Same here where I am in the NE it’s crazy - many sold before they hit Rightmove because there’s a shortage within chains and sellers haven’t got a property to move too.
This is anecdotal only but I am in the process of buying a house in a very popular area of a city in the north. We sold our first house for 270 (asking price) in October but it was down valued by 10k to 260 - which we accepted. The house we’re buying now was on the market for 425 in March, we offered 450 with the intention of covering the shortfall in cash but the bank valued it at our offer price - 450! We were pretty surprised by this as we have been house hunting for MONTHS and have put in 10 offers which have mainly been rejected for being too low (even though all of them have been at or over asking - some significantly over!).Are the mortgages agreeing with the valuation on these properties?
A few years back lots of people i know, myself included, were having properties down valued. So our example house was up for 300 which is average for the area. We offered 295 and it was accepted. Mortgage came back and said the house was only worth 280. So as first time buyers we had to pull out as the sellers wouldn't drop the price.
So I wonder with these houses where people are offering tens of thousands over the asking price are the banks agreeing the value?
Ones I’ve been involved in or heard of, the mortgage was valued lower than the offer and the provider would not increase the mortgage offer. I always know some people have inflated their finances to make it appear they can afford the house but, in actual fact they cannot. Very strange times.Are the mortgages agreeing with the valuation on these properties?
A few years back lots of people i know, myself included, were having properties down valued. So our example house was up for 300 which is average for the area. We offered 295 and it was accepted. Mortgage came back and said the house was only worth 280. So as first time buyers we had to pull out as the sellers wouldn't drop the price.
So I wonder with these houses where people are offering tens of thousands over the asking price are the banks agreeing the value?
This is anecdotal only but I am in the process of buying a house in a very popular area of a city in the north. We sold our first house for 270 (asking price) in October but it was down valued by 10k to 260 - which we accepted. The house we’re buying now was on the market for 425 in March, we offered 450 with the intention of covering the shortfall in cash but the bank valued it at our offer price - 450! We were pretty surprised by this as we have been house hunting for MONTHS and have put in 10 offers which have mainly been rejected for being too low (even though all of them have been at or over asking - some significantly over!).
There still must be lots of buyers out there who are covering shortfalls in cash. Tbh I know nothing about the valuation process but am wondering whether the sustained increase in prices over the last year has meant they are less conservative than they were a few months ago.
Thanks both.Ones I’ve been involved in or heard of, the mortgage was valued lower than the offer and the provider would not increase the mortgage offer. I always know some people have inflated their finances to make it appear they can afford the house but, in actual fact they cannot. Very strange times.
Apparently places Glasgow and Edinburgh are going for at least 20% over the asking price just now.. madness.Im also in Scotland and really eager to move but the way the market is at the moment Im not dipping my toe in the water. Im under no illusions my house would be snapped up but Im very concerned about actually managing to get another house.
I saw a house go up on Rightmove yesterday, no home report yet and only one outside image. It was 'under offer' in a few hours.
Im going to wait it out, okay I may not get as much for my own property but it doesnt matter because if prices fall theyl all fall. I will be upsizing so it doesnt really matter to me. My nerves couldnt take the market right now.
Almost everything in Scotland is going 10-30% over home report value now. Our LBTT break stopped in March and it’s still mental.Apparently places Glasgow and Edinburgh are going for at least 20% over the asking price just now.. madness.
I will shortly be moving back to Scotland from England but not going to buy until the market levels off! I’ll take the stamp duty hit if it means a cheaper flat.
I wouldn't say never, they can't remain so out of sync with wages forever.Such a pity that my daughter and her boyfriend will never be able to afford here, you can't even find a 2 bed flat for less than £250k. This is in the North by the way.
