Feeling totally overwhelmed by the market

[fluffycupcakes]

Will it ever cool down? It's not even financially any more although we've certainly lost money between selling our house and now renting waiting to buy.

Every buyer out there seems to snap up a property before we can breath. I'm not comfortable putting an offer on the second a property reaches the market and yet if I don't it appears we won't ever be able to move. Just so depressed about it all. Any indications the market might slow down?
Sorry for such a depressing post but have people really benefitted from the stamp duty relief? We seem to now have to mortgage up on the extreme price increases instead of making any savings.

I know all those who sold are feelling it. However, it puts you in a good position to snap up an auction property. I spoke to another EA today who explained when they get an offer on the table the cash buyer in rented is not looked at any different to the buyer who has only just put their house on the market and willing to give the seller some breathing space to conduct their property search. They are matching the sellers needs to the 'type/position' of the buyer now.

@mumieone I have just pulled out of a sale like you for the exact same reasons (plus a pushy buyer being really rude about how “we’re not trying hard enough” and even sending my agent suggestions of what I could buy - without knowing the first thing about me or my requirements)

Tulip fever, I would wait

@mumieone I don’t believe what the EA said to you about cash buyers not having any advantage, unless he/she was just talking about auction which I know nothing about. I’ve offered on 11 houses this year, been the highest bidder a handful of times and lost out every time to chain free buyers. So depressing.

@AmazingGrapes OMG it's so depressing! Mind you I lost out on a home last year (I was chain free going to be the cash buyer and did at that time put the offer in subject to meeting the FIRST stamp duty holiday introduced). They went for the next offer over mine - someone who had literally only put their house on the market and was in no need to rush (The sellers liked the low pressure offer).

Also lots of EA's are suggesting offering the seller a financial incentive to move into rented ......

@mumieone "Also lots of EA's are suggesting offering the seller a financial incentive to move into rented ......"

This sounds completely nuts. Are people having limitless budgets and no roof over their head, that they will become so desperate for a property?
This just sounds like a tactic from EA to inflate the prices and up their commission.

Also lots of EA's are suggesting offering the seller a financial incentive to move into rented
And the race is on🏎️
Can EA get to the finish line and bag that juicy commission before the bubble bursts🏎️

@Miasicarisatia

Tulip fever, I would wait

Interested to know why you think this @Miasicarisatia.

Do you think it is just a housing market bubble? Highly unlikely housing prices would collapse in isolation.

I think there’s so much pent up demand to move that it’ll keep prices artificially high for a while after the stamp duty holiday ends. We’re hoping to hold out and go through with the sale anyway, although it does depend on our seller finding somewhere before our buyer gets too irritated.

We beat out three cash buyer offers, all asking price. The vendor hadn’t got anywhere to go, so didn’t want someone looking for a quick sale, as they won’t go into rented. I’m not too surprised some EAs are saying there’s little benefit to being a cash buyer now. Also, every other person who viewed our place was a cash buyer. It seems to be a lot more popular!

...www.bbc.co.uk › news
31 Jan 2021 — A visa scheme to allow Hong Kong residents to come to the UK opens on Sunday, with some 300,000 people expected to apply, within five years.
So that's a city the size of Hull.

In addition the ONS estimates the UK population to increase by 5 million by 2040. So the equivalent of ten cities the size of Manchester will need to be built within the next 19 years.

Population growth is driving the UK housing market, and will continue to do so

@mumieone

So I've just pulled my sale. I can not deal with the pressure of no where to buy and the ones I wanted to buy going up by 48k on one and 51k on one. These are mid range bog standard semi detached in what looks like ex council type estate (not talking anything high end at all).

Let the stamp duty die it's long overdue SAD death and see I reckon. Sick of house hunting rotten unmaintained homes at super inflated prices.

I offered my buyers a chance to put in a market value offer as obviously what I accepted 2 months ago and what it's worth now are not the sam figure. I'm still blaming RISHI

We are in the exact same situation. Sleepless nights and what was an exciting home search after an asking price offer has turned into a nightmare since the end of February.

