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Offerred 22% Above Asking Price

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An interesting house came up recently, loads of potential for extension and conversion of outbuilding, had it all checked out by a surveyor relative. We finally ended up offering 20% above initial asking price, cash offer, knowing there were lots of other interested parties (yes, yes, I know).

Anyway, they went to "best & final", we weren't even close to being the winning bid. (agent indicated +40%!).

It's mad out there folks. Any decent house for sale is getting interest from 10+ miles around.

Mrs VMR has agreed we wont get involved in this sort of thing again, the only plan is to wait until a place has been unsold for a couple of months before even going to look at it.

VMR.

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An interesting house came up recently, loads of potential for extension and conversion of outbuilding, had it all checked out by a surveyor relative. We finally ended up offering 20% above initial asking price, cash offer, knowing there were lots of other interested parties (yes, yes, I know).

Anyway, they went to "best & final", we weren't even close to being the winning bid. (agent indicated +40%!).

It's mad out there folks. Any decent house for sale is getting interest from 10+ miles around.

Mrs VMR has agreed we wont get involved in this sort of thing again, the only plan is to wait until a place has been unsold for a couple of months before even going to look at it.

VMR.

are, you are that couple that got a low valuation and then went round to get a better valuation and bigger loan...funny folk in Cambridge.

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The masses are still living in dream land when it comes to property. People would rather not move than admit to lower prices and so supply and demand is currently affecting the few properties that are selling. And currently this small set of transactions is feeding into the psyche of the masses, re-enforcing their belief that their property is still worth circa 2007 prices.

If any actual numbers of people put their property on the market then the 'la-la-land' masses might actually realise a few 'home' truths.

Edited by MinceBalls

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What you have to realise, is that the Daddy Bears of this world (saw it all coming, sold up, put the money in Gold, Yen and Euros, now have to buy fast to avoid Worthless Fiat), only want the best houses in the area, and all bid against each other creating a bidding frenzy, thus justifying their belief in a flight to assets.

Meanwhile, in the real world, prices for average homes are flat.

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can you post a link of property pls?

http://www.vebra.com/property/699/19015230

0.2 acre on high street, barn to convert at back of garden (dependent relative, not a separate dwelling), room to extend to 2000sq ft. Not Grade II listed. Only building problems were a few tiles needed replacing.

VMR.

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An interesting house came up recently, loads of potential for extension and conversion of outbuilding, had it all checked out by a surveyor relative. We finally ended up offering 20% above initial asking price, cash offer, knowing there were lots of other interested parties (yes, yes, I know).

Anyway, they went to "best & final", we weren't even close to being the winning bid. (agent indicated +40%!).

It's mad out there folks. Any decent house for sale is getting interest from 10+ miles around.

Mrs VMR has agreed we wont get involved in this sort of thing again, the only plan is to wait until a place has been unsold for a couple of months before even going to look at it.

VMR.

Did you send a copy of your bid to the seller with your address/phone number on it?

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http://www.vebra.com/property/699/19015230

0.2 acre on high street, barn to convert at back of garden (dependent relative, not a separate dwelling), room to extend to 2000sq ft. Not Grade II listed. Only building problems were a few tiles needed replacing.

VMR.

ta, it good to get an idea of what these sealed bid events actually result in. I was somewhat interested in this one which first went on with sealed bids, but went SSTC rather quickly for what id guess is well above the guide - i didnt think it would be worth any more than guide.

http://www.rightmove.co.uk/property-for-sa...on%26index%3D10

40% over just seems crazy though. OK its an individual property, but a the rental yield probably wouldnt be that much higher than something like this...

http://www.rightmove.co.uk/property-to-ren...x%3D45%26y%3D23

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Is it me? Or why would someone put a property on the market at 40% less what they could achieve?

Or, are we knocking 40% off, and then starting a bidding war upto the actual value?

Is this a probate with inheriting relatives living outside UK/or without a clue about local HP values?

Edit: Status "under offer"=technically under obligation to take any higher bid to seller. Why did the status not change to SSTC?

Edited by threetimesdead

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Is it me? Or why would someone put a property on the market at 40% less what they could achieve?

Or, are we knocking 40% off, and then starting a bidding war upto the actual value?

Probably more likely.

