Bidding war

mrswoods

Hi guys
We are movers to forever home. Sale agreed on ours.
Currently in bidding war on 2 properties.these 2 properties are only 2 of 4 that have come up in our price range at the right size in the last 4 years. So high in demand.
Property 1 cheaper more rural has now gone 30k over asking with us as highest bidder however first time buyers have matched our bid EA has basically told us he will be advising sellor to go with FTB. Whilst I can see the sense in this as they are chain free so f#@cken annoyed as there was no prob in EA taking our bids and increasing price of house. EA won't take any more bids from us. A bit confused!

2nd house is my hubby's fave and has now gone 25k over asking we are highest bidders have reached top of budget but are willing to go that high as would be forever home. Apparantly FTB bidding here too so now playing waiting game.

I feel sick as we are sale agreed our EA has told us we will have 12 weeks to leave house 4 kids and we have nowhere to go if neither of these houses work out. Our mortgage is tracker so 600 p/M if é were to rent is would be 900 pm at least and only 1 house available at mo.so financially would reduce our savings. Also house with our max isn't worth this money but due to high demand and low supply it has driven it up .any advice would be appreciated!

MAJJ

mrswoods wrote: »

Hi guys
We are movers to forever home. Sale agreed on ours.
Currently in bidding war on 2 properties.these 2 properties are only 2 of 4 that have come up in our price range at the right size in the last 4 years. So high in demand.
Property 1 cheaper more rural has now gone 30k over asking with us as highest bidder however first time buyers have matched our bid EA has basically told us he will be advising sellor to go with FTB. Whilst I can see the sense in this as they are chain free so f#@cken annoyed as there was no prob in EA taking our bids and increasing price of house. EA won't take any more bids from us. A bit confused!

2nd house is my hubby's fave and has now gone 25k over asking we are highest bidders have reached top of budget but are willing to go that high as would be forever home. Apparantly FTB bidding here too so now playing waiting game.

I feel sick as we are sale agreed our EA has told us we will have 12 weeks to leave house 4 kids and we have nowhere to go if neither of these houses work out. Our mortgage is tracker so 600 p/M if é were to rent is would be 900 pm at least and only 1 house available at mo.so financially would reduce our savings. Also house with our max isn't worth this money but due to high demand and low supply it has driven it up .any advice would be appreciated!

Been in the same boat last year in Dublin. So I completely understand your concerns and stress. Being used to push prices higher and eventually concluded that we needed to sell and rent at each orbitant cost. Don't kid yourself that you can align to two transactions, great if you can but right now prepare to cancel your own sale or get ready to move out. We didn't know where we were going and cleaned out old toys, attic, boxed and separated into immediate use or storage. Checked all my storage options too. Other thing is to redirect post, get the form in advance as there is a lead time. Utilities all quick to close out.
As I said my situation was in Dublin but similar. Best of luck and maybe it will all work out, it did for us. Ask away for any other info.

sapper

We set about trading up last year and decided that the only way to do it was to sell, rent and then start looking to buy. Otherwise you will always be a substandard buyer compared to a FTB/cash buyer - you could outbid an FTB by 10k but the vendor would probably still be better off selling to the FTB...they have no way of knowing for sure that you will be able to sign a contract anytime soon.

Lack of supply these days seems to make any sort of "forever" house highly desirable and likely to go above asking. Everyone is really best staying out of the housing market these days ....which is what most people are doing

Smiley11

No EA will take your bids seriously when you're only sale agreed on a property in the majority of cases. Our sale just closed recently & we took a chance on the buyers who were sale agreed but had contracts signed on their own sale. Plus they had pushed up the bids by 50k so we knew they really wanted the house. It was a big chance to take & I'm not sure I'd take the risk again!

We have another property luckily that we're living in for the time being but I wouldn't even contemplate bidding on another house until we closed as there are no guarantees that a sale will go through. Sale agreed doesn't really mean anything to be honest & I felt no comfort being sale agreed the last few months. We viewed a few houses after accepted the final bid on our house & said our house was sale agreed in some instances, sold in others. You could physically see the EA's expressions glazing over as soon as they heard sale agreed.

I know renting may seem like a bad option at the moment but realistically, you have no buying power in your current circumstances. It doesn't sound like you're heart is in either house so perhaps taking a step back & biding your time until you find your forever home is the best option at present. That's certainly what 're going to do until we find ours.

mrswoods

Thanks for advice. The in laws have told us we can live with them for a while so hopefully as ye said when next house comes up we will be in a more favorable position

pwurple

We were similar a few years ago. We completed the sale and rented until we had the new place. Get yourself into a better bargaining position if possible.

daheff

mrswoods wrote: »

I feel sick as we are sale agreed our EA has told us we will have 12 weeks to leave house

If you havent signed contracts with the purchaser then you can stay as long as you like. To be frank with you, I'd be surprised if your solicitor would let you sign contracts finalising the sale of your property without having somewhere else to go


It maybe that the EA is telling you the purchaser wants to move in in 12 weeks time.


so question is -have you signed the contracts to finalise the sale of your house (and if you have, these should have a completion date) -if you arent sure, check with your solicitor.


