Buying a house in East Dulwich? expect sealed bids!

[edf]

If I was messed around by anyother supplier over price in anyother transaction I would consider lowering my bid instead of raising it or walking away if they cannot deal with you honestly.

It's worth considering placing a firm order what you believe it's worth prior to the blind bid, and making clear to the estate agent that any future bids will be substantially below this bid and with dawn if it marketing\bidding process is not stop prior to the seal bid date. This would forcing them to make a disicion if you are really the only serious bidder. I would tend to believe that it's a negotiation strategy and there are no other bidders. Also you need to follow through and offfer lower during bidding process, to prevent ending up the same situation with another property if the transaction does not go through.

However buying a house is an emotional decision, which they know, and may not be as easy to treat it like a finacial decision.

[louisiana]

A couple of years back an estate agent recommended that I used sealed bids, as owing to the nature of the property it would be likely to attract a lot of interest. I didn't want to sell in the end...

[blainiac]

Read this - made me feel better. Just lost out on a house which a week ago i "had to have".

http://www.telegraph.co.uk/finance/economics/houseprices/7323706/House-prices-to-suffer-significant-correction-in-2010.html

[Loz]

Part of the recent blip has been cause by people rushing to buy as the stamp duty holiday came to an end. Mortgage approvals in the last month or so have dropped markedly, so expect demand (and therefore price pressure) to settle back a bit.

[TheAllSeeingEye]

Pendragon Wrote:

-------------------------------------------------------

> Hi all

>

> Ok....Either Im not living in the real world, or

> everyone in East Dulwich is mad!!!(in a nice way

> obviously)

>

> Im trying to buy in the area...Ive seen 3 places

> and all of them are "apparently" going to sealed

> bids!!? Ummm..... didnt we just have the worst

> recession ever? or have I timewarped back to 2007

> crazy days?

>

> I understand the seller will want as much money as

> possible and get their "greed" switch turned on by

> the agent who no doubt promises them sealed bids

> if they stand firm, but surely buyers can see this

> is a very unscrupulous and obvious method by

> agents to get people to bid up and probably pay

> something stupid way over the asking price

> (probably with no competition at all!?!!)

>

> I absolutely will not enter into sealed bids due

> to knowing this, but Im just thinking if everyone

> tells them to p-off then we all stand a much

> better chance and at lower prices

>

> Yes im (obviously)frustrated by this each time but

> also keen to know is this par for the course round

> here?

>

> If not- stop panicking people and dont believe the

> hype- the agents are probably laughing at us!

>

> To be fair, I know that houses are only worth what

> people will pay for them so if buyers are going to

> sealed bids does this mean this is a reflection

> then that the recession is dead and everyone is

> ready to pay silly money again?...If so I dread to

> think what it will be like if the market actually

> recovers....am I alone on this one?!...

>

> Kay x

Im a local agent.

Pretending to need to go to sealed bids is bordering on illegal.

I think its far more likely that the agents have done their job properly and valued it accurately, hence got lots of interest and demand is high. As opposed to a few years back where agents over-valued to win the business and then couldnt sell anything.

Most agents trading now, if they have more than 2 years experience, have survived the hard times and learnt from them, and are likely to be good at their job.

Id have more faith.

Kevin

[TheAllSeeingEye]

In addition, although the Telegraph article makes a lot of sense, how can you compare contrasting areas ?? What is going on nationally is largely irrelevant. In East Dulwich supply is low and demand is high, that is only going to move prices one way, and sealed bids is a frequent result of that. What the future brings though ?? ... who knows !!

[R&A]

Also the british public LOVES owning property and until this changes people will be willing to pay more and more of their wage packet towards the 'british dream' of having their own place

Moreover, even if some bankers leave us because of increased tax rates.... London is seen as a highly desirable place to live internationally and the weak pound has provided a good 'entry point' and may continue to do so. E.G. Places like Westminster didnt participate in the recent downturn

In terms of valuatoin and fundamentals, current house prices look highly vulnerable but if we see another 'correction' people may view it as a buying opportunity again and move in...

This rally didn't even involve smart property investors or developers who have mostly remained on the side lines waiting for a sharper correction. Some investors have been waiting a very long time.

[TheAllSeeingEye]

Buy-to-let has disappeared, developers cant raise finance (only the cash ready are still going), and the less desirable stock and high-end stock is impossible to move. Its the popular, young professionals flats (typically 2bed garden) and the small family homes, that are gold dust at the moment.

[Timster]

TheAllSeeingEye Wrote:

-------------------------------------------------------

> In addition, although the Telegraph article makes

> a lot of sense, how can you compare contrasting

> areas ?? What is going on nationally is largely

> irrelevant. In East Dulwich supply is low and

> demand is high, that is only going to move prices

> one way, and sealed bids is a frequent result of

> that. What the future brings though ?? ... who

> knows !!

