House shortages and greedy sellers

[AprilMae]

Just a rant about the current market really, I feel so disheartened. We’ve just offered £325k on a 3 bed terrace house in the North West and been rejected. Seller says they want £340k as there’s ‘so few homes available’.

So they’re admitting it’s overpriced but the scarcity means they think they can ask it? I’m not even sure a lender would agree to that valuation.

Sold our 2 bed as we need more space but there are very few 3 beds coming on the market, we’re looking in a 15mile radius. I’m really annoyed to have worked hard and scrimped only to be priced out of buying a quote ordinary family home in an inexpensive part of the country.

What was the asking price @AprilMae ? If it was what you offered, then they are being cheeky, but if it's what they want, it's probably because they need that in order to get the next house they want to buy

When you come to sell, will you price it thousands of pounds under the current market price?

My Mum lives in Trafford, in the catchment area for several of the Grammar schools. In the space of two months three houses went up for sale on her road. The first two sold on "offers over" and the last one sold for the asking price, all within 10 days of going on the market, one sold within 24 hours.

They were all standard three bed semi with a tiny third bedroom, they were ex local authority and the asking price one sold for half a million pounds. There was literally a line of people waiting to go in every day to view them and they would move from one house to the next, it was like watching the queue at Disney World.

People are going crazy at the moment, my Mum says if she lives long enough her house will make her a millionaire 😂

I think by the time people had finished the viewings the price had gone up another £5000!

If you can't or won't pay, I can guarantee that the person who views next probably will. I'm hoping this "bubble" will burst soon because the prices don't seem to be stabilising at all.

We wanted to move because we needed more space, offered £20-30k more for a couple of houses we'd seen and it went over that, and to cash buyers or FTB (we'd sold our house but was considered more of a risk as we were in a chain....).
We then saw a house and offered £50k over asking price! The mortgage valuation came back £25k over asking price, but we know they didn't go in the house and probably didn't even drive past, but we are happy with what we're paying as that's what it's worth to us, and also what we have to pay to get a house over the FTB and cash buyers unfortunately.
We luckily have a 25% deposit to cover the deficit, but I know how hard it is at the moment.
And don't get me started on the £15k stamp duty we have to pay......

Op cmon now it’s not greedy and you’re not entitled to their home. They can sell it for whatever price they choose or keep it. It’s theirs. Just because you were restricted doesn’t mean everyone else should be nor does it mean you’re entitled to someone’s home.

I get it’s upsetting but deciding people are greedy if they won’t let you have their home for the budget you have is wrong.

It’s a shame you can’t afford the space you need, but I’m not sure why you think a stranger should subsidise you?

OP I'm in the same boat as you and it's so depressing. We were in a position that forced us to sell our property, but it was ex-council so there was a ceiling on what we could realistically get for it. Moved in with in-laws to avoid being in a chain and hopefully make us more attractive as buyers but it's hopeless. We're both in relatively decent jobs and can put down a 25% deposit but we're priced out of everything within commutable distance to my work at the moment. DH's office closed down and made everyone WFH full time so he needs space for that in the house but it's going to mean the 4 of us end up sharing one bedroom as we can only get a 2-bed. We saved for 12 years to end up in this position and it's soul-destroying.
I completely understand you needing to vent and needing someone to direct your frustration at 💐

Haven't bought or sold for years now, but this sounds an absolute nightmare for you
I genuinely send good good luck that things work out for you soon .

If I was selling I would selfishly perhaps want to get as much money as possible, especially as if they are looking to buy another property this will probably cost them over the odds too at the moment. It is very frustrating for buyers though, and has made getting onto the property ladder (which is already challenging) even harder. They do predict prices will begin to settle soon and fall a bit so if you can might be worth waiting a bit, they have to peak eventually and can't keep rising indefinitely. Luckily we completed on our house a month before lockdown- it has increased by 35% in value which is crazy. We aren't looking to sell but it's absolutely wild out there, don't blame them really for getting what they can.

On a smaller scale its like the second hand car market. We wanted to go down from 2 cars to 1 and I put an advert and literally had dozens of enquiries in the first 24 hours. Had some viewings and although I had a figure I'd be happy with in mind I actually did go with the highest one, even though really the lower offers would have been a good price.

@Wishingwell2022 stamp duty is so annoying esp when people got away without paying last year

Whilst I don’t disagree that houses are overvalued at the moment, I suspect that you may be confining yourself to an expensive bit of west Lancashire. You have a 15 mile radius, but maybe it needs to be bigger.