Can I ask how much you are going to be charged? We’ve stopped/ paused solicitors and am looking through EA contract to see if they can charge it it doesn’t look like it. I feel absolutely terrible doing this to our buyers but the alternative is ruining our own finances.

We failed to sell last year so we know we might not get another good offer like this for a while but we are totally stuck. Hate what is happening.

Think we will see if our buyers want to pause and wait to see what the market is doing in a few months. We’d have to ask them to pay market value though so why would they? It’s too much of a risk for them as first time buyers.

It feels as though everything is about to come to a frozen grinding halt.

Is that possible ... and I wonder what will happen next.

We're in the same position as so many of you - but have been much more cowardly. We're waiting and watching. I've called estate agents a few times asking to see places and they're happy to put ours up for sale if we choose to offer on somewhere. So in theory we're going to try doing it that way.

In practice all the houses we like are snatched up as soon as I phone - so I'm glad we haven't bothered trying to sell our house yet.

I do think that property is going quickly but in my experience COVID has been used as an "excuse" not to market a property more widely so I'm not sure how much it reflects reality. If the offer is "close enough" then sellers are being encouraged to take it. There was a post about it on here the other week. In our area there was one property listed as STC despite only going on Rightmove that day. I have had agents call me about 3 properties that were "under offer" when I had initially contacted them but the sales have fallen through wondering if I was still interested. And there was another property that similarly, was "under offer" the day after it went online in December but came back on the market 6 weeks later and is still not sold now, having been reduced by more than 10% since it was first listed.

What's happening I think, is that, in this market, buyers are making immediate offers, merely to freeze out other buyers. That gives them 'thinking time'......only THEN, do they wonder if the house is really suitable, can they get a mortgage etc.. Hence the number of agreed sales that don't complete (28% according to The Times).

I agree Tanguero. I saw a house on Saturday that we were only allowed to view for 15mins with the EA being there all day with back to back viewings. The garage which led through to the garden hadn't been unlocked and we couldn't view in the timescale. The EA knew nothing about the property and couldn't answer any questions. They already had two offers. You had to provide all paperwork to make an offer by 4pm for the privilege of being entered into the pool of people allowed to make a best and final offer by Tuesday. It was made clear to me that an asking price offer wouldn't cut it. The place was lovely but smelt strongly of either dog or damp, a window was all fogged and by looks of Google Satellite the garage roof is dilapidated. There wasn't time to see it properly.

I would have bought at asking price and with a proper look around but not over. It struck me someone unscrupulous could go in at a silly price and then cut it down on exchange day.

I don't blame the seller at all and if they accept an offer they're in the same stressful position as every other buyer with regard to the onward purchase.

@NoToast

I agree Tanguero. I saw a house on Saturday that we were only allowed to view for 15mins with the EA being there all day with back to back viewings. The garage which led through to the garden hadn't been unlocked and we couldn't view in the timescale. The EA knew nothing about the property and couldn't answer any questions. They already had two offers. You had to provide all paperwork to make an offer by 4pm for the privilege of being entered into the pool of people allowed to make a best and final offer by Tuesday. It was made clear to me that an asking price offer wouldn't cut it. The place was lovely but smelt strongly of either dog or damp, a window was all fogged and by looks of Google Satellite the garage roof is dilapidated. There wasn't time to see it properly.

I would have bought at asking price and with a proper look around but not over. It struck me someone unscrupulous could go in at a silly price and then cut it down on exchange day.

I don't blame the seller at all and if they accept an offer they're in the same stressful position as every other buyer with regard to the onward purchase.

Had similar on the house we were gazumped on. Locked gate, no knowledge of when extension was built etc etc. Didn’t see the side of the house. I wouldn’t commit to buying a £50 pair of shoes without seeing them and trying them on but was willing to risk over £250k Such a weird process.

Outonmyear

I think it's the resemblance to monopoly money that does it. Oh, g'wan another £50k....

@ no toast ...hellicopter money. Also coming soon to the UK as we walk in the shadow steps of the USA.

