My buyer is obviously very keen, as he has already ordered the surveyor for tomorrow morning 8:30 am!
I intend in the next day or two to view some properties in my selected area. As one of them has already had considerable interest expressed in it (allegedly!), would I be being stupid by putting in an offer as soon as I have seen it? Or should I wait until my buyer's surveyor has reported back?
Does an offer have to be in writing at the first instance or can I confirm in writing on my return? How will the estate agent of the target property know that I am genuine? Perhaps I should take along some relevant photcopies (from my solicitor, for example)?
Go and see all the houses you like, and then make up a short list for a second viewing, when u have seen all those if and only if you like one make an offer, I don't think anything has to be in writing as I never confirmed anything in writing.
Either that, or he does not know whether the mortgage company will approve the loan and wants to get an answer as soon as possible.
He will know you are genuine when you put down the 10% deposit. Until then, you are simply a potential buyer - creatures who come and go without discernable rhyme or reason. However, if you particularly want a property, offering the asking price tends to focus the seller's attention. They don't expect to get that much for it and it usually puts you ahead of the competition.
In my experience when you find the property you want, you know it pretty much straight away and there's not much point waiting around when that happens. You are in no way commited until you exchange contracts, which will be weeks down the line, though sellers will expect to see your survey done asap as a measure of seriousness on your part (it's the first indication they have that you are spending an money).
The agent will probably want it in writing but will take it verbally in the first instance. But they will already have tried to establish how good a bet you are if they are any good. If you want to bolster that with paperwork it can't hurt, but I've found they tend to believe you.
It's a good idea to get a mortgage offer in principle, and some lenders are much quicker than others. Halifax and Alliance and Leicester get the surveyer out within a week, I've heard Woolwich can take up to six weeks, for example, which can make people antsy.
However, it looks like it's turning into a buyer's marker, so perhaps you should be focusing on your purchaser and worrying less about finding somewhere - if prices take a tumble then you will see a lot more on the market all of a sudden.
I won't require a mortgage. But I shall get a survey done nevertheless, especially on the property I have my eye on, as it's 150 years old. As old as I feel this morning.
So that makes you a Good Buyer... if the agent doesn't ask to see evidence of your ability to pay, it could still be to your advantage to show him. Buyers are likely to accept a lower offer from a cash buyer - it's not just all about the size of the offer, it's the 'quality' that counts too... eg, an offer of £130K from a definite cash buyer may be preferable to the seller over one of £135 from someone who needs to organise a mortgage.
All that is happening now is that prices are not increasing as dramatically as they have been over the past few years, but are levelling out. There is no reason to expect that prices will start to fall at all, much less that they will tumble. When prices did drop suddenly last time, houses tended to be less available at first, because people did not want to sell at a loss. It was only as people had to sell and prices stayed low, that the number of properties on the market rose, mainly because buyers with negative equity could not afford to buy.
This is certainly a subject that has been and will be done to death. I was pondering the prospect of a fall in the shower this morning, and I suspect you're right, as rates are still very low historically and there's always a slowdown in the colder months. But there are other factors that could make a difference -for example there are a lot of investment properties that could suddenly go on the market. Having just bought a bigger place, I certainly hope there isn't too much of a fall!
Anything written or spoken other than exchange of contracts is meaningless. Exchange will happen simultaneously with every property in the chain when everyone is happy to do so. (Actually not in my case, as I like to keep chains bumping along, so exchanged with my purchaser before my vendor). You simply state the position of your buyer and the state of proceedings to your vendor. If they find that acceptable along with your offer price, then you can start to arrange conveyancing.
Even if there is a fall, the market will pick up again, I'm sure. Even the shocking negative equity problem arising out of the crash at the end of the 1980s has been papered over again. One may need to stay longer in one property before moving on. However, the trick is how to spot the downturn *before* it happens! (Yeah, tell me where to buy crystal balls!) Because when I put my house on the market in April, agents everywhere were still full of the joys of spring and a new Aston Martin in the driveway. That's why I listened, took their orgasmic advice and put the house on at far too high an asking price. Next time I sell I shall not just get three agents' valuations, but a dozen! Well, maybe not that many, but I want to look into as many eyes as possible while they tell me yet another version of why we went to war.
