Sealed bids pain. Does it get easier?

[Mick Mac]

Fair play to you Pickle.

However if you have so many offers over asking price it suggests the asking price was "wrong". But the main thing is that you were happy. Your buyers will have really appreciated your reasonable stance I'd imagine.

[miga]

The asking price should be set in collaboration with an agent. A good one should suggest the optimistic side of what's possible. The 2014 market was so mental that houses we were offering on were going for 25% over asking price in the sealed bid process. Agents actually stopped the bidding for two places we had offered on, presumably because finance was unlikely to be approved after valuation. We were in an excellent position, but so was everyone else. When we bought our first flat in N4 way back in 2006 the conditions were completely different; it was completely normal to offer a few grand under asking price for example. So I know rhe frustration.

What surprises me is that places are still going to sealed bid, as my impression was the market had cooled down.

Missing out on the house you had imagined yourself in, and settling for something that will do, sucks. You think of schools, transport, cafes, wallpaper, garden etc. and then poof, you can't have it. Good position, big deposit, great salary...nope, still can't have it. It's sobering to realise, though, that to be able to buy anything at all that's family sized in London is a privileged position, and to be able to buy somewhere that's actually nice like SE22 is the stuff of dreams for most double income professionals. And ultimately, wherever you wind up that meets your basic criteria, will be where you/your family call home, and so by default will be a place you love.

[Mick Mac]

miga Wrote:

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> The asking price should be set in collaboration

> with an agent. A good one should suggest the

> optimistic side of what's possible. The 2014

> market was so mental that houses we were offering

> on were going for 25% over asking price in the

> sealed bid process. Agents actually stopped the

> bidding for two places we had offered on,

> presumably because finance was unlikely to be

> approved after valuation.

Should Agents make that assumption? not every buyer needs finance, although the agent may well have known the status of the bidders, in which case ok. Sometimes agents just want a sold sign up and move on to the next sale, commission earned.

[miga]

Banks do valuations on places before doing final mortgage approval - allowing the ring around to run its course presumably runs the risk of mortgages not being approved not due to buyer's position but due to the asset being overvalued. As I said, it was mayhem.

[Rosetta]

It's my belief that there are a number of under the counter deals with this practice, with bribes being accepted and encouraged, by the agent.

[Pickle]

Mick Mac Wrote:

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> Fair play to you Pickle.

> However if you have so many offers over asking

> price it suggests the asking price was "wrong".

> But the main thing is that you were happy. Your

> buyers will have really appreciated your

> reasonable stance I'd imagine.

As it stood we made a pretty hefty capital gain in just 3 years, and it helped us into a bigger property for a small additional outlay. The couple that bought from us have done similar, and also managed to stay in the area, I like that I still see them around, happy ending.

Interestingly, the same house recently sold again, having changed hands for the third time since we owned it. Sale price 125% higher than 10 years ago (standard 2 up, 2 down), and over ?250k more than we paid for our much larger house. I would hate to be a first time buyer in this market!

[cantthinkofaname]

So here we are again and have now lost out on 4 houses.

What is everyone's view in why the stock levels are so bad at the moment, especially round here? I know London suffers overall and planning restrictions are causing fewer homes to be built, but we are finding that hardly ANYONE in SE London is releasing their homes.

Is it the EU Brexit vote causing uncertainty? Or simply that those who are in those 3 bed in Brockley, Ladywell, etc etc also can't afford to move up? it's getting silly. Losing the will to keep dragging a tired toddler round every Saturday for a scrap of a home!

[Jeremy]

I don't know... I think there's quite a bit on the market, but a lot is overpriced, or is in very bad condition, so has been sitting on the market for a long time.

[Louisa]

Without doubt the uncertainty over brexit has held the market back this Spring. Well below average levels for the time of year. I would imagine, come the outcome of this referendum, the market will become saturated (for a time) with those vendors who held back over the spring.

Louisa.

[Earl Aelfheah]

Eh? So are there lot's of properties on the market, or not enough. This thread seems to be conflicted.

[uncleglen]

With reference to what I've seen there appears to be a lot of conversion flats for sale so maybe the houses are being split to make an extra few quid for the developers....

[miga]

I don't know about SE London in general OP, I'm pretty sure there are houses round my ends (SE6) that have been around for weeks. Perhaps an ED specific issue?

[Loz]

cantthinkofaname Wrote:

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> What is everyone's view in why the stock levels are so bad at the moment, especially round here?

Apparently, the BTL stamp duty change caused a blip in the number of sales in the first three months of the year. I can imagine that has soaked up a lot of the stock. Give it a couple of months and it will return to sanity.

Something similar happened in early 2014. A lack of stock caused a sharp rise, then by Sep 2014 there was too much stock on the market as everyone tried to pile in and prices dropped back.

[cantthinkofaname]

From my own experience, SE22 has lost its froth, so more stock here, but houses sitting around for weeks. We simply can't afford Dulwich anymore though.

Conversely, the stock for a sensible average 3 bed outside of SE22 (so Honor Oak, Nunhead, Brockley, Ladywell, Sydenham, Hither Green) is really poor. What has come on in these areas tends to get snapped up, but then we're finding they come back on after failing mortgage valuations.

One plucky agent told me we needed to up our budget to 800,000 for a small 3 bed Victorian (nowhere near SE22). I told him where to go.

Here's hoping the Brexit will cause things to calm down. We may stop looking until then. Not going to get into something then regret it.

[johnki]

I'm a seller at the moment (SE20)and to be honest there doesn't seem to be the volume of buyers that I was expecting at this point. I'm in no rush so I'm not concerned and a few of the viewers I've had have spoken about holding on till July