At £325k for a three bed terrace, you are clearly not looking at e.g. Skelmersdale. The reality is that lots of people would love to live in Rufford or Halsall or the pretty areas around Ormskirk, but not everybody can, because demand outstrips supply. So to get what you want, you’ll have to compromise on area.

But thats the chain. 3 bed owners are trying to buy 4 beds/garden etc. 4 beds have jumped in price. They can't move unless they get what they can for their home.

AprilMae - tell me about it! We has an offer accepted on a house in June 2021, and we waited and waited for top of chain to find, and in December 2021 started looking again but it was too late for the stamp duty benefit.
Annoyingly my husband has never bought before, but he won't benefit from any of the FTB perks as I have!

@BearBibble we have 25% deposit saved too and similarly to you my partner needs a home office (self employed) so the space is essential.

People coming back with ‘it’s nobody else’s fault you can’t afford it’ type comments must have bought houses cheap years ago.

Whilst I don’t disagree that houses are overvalued at the moment, I suspect that you may be confining yourself to an expensive bit of west Lancashire. You have a 15 mile radius, but maybe it needs to be bigger.

I have to agree with this. I'm in Bedfordshire with a 40 minute train journey to London (and 15 minute cycle to the station). Our 3 bed terrace is worth 270-280k. Kitchen and bathroom don't need any major updates, we have an 8m long garage for storage and a larger than average garden. The only thing that needs updating is the driveway and in an ideal world the new owners would do a loft conversion for a bigger 3rd bedroom because the box room is tiny.

@Iamthewombat absolutely need to look at less desirable areas though it’s hard to swallow with a £325k budget. I don't feel safe driving through Skelmersdale let alone living there 😂

The house isn't overpriced if someone will pay £340k for it.

£340k is still quite cheap though when you look at prices elsewhere in the country. The owner hasn't said it is overpriced. They presumably have put it on at the level rhe market it commands. Indeed if it is the only 3 bed in the area then it is more likely to go above asking price.

Your budget isn’t big enough to live where you want, though.There are loads of areas of west Lancashire where you could get a three bed for £325k or less. Most of the county, in fact.

Incidentally, although I have never lived in Skelmersdale, it winds me up when people say things like, “I don’t feel safe even driving through [insert name of town here]”, as if they were such delicate flowers or a cut above, or whatever. This sort of insult is normally levelled at areas where tens of thousands of ordinary people live quite happily, areas with nice roads as well as rougher areas. You bought, and have just sold, an affordable house. Why sneer at other people who have bought houses in affordable areas?

Try to be less snobbish. I assume that you are one of those people who, when you eventually find a house in an area you consider to be a cut above, will insist on mentioning it constantly. I worked with someone like that once. He used to come in and say, “oh the roads in DIDSBURY were really busy this morning”, or “I’m going to have to go back to DIDSBURY then come back into town”.

I have bought and sold five properties (including shared ownership) over 16 years.

Like everyone, we wanted more space as our family grew.

Move number five and we are downsizing to a place the same size (but without a garden) as house no.2.

We are a family of five and it is only possible because we now live as minimalists and only own stuff we need, use or love. No duplicates, no 'but it cost money' and definitely no 'but it might be useful one day'.

Our last move has meant we are debt free, mortgage free and have savings. We also live in a far nicer area that before.

It is annoying and I feel for you but in their shoes would you want the most you can get knowing it's a good time to sell or would you have pity and sell for less to do the random stranger wanting to buy it a favour?
Most people when selling anything aren't doing it for fun or charity and will expect the maximum they can get going by the current prices of whatever they're selling. I don't see them doing anything wrong really or necessarily "greedy".. It's what anyone would do.

Depends on their LTV. Many buyers won’t have a problem with a down valuation.

I don't think that's the case at all, but the issue of homes being unaffordable and the market being ridiculous isn't the fault of someone wanting to get the most money they can for their house; it's a much larger issue around policy etc. Would you really, honestly, accept tens of thousands less than you could get if you were selling to be nice?

Seller says they want £340k as there’s ‘so few homes available’.

So they’re admitting it’s overpriced but the scarcity means they think they can ask it?

But it’s not overpriced, is it? Scarcity is one of the key factors that makes something valuable!

I hate this fad on MN for people describing sellers as ‘greedy’ because said seller wants to sell their property for the market value. No one owes you a cheap house! If they are overpricing, they’ll have to drop eventually - but if someone is willing to pay £340k, that’s what it’s worth.

It isn't the sellers fault that house prices have sky rocketed. Who in their right mind would have a house valued at e.g 300k and say its okay, I will take 250k for it.