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.

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

I feel like that too. That, or else they've bought relatively recently but are happy and settled there and are a little oblivious to the realities of the market at the moment. Everyone I know who is actively trying to buy is really disheartened.

My in-laws bought their fairly average 3-bed semi 20 years ago (which I realise is ages in the property market) for about 140k. Their neighbour just sold their identical property for over 400k (we're in the South East). It's difficult not to feel bitter, even though cognitively I know that the present situation isn't any of those individuals' fault.

I’m afraid OP that that’s the way of the world.
Yes you missed out on the stamp duty holiday but you could have moved 18 months ago and taken advantage of it.

You could have moved last year before prices went really mad.

you could move now and find that in two years your house is worth 500k and be the ‘greedy seller’.

It's difficult not to feel bitter, even though cognitively I know that the present situation isn't any of those individuals' fault.

Feeling sore about it is one thing, but insisting people are "greedy" for wanting to sell at the current market value is another. Especially when we all know the OP would do exactly the same thing (as we all would).

YANBU OP
Greed is definitely a factor driving up house prices. Just because it’s collective, as in “everyone does it” doesn’t mean it isn’t greed.

Greed by the banks caused the 2008/9 economic crisis.

Greed is a well known factor that increases competition and selfish behaviours in capitalist markets.

It's not greed, no. It's market forces. And everything in the same market moves up and down together. So they'll need to pay more for whatever they're buying too.

Ok can everyone remember this sentiment of 'market forces' when the next 'greedy landlord' thread comes up?
OP, property prices have gone up faster than wages. The house I bought with my husband became unaffordable within five years (meaning we couldn't have bought it if we were looking then).
But presumably you benefited in the price rises when you sold? You could very easily be a first time or buyer trying to move from one to two beds and complain about the same thing you are.
You want to upsize you may have to move further out. You want to be in a better area, you may have to downsize. I've just moved in to a terrace house half the size of my detached, but it's the area I wanted to be in. That's the way it has always worked.

@tuliplover I didn’t benefit from the price rise because I was required to get a RICS valuation before selling my current home so I wasn’t able to add 30k onto the price. I sold for what a surveyor said was fair.

We are looking in a very broad area and all the prices have gone up 50k in about a year.

Sorry for you OP, but as when housing is overpriced, property is only worth what someone is willing to pay for it

I bid £13000 above asking (and they had another four above asking price offers on D1 of viewings). I too was worried that bank wouldn't value it as high as had been sold for significantly less a few years back. But no issues. Friend had advised me to bid what I actually felt I'd be willing to pay (as kept getting outbid) - so glad I did. Even in the few months since offer accepted and moving in similar houses around here are selling for £15000 more than I bid.

@tuliplover so you’re saying you and your husband benefited by buying before a massive price increase. But people who didn’t are unreasonable/ complaining about nothing for being annoyed at current prices?

I think the seller is probably thinking more that they will need to sell for the most they can possibly get because everything they want to buy has increased so much they need to make a profit on their current house to afford a new one.

I'm in both theirs and your position so have sympathy for both - my house is advertised as offers over x so I'm going to go with whoever offers most and hoping it's quite a bit over, which it probably will be as first time buyer homes are in such short demand. Honestly it's already overpriced for what it is but if I just settle for an under or "just on" offer I'll be struggling to buy my next house, which itself is overpriced. If i don't get a good offer I'll probably just take the house off the market rather than sell and then not be able to afford to buy!

If your buyer is like me they are acting out of necessity rather than just wanting a profit to stick in the bank.

It is shit for everyone though, I agree

@AlmondyCookie I keep thinking that we should just offer what we are happy to pay, which is why this offer was 325. But I don’t think we will ever get a place as everything’s going over asking isn’t it?

We can’t magic 10k up sadly. I did buy a lottery ticket earlier!

@AlmondyCookie glad you got your home!

It's so hard isn't it. I ended up viewing literally everything that came on the market in my price range incl areas/styles/etc I didn't think I was keen on. The house I bought I would have never in a million years I thought I would have picked when I started out. But I am sooo glad it has worked out this way. It is perfect to me. Even if I was losing money on it I would have been happy with the purchase - which is what my friend was saying. Forget about the market and just pay what a home you want is worth it to you (obvs the max as prices are crazy atm). Obviously that advice is safer for me as have no plans to move again anytime soon.

Thank you - it's my first home and I bought it all by myself after years and years of saving and compromises and ultimately moving far away to a different part in the country. But I am so happy here and it's amazing to have my own place.

It's actually not easier to move up the ladder in a ever increasing market. You want 10% more for yours, you will likely pay 10% more for the next house which would be more cash if upsizing.

We are looking in a very broad area and all the prices have gone up 50k in about a year.

you are not. You told us that you were looking within a 15 mile radius of some unspecified point. That’s a very small part of the overall area of west Lancashire.

I live in Lancashire. You can easily find a three bed house in a decent area for £325k or less. Your problem is that you have focused on an expensive sub-section of west Lancashire. You can’t afford to live in your preferred areas.

I can assure you that not every three bedroomed house in west Lancashire has risen by £50k in a year. You just need to settle for a smaller house in your preferred area, or choose a different area. Like everybody else does.

There’s no point blaming the sellers. Your ire should be directed at poor regulation of lending, and at the banks for offering longer and longer mortgage terms and higher income multiples. That’s where all the money chasing houses is coming from. Nobody has the will to deflate that particular bubble though: imagine the howls if anyone’s house fell in value, even if they weren’t planning to move and it made not one jot of difference to their mortgage payment. Nor are the banks interested, since they will be coining it from borrowers paying mortgages over 30, 35 and even 40 year terms. Ker ching.

Although if lending were restricted to sensible multiples and mortgage terms you probably wouldn’t have £325k to spend anyway, so it would be rather a Pyrrhic victory.

OP I assume I'm within 15 miles of you as also West Lancs. We bought a property we love for £240k 2 years ago so it sounds achievable if you're flexible on area. If you're Ormskirk way, the estate agent told me a few years ago that it has seen some of the highest prices rises and most competitive markets. We moved outside of our search area to buy here and we don't regret it, but obviously it depends on your wants and needs.

@BammBamm Ormy is definitely in our search scope just hoping we can get something. I bet yours is worth a bit more now.

@Iamthewombat could you recommend any areas for us to look/ widen search to?

What you need to do is go on Rightmove, set a locus bigger than 15 miles of Ormskirk, or wherever the centre of your imaginary circle is, and filter on three bed houses. Without knowing your requirements I can’t really help (and actually even if I did I’m not Phil’n’Kirstie…maybe you should call them. Serious suggestion).

I understand your frustration OP. But unfortunately this is the market we’re in and people aren’t selfish to want the market value for their property as they’re probably trying to buy on themselves.

I know what you mean...

A cottage has come up for sale in my town.
Not a great location. Last purchased 5 years ago and they are asking DOUBLE what they paid for it?
Why?
Because they think they can.
I have noticed a lot of price reductions lately though so 🤞 for you.

It's frustrating. I want to move but don't have to move and I'm put off having to play these silly games. It all sounds so stressful with most houses going on for offers over and guide price.