Back on the market again. How do we stay motivated?

[Sentimontle]

Just back on the market after potential buyer pulled out very late on.

House is viewer ready once more but no viewings as yet. Feeling disspondent wondering if we'll ever sell.

Anyone else in this situation? All seems such a waste of life.

Why did they withdraw ? Did they tell you ?

No just faded away. Was informed via solicitor with no reason given 😡

This is happening loads at the moment.

My buyers waled away on day of exchange as to quote 'they weren't feeling it anymore'.

I was livid as my house was 90% boxed up. My seller was decent and gave me 2 weeks to get sold again before they relisted.

I dropped my price to the lowest I could afford and told the estate agent if we lost our onward purchase we would come off the market as we would have lost nearly £6k in fees and weren't happy to keep losing money. They managed to get it sold the following week.

When I called our sellers estate agent to let them know it was all fixed they said they had 4 first time buyers just walk away at the end of the transaction like ours did due to nerves, they didn't actually want a house etc and its costing sellers a fortune in aborted costs!

Do you have to move now? Can you wait until the market improves? Not sure with a general election happening that will help the 1st time buyer nerves.

Why would the GE worry people?

My relative is in a similar situation, she's had 3 offers and then they withdrew even before any surveys so I know it wasn't to do with the property etc..
It's a lovely house and she's dropped 15k already and can't afford to drop further. There's houses on the street up for 20 to 30k more as well! Nothing is selling. Don't understand why.

"Nothing is selling. Don't understand why"

I think it's simply that it is now becoming obvious that borrowing rates won't be going back to what we used to have. In fact may not even drop at all this year. That means that the cost to buy has become eye watering unless your lucky enough to be cash - and less of those people around currently.

That’s rubbish. Nothing is selling here. The market is as flat as a pancake. Unless you absolutely have to sell, I would postpone at the moment.

Not entirely sure but this is also what our (experienced) estate agent said

@OneDayIWillLearn Id never listen to an estate agent. Ive read enough descriptions on right move about 'wonderful' 'needing some modernisation' properties 'sure to sell quickly' and early viewing is recommended and it's a literal crack den thats been on for a year.

A change of government wont slow down the super slow property market.

Uncertainty!

Vendors need to price realistically... Actual house prices are at least 20% below 2021 levels.

Yeah I’m not wet behind the ears, I would take what estate agents take with a pinch of salt and have met plenty of terrible ones. This one I’ve known for ages and he sold my house ten years ago so I do know he isn’t a complete cowboy and he didn’t have any reason to lie about this as he wasn’t trying to persuade me to do anything. He was saying something like he hoped the GE would come sooner rather than later because knowing an election was in the offing usually slowed the market down (still further in this case alas!) so he’d rather get it over and done with.

I guess it makes sense that people don’t like uncertainty when they’re making a massive spending decision like this. So the market could slow while people wait to see what happens and then pick up a bit once it’s over. I don’t fully understand it as it wouldn’t put me off buying/ selling but there you go!

Look what happened to interest rates when Liz Trust was Prime Minister! A change of government will cause the jitters! Just after Brexit there were people delaying purchases and pulling out, it happened to a family member.

'Nothing is selling. Don't understand why.'

Because most people can't afford the prices. A lot of people's budgets have fallen by 30% so the marketed prices are just too high for most potential buyers. There was hope that rates would fall back more quickly but this hasn't happened. Lots of people's finances are v stretched and they will be wary of stretching them further, especially when there is so much uncertainty and volatility at present.

It's a rubbish time to be selling in many places. Sympathies to those who need to do so.

That’s a bit specific. 30 percent? Can you evidence that as it looks made up.

I don't mean that everyone's budget has fallen by precisely 30% but that this sort of approx level is pretty realistic for some who needs a mortgage.
You can use a mortgage repayment calculator and just plug in some numbers:

https://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator/

Eg FTB taking out a 200K mortgage and compare repayments on approx rates from 21/early 22 and now. I've probably been quite generous with average FTB rate currently.
If you look at the difference in monthly repayments at 2.0% previously (£848) compared to at 5.0% (£1170). To have a monthly repayment figure of £848 at 5.0%, the value of the mortgage needs to reduce to 145K (around 30%).

If you look at an upsizer taking out a 400K mortgage at 1.0% previously(£1507) compared with 4.5% (£2222) now. To have the same monthly repayment figure, the value of the mortgage would need to reduce to £275k approx (around 30%).

Of course, there are lots of other variables but the fact that budgets have fallen v significantly for many people is clearly why there are a lot less buyers in general and why many are very anxious about buying and lots of sales are sadly falling through.

I really think you’re leaping here, this only works if everyone is at their max affordibility/mortgage and we all know that’s far from true, in addition a fixed rate is significantly below 8 percent. I understand you’ve tried to make it fit what you said, but you failed, I’m sorry.

'I really think you’re leaping here, this only works if everyone is at their max affordibility/mortgage and we all know that’s far from true, in addition a fixed rate is significantly below 8 percent. I understand you’ve tried to make it fit what you said, but you failed, I’m sorry.'

I've obviously compared like for like. I never said that this is the case for everyone. I also said that there are lots of other variables.
I've no idea where you have got 8% from as I used 5% and 4.5% in the examples as you can see above.

The point remains that many people's budgets have fallen dramatically and that means that many sellers are struggling to sell and seeing high fall through rates. If you don't want to believe that it is as much as 30%, you can play around with the mortgage calculator yourself.

That's a really clear explanation of like on like facts. I hadn't actually realised how big the difference is until now that someone shows it to me in black and white.

Sorry that was me, our deal ends shortly and they wrote to us and said new rate was 8.25%, so it was prob in my mind. ,😄

Oops! I hope you manage to get an offer starting with a 4 very soon!