Reply to: Need some property advice. First time seller - mucked it up

[minestrone]

[QUOTE=Whorty;n4197683]

Not had a mortgage for over a decade, and late Mrs W did all the paperwork so I could be wrong, but don't mortgages have 'end dates'? 6 months from application? And the terms of the mortgage need to be the same during that mortgage application period? So even if you have an offer on the 28th Feb based on today's contract, wouldn't you need to stay in a contract at the point of exchange to keep the mortgage offer valid?

Like I say, I could be wrong but you probably need to check.

Also you can get a mortgage offer in principle before you have a property to buy. This would safe time too once you have found a place.

Redemption date is 6 months after contract. An offer on the part of the lender is binding for 7, 10 or 14 days ( i cant remember ).

I have a cemap, the mortgage advisor qualification, but don't advise. The property sale and the finance issues need to be split. Again i'm not confident the suggestion of the offer date is reliable.

[Whorty]

[QUOTE=sira;n4197633]

I explained in my OP why I have a Feb 28th deadline. That's just the deadline to make a formal mortgage application.

Not had a mortgage for over a decade, and late Mrs W did all the paperwork so I could be wrong, but don't mortgages have 'end dates'? 6 months from application? And the terms of the mortgage need to be the same during that mortgage application period? So even if you have an offer on the 28th Feb based on today's contract, wouldn't you need to stay in a contract at the point of exchange to keep the mortgage offer valid?

Like I say, I could be wrong but you probably need to check.

Also you can get a mortgage offer in principle before you have a property to buy. This would safe time too once you have found a place.

[minestrone]

Regarding the mortgage - I'm working with a broker from one of the well-known contractor mortgage brokers, who's done a couple mortgages for me now. My broker informed me that I cannot make a formal mortgage application until I've obviously had an offer accepted on the property I wish to buy. And sellers most likely wont take my offer seriously, until I have a buyer for my own house. Shackled by the chain.

I don't have experience in self employed prop finance, it's not my area so I cannot fully say this is bulltulip. But it's bulltulip. Certain parts of the UK with sane property laws require you to have a mortgage offer prior to offer so this would be market exclusion.

I'm guessing the advisor can't be arsed going through the full process when he is thinking the same as everyone else as to why you are selling a considerable asset this time of year.

Has there been mention of your current mortgage being ported to a new property? That should be an initial consideration if you have a mortgage?

[sira]

But you can surely get an agreement in principle?

Maybe that's a new requirement, as it's been a while since I was on the property ladder. I certainly made sure I had something in place before trying to get an offer accepted on what I wanted to buy.

AIP's are mostly for first-time buyers, to prove to sellers that their "serious" and have the funds. As I'm already on the ladder, with my property actively up for sale, an AIP wont be needed really. Mortgage rules have changed frequently during the pandemic.

[ladymuck]

Regarding the mortgage - I'm working with a broker from one of the well-known contractor mortgage brokers, who's done a couple mortgages for me now. My broker informed me that I cannot make a formal mortgage application until I've obviously had an offer accepted on the property I wish to buy. And sellers most likely wont take my offer seriously, until I have a buyer for my own house. Shackled by the chain.

But you can surely get an agreement in principle?

Maybe that's a new requirement, as it's been a while since I was on the property ladder. I certainly made sure I had something in place before trying to get an offer accepted on what I wanted to buy.

[sira]

[QUOTE=northernladuk;n4197634]

If I'd seen you drop the price so quickly I'd be playing on that and putting a lower offer than you are asking and just waiting. It shows you have a need to get rid so I'd be calling your bluff on it.

That said, depends on how desperate I am for the house but if it's one of many then waiting game it is.

Works both ways though, doesn't it? Buyers can be desperate too for a multitude of reasons. And at the moment, people want to get on the ladder or grab their 5yr fix before more interest rate hikes in 2022.

[northernladuk]

[QUOTE=sira;n4197633]

I think different people perceive it in different ways. Personally, I'd feel more like I'm getting a bargain, but I can see why other people would perceive it as desperation or a sign that something is wrong with the property. I wont be reducing it any further...if it doesn't sell, it doesn't sell. There's nothing wrong with my house, so I'm sure a buyer will pop up eventually.

I explained in my OP why I have a Feb 28th deadline. That's just the deadline to make a formal mortgage application.

If I'd seen you drop the price so quickly I'd be playing on that and putting a lower offer than you are asking and just waiting. It shows you have a need to get rid so I'd be calling your bluff on it.

That said, depends on how desperate I am for the house but if it's one of many then waiting game it is.

[sira]

[QUOTE=eek;n4197632]

Thank you everyone for your positive contributions. Can't seem to quote everyone, but to address the key points:

• EA suggested that a price reduction wouldn't be a bad thing. It shows that I'm a motivated/serious seller

Your estate agent will do anything to keep you happy, want to reduce the price - certainly sir (provided it doesn't reduce our income too much).

Personally it shows you are desperate - not motivated.

I would now be looking at both houses and going give me the lowest price you are willing to accept...

Discounting before mid January was completely insane

But what I don't get is why do you have a Feb 28th deadline? That makes no sense at all.

