidding war. We also lost out to one because another couple (who haven’t even sold, but live locally) went to the house without the agent and struck up a deal with the owner. I’m hoping this is just due to people trying to get sales done quickly to make use of the stamp duty deal. Fingers crossed.

We are leyton....some houses selling very fast but then falling through so some have now been on market for over 4 months now..2 3 beds opp me, one is a semi...priced around 625...one needs work , the other just some decorating.

Which roads are they on? There seem to be far fewer houses coming on now. I’m wondering if we need to look further out. Seems like so many people moved to leyton during lock down!

these 2 are on murchison road....i am friends with a local agent, he said there was a frenzy a few months ago....these have fallen thro due to loan issues and break ups of relationships ...

Oh yes we saw one of those - the agent said it was under offer for 637k last week. And another one went for 830 k cash on that road 😱

oh...yes two together...the semi needs a lot of work but mostly a good clean...the tenants left mountains of rubbish behind...took 4 van loads to clear it out !!..the better one fell through so up for sale again. at 625k...i knew the tenants...they did a lot of work on that house as lived there for years....they inherited money and went to colchester !!.that other went for 825k...its a 5 bedroom.

We are the FTBs in this situation, got our offer accepted even though some people with a chain bid higher. I think that FTB's (mainly young professional couples?) have saved a lot in lockdown because everything was shut. They're also fed up of whatever small flat they rent, and now have the money to buy.

4 of my husband's friends and 3 of mine have bought recently, it's a really popular time.

Yeah, I think that must be the reason. It’s unusual to see so many first time buyers bidding for 3/4 bed houses further out. I guess everybody needs more space. I think we will just sell and move out so we can be in with more of a chance. The agent thinks it’s just really bad luck that we’ve been up against people twice whose parents have bought them houses with cash

We were going to buy a flat before lockdown, I got furloughed and we pulled out. Since lockdown our savings went up, as salary didn't change much and couldn't spend anything (not that we did anyway tbf). After lockdown realised we could afford a house, didn't really want a flat, and also several of my friends are struggling to sell their flats. We didn't want to do the first "buy a flat, pay a fortune in maintenance fees then struggle to sell it" rung of the ladder so just skipped straight to houses. We have been saving for YEARS though as I was paranoid about taking out such a huge debt with a small deposit, so we're probably unusual.

Well if it makes you feel any better I'm up north and it's happening here too.
We accepted an offer on ours but can't find anything the market is completely dead, nothing has come on in weeks

All you can do is put yourself in the best possible position to show you can proceed speedily. Sometimes things like taking documents to the estate agents you hope to view through (mortgage in principle, evidence of deposit, name of solicitor you will use) can show you are serious and ready to move fast. Keep communication with the EA frequent and open so they don’t forget you or what a good buyer you can be...otherwise it can be out of sight, out of mind. Sometimes you have to be a bit pushy.

However, chains simply are more risky and if you will be in one, there’s nothing you can do about it unless you are prepared to move into rented to make yourself the chain free buyer.

Thanks for your advice. I think we will just have to move out and rent if the market remains this bad. It’s crazy how the prices have gone up since the summer...just wish we had decided to move sooner!