Exactly, ED is still relatively cheap compared to other similar 'desirable' areas of London and it was still in the process of really taking off when the recession hit. We must be one of the few bits of London where there are actually more posh bars, restaurants and shops locally now than there were 18 months ago.

The credit crunch stalled the ED property bubble but long term you (subject to a few hiccups) I would expect prices to carry on rising simply because ED has become a much more desirable area to live than it was a few years ago.

[TheAllSeeingEye]

Agreed, and I'll be happy to take my cut of it :-)

[cate]

Loz Wrote:

-------------------------------------------------------

> Part of the recent blip has been cause by people

> rushing to buy as the stamp duty holiday came to

> an end. Mortgage approvals in the last month or

> so have dropped markedly, so expect demand (and

> therefore price pressure) to settle back a bit.

What areas are you referring to? The stamp duty holiday didn't apply to this area as nothing would have been under that price range.

[vinceayre]

I don't live in ED but in Chislehurst another so called "desirable" area of south London and was contacted by an estate agent a couple of weeks ago to see if i was interested in selling. A day or so later the manager came round a valued it at ?100k more than my best guess. Easily back to 2008 prices, i asked him how so and he said it is simply a fact that he has five buyers chasing each house and even though millions have lost their jobs none of them live round here as its full of bankers and brokers and they are all making more money than ever. I can concur with that because I have never seen so many brand new Bentley convertibles and Ferraris in the High Street, they have completely taken the politicians for a ride.

As for a run on the pound it will be saved by the run on the Euro that is about to happen, George Sorros and his mates (according to the Wall Street Journal) are betting against it and we all know what happens when he does that.

Put your bid in at the higher end if you can because ED will continue to rise in value, I bought 15 years ago in a "good" area and the value has more than tripled. There will be no "bargains" about if you wait because if the past three years hasn't ruined it then nothing will.

[R&A]

..."they have completely taken the politicians for a ride."

not just the politicians.... i am amazed how they have got away with this blatant daylight robbery

i know of people who were directly responsible for what's gone on... They were fired and then re-hired to fix the problem because no one understood the financial instruments they were working with

They laughed all the way to the bank... twice. Redundancy and then future bonuses.

No one seems to get it -

Over the next three years the public service sector will be demolished - perhaps then there will be anger

[Huguenot]

LOL!

The price has more than tripled, the value has dropped by two thirds. ;-)

[vinceayre]

I can hardly contain myself I am laughing so much at your attempt at humour.

How are the colonies today?

[SJK]

I would like to second Sara at Haart. She was brilliant and was the estate agent who finally got us a home in ED - after we'd been trying to buy for two years.

[????]

R&A Wrote:

-------------------------------------------------------

> ..."they have completely taken the politicians for

> a ride."

>

> not just the politicians.... i am amazed how they

> have got away with this blatant daylight robbery

>

> i know of people who were directly responsible for

> what's gone on... They were fired and then

> re-hired to fix the problem because no one

> understood the financial instruments they were

> working with

>

> They laughed all the way to the bank... twice.

> Redundancy and then future bonuses.

>

> No one seems to get it -

> Over the next three years the public service

> sector will be demolished - perhaps then there

> will be anger

Like what's happened to lots of people in the private Sector over the last 3 years then? Anyway...

The Daily Mash is furious....

[R&A]

>'Like what's happened to lots of people in the private Sector over the last 3 years then? Anyway... '

I wasn't saying that the private sector hasn't suffered... They absolutely have.

[radish]

We lost out on a property which went to sealed bids last October. We ended up putting in an offer of just ?5k below asking price (?400k). It went for asking price!

Whatever happens in the market, remember you are buying a home, not an investment.

We have bought now (sealed bids again), taking advantage of low interest and the relief of having our own place and not renting is great :)

[pepsi]

Sealed bids would be a great idea of they were carefully monitored and adjudicated (preferably by someone other than an estate agent!) If the vendor could set a reserve price, then it would be a much fairer system than the gazumping etc. that still seems so prevalent.

[????]

...expect more of this...

[TheAllSeeingEye]

Not round here you wont ...

[Sue]

Timster Wrote:

-------------------------------------------------------

>> The credit crunch stalled the ED property bubble

> but long term you (subject to a few hiccups) I

> would expect prices to carry on rising simply

> because ED has become a much more desirable area

> to live than it was a few years ago.

xxxxxxx

Just found out the house next door to mine is on the market, can't believe the asking price for a small terraced house :-$

[TheAllSeeingEye]

Go on, shock me ... which road and how much ...

[Sue]

Ulverscroft Road, ?565k - surely they won't get it??

ETA: Bloody hell, there's another one in the road on at ?575k.

::o

Maybe I should pay more attention to house prices, I just assumed they were still going down!