Accepted offer before stamp duty holiday, local prices now soared

n30_mkii · 10 Aug 2020 at 19:40

So it seems we are entering some very unusual growth in the property market, weve been on the market for around 12 months (3 bed semi), due to a couple of offers that fell through and then covid. We did reduce our price once property viewings were permitted again and accepted an offer 4k under new asking which ended up at roughly 185k. Now in the last few weeks local prices have hiked massively with two similar properties selling for 200k in days/hours. Today a new listing for a 2 bedroom rather than 3 like ours has been listed for 250k which is 60k over what the three bed properties have been selling for and a chunk more than some recent 3 bed detached houses in a nicer part of the area. We are about to exchange in the next few weeks and had planned to move into rented accommodation whilst we found our dream home, but are now concerned that prices have jumped so much we could be a lot worse off, as there is no sign of things slowing. Anyone in a similar position?

I'm tempted to pull out of the sale for six months but we are keen to move but seems things are against us at the moment. Hard to know if this is the new norm or a short term bubble, not what I'd expected for what should have just been a stamp duty holiday, we are pretty much in a recession!

Dis86 · 10 Aug 2020 at 19:43

It's listed. Doesn't mean it will sell anywhere near that price.

m@rty · 10 Aug 2020 at 19:43

So you want more money basically?

n30_mkii · 10 Aug 2020 at 19:46

Dis86 said:
It's listed. Doesn't mean it will sell anywhere near that price.

Indeed we will be watching it closely, if it does sell I'm not sure what that will signal other than the market is indeed in a bubble

m@rty said:
So you want more money basically?

No that's not it really, its more the risk of the gap between sell and new purchase getting out of control, i.e we will be getting a lot less for our money for x amount of time, who knows this could be the new norm.

Maccapacca · 10 Aug 2020 at 19:47

Think of number one do whatever is best for you.

If you sell for less and the market is moving up and you’re not on board by renting you’ll lose twice.

n30_mkii · 10 Aug 2020 at 19:48

Would rather be selling in a period of stability rather than becoming worse off due to massive volatility. Uncertainty when you are making big life choices isn't a good thing

Dis86 · 10 Aug 2020 at 19:49

n30_mkii said:
Would rather be selling in a period of stability rather than becoming worse off due to massive volatility. Uncertainty when you are making big life choices isn't a good thing

Definitely and the market is all over the shop right now and likely will be in the foreseeable. An agreed sale is a safe sale.

n30_mkii · 10 Aug 2020 at 19:50

Maccapacca said:
Think of number one do whatever is best for you.

If you sell for less and the market is moving up and you’re not on board by renting you’ll lose twice.

Yes you've hit the nail on the head. That is indeed the worry. We haven't purchased at the same time so its not like this is already accounted for. At the same time we could end up with a crash off of the back of this where renting could be an advantage but hard to tell unless you have a crystal ball

Diddums · 10 Aug 2020 at 19:51

m@rty said:
So you want more money basically?

Wouldn’t you?

Goksly · 10 Aug 2020 at 19:54

Pulling out when you've got an offer is a harsh move... But as others have said it's about ensuring you're not losing out and isn't illegal. I'd never go from owner to renter as a stop gap. If you can't monkey branch just wait.

n30_mkii · 10 Aug 2020 at 20:03

Goksly said:
Pulling out when you've got an offer is a harsh move... But as others have said it's about ensuring you're not losing out and isn't illegal. I'd never go from owner to renter as a stop gap. If you can't monkey branch just wait.

The only reason we decided to go that route was to remove ourselves from a chain and also to get into a really good buying position after missing out on a couple of properties due to not been sold. It's typical that we end up with this life decision in the middle of covid and a crazy housing market. Up until now prices have been steady and so expected we would reenter the market in a couple of months which could still happen, but damn these aren't great times as it feels like gambling

m@rty · 10 Aug 2020 at 20:20

Diddums said:
Wouldn’t you?

It’s a tough one, pulling out of a sale is a bit of a scummy move but I can understand the reasons why.

413x · 10 Aug 2020 at 20:24

m@rty said:
It’s a tough one, pulling out of a sale is a bit of a scummy move but I can understand the reasons why.

Yeah. It's a bit scummy . But at same time no one wants to lose out on so muc .

But it is a gamble

Semple · 10 Aug 2020 at 20:48

n30_mkii said:
I'm tempted to pull out of the sale for six months

I would place my bet that the market is only stirring because of the lack of stamp duty that's payable if completed by March. If you pull out of the sale for 6 months, it's a possibility that the market will go stale again, or prices will be back down to current levels.

Although it makes little difference, what situation are your buyers in? Are they selling a property or FTB? I think your best option (albeit a **** move) is to tell your buyer that due to the market having increased in value, you'll be priced out of your next purchase and therefore need to renegotiate on the price.

n30_mkii · 10 Aug 2020 at 21:00

They have cash buyers for their property. I guess asking them for more cash is an option but not a nice move either way if we pull out or ask them for more. Crap place to be in, but these are crap times for everyone! This is life affecting stuff, oh how easy things were last year

Maundie · 10 Aug 2020 at 21:15

Yes but surely your house should've increased with the market so by saying that you are no longer happy with the sale price is just covering your back,

People keep saying it's a scummy move but I'm fairly sure anybody who found themselves in this position would do the same, rather than leave themselves out of pocket just to appear "decent"

norm · 10 Aug 2020 at 21:29

I think if you are unsure about the market you need to withdraw from the sale. But I wouldn't be trying to imposition the buyer by asking for more money because of your uncertainty that doesn't seem right.

Diddums · 10 Aug 2020 at 22:10

m@rty said:
It’s a tough one, pulling out of a sale is a bit of a scummy move but I can understand the reasons why.

As macca pointed out above, you're only screwing yourself if you sell below market value, and sadly this takes top priority.

Psycho Sonny · 10 Aug 2020 at 22:37

Current market is inflated and it was already inflated before that.

I'm willing to bet next year prices will be in free fall.

In your shoes I'd try and re negotiate for a higher price stating that the house you were looking to buy has also gone up.

However they could pull out which is a big risk.

Personally I'd sell. Wait for the prices to fall which they will. We are just at the top of the iceberg in terms of the recession. Its going to be massive until a vaccine is mass produced and given to the majority.

I've told all my friends who are looking to buy to wait until next year. Prices will be amazing then for buyers.

I'd be tempted to sell now if anyone is planning to do so. These prices are unsustainable and will crash hard.

Just look at how many industries and jobs have been lost and that is just the start it's a domino effect. One by one another will fall.

Rotty · 10 Aug 2020 at 23:02

I would like to think I had higher moral standards, sorry but that's how I see it

*just checking that you have agreed an offer

Accepted offer before stamp duty holiday, local prices now soared

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