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Viewing / Buying a house


Don_Simon

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Honestly, the market is full of morons.

Yes, interest rate are very low, but they'll go up eventually, in 5, 10, 15 years time, if you've borrowed as much as you can and your wages don't go up significantly, you'll struggle and the banks will take those homes back.

Short sighted approach to save a couple of grand, but pay more for the house isn't good spending.

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At some point you'd imagine that there will be a correction, but who knows when, or how abrupt it will be.

I know a bloke who could have bought a house over ten years ago but he stayed renting because house prices are stupid and there's going to be a crash any time now. I'm not sure he'll be proven right before the hypothetical 25 year mortgage would have been paid off.

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2 hours ago, Davkaus said:

At some point you'd imagine that there will be a correction, but who knows when, or how abrupt it will be.

I know a bloke who could have bought a house over ten years ago but he stayed renting because house prices are stupid and there's going to be a crash any time now. I'm not sure he'll be proven right before the hypothetical 25 year mortgage would have been paid off.

Furthermore, he'll have spent probably the best part of £80,000-100k on rent he'll definitely never see again. In those ten years, the house price probably doubled too.

There might be dips, crashes or negative equity in the future, but as a rule, given long enough, you're normally going to make/save/invest money in property. In renting it's guaranteed wasted cash. I doubt a crash that causes house prices to plummet to the same cost as they were ten years ago is that likely, stagnation or small drops are far more likely. If the last 18months with viruses and brexit hasn't hurt the market, what can?!

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20 hours ago, Davkaus said:

I know a bloke who could have bought a house over ten years ago but he stayed renting because house prices are stupid and there's going to be a crash any time now. I'm not sure he'll be proven right before the hypothetical 25 year mortgage would have been paid off.

There is a whole forum of people dedicated to the 'inevitable' crash

https://www.housepricecrash.co.uk/forum/index.php

I imagine some have been waiting 10-11 years and forking out £100k in rent in that time

 

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21 hours ago, Rds1983 said:

The neighbours nearly sold in January for £360k but it fell through at the death. The put it back on the market on Monday for £390k and got a knock on the door from a couple who offered £380k without even stepping inside (can't wrap my head around that one). They've got 3 viewings on Friday. I thought the market was calming down but clearly not. 

It’s crazy. I get Rightmove email alerts from years ago when I was looking. Every week the prices go up and up.

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2 minutes ago, Xela said:

There is a whole forum of people dedicated to the 'inevitable' crash

https://www.housepricecrash.co.uk/forum/index.php

I imagine some have been waiting 10-11 years and forking out £100k in rent in that time

 

I worked with a guy 15 years ago, sold his house for £300k and went into rented as he was convinced the market was gonna crash. Imagine how much that is worth now :lol: 

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1 minute ago, Genie said:

I worked with a guy 15 years ago, sold his house for £300k and went into rented as he was convinced the market was gonna crash. Imagine how much that is worth now :lol: 

To be fair to him, there was a housing market crash in 2007 which was 15 years ago. 

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8 minutes ago, Genie said:

I worked with a guy 15 years ago, sold his house for £300k and went into rented as he was convinced the market was gonna crash. Imagine how much that is worth now :lol: 

If he invested that £300k wisely then that lump sum could have grown into millions now. Lets hope he made the right choice! 

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  • 2 weeks later...

There’s been a few houses go up for sale in our street, and they are not up for long.  We now live in a terraced street on the outskirts of the town centre. Very quirky street. It’s a good street for first time buyers and buy to let . When I took the dog out this morning I noticed in the window of one estate agents, and the amount of houses they had on the display window with SOLD was unbelievable. There was a lot of houses displayed in the window and I’d say 3 quarters of them had SOLD on them. 

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Haven't really posted much about it in here, but I sold my flat and bought a house in February. It's been really frustrating, especially in the last few weeks, as - despite there being very few 'issues' (nothing outside the normal solicitor query gumph) - we're no nearer to obtaining a completion date. Sometimes our solicitors will answer emails / calls when we chase up progress, sometimes they won't. It's the same for my buyer with his sols. 