also one other point to be clear of is in regards to your tracker mortgage. make sure you can still take over your tracker (even with a break period between mortgages)

HelgaWard

Was in a very similar situation to you last year, although not in Dublin, so the market was probably less competitive. Although having said that we had competition for every single house we were interested in. The majority of bigger family (Forever homes) that were being put on the market were 1960s or 70s and all needed serious renovations to be turned into a modern home. This meant that whenever a ready to go house came on the market there was serious competition, and I'm sure we were bidding against the same people on several abodes. It eventually all worked out for us, but I definitely spent the vast majority of 2015 stressed to the gills. Estate Agents, banks and solicitors are all very stressful to deal with and we really had to apply constant pressure and personally contact people on a daily basis to keep things moving along. We eventually managed to sell our old house and buy the new house on the same day. It was incredibly stressful. But basically what I wanted to tell you, is that it is worth it in the long run. We are absolutely over the moon with out forever home, it's a better area for our kids to grow up in and the house itself is a pleasure to live in. So keep the faith, you'll get there and it will be worth it.

mrswoods

daheff wrote: »

If you havent signed contracts with the purchaser then you can stay as long as you like. To be frank with you, I'd be surprised if your solicitor would let you sign contracts finalising the sale of your property without having somewhere else to go


It maybe that the EA is telling you the purchaser wants to move in in 12 weeks time.


so question is -have you signed the contracts to finalise the sale of your house (and if you have, these should have a completion date) -if you arent sure, check with your solicitor.


also one other point to be clear of is in regards to your tracker mortgage. make sure you can still take over your tracker (even with a break period between mortgages)

No contracts issued yet.
Maybe I misunderstood 12 weeks as from dale agreed rather than contracts signed and date agreed.

Couldn't take tracker over as not in neg equity and new mortgage is with different bank as our own bank didn't really want to give us mortgage despite deposit and 2 permanent jobs

This is my first and last time doing this so it's good to hear that we shouldn't be pushed out

mrswoods

HelgaWard wrote: »

Was in a very similar situation to you last year, although not in Dublin, so the market was probably less competitive. Although having said that we had competition for every single house we were interested in. The majority of bigger family (Forever homes) that were being put on the market were 1960s or 70s and all needed serious renovations to be turned into a modern home. This meant that whenever a ready to go house came on the market there was serious competition, and I'm sure we were bidding against the same people on several abodes. It eventually all worked out for us, but I definitely spent the vast majority of 2015 stressed to the gills. Estate Agents, banks and solicitors are all very stressful to deal with and we really had to apply constant pressure and personally contact people on a daily basis to keep things moving along. We eventually managed to sell our old house and buy the new house on the same day. It was incredibly stressful. But basically what I wanted to tell you, is that it is worth it in the long run. We are absolutely over the moon with out forever home, it's a better area for our kids to grow up in and the house itself is a pleasure to live in. So keep the faith, you'll get there and it will be worth it.

Thanks helga thats great to hear.
We are doing this for same reasons but by good its so hard

sKeith

mrswoods wrote: »

No contracts issued yet.
This is my first and last time doing this so it's good to hear that we shouldn't be pushed out

Don't sign the contracts until you are ready to leave. If you sign contracts, you have to leave. Up until they are signed, everything is reversible.

As a buyer, you may find that out, especially if seller is also part of a chain.

This is main reason that estate agent favours the non-chain bids is that they are less likely to abandon deal in the eleventh hour.

wench

mrswoods wrote: »

This is my first and last time doing this so it's good to hear that we shouldn't be pushed out

Do bear in mind though, that you may lose your purchaser if you mess them about and won't commit to moving out.
Until the contracts are signed they can walk away too.

mrswoods

wench wrote: »

Do bear in mind though, that you may lose your purchaser if you mess them about and won't commit to moving out.
Until the contracts are signed they can walk away too.

Thanks for your advice def don't want to mess our buyers around.and plan would be to tie in sale and move out as close as possible but we would move out for a few months to facilitate our sale going through.

Paulownia

God be with the days when an auctioneer and a vendor decided on a price for a house and it could be bought, now they put a price up and if you say you'll buy it they then decide it must be worth more

mrswoods

Paulownia wrote: »

God be with the days when an auctioneer and a vendor decided on a price for a house and it could be bought, now they put a price up and if you say you'll buy it they then decide it must be worth more

So much has changed even in last 6 months. A bigger house than what I'm looking at in same area went for 8k over asking now thet ate going for 45k over asking ad EA says supply and demand

Paulownia

Sometimes a vendor just puts a house on the market to get offers to reassure their lender that the property is of a value to reassure the lender that they will not lose on the loan. this happens particularly with commercial property.

daheff

mrswoods wrote: »

No contracts issued yet.
Maybe I misunderstood 12 weeks as from dale agreed rather than contracts signed and date agreed.

Couldn't take tracker over as not in neg equity and new mortgage is with different bank as our own bank didn't really want to give us mortgage despite deposit and 2 permanent jobs

This is my first and last time doing this so it's good to hear that we shouldn't be pushed out

what bank is your tracker with? a lot of banks will let you port it over (i'm in the same position & can do).

I'd suggest double check with your bank