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BillyShears

Empty Sold Houses

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There are houses around my way which have gone "sold - subject to contract" (the latter bit in very small print) and then remain like that for months. No sign of anyone actually moving in or living in them. Just a sold sign and grass growing longer and longer.

What's up with those? If they were BTL, surely they'd have the to let sign up before you can blink. So what's happening? Chains not completing, or do people buy houses months before they plan to move in?

Billy Shears

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There are houses around my way which have gone "sold - subject to contract" (the latter bit in very small print) and then remain like that for months. No sign of anyone actually moving in or living in them. Just a sold sign and grass growing longer and longer.

What's up with those? If they were BTL, surely they'd have the to let sign up before you can blink. So what's happening? Chains not completing, or do people buy houses months before they plan to move in?

Billy Shears

My guess chains not completing, people accept higher offers from others who have not sold their house and accept higher offers and so on.........

There's a house near us that we were half interested in has been under offer (not sstc) for 5 months now - they will have accepted a high offer(have another house in Spain so don't need the money or to move quickly) - I guess that the people who made the offer have not received a firm offer on thiers that is why it has not gone sstc

CS

Edited by Cornwall Sceptic

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Same here, though they claim to have actually sold and the sold sign has gone away. Several have had builders in, and one (the place that was 'for sale' for as long as I can remember, failed to complete three times and supposedly 'sold' a couple of months ago) still has builders ripping the place apart.

Also, none have appeared on nethouseprices yet: I don't know how many months that's supposed to take.

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So, the famous houses that are sold, but only because they have received an offer from someone who has to sell their house to afford the offer?

It must be a b*tch making chains complete in a slow market. And in particular, I wonder if there are many chains around where the person who made the offer has to obtain an unrealistic price for their property to afford to complete.

Billy Shears

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There are houses around my way which have gone "sold - subject to contract" (the latter bit in very small print) and then remain like that for months. No sign of anyone actually moving in or living in them. Just a sold sign and grass growing longer and longer.

What's up with those? If they were BTL, surely they'd have the to let sign up before you can blink. So what's happening? Chains not completing, or do people buy houses months before they plan to move in?

Billy Shears

This could be a Scam

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With chains it used to be a battle of wills as to who would sell with nowhere to go or who would take on bridging finance. A lot of this has been replaced by cheap BTL deals which has led to the growth of "I won't sell, I'll gear it up to 85% then it'll be my pension".

I will be intrigued to see just how many people are prepared to take on the added risk of a BTL when they upsize/move in a higher interest rate scenario.

If I were a seller today, I would be making it clear that exchange is not conditional on another exchange and that it's the buyer's risk....

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This could be a Scam

These houses were for sale before. At least they were on rightmove. Some of them have changed agents etc. The only way that I can think that it might be a scam is if they had put up the signs in the hope that someone had been watching and waiting on the property and would panic if it went sold, perhaps coming in with an offer. But I think that's a bit of an unlikely conjecture. I think Occam's razor prefers long uncompleted chains.

Billy Shears

If I were a seller today, I would be making it clear that exchange is not conditional on another exchange and that it's the buyer's risk....

If I were a buyer today, I'd only put in exclusive offers on houses if the seller wasn't going to keep me waiting indefinitely while they waited for someone else to move. I'd make a preliminary offer, and ask them to get back to me when they were able to move out.

Billy Shears

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If I were a buyer today, I'd only put in exclusive offers on houses if the seller wasn't going to keep me waiting indefinitely while they waited for someone else to move. I'd make a preliminary offer, and ask them to get back to me when they were able to move out.

Exactly, who's going to blink first........ :) - your problem is that your preliminary offer only works if no-one else is out there, the price has to be at a level they have to take (either because it's the only one, the best one or the one that's quickest to complete) - so it's risk allocation.... - FWIW, last time I bought, the seller was given three weeks to exchange or I walked, whatever the excuses from their solicitors. It was also a term of the negotiations that I would spend one afternoon discussing the price and timing, after that it was a closed subject (apart from survey results) [i had walked from a previous house because the seller wanted to play silly buggers and called my bluff (it took 9 months to sell after that)]. But people trust the agents acting for the seller to play fair...... - the other thing is, you have to have the confidence to walk away as you can only play it if you mean it or you get found out very quickly.....

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Exactly, who's going to blink first........ :) - your problem is that your preliminary offer only works if no-one else is out there, the price has to be at a level they have to take (either because it's the only one, the best one or the one that's quickest to complete) - so it's risk allocation.... - FWIW, last time I bought, the seller was given three weeks to exchange or I walked, whatever the excuses from their solicitors. It was also a term of the negotiations that I would spend one afternoon discussing the price and timing, after that it was a closed subject (apart from survey results) [i had walked from a previous house because the seller wanted to play silly buggers and called my bluff (it took 9 months to sell after that)]. But people trust the agents acting for the seller to play fair...... - the other thing is, you have to have the confidence to walk away as you can only play it if you mean it or you get found out very quickly.....

But the preliminary offer stays on the table. I would rather be free and lose a number of houses than to be tied into some house on the never-never. If they think they have a better offer, then they can go with that, but my offer will stay on the table if they want to contact me back again later. But in the meantime I might have found something else. Once it's clear that the offer is preliminary only and that I'll actively be looking for other properties, it's up to the seller to work out what they want to do.

I like the idea of being given three weeks to exchange or the buyer wallks. It will only work in a buyer's market though.

Billy Shears

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There are houses around my way which have gone "sold - subject to contract" (the latter bit in very small print) and then remain like that for months. No sign of anyone actually moving in or living in them. Just a sold sign and grass growing longer and longer.

What's up with those? If they were BTL, surely they'd have the to let sign up before you can blink. So what's happening? Chains not completing, or do people buy houses months before they plan to move in?

It is often useful to remind people of the statistics;

* BBC News (Oct 2005)

It emerged last week that almost 700,000 homes are empty in England, of which 280,000 have been deserted for more than 12 months.

* Chartered Institute of Environmental Health (May 2006)

Across Britain there are 310,000 empty homes. That’s a city the size of Leeds full of vacant properties. Often they lie empty because the owners are not aware they have inherited a property or because it has been acquired as a speculative investment.

* Mayoral Report - Empty Homes in London 05-06 (PDF)

That report says that in London (April 2005), there were 36,200 privately owned homes which have been vacant for longer than six months.

* ODPM publications related to Empty Homes.

Edited by ciderpunk

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Guest Guy_Montag

My guess chains not completing, people accept higher offers from others who have not sold their house and accept higher offers and so on.........

There's a house near us that we were half interested in has been under offer (not sstc) for 5 months now - they will have accepted a high offer(have another house in Spain so don't need the money or to move quickly) - I guess that the people who made the offer have not received a firm offer on thiers that is why it has not gone sstc

CS

I find the chain thing weird. Maybe in a sellers market it makes sense to hold off completing until the last minute, just in case someone guzzumps your buyer. But if things are slow, & the chain isn't moving, I would take the money & find somewhere to stay for a month or two. That's what most of my family have done in the past.

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It is often useful to remind people of the statistics;

If these houses have been bought as speculative investments, then that's a textbook example of missing the boat. The boom in Leicester was in 2004. Slow before, slowly declining afterwards.

Billy Shears

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If I was putting an offer in then I certainly wouldn't want to be waiting around for months on end for a chain to form.

If they want to sell then they can sell and rent... might do them a favour :P

Anybody know at what stage in the mortgage application process the IR is fixed for the mortgage?

Is it possible that delays in the buying process could cause the IR on your fixed rate mortgage to increase before the mortgage is realised (ie completion)?

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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