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ta, it good to get an idea of what these sealed bid events actually result in. I was somewhat interested in this one which first went on with sealed bids, but went SSTC rather quickly for what id guess is well above the guide - i didnt think it would be worth any more than guide.

A nearby property was £650K at the peak if I remember correctly. If the main property was extended (£200K) and barn converted (£100K) then the peak value (as-is) could have been £350K IMO. With the risk of unknowns, I can't see how anyone could justify it on a financial basis over that but the property shortage around here has created a feeding frenzy.

For me, it would have been a cash purchase then mortgage in manageable (low-risk) chunks to improve gradually over the next 25 years.

VMR.

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Similar story.

Not really looking for a new pad just now but this came up in Shrewsbury at 350k,

Apparantly had over 90 viewings in under 4 weeks and soon realised there was little chance of knocking them down.

Bidding was up to 371k this morning with an alleged deadline of 5pm tonight. I think I'll phone them back at 4.30 just to see where its at.

http://www.rightmove.co.uk/property-for-sa...D4%26index%3D10

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Is this a probate with inheriting relatives living outside UK/or without a clue about local HP values?

Edit: Status "under offer"=technically under obligation to take any higher bid to seller. Why did the status not change to SSTC?

Elderly lady (97) gone into care, been in there for 50 years, no central heating. House sale funds care. I dont know why it still shows up as under offer.

VMR.

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Is this a probate with inheriting relatives living outside UK/or without a clue about local HP values?

Edit: Status "under offer"=technically under obligation to take any higher bid to seller. Why did the status not change to SSTC?

In practice you will find that SSTC, 'under offer' and 'sale agreed' are all terms used to mean the same thing, depsite there being a very subtle difference in definition.

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I have to say it looks like a great property and I think you may find that the eventual purchaser has a good deal. I have been to auctions where some lots don't get within 75% of reserve and others make double.

Developers, speculators and owner/occupiers will do extensive research as to the value of a "best and final" property. Those such as this are rare and sought after and you can't expect a bargain. even in the last crash, it was mostly the secondary stuff that was dirt cheap.

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Similar story.

Not really looking for a new pad just now but this came up in Shrewsbury at 350k,

Apparantly had over 90 viewings in under 4 weeks and soon realised there was little chance of knocking them down.

Bidding was up to 371k this morning with an alleged deadline of 5pm tonight. I think I'll phone them back at 4.30 just to see where its at.

http://www.rightmove.co.uk/property-for-sa...D4%26index%3D10

looks like its in a flood zone too.

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Those such as this are rare and sought after and you can't expect a bargain. even in the last crash, it was mostly the secondary stuff that was dirt cheap.

I figured it was worth £325K and bid a bit more for its rarity value. I wasn't expecting a bargain (although it's a 2-bed shell) but didn't expect it to go high enough so that development costs would have taken it above peak price levels for the area, even discounting risk. You can get a decent 3-bed on 3 acres for less than £600K just a few hundred yards away. (well above my league).

VMR.

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I figured it was worth £325K and bid a bit more for its rarity value. I wasn't expecting a bargain (although it's a 2-bed shell) but didn't expect it to go high enough so that development costs would have taken it above peak price levels for the area, even discounting risk. You can get a decent 3-bed on 3 acres for less than £600K just a few hundred yards away. (well above my league).

VMR.

You have clearly done your homework.

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Gotta say looks like a really nice house. Thats the trouble - find something different and every person and his dog wants to buy it. I can't get my head round nobody is supposed to have any money, unemployment is going up - and yet all these folk come out of the woodwork with pots of money. I know of a house a few months ago that was up for sale for 300K, it sold for 340K.............. ok again it was a bit different, but this is downright insane

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Gotta say looks like a really nice house. Thats the trouble - find something different and every person and his dog wants to buy it. I can't get my head round nobody is supposed to have any money, unemployment is going up - and yet all these folk come out of the woodwork with pots of money. I know of a house a few months ago that was up for sale for 300K, it sold for 340K.............. ok again it was a bit different, but this is downright insane

yes, it's almost as if there was a website set up to warn people of an impending crash so that they could sell at peak, invest in a stronger currency than sterling and/or an appreciating precious metal. i'll be damned if i can remember what that website was called but someone called mr b pricker started it, nice chap.

btw if nearby homes were going for 650k at peak, why should a frenzy of buyers at 275k + circa 40% be a surprise now?

Edited by loginandtonic

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