Our mortgage offer expires at the end of August, and with the reason for our move being the birth of our daughter and my girlfriend now being on maternity leave and reducing her hours when she goes back to work, that's something I really don't want to have to deal with again. 

By the way, I haven't really seen it publicised much anywhere, but the stamp duty holiday isn't being extended, but phased out. Until the end of the month, purchases of property under £500k accrue 0 stamp duty, and then until the end of September property under £250k accrue 0 stamp duty, after which it goes back to normal. 

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advice please

so had an offer accepted...our first home...mortgage approved, solicitor seemingly on the ball. all ticking along nicely.

today out of the blue, lender comes in an says they think the house is worth 25k less than we're buying it for. we're right at the 10% deposit so with them only lending us 90% of what THEY think it's worth, we need to cough up a fair chunk more to make up the shortfall...which isn't doable.

anyone had any experience/success in challenging a lender's valuation? i know prices are crazy at the moment but IMO their valuation is still too low. it's not based on any survey, it's just a case of seeing how much houses have gone for in the same area.

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8 hours ago, tomav84 said:

advice please

so had an offer accepted...our first home...mortgage approved, solicitor seemingly on the ball. all ticking along nicely.

today out of the blue, lender comes in an says they think the house is worth 25k less than we're buying it for. we're right at the 10% deposit so with them only lending us 90% of what THEY think it's worth, we need to cough up a fair chunk more to make up the shortfall...which isn't doable.

anyone had any experience/success in challenging a lender's valuation? i know prices are crazy at the moment but IMO their valuation is still too low. it's not based on any survey, it's just a case of seeing how much houses have gone for in the same area.

I work in the mortgage industry and there has been a lot of this lately. It feels like surveyors are trying to slow the house prices down. They’re down valuing by just enough to cause issue most the time. 

You have a few options in this scenario. Have they done a full physical valuation, or have they done an online desktop valuation?

You can challenge the surveyor, but their report is exactly as you say, based off recent sold comparables in the last 6 months, within 0.5 miles of the security property. Your challenge will need you to provide evidence of 3 properties within that criteria to prove that they are wrong for them change their mind. Usually impossible as they have already looked at the data they are asking you to provide. The only time this doesn’t happen is for large, bespoke property where there is no comparable evidence. 

I’ve never seen a surveyor overturn their original decision and increase a valuation. They can be stubborn buggars. 

If the lender has just done their own desktop online valuation, might be worth asking for a for a full physical valuation to challenge their decision. 

Another option could be to renegotiate the price with the vendor, following on from the valuation. It’s likely any future buyers will have the same problem at valuation. Often estate agents are the ones who over egg the price resulting in this situation. 

Final option could be to switch lender and ensure they use a different surveyor, and get a new valuation done with them. 

I’d speak to your mortgage advisor if you have one and if I were you. 

Edited by villan-scott
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8 hours ago, tomav84 said:

advice please

so had an offer accepted...our first home...mortgage approved, solicitor seemingly on the ball. all ticking along nicely.

today out of the blue, lender comes in an says they think the house is worth 25k less than we're buying it for. we're right at the 10% deposit so with them only lending us 90% of what THEY think it's worth, we need to cough up a fair chunk more to make up the shortfall...which isn't doable.

anyone had any experience/success in challenging a lender's valuation? i know prices are crazy at the moment but IMO their valuation is still too low. it's not based on any survey, it's just a case of seeing how much houses have gone for in the same area.

The in-laws had this issue. They negotiated up to the asking price for the house they were selling, then the buyers lender said it was too high and they walked away (as the in laws refused to budge).

They ended up taking it off the market and then putting it back on a few months later once the stamp duty holiday was announced. They did end up selling but for about what the lender had previously said it was worth.

All great advice by @villan-scott. First call I’d make would be to the sellers estate agent and tell them what has happened. See if they can get the price down a bit. £25k is a long way though, in the case of the in laws it was only £10k.