I think different people perceive it in different ways. Personally, I'd feel more like I'm getting a bargain, but I can see why other people would perceive it as desperation or a sign that something is wrong with the property. I wont be reducing it any further...if it doesn't sell, it doesn't sell. There's nothing wrong with my house, so I'm sure a buyer will pop up eventually.

I explained in my OP why I have a Feb 28th deadline. That's just the deadline to make a formal mortgage application.

[eek]

[QUOTE=sira;n4197631]Thank you everyone for your positive contributions. Can't seem to quote everyone, but to address the key points:

• EA suggested that a price reduction wouldn't be a bad thing. It shows that I'm a motivated/serious seller

Your estate agent will do anything to keep you happy, want to reduce the price - certainly sir (provided it doesn't reduce our income too much).

Personally it shows you are desperate - not motivated.

I would now be looking at both houses and going give me the lowest price you are willing to accept...

Discounting before mid January was completely insane

But what I don't get is why do you have a Feb 28th deadline? That makes no sense at all.

[sira]

Thank you everyone for your positive contributions. Can't seem to quote everyone, but to address the key points:

• House was professionally cleaned and has zero clutter. It was painted and refurbed completely only 2 years ago, so looks really nice. Photos were professionally taken and stack up well against the competition.
• Spoke to EA this morning who recommended reducing the price to get people through the door. I accepted this recommendation due to my tight time-frame, and reduced it to 550k which is a price I'm happy with. Because, missing my mortgage deadline would mean I'd have to rent for 6-12 months which would generate a circa 10-20k cash burn anyway and alot of faff
• EA suggested that a price reduction wouldn't be a bad thing. It shows that I'm a motivated/serious seller
• I know its not the best time of year to sell, but the timing was out of my control. Some EA's actually say that Jan/Feb can be a great time to sell due to lack of supply. I guess we'll see.

^^ this

The quicker you're in a position to move because you've got everything set up, the better. Having a property lined up and the mortgage in place will tell any prospective buyer that you're serious about moving and want to get on with it. Saying you won't apply for a mortgage until a buyer has been found makes you a risky proposition to a buyer because they don't know if you'll be accepted for the mortgage you want and the deal could fall through.

NLUK's advice is also good. Declutter and keep the place tidy. Check the photos have good lighting and show each room at their best. I hired a cleaner to do a top to toe deep clean of my house before the photos were done.

Regarding the mortgage - I'm working with a broker from one of the well-known contractor mortgage brokers, who's done a couple mortgages for me now. My broker informed me that I cannot make a formal mortgage application until I've obviously had an offer accepted on the property I wish to buy. And sellers most likely wont take my offer seriously, until I have a buyer for my own house. Shackled by the chain.

[Whorty]

Do you think a price reduction in such a short space of time would look bad to perspective buyers?

Why would it? It will look desperate, and they'll probably make you even lower offers, but assuming nothing wrong with the area and nothing comes up on searches, then the buyer won't care

[OwlHoot]

It's my first time selling a property. I put my house up for sale 1 week ago. It was valued at 550-575k by multiple estate agents. ..

I suggest you give us a link to the Zoopla (?) page where your property is on sale, and we can maybe offer some constructive feedback

[courtg9000]

I reread the OP.
Additional advice.
As a cash buyer or even a chain-free buyer you will be in a very good position.
Keep an eye on your target area, get to know the selling agents there and get a good relationship with them. Make sure you are on their "must call this guy list" when a property that matches your requirements comes onto their books.
Get a good mortgage broker on board right now and get one that knows a lot about contractors.
Have a think about the agent you are using too. Be aware of switching agents though. This could be a bad idea.

[courtg9000]

Week before christmas. Don't worry too much.
The drop will look bad. Prospective buyers can see the price drops on the property websites.
You should see views on the property sites pick up this week. It's a big week for people looking at properties online. One of the biggest weeks of the year in fact. I used to do business sales and this was always the biggest week of the year for viewings of opportunities I had.
You see couples especially in the 30-50 age bracket use the time between Christmas and New Year to consider and investigate change for the year ahead. They consider things such as new houses, jobs, complete career changes, life changes, relocation, buying and starting businesses. More personal things too such as expanding the family.
It wouldn't surprise if it was one of the biggest points in the year for people deciding to pack in permiedom and go contracting or even vice versa!

What happens is these couples go for walks in the fresh air, talk about these things and then go home and get on Google.
In south west London places such as Richmond Park and Wimbledon Common will be flooded with couples doing exactly this, this week.
If you look at your home on the property websites, how happy are you at the way it is presented?

[eek]

^^ this

The quicker you're in a position to move because you've got everything set up, the better. Having a property lined up and the mortgage in place will tell any prospective buyer that you're serious about moving and want to get on with it. Saying you won't apply for a mortgage until a buyer has been found makes you a risky proposition to a buyer because they don't know if you'll be accepted for the mortgage you want and the deal could fall through.

NLUK's advice is also good. Declutter and keep the place tidy. Check the photos have good lighting and show each room at their best. I hired a cleaner to do a top to toe deep clean of my house before the photos were done.

Also don't panic about the price and lack of views - it's Christmas no-one was house hunting last week, that will only start once New Year has been and gone.