Buyers in bidding frenzy resort to desperate measures but struggle to win valuers support
Quoting James Greenwood and Clare Coode of Stacks Property Finders
Clare Coode of buying agents Stacks Property Search in Cornwall said several estate agents have reported mortgage valuations coming in significantly under asking prices in Cornwall and have used that as their excuse for only accepting cash offers in quite a few cases this summer.
In one case, Coode said they were able to supply enough research that backed up the amount offered by her clients such as comparable sold properties and the reasons why the price was unlikely to go down in the next five years. The valuer agreed with the research and backed up the bid.
Price correction
Buying agents are already warning that there are likely to be some house price corrections in the future so those who don’t need to buy now are being urged not to.
James Greenwood, managing director of Stacks Property Search, said: “We’re operating in unprecedented times so there can be no certainty around the future of this market.
“Some of the price rises we have seen were due. Country prices had lagged well behind London for years and some re-balancing was required. Buyers need to reset their expectations about what their budget will buy, and they need to be determined and serious.
“We could of course plunge into a post-pandemic recession. Current predictions point towards a period of inflation, so buyers who are paying a little over the odds in today’s market should be protected.
“There will undoubtedly be some corrections. I wouldn’t talk the bears out of holding tight and seeing what happens in a year or two but if your life requirements involve buying now hold tight and get on with it.”
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