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The house I bought this year, according to the surveyor and based off a desktop was 5k over. No comparable properties sold in the same street within the last 5 years and we felt it was priced correctly. After a fair bit of back and forth, we swallowed the additional 5k. 25k would probably have seen us walk away. 

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1 hour ago, villan-scott said:

I work in the mortgage industry and there has been a lot of this lately. It feels like surveyors are trying to slow the house prices down. They’re down valuing by just enough to cause issue most the time. 

You have a few options in this scenario. Have they done a full physical valuation, or have they done an online desktop valuation?

You can challenge the surveyor, but their report is exactly as you say, based off recent sold comparables in the last 6 months, within 0.5 miles of the security property. Your challenge will need you to provide evidence of 3 properties within that criteria to prove that they are wrong for them change their mind. Usually impossible as they have already looked at the data they are asking you to provide. The only time this doesn’t happen is for large, bespoke property where there is no comparable evidence. 

I’ve never seen a surveyor overturn their original decision and increase a valuation. They can be stubborn buggars. 

If the lender has just done their own desktop online valuation, might be worth asking for a for a full physical valuation to challenge their decision. 

Another option could be to renegotiate the price with the vendor, following on from the valuation. It’s likely any future buyers will have the same problem at valuation. Often estate agents are the ones who over egg the price resulting in this situation. 

Final option could be to switch lender and ensure they use a different surveyor, and get a new valuation done with them. 

I’d speak to your mortgage advisor if you have one and if I were you. 

thanks for the info, much appreciated

i believe this is just a desktop valuation as the agent was not aware of any surveys being done (we were going to get a homebuyers report but not initiate it before this all started)

my broker indicated that there are actually only about 3 valuers that the main lenders use, so chances of the valuation changing drastically by switching lenders is unlikely according to him

doesn't bode well that they are unlikely to change their decision. my broker is away for a couple of days so see what he comes back with but this is looking increasingly like it's the end of the road

ideally what we want is a chart that indicates which surveyor each lender uses so that i can guarantee that a different lender will use a different surveyor. i'm reluctant to chuck money at a report when they're unlikely to budge regardless of what it comes back with

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1 hour ago, Genie said:

The in-laws had this issue. They negotiated up to the asking price for the house they were selling, then the buyers lender said it was too high and they walked away (as the in laws refused to budge).

They ended up taking it off the market and then putting it back on a few months later once the stamp duty holiday was announced. They did end up selling but for about what the lender had previously said it was worth.

All great advice by @villan-scott. First call I’d make would be to the sellers estate agent and tell them what has happened. See if they can get the price down a bit. £25k is a long way though, in the case of the in laws it was only £10k.

thanks for the info - spoke to the agent and they said they are unlikely to lower the price even by a few k...25k no chance. they actually had higher offers than ours but accepted ours because we're first time buyers

they may end up with the same problem with the other buyers but i obviously don't know their situation.

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  • 1 month later...

We are hoping to be in for mid September, windows went in this week and the plastering will start on the inside too. Bought almost everything, just waiting for it to be installed/delivered :)

 

will get some pics

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7 hours ago, rjw63 said:

Nine weeks since we moved in.

It's amazing how much having a quiet area to live and neighbours who are friendly can improve your mental health so much.

 

Excellent news. I noticed an improvement in my parent's mood when they moved a few years ago as well. 

Thats what I need... not that I have bad neighbours, I don't, I just don't have any outdoor space. That is my main driver for wanting to move and I'm sure it would massively help my mental well-being. 

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1 hour ago, Xela said:

Excellent news. I noticed an improvement in my parent's mood when they moved a few years ago as well. 

Thats what I need... not that I have bad neighbours, I don't, I just don't have any outdoor space. That is my main driver for wanting to move and I'm sure it would massively help my mental well-being. 

What’s stopping you doing it? Are you trapped because of the cladding scandal?

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