Omg the cheek! We’ve had letters through the door (we’re temporarily renting to ‘break the chain’, we had to in order to have any chance here, so we just have a good laugh at them) and one of our friends even had a very emotional handwritten letter put through theirs but never so far as people stopping us to ask if we’re selling - that’s crazy! Don’t know why anyone would move at the moment unless they have to, it’s just ridiculous. I’ve been on the other side though and at points we did get so desperate we did consider the leaflet approachWe bought a new place earlier in the pandemic (have written about it on this thread). Moved earlier this year.
The market was busy when we were looking last summer, but there was about enough property to go round.
Fast forward nearly a year later, we’ve been in our new place for months, and the market has ground to a halt in terms of property avaliable, but demand is higher than ever - we’re getting letters through the door every single day asking us if we’re looking to sell, Estate Agent flyers, people sniffing around the street and stopping us when we step outside to ask if anyone is selling… it is MADNESS!
It is admittedly a very well-located street with good sized properties, but it honestly feels insane. It’s not THAT amazing!
One guy was SO RUDE, suggesting my partner and I must be desperate for him to buy us out of our “huge mortgage”. LMAO our mortgage is like 20% of our house cost, which is one of the reasons we felt confident moving in a bloody pandemic![]()
It’s honestly so worth it, they will appreciate it in the long run. I have friends who did this and are so happy they did. Whilst, others rented as well and regret it massively. It’s not that bad living at home, especially if you have your own space. I missed my mum when I left home!Prices where we live have gone absolutely nuts. There is no way on earth we could afford our house now, we paid £380k in 2015 and they are selling on our street for £600k +
Such a pity that my daughter and her boyfriend will never be able to afford here, you can't even find a 2 bed flat for less than £250k. This is in the North by the way.
Both us and her boyfriends parents have always said never rent. Stay at home and save. They are 22 and just about to finish Uni, so it will be hard for them to adjust to full time at home after having found independence but at least they can split their time between houses. We've also given her the biggest bedroom in the attic and had the en-suite done up, plus I've made one section of the basement into a second living room for them to use if they want to be away from us. With rent prices around here it's the only way they'll be able to get a deposit together, and even then there will be help from the bank of Mum and Dad.
Manchester here too, Chorlton. The prices around here are impossible for younger ones.It’s honestly so worth it, they will appreciate it in the long run. I have friends who did this and are so happy they did. Whilst, others rented as well and regret it massively. It’s not that bad living at home, especially if you have your own space. I missed my mum when I left home!
I’m from Manchester and the regeneration is having a huge impact on prices. Areas people wouldn’t walk in 10 years ago are now selling places for a minimum 300k.
No one really knows what the future will hold. Just because it worked well for people in the past that's no guarantee it will in the future. Everything is uncertain.It’s honestly so worth it, they will appreciate it in the long run. I have friends who did this and are so happy they did.
It is really hard and really tit for young people at the moment, I really feel for those in their early 20s at the moment. You sound like a very sensible and supportive parent btw!Prices where we live have gone absolutely nuts. There is no way on earth we could afford our house now, we paid £380k in 2015 and they are selling on our street for £600k +
Such a pity that my daughter and her boyfriend will never be able to afford here, you can't even find a 2 bed flat for less than £250k. This is in the North by the way.
Both us and her boyfriends parents have always said never rent. Stay at home and save. They are 22 and just about to finish Uni, so it will be hard for them to adjust to full time at home after having found independence but at least they can split their time between houses. We've also given her the biggest bedroom in the attic and had the en-suite done up, plus I've made one section of the basement into a second living room for them to use if they want to be away from us. With rent prices around here it's the only way they'll be able to get a deposit together, and even then there will be help from the bank of Mum and Dad.
I am only saying that if you can live at home and save then you will be in a better position than those that rent. Regardless of the property market, you have the advantage of saving. I’m only 26 and the majority of my friends do not own properties and many who do come from wealthy backgrounds or have bought in areas they didn’t want to.No one really knows what the future will hold. Just because it worked well for people in the past that's no guarantee it will in the future. Everything is uncertain.
If the future was to keep repeating it's self then the falls at the end of the 90s and in 2008 when there were economic shocks would happen again. But that's not certain either.