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Seeing lots of "No ongoing chains" suddenly


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I have been out of things for a month as I wanted to write a book...have done that now, and I am catching up on Rightmove, and there are a lot of "No ongoing Chains" suddenly appearing...nice modern family homes many of them, some empty, some with bits of furniture. They are well priced, and I must admit, some of them shift quite quickly, especially those that look really well priced, but I am guessing that "no ongoing chain" means "BROKEN CHAIN BUT I AM COMMITTED TO BUYING NOW SO NEED TO SELL ASAP".

Anyone else seeing this? It's the sheer numbers that strike me. 2-3 a day now in my search area, whereas a month ago maybe 1-2 a week. I am thinking that some people are getting nervous about missing out on the SD holiday and backing out, and others are not getting the valuations they need from the banks, or are can't get mortgages because of furlough etc. Here is the example that made me post this. This is definitely well priced for the area, and if they weren't very keen to sell, would put it on for 530k.

 

https://www.rightmove.co.uk/properties/95758133#/

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 Are many of these oap houses?

 West Sussex social services are ruthless in snatching elderly out of their homes and into private care homes, moves nearly  all the responsibility away and the financial burden on the 'customer' and their home.

 Social workers get a cash bonus for blagging human rights laws but staying within budget, I suspect now with even less NHS capacity they have tightened up on this even further.  

 They say the 4  D 's underpin most residential property transations.   There is a fifth: dementia.     Mild cases can be supported at home, but daily home visits is costly to local authorities.  The kidnap and charging order rubber stamp trick costs them very little so is the preffered enforced 'choice'.    We will see more of this, irrespective of actual covid deaths among elderly.

 

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Even if you're not interested, put an offer for asking in, then Gazunder 20%.

Not just yet. I am starting a new job next week, and while that wouldn’t be a barrier to getting a mortgage, I don’t want the stress of buying until I have my feet under the table.

 

One word. Gatwick. I think that's probably specific to that area.

Nope, very much not the case with Burgess Hill. Crawley and Horsham are the areas most affected by Gatwick. Burgess Hill is one of those places that was massively affected by the exodus from London. The market has been red hot since July. Just seeing signs of things turning now.

 

Probate

You didn’t look at the house obviously.

 

 Are many of these oap houses?

 West Sussex social services are ruthless in snatching elderly out of their homes and into private care homes, moves nearly  all the responsibility away and the financial burden on the 'customer' and their home.

 Social workers get a cash bonus for blagging human rights laws but staying within budget, I suspect now with even less NHS capacity they have tightened up on this even further.  

 They say the 4  D 's underpin most residential property transations.   There is a fifth: dementia.     Mild cases can be supported at home, but daily home visits is costly to local authorities.  The kidnap and charging order rubber stamp trick costs them very little so is the preffered enforced 'choice'.    We will see more of this, irrespective of actual covid deaths among elderly.

 

Again, that house was not owned by an elderly occupant. The decor and type of house does not match. I keep my eyes out for those as well. This is a chain collapse or redundancy and I am seeing a lot like this rather than probate or OAP going into a home. They come on at a rate of 1- a week for my area, but these are coming on at about 2 a day at the moment.

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I have been out of things for a month as I wanted to write a book...have done that now, and I am catching up on Rightmove, and there are a lot of "No ongoing Chains" suddenly appearing...nice modern family homes many of them, some empty, some with bits of furniture. They are well priced, and I must admit, some of them shift quite quickly, especially those that look really well priced, but I am guessing that "no ongoing chain" means "BROKEN CHAIN BUT I AM COMMITTED TO BUYING NOW SO NEED TO SELL ASAP".

Anyone else seeing this? It's the sheer numbers that strike me. 2-3 a day now in my search area, whereas a month ago maybe 1-2 a week. I am thinking that some people are getting nervous about missing out on the SD holiday and backing out, and others are not getting the valuations they need from the banks, or are can't get mortgages because of furlough etc. Here is the example that made me post this. This is definitely well priced for the area, and if they weren't very keen to sell, would put it on for 530k.

 

https://www.rightmove.co.uk/properties/95758133#/

No ongoing chain means that theres a large OAP shaped greasy stain in the bathroom.

And a well fed tiny dog.

 

 

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Not just yet. I am starting a new job next week, and while that wouldn’t be a barrier to getting a mortgage, I don’t want the stress of buying until I have my feet under the table.

 

The seller has a false hope....feed it to them even if you don't want to buy the house.  The sooner we get to despair and fair valuations the better

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... I am catching up on Rightmove, and there are a lot of "No ongoing Chains" suddenly appearing...nice modern family homes many of them, some empty, some with bits of furniture. They are well priced, and I must admit, some of them shift quite quickly, especially those that look really well priced, but I am guessing that "no ongoing chain" means "BROKEN CHAIN BUT I AM COMMITTED TO BUYING NOW SO NEED TO SELL ASAP".

After reading your post yesterday, I checked one of my areas to see how many had gone for sale as "No ongoing Chain" in the last 24 hours and I was surprised to see the same pattern.

3 modern family homes in one day were showing this.

eg.

https://www.rightmove.co.uk/properties/87066175#/

This is unusual, as it is normally older homes needing updating that I see saying this. Possible BTL'ers trying to sell?

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That's not what a chain is.

I understand what a chain is, and I guess you are right but so am I probably. At some point in the chain, most likely at the bottom, a buyer has had to pull out, which means that all the buyers above them have to either hope the one at the bottom gets a buyer or put it back on. That is what I believe we are seeing, and these listings are a sign of that.