Then I shall probably choose the LOWEST valuation!
It does not need to be in writing and I've never been asked for an offer in writing. They know you are serious when you pay for the surveyor to go round.
I've just sold my late mother's house to someone who seems to own most of the neighbourhood. While she plans to live in the house I've sold her, the rest are investment properties and she says that she has no intention of putting those onto the market yet. She would want the prices to go up quite a bit before the profit from the sales becomes more attractive than the income from the rentals.
Not if Labour eventually get their way with the sellers pack:
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You have to get a sellers pack prior to putting the house on the market (cost about £1000).
2) The sellers pack has a shelf life of 6 months, so you can't keep it until next year to put the property back on the market (that's another £1000 please madam).
3) The reports in the sellers pack won't be acceptable to the building societies, so the buyer has to pay again to have surveys done.
Someone please tell me why these sellers packs are a brilliant idea?
But I have already explained that I am prepared, if need be, to move into rented accommodation for a short period, thus making me a cash buyer when the sale of my property has been completed.
How about a buyer (still) needing a mortgage AND needing to sell a house? As do most buyers.
Also, I have been told by at least three vendors that they are less interested in FTBs who believe they will get up to 80% of the purchase price, when it is patently obvious that their optimism is getting in the way of reality. At least it looks less likely now that the interest rate is going to be raised again this year.
I bought my next house yesterday. That is, we haggled, they accepted. Solicitors have been instructed. We wait. Meanwhile, my 370 mile trek around Britain over the past few days has done the clutch in (no, not my foot on the pedal; one of the fingers inside the clutch plate mechanism appears to be jammed or broken), so that's going to cost me £160 on Monday.
Agreed, but you are not a cash buyer at the moment. You are a buyer with a house to sell which is under offer. If your buyer, or their buyer, decide not to buy, you cannot buy the next house.
More complicated, and more opportunities for problems than the other two options, so least desirable.
A couple with a house each to sell, and their late parents house, and needing a mortgage are even less desirable.
Mike - These are generalisations, and a good agent will use their judgement in advising you in every circumstance. For example, if I make an offer for a house locally, and need to sell 5 houses and get a mortgage to buy, the agents know that I will arrange short term remortgages, (loans), on the houses I need to sell, just in case they dont.
My opinion has been formed over 17 years and the sale of around 2500 houses. Most vendors have sold up to 4 or 5 in a lifetime, (or 15 or
20....). Again, the agent should attempt to financially qualify any purchaser, including an FTB. If they get the correct, unconflicting answers from all sources, and the figures stack up, there is generally more chance that the FTB will be able to proceed better than the others
- on average, and on balance.
People buying houses tend to use very imprecise terminology, usually in a way which suits their situation. Your offer has been confirmed as acceptable, but you havent bought the house. There is many a slip 'tween cup and lip and, as you say, you wait.
I truly hope it all goes OK. Many do. It's just that when it doesnt, people get upset and look for someone to blame, (usually the estate agent ), when it is actually quite normal and par for the course.
Yes, that's fine, but you aren't a cash buyer yet, which is what matters to the vendor of any house you make an offer on now. You've still to complete the sale of your house, your buyers still need to arrange their mortgage, plenty to still go wrong.....
AFAIC they are really in pretty much the same position as the house selling/no mortgage buyer. It's the selling of the house that takes the time, getting a mortgage doesn't tend to hold up most sales (note
*most*, there are of course plenty of exceptions)
I take it Richard was just really talking about comparing potential cash buyers (as you are) with someone who just needs a mortgage. I concur, unless someone is being stupid in their expectations (and there are nop 'issues' with the house as regards the mortgage company) then getting a mortgage is no great shakes.
80%? can there be many FTB who can afford less than 95% nowadays.
Of course you need to judge the buyer on there circumstances. But a FTB should know pretty quickly if they can get a mortgage (in principle anyway) - a buyer with house is probably part of a chain with all the problem that can cause no matter how 'god' your buyer.
Hope all goes well.
Bummer.
We are going to have to put our house on the market soon (get imminent baby out of the way first...). Not looking forward to it.
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