Soldato
Congrats mate! First step in the long road! Hope it all goes well with no stress /issues
The nervous wait to exchange....
- Thread starter noj
- Start date
Good luck! Hope it all goes well. I think with the market how it is you're less likely to get issues now as sellers are going to want to get sales done ASAP.
Just do it mate
You may have the highest offer... you might not have the highest offer but your circumstances and acceptable move timeframe might put you ahead of others.
Soldato
Offer on both. Chances that you’re the highest on north is low. Chances of it getting accepted etc are even lower imo
Soldato
OK thanks.
When I spoke to the EA regarding the process of making an offer, they said we should ideally try make one that's 10 percent higher then the asking price and there reason is that they have had like 40 viewings today and some already expressing to make an offer (I over heard a couple who was viewing same time as us said they are interested and what the process was).
I mean wow wow I don't really wanna go on a bidding war even though this place initial price is 100k below my max budget, but still what the hell..
Another place I saw is on a probate...
Diddnt I read a few pages back on someone who made an offer on a property that was still going through probate?
Sounded like a red flag when I read it here!
Soldato
That’s just ea trying to get the most out of it. Basically offer what it is worth to you, start lower and increase if vendor declines or has a higher offer. We offered a big chunk under our max and then increased a bit and that was enough
You want to play on the probate red flag. The only way I got my offer accepted is because folk were scared off by probate. Sometimes it can take a while, but 'an easy case' is only 8 weeks - nothing in the grand scheme of things.
It's not really a bidding war, just be prepared that most places seen to go for 10%+ above asking, most asking prices will be set at what would be seen as a barrier like 250, 290 but the sellers will be expecting more with the current market being bonkers.
Offer what it's worth to you and you'd be happy paying, if you come across that rare ideal property that you see yourself in for a long time go bonkers with yer offer
I'd offer some caution when making a bonkers offer . Calculate what price it'll be after a market correction of whatever percentage, 5%, 10%, 20% etc and then what the LTV will be when your fixed rate ends. Some folk that were at a 60% LTV a few years ago may find themselves at say 62% LTV post correction and the 60% LTV rates being unavailable to them.
It's pure speculation on if there's ever a going to be a market correction and what the interest rates will be in a few years.
. Calculate what price it'll be after a market correction of whatever percentage, 5%, 10%, 20% etc and then what the LTV will be when your fixed rate ends. Some folk that were at a 60% LTV a few years ago may find themselves at say 62% LTV post correction and the 60% LTV rates being unavailable to them.It's pure speculation on if there's ever a going to be a market correction and what the interest rates will be in a few years.
Soldato
Going bonkers on a offer is not ideal because the bank would look at the property and say, Umm that's over priced and not worth it so we will only give u this amount and rest u have to pay yourself..
The banks always look at what the property is really worth before giving you a mortgage on it
The banks always look at what the property is really worth before giving you a mortgage on it
That's fine, if you aren't completely head over heals in love with the place, go back to the vendor and explain. Everyone will be in the same position so you can renegotiate (or walk).
Soldato
Everything is still wild. Theres a house down the road from me that went up and sold in a week for (at least) 70k more than I paid 12 months ago. It's exactly the same house (layout etc) but with a smaller garden.
70k in 12 months. Insane. I literally don't understand what's happening. Everything is getting more expensive and wages aren't increasing but people are paying insane money for houses.
70k in 12 months. Insane. I literally don't understand what's happening. Everything is getting more expensive and wages aren't increasing but people are paying insane money for houses.
Wages aren't increasing for stagnant people. People who have changed company are commanding 20/30% raises. There is a massive scarcity of resources including humans.
That and lifestyle changes. 3 beds are must now - with home working/hybrid the new norm.
Oh yes, need to take into consideration the actual mortgageable value
Our EA has experienced down valuing recently via the mortgage lenders, people are just making up the difference with cash from wherever, madness lol
Bit of a risk for the buyer as you'll be in negative equity straight away...? The mortgage company clearly wont take on the risk if you need to make a top up payment.
Soldato
Negative equity only happens if the drop in value is larger than your deposit though... If you're dropping 25k as a deposit then the house needs to drop by that chunk.
Soldato
Which by all means is not impossible
Yea we've put a 20% deposit on a £250k house. The house sold new for £200k in Dec '17 so I don't think it's outside the realms of possibility that we could see the value drop back down close to that, and looking at a mortgage calculator we won't see much capital drop in the first 5 years of fixed rate (drops from £200k to about £174k), so we could see ourselves jump up from our 80% LTV bracket. We're not even in the sodding house yet 
Soldato
Are sealed bids a common thing in the property market? One of the houses i saw last weekend is doing a sealed bid and there was over 40 people who saw it with many expressing interests. This is why i am weary of going into a bidding war for a property
It isn't a bidding war if it is sealed bids. You just put your best offer in and walkaway.