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Collapsing Chains


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HOLA441

Second time (two different houses) after losing out in a bidding war their chain has collapsed. Apparently in both cases the a surveyor within the chain undervalued the property. In the first one they had to hastily arrange a cash buyer but that chain was much longer. Anyone else had this? It sounds like someone in these chains is over valuing their equity

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HOLA442

Second time (two different houses) after losing out in a bidding war their chain has collapsed. Apparently in both cases the a surveyor within the chain undervalued the property. In the first one they had to hastily arrange a cash buyer but that chain was much longer. Anyone else had this? It sounds like someone in these chains is over valuing their equity

Happening all the time. I've positioned myself with EA's in my search area as someone who can step in with a cash offer and salvage a collapsing chain, problem is so have other potential buyers and so far they've been prepared to outbid me. But twice this year I've been phoned by an EA and told there's an "opportunity".

Be patient, it's grinding down, slowly at the top, more quickly at the bottom. But down is still down.

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HOLA443

Second time (two different houses) after losing out in a bidding war their chain has collapsed. Apparently in both cases the a surveyor within the chain undervalued the property. In the first one they had to hastily arrange a cash buyer but that chain was much longer. Anyone else had this? It sounds like someone in these chains is over valuing their equity

Yes, had it last year.

Surveyors always tend to take 5-10% off the purchase price as the valuation is only for the bank/building society to decide on the LTV. I would suspect the surveyor hasn't undervalued the properties.

Sales collapse for all sorts of reasons including people who can't afford the stamp duty because they were unaware of having to fork out 4% on top of the agreed price. Trouble is these are the clowns who get you into the bidding wars. The ones without the money :(

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HOLA444

Happening all the time. I've positioned myself with EA's in my search area as someone who can step in with a cash offer and salvage a collapsing chain, problem is so have other potential buyers and so far they've been prepared to outbid me. But twice this year I've been phoned by an EA and told there's an "opportunity".

Be patient, it's grinding down, slowly at the top, more quickly at the bottom. But down is still down.

Now that, SS, is a cunning plan :)

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HOLA445

... someone who can step in with a cash offer and salvage a collapsing chain...

Be patient, it's grinding down, slowly at the top, more quickly at the bottom. But down is still down.

We had someone who wanted to step into our chain last year, trouble was that they weren't offering £40K less than the people who collapsed the chain which wasn't of much use as the people we were buying off weren't moving on price.

I'm amazed any sales are made at the moment. We were only moving out of desperation to get into a school, and it looked like costing so much that an independent education for our two kids would have been cheaper with a loft conversion thrown in. Amazingly, we got into the school we were intending to move for, so saved a fortune. And now have no intention of moving.

Only the desperate are buying/selling at the moment.

Edited by arrgee1991
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HOLA446
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HOLA448

I have noticed chains collapsing at the moment also.

Only the lawyers are enjoying it as they get paid several times for the sale of the same house.

The law is a great profession. Totally recession proof. Limits on entrants. Highly lucrative.

Now why didn't I figure that out 30 years ago :(

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HOLA449
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HOLA4411

Chains were hard enough to hold together when the market was going bonkers.

Imagine it now.

I guess, but then there are the STR crowd who haven't learned the value of money and are hot to trot without a chain. That's who I sold my house to.

Edited by exiges
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HOLA4412

I guess, but then there are the STR crowd who haven't learned the value of money and are hot to trot without a chain. That's who I sold my house to.

that brings a warm glow to my heart

reversion to the mean, in investment parlance

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HOLA4413

The law is a great profession. Totally recession proof. Limits on entrants. Highly lucrative.

Now why didn't I figure that out 30 years ago :(

I'd have done law except I just don't have the aptitude!

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HOLA4414

Chains were hard enough to hold together when the market was going bonkers.

Only house purchase I had with no grief was my first - me buying, him selling and that was it.

One collapsed on me last year due to fertility issues (I kid you not), and when I bought current house, sellers were a total pain. It got so stupid with them wanting to know everything my buyer was doing, I just put them in touch with each other. They even had tea together!

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HOLA4415

The law is a great profession. Totally recession proof. Limits on entrants. Highly lucrative.

Now why didn't I figure that out 30 years ago :(

because for many lawyers, it isnt true

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HOLA4418

The law is a great profession. Totally recession proof. Limits on entrants. Highly lucrative.

It is c 10,000 over employed now. Watch firms go out of business and layoffs to come.

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HOLA4419

What isn't true? It is lucrative, it does limit entrants, and in recession often creates more work. Only times I have ever had to deal with lawyers is when people are being made redundant.

lawyers go bust, they suffer bad debts and many are arrested for crime using clients accounts for their own use. Indeed, in many housing frauds, the lawyers are an integral part of the fraud.

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HOLA4423

I guess, but then there are the STR crowd who haven't learned the value of money and are hot to trot without a chain. That's who I sold my house to.

Surely not.

Patience is needed, 12 months from now could be very interesting, if the impatient ones have already spent their pot of brass I recon the rest of us will be finding the bargains (and the FTB's I hope).

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HOLA4424

I find the fact that chains are falling through reassuring. :rolleyes:

The other half and I went to gaze longingly at one of our two most desired properties today. :unsure:

It failed to sell at auction and was taken off the market. :angry:

The other one came down £10k today. The 4th time it has had its price reduced. :P

Our offer was refused back in October but she still has 15% to come down the that level. <_<

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HOLA4425

Second time (two different houses) after losing out in a bidding war their chain has collapsed. Apparently in both cases the a surveyor within the chain undervalued the property. In the first one they had to hastily arrange a cash buyer but that chain was much longer. Anyone else had this? It sounds like someone in these chains is over valuing their equity

We're FTBs and our chain has just collapsed ...our fault. We've just forked out a grand so far and found out that the property we were planning to buy is full of asbestos! So we'll have to wait to raise that £1000 again before looking for another property. The whole buying/selling system is so dated, doesn't make it easy.

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