If someone says no ONGOING CHAIN, they one of:

1. Second property owner, most likely BTLer offloading a property.

2. Probate or OAP moving into care, or downsizing with cash.

3. Someone who is legally committed to buying their next home (gone beyond completion) and who has secured short term funding, or who has cash to follow through. 

Given what we know about banks and surveyors being touch with valuations and lending criteria, I believe we are seeing a lot more of 3 than 1 and 2. The houses I am seeing may be BTL, but I also think they are likely to be families who are going up the ladder because they have been able to leverage cash they are saving due to the SD holiday, and are committed to the move. This is especially the case if they are well priced.

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The seller has a false hope....feed it to them even if you don't want to buy the house.  The sooner we get to despair and fair valuations the better

...Or just don't bother enquiring about it, EA's get the message loud and clear after a few weeks without any viewings.  

 All of the (five) D's are life changers for someone, property transactions are stressful enough even when without problems -why jerk them off as a punishment for wanting a house to live in?  Would these OO's 'scum' genuinely be nicer people if they were homeless, or living in bed and breakfast?

 In the event that what is good for the goose isn't so good for you, better be seen as a serious cash buyer rather than labelled as a timewaster. Agents on 1 percent would still be laughing if they doubled their transaction volume at a 50% drop, also half the work selling at bargain prices.

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Seeing the same thing here with my Bucks and Beds search. Some are empty. I don't get the 'no chain' claim for the others unless they are not telling us  something.

They don't look like downsizers.

I wonder if the owner or tenant has had to move for work?

P.s. a house close to me came on the market a month ago. Has tenants in it. The LL tried to evict them and force viewings.

In the Rightmove listing they used old photos from when it was empty. 

He has only owned it for 18 months. It's now off the market. It is the larger detached houses which sold before lock down and this one isn't.

Edited by Flopsy
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If someone says no ONGOING CHAIN, they one of:

1. Second property owner, most likely BTLer offloading a property.

2. Probate or OAP moving into care, or downsizing with cash.

3. Someone who is legally committed to buying their next home (gone beyond completion) and who has secured short term funding, or who has cash to follow through. 

 

yes, an interesting sum up there.

Looks like "chain free" might be the ones to watch now, as it might give us chance to grab a bit of a bargain.

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...Or just don't bother enquiring about it, EA's get the message loud and clear after a few weeks without any viewings.  

 All of the (five) D's are life changers for someone, property transactions are stressful enough even when without problems -why jerk them off as a punishment for wanting a house to live in?  Would these OO's 'scum' genuinely be nicer people if they were homeless, or living in bed and breakfast?

 In the event that what is good for the goose isn't so good for you, better be seen as a serious cash buyer rather than labelled as a timewaster. Agents on 1 percent would still be laughing if they doubled their transaction volume at a 50% drop, also half the work selling at bargain prices.

I get your point, but for EA's it doesn't work like that.

EA's don't care if you present as a 'serious buyer'. They only care how much you can borrow. They'd rather sell to some deluded person stretching at 700K than to a measured buyer offering 400K.

OOs are deluded thinking they are 'entitled' to a 100K + profit on a house. Any offer asking less than asking is derided - even to probate or forced sellers.  If they price realistically, they will get a fast sale.

The market would correct, but too many props are holding it up - it only builds pain.

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I understand what a chain is, and I guess you are right but so am I probably. At some point in the chain, most likely at the bottom, a buyer has had to pull out, which means that all the buyers above them have to either hope the one at the bottom gets a buyer or put it back on. That is what I believe we are seeing, and these listings are a sign of that.

If someone says no ONGOING CHAIN, they one of:

1. Second property owner, most likely BTLer offloading a property.

2. Probate or OAP moving into care, or downsizing with cash.

3. Someone who is legally committed to buying their next home (gone beyond completion) and who has secured short term funding, or who has cash to follow through. 

Given what we know about banks and surveyors being touch with valuations and lending criteria, I believe we are seeing a lot more of 3 than 1 and 2. The houses I am seeing may be BTL, but I also think they are likely to be families who are going up the ladder because they have been able to leverage cash they are saving due to the SD holiday, and are committed to the move. This is especially the case if they are well priced.

4) planning to move into rented accommodation and buy again at a later date.

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Just reading the Telegraph and two articles saying that agents are seeing the market slow significantly now, even in the hotspots areas. I would not be surprised to see a lot of people who were thinking of moving out of London suddenly realising that come the spring all will be good again, and no reason to leave. The DT also points out in numerous articles that the SD holiday window is all but closed now. If you haven’t started the process before Christmas, it’ll be touch and go if you make the 31st March deadline. I think this is contributing to the number of broken chains, and hence the rise in no ongoing chain for those committed to the move legally.

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Just reading the Telegraph and two articles saying that agents are seeing the market slow significantly now, even in the hotspots areas. I would not be surprised to see a lot of people who were thinking of moving out of London suddenly realising that come the spring all will be good again, and no reason to leave. The DT also points out in numerous articles that the SD holiday window is all but closed now. If you haven’t started the process before Christmas, it’ll be touch and go if you make the 31st March deadline. I think this is contributing to the number of broken chains, and hence the rise in no ongoing chain for those committed to the move legally.

Assuming they are using short term funding to purchase the forward house - what sort of term and interest are we talking about.  How much pressure can be applied to push prices down?

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