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kiwi

Chain Based Selling

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I just dont understand the chain based system. I would never buy or sell a car or indeed any asset, if the deal was conditional on several other deals....

why not just buy and sell unconditional with a 2-3 month settlement....

an while we are at it this buying or selling a house thats not unconditional until exzchange date is frankly madness....

I have never except the uk seen a system where you can be gazumped or gazundered months after agreeing a sale....

i think to make the market efficient you need to move to a system of unconditional contract offers. or contracts that have conditions that have 3-5 days to be meet.

In nz i can buy a house and have the deal unconditional in 30 minutes..... with settlement many months later.... we put down a standard 10% desposit at contract time which sits with agent (or lawyer in trust account)

witht eh cuurent system you have in the uk its almost gauranteed to make chains fall apart in such a fast moving market...

I have owned uk property but man what a crazy system...

your thoughts?

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Guest DissipatedYouthIsValuable
your thoughts?

Spelling 4/10. Clarity 2/10.

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Kiwi is right. I've never understood why it has to be this way here, either.

Yes, I'd think that an estate agent should be like any other shop - they own the stock, and you have to buy it from them. Would probably have to split up the selling and renting arms. They could make their cash from the difference between buying and selling price. And be responsable for the house being in good working order (heating, plumbing, electrics, damp, structure, etc..).

Would certainly encourage liquidity and make transactions faster. You would probably end up paying quite a bit more, though.

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Yes, I'd think that an estate agent should be like any other shop - they own the stock, and you have to buy it from them. Would probably have to split up the selling and renting arms. They could make their cash from the difference between buying and selling price. And be responsable for the house being in good working order (heating, plumbing, electrics, damp, structure, etc..).

Would certainly encourage liquidity and make transactions faster. You would probably end up paying quite a bit more, though.

Estate agents dont have the money for next months rent in many cases, let alone buy a stock of housing.

Dont mention this to Gordon Brown though, he might see it as an opportunity to rescue yet another boom time utility.

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an while we are at it this buying or selling a house thats not unconditional until exzchange date is frankly madness....

I have never except the uk seen a system where you can be gazumped or gazundered months after agreeing a sale....

your thoughts?

I've never been in a chain (bought 1, sold 1) and never will. As a buyer, I have to pay out on surveys/solicitors and I don't intend to place that money at risk. All it takes is one person in the chain to change their mind and I lose money, no thanks. If someone wants to sell their house, they can move into rented if necessary. If their part of the chain falls through, that their problem and I wont be a part of it.

Also, I'll only start paying out for fees when the other party has, otherwise it's too easy to drop out.

Even before this boom, my plan if moving was to rent between selling and buying. It takes the pressure off when finding a new place. I also figured the savings due to being cash buyer would cover the rental costs.

VMR.

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Kiwi is right. I've never understood why it has to be this way here, either.

the reason is of course tbecause the banks are so deeply involved and require "equity" as their deposits. SO for many people to move, they may have No money at all, but mysteriously can provide a deposit, this of course being dependent on the buyer stumping up the cash.

Most chains will have a start and an end, where real money is exchanged of course.

NZ housing market is dead BTW.

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why not just buy and sell unconditional with a 2-3 month settlement....

Bridging loans would do this, very expensive and what happens if it doesn't sell. Unfortunately the chain based system is probably the only workable one. Unless houses crash by 70% :lol:

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Spelling 4/10. Clarity 2/10.

Since when has this been an English language forum and since when did you become teach ;)

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I just dont understand the chain based system. I would never buy or sell a car or indeed any asset, if the deal was conditional on several other deals....

why not just buy and sell unconditional with a 2-3 month settlement....

an while we are at it this buying or selling a house thats not unconditional until exzchange date is frankly madness....

I have never except the uk seen a system where you can be gazumped or gazundered months after agreeing a sale....

i think to make the market efficient you need to move to a system of unconditional contract offers. or contracts that have conditions that have 3-5 days to be meet.

In nz i can buy a house and have the deal unconditional in 30 minutes..... with settlement many months later.... we put down a standard 10% desposit at contract time which sits with agent (or lawyer in trust account)

witht eh cuurent system you have in the uk its almost gauranteed to make chains fall apart in such a fast moving market...

I have owned uk property but man what a crazy system...

your thoughts?

With the amount of propertys for sale at the moment with NO CHAIN i cannot see way FTB get involved with chains,especialy with the internet they now have the power to find out property info and make constuctive choices and offers to avoid chains.

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Since when has this been an English language forum and since when did you become teach ;)

Well we all post in English, or gibberish. Dissipated youth may not be teach but gives good advice. The purpose of posting is to communicate. If the reader can't understand wots written there's a failure to communicate.

Its something I have to teach a lot of our sales force. The ones who don't get it usually miss their targets and lose their jobs. A worthwhile lesson for the current economic climate?

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Chains are desirable because you buy and sell at the same time so only need to move once. Without a chain there may be months between buying and selling, so necessitating two moves of furniture etc or time spent renting with furniture in storage/hassle.

Personally I avoid chains because they reduce your negotiating capability on both sides of the deal. i.e. the extra hassle of no chain is definitely worth it financially.

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Chains are desirable because you buy and sell at the same time so only need to move once. Without a chain there may be months between buying and selling, so necessitating two moves of furniture etc or time spent renting with furniture in storage/hassle.