Homeowners unable to pay Thier mortgage ...at any age can just apply for a new 25 ye loan. No age limit, no earnings check.....given at the same old rate granted like existing mortgage. Cheap money for all!!!

No foreclosures coming up....taken care of..

So you are not going to see the usual dip too buy 'apparently'

@mumieone

@ no toast ...hellicopter money. Also coming soon to the UK as we walk in the shadow steps of the USA.

Homeowners unable to pay Thier mortgage ...at any age can just apply for a new 25 ye loan. No age limit, no earnings check.....given at the same old rate granted like existing mortgage. Cheap money for all!!!

No foreclosures coming up....taken care of..

So you are not going to see the usual dip too buy 'apparently'

Nothing appears to have been learnt from the Financial Crisis In 2007/8. More and more debt is being positively encouraged.

For what it's worth @mumieone, I think you have made a sensible decision to pause your house search until the heated market cools down a bit.

Outonmyear first time I had one of the conveyancers who charged £0. EA made me and buyer change to a different company on my second sale.....they asked for £200:..£250:on file. They were about to ask for more £££ from me to deal with all buyers stuff. They already got builder in here and last week architect. I told EA please communicate my situation I was stressing thinking I may be wasting ££ and looks like EA had been unofficially making them think stamp duty was something achievable.

So I've not aske conveyancer what's owed..too scared!!

@mumieone

Outonmyear first time I had one of the conveyancers who charged £0. EA made me and buyer change to a different company on my second sale.....they asked for £200:..£250:on file. They were about to ask for more £££ from me to deal with all buyers stuff. They already got builder in here and last week architect. I told EA please communicate my situation I was stressing thinking I may be wasting ££ and looks like EA had been unofficially making them think stamp duty was something achievable.

So I've not aske conveyancer what's owed..too scared!!

I daren’t think about it either - you’ve done the right thing though it’s hard on everybody. This is happening all over the country and is not in our control. Threads like these are a godsend as it makes me realise I’m not going mad.

We had a lovely email from our buyers solicitors today stating that we had said we were going to break the chain and the buyers were now extremely frustrated and demanded a date.

They keep claiming to not know what is going on despite being told over and over that we can’t find anywhere- they obviously don’t believe us.

A huge part of our struggle is the fact that we are trying to honour the agreed price which has become all but impossible.

I’m tempted to ask them to pay current market value plus the cost of renting if breaking the chain is the condition of their offer and see how they respond. We’ve been straight arrows all the way through and it’s got us nowhere. The only problem with this plan is extra money still doesn’t get us a house!

The alternatives are they pull out or a 3rd option is everyone calming down and watching the market. Not sure how to phrase it or even what I mean but I’m pretty fed up of taking all the extra stress and cost because I’m the mug who put their house on the market 6 weeks too early. Thanks Rishi!

Rant over 😂

@Outonmyear I could have written your post!

We’re a step ahead of you though - pulled out of our sale. I feel loads better now that I don’t have them breathing down my neck. I’m sure the situation will calm down sooner or later. Hope it works out for you!

If I were in your position I’d take the risk and renegotiate the price to go into rented. Maybe not ask for the full amount (market price + rent) as you won’t be paying a mortgage after all, but start there and let them negotiate you down. Or maybe they’d choose to walk and you could find new buyers at a price you think reflects the current value.

We’re now looking for new buyers. We don’t expect to get more money than we had with the first buyers as we don’t have masses of outside space and our house isn’t huge, but Im happy enough just to have a few weeks not worrying about it all. I think I’m going to enjoy my last summer in my lovely little house and then move on in calmer times.

Honestly it helps so much hearing these stories. I feel like the bad guy but we have tried everything and honestly want to move.

Might try that idea and see what they say. At least then we will know. Although there isn’t anything to rent!

Think a few weeks off not thinking about it sounds bliss. Good luck xxx

I completely sympathize with you OP, we are in a very similar position. We recently viewed a house where there were 40 viewing requests, the first couple (moving from London) offered 50k over asking and that was it. It’s horrendous