‘Non-proceedable’ buyers creating a false market?

by Readers Question

9:17 AM, 6th January 2021
About 4 months ago

‘Non-proceedable’ buyers creating a false market?

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‘Non-proceedable’ buyers creating a false market?

Here we go again! We are in lockdown and so many potential buyers will be furloughed or worse and buying chains will collapse when the mortgage offers are withdrawn.

We have been trying to buy since early October, we have cash and make realistic offers based on ROI characteristics, only to be outbid by potential owner-occupiers. These buyers then are unable to proceed as their mortgage offers are rescinded or others in the chain have their mortgage offers rescinded.

The proposed vendor then sits and waits for another unrealistically high offer from another non-proceedable buyer and life goes on. We see stories of large numbers of mortgages being approved, but are they all being drawn down?

Are we alone in this?

David

Comments

AroundTheClock

17:31 PM, 6th January 2021
About 4 months ago

You're not alone in finding it difficult to invest in a bargain right now. Every property I've considered placing an offer on has been bid up past the asking price and this trend seems to be continuing now although the pace seems to be slowing a little. Lets see what the next couple of months hold. I'm expecting the housing market to cool off end of Feb into March but time will tell. As for purchases falling through yes I've seen quite a few drop back onto the market after being marked sold, so you're potentially onto something.

TrevL

19:06 PM, 6th January 2021
About 4 months ago

The stamp duty holiday combined with desparate ramping by agents, all designed to prevent the market from adjusting to a more sensible and subdued state reflective of the pandemica and brexit encertainty has raised unrealistic expectation in some cases.

Also people just desparate to get out of the house they've been stuck in for 9 months now....even if they can't really afford where they want to buy....its a bit like reatil thereapy, but with massive debt that they may not be able to pay off in a few months time.

Puzzler

8:45 AM, 9th January 2021
About 4 months ago

There are many properties advertised as reduced or have been on the market a while. Those might be worth investigating.


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