Personally I avoid chains because they reduce your negotiating capability on both sides of the deal. i.e. the extra hassle of no chain is definitely worth it financially.

I agree but FTB have a lot of no chain properties to pick from at the moment in most areas.

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I grew up in the US, and without the concept of chains. Not to mention mortgages fixed for the life of the loan, and 20% standard deposits. It seemed to work pretty well, until the credit bubble came along...

Edited by happily renting

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sorry about the spelling

if you buy at auction int he UK when does the exchange take place?

is auction buy an unconditional purchase?

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I grew up in the US, and without the concept of chains. Not to mention mortgages fixed for the life of the loan, and 20% standard deposits. It seemed to work pretty well, until the credit bubble came along...

A chain is not a concept. Its a practical way to sell and buy houses without deposits, further bridging loans and minimum fuss... when they work that is.

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chains are used to save money, the alternatives are:

Own two houses for 3-12 months, very expensive bridging loans, might no find a buyer. Cost for a 200,000 ukp house : 3,000 to 30,000...

Go into rented for 6 months (min time period) :, Cost in fees (traditionally higher rents) headache and costs of moving twice : costs 3000-10,000 more?

However if a chain works it will cost you no more....

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I've never been in a chain (bought 1, sold 1) and never will. As a buyer, I have to pay out on surveys/solicitors and I don't intend to place that money at risk. All it takes is one person in the chain to change their mind and I lose money, no thanks.

You can't eliminate chains because there is always a buyer and a seller (= a chain of two), either of whom can change their mind or find themselves in changed circumstances, whether personal or financial.

As a buyer you could avoid all properties with 'no onward chain' and as a seller you could insist on dealing only with FTBs or cash buyers, but you'd be eliminating a huge segment of potential properties/buyers. The choice is there though, nobody is forced to be part of an onward chain.

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Personally I avoid chains because they reduce your negotiating capability on both sides of the deal. i.e. the extra hassle of no chain is definitely worth it financially.

I wonder.

As a FTB where is one's negotiating power going to be greatest?

With a house advertised as having 'no chain', the sellers aren't being pushed into a quick sale in order to complete their chain and get the house they want to buy.

Some chains get pretty desperate for someone to provide the missing link - perhaps a FTB ready to move at short notice and with nothing to sell could get a reasonable discount.

On the other hand, of course, 'No Chain' often means a BTLer bailing out, divorce, death or other forced sale. And therefore provides some reasons why a FTB is going to be attractive to the seller.

So, perhaps it doesn't make much difference either way. You just know that as a FTB without a chain dragging along behind you're in a good negotiating position whatever. You just need to be able to find the seller that recognises the value of your status, whatever their reason for selling.

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A chain is not a concept. Its a practical way to sell and buy houses without deposits, further bridging loans and minimum fuss... when they work that is.

I think a non-refundable small deposit (maybe 2 per cent) should be paid the moment the sale is agreed, subject to survey, lease report and further enquiries before exchange of contracts not throwing any surprises on what the property was marketed as. If someone can't put 2pc of the property's price upfront they shouldn't be buying it in the first place. This would make people think twice before committing to a purchase and would help preventing gazundering. Sellers should also have to pay 2pc of the agreed price if they chose to gazump. I know the 'no surprises' bit could be a grey area but you get my point.

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I just dont understand the chain based system. I would never buy or sell a car or indeed any asset, if the deal was conditional on several other deals....

why not just buy and sell unconditional with a 2-3 month settlement....

an while we are at it this buying or selling a house thats not unconditional until exzchange date is frankly madness....

I have never except the uk seen a system where you can be gazumped or gazundered months after agreeing a sale....

i think to make the market efficient you need to move to a system of unconditional contract offers. or contracts that have conditions that have 3-5 days to be meet.

In nz i can buy a house and have the deal unconditional in 30 minutes..... with settlement many months later.... we put down a standard 10% desposit at contract time which sits with agent (or lawyer in trust account)

witht eh cuurent system you have in the uk its almost gauranteed to make chains fall apart in such a fast moving market...

I have owned uk property but man what a crazy system...

your thoughts?

Fear and loathing in suburbia. Its because nobody can actually envisage living in something they don't own. It is I agree total madness. If you want to move house why not just sell when you have a buyer that will pay what you want, and if you can't find a new house right away you like that will accept what you want to pay, wait until the right one comes along?

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I just dont understand the chain based system. I would never buy or sell a car or indeed any asset, if the deal was conditional on several other deals....

why not just buy and sell unconditional with a 2-3 month settlement....

an while we are at it this buying or selling a house thats not unconditional until exzchange date is frankly madness....

I have never except the uk seen a system where you can be gazumped or gazundered months after agreeing a sale....

i think to make the market efficient you need to move to a system of unconditional contract offers. or contracts that have conditions that have 3-5 days to be meet.

In nz i can buy a house and have the deal unconditional in 30 minutes..... with settlement many months later.... we put down a standard 10% desposit at contract time which sits with agent (or lawyer in trust account)

witht eh cuurent system you have in the uk its almost gauranteed to make chains fall apart in such a fast moving market...

I have owned uk property but man what a crazy system...

your thoughts?

It is total madness, due entirely to the 'Oh horror…dead money' vibes attached to renting a home in the UK.

Funny really, if sheeple woke up to the reality that renting a home for the interim would be a wise move then 'chains' would cease to be an issue.

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  • 399 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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