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Cash buyer or mortgage buyer? Help please.

(22 Posts)
TakingTheStairs Tue 18-Feb-14 09:39:38

I don't know what to do, we've had several decent offers on our flat and I don't know what is the best decision
The highest is a first time buyer, mortgage in principle, happy for us to have a little time to find somewhere to buy.
The second highest, which is still decent but high 5 figures below the highest offer, is an investor who has cash to purchase

Part of me wants a) the higher price and b) to give a first time buyer their home. But the cautious part of me say take the guaranteed cash. What if the bank of the first time buyer don't think our flat is worth what the buyer has offered?
We haven't found anywhere to buy yet.
What would you do?

Preciousbane Tue 18-Feb-14 09:49:01

Message withdrawn at poster's request.

EasterHoliday Tue 18-Feb-14 09:53:25

the FTB is going to be emotional about your property and want it. They're offering more money and are less likely to walk at the sniff of any problem in the survey. Go with them.
The investor is also going to need to get their money working for them and be less flexible on timing.

littleredsquirrel Tue 18-Feb-14 09:55:31

Go with the FTB. Unless you think they don't really have a mortgage offer then why wouldn't you take the extra cash.

lessonsintightropes Tue 18-Feb-14 09:55:42

The investor also more likely to pull out if they see something they like more - I'd go with the FTB.

HaveToWearHeels Tue 18-Feb-14 10:08:22

Well my experience is totally different to that of the other responses. Of course the extra money is important however two experiences with FTB's show that they panic over the slightest thing. Sudden realisation of the money situation, something minor coming up on the survey, they find something they like more and are emotional about things.
We are investors and do not get emotional, yes we have to like somewhere to buy it and I always ask myself "could I live here ?". However once we have made that commitment to a property we do not pull out (unless something major comes up on the survey).

We recently offered on a house that went to sealed bids. FTB's and our offers were equal, we had 35% deposit, finance in place and could move quickly (vendors had found a house so were in a hurry). Agent recommended they go with us, however vendors got emotional and wanted it to go to someone where it would be their home rather than an investment so went with FTB.
Fast forward 8 weeks and we have a call from the agent, FTB found somewhere they liked more and pulled out a week before exchange, vendor's were about to loose their purchase. We had found another property by then so the house went back on the market.

Timetoask Tue 18-Feb-14 10:10:44

If I were choosing with my heart, I would go with the FTB.
If I were choosing with head, it would be the cash buyer.

It would all depend on how desperate I was to sell.

TakingTheStairs Tue 18-Feb-14 10:35:27

Thank you. The extra money would make a big difference to the type of house we could buy. I think I'll try and find out what kind of deposit the ftb has and add that to the equation.
We are in London so if the worst happened I know we could sell again. Hhhmmm

TakingTheStairs Tue 18-Feb-14 10:42:28

Oh, I just got the email from the estate agent with all our offers. There's another ftb that has offered between the investor and highest ftb offer. I misheard the figures on the phone. So the investor is the third highest offer.

OddFodd Tue 18-Feb-14 11:18:06

It's a seller's market. If you're not desperate to sell, I'd take the highest offer. If the BTL wants it, they can stump up to cash. I've sold property (old, converted) to FTB twice and not had any issues

HaveToWearHeels Tue 18-Feb-14 11:50:07

I wasn't by an means saying FTB's are all flaky, after all we have all been one at some point. If there is that much difference in offers go with the highest. If they were equal/close I would go with the investor.

lljkk Tue 18-Feb-14 11:53:33

Most people would go with whoever offered more.
We were cash buyers & it conferred no advantages for us whatsoever with sellers. [peeved smiley I'm not allowed].

lessonsintightropes Tue 18-Feb-14 12:18:48

lljkk I am surprised it didn't help you. I've been refused a viewing on a property in London because I wasn't a cash buyer when a number were interested (and indeed was told to move into rented to make myself 'more attractive' to sellers by one agent - who we then didn't look at any properties with as they were obviously complete arses).

OP - sounds like the money will really help - so maybe go with the money?

TakingTheStairs Tue 18-Feb-14 12:31:38

Thank you all for your help and advice.
We have decided to go with the FTB with the highest offer. The extra money will really help us and I've also found out that the FTB has a very large deposit, so there should be no mortgage issues with them either.

Now.... to find a house!!!!

noddyholder Tue 18-Feb-14 12:33:11

Agree with haveto I would go with the investor.

LiveInABox Tue 18-Feb-14 19:53:48

We had the same dilemma six months ago, but our higher offer was from the cash buyer. We went with the cash buyer because we thought it would make for a quicker and more straightforward sale. They immediately started making demands and messed us around something rotten before pulling out which meant we lost the house we were buying too. We lost thousands on survey/ searches etc. This time we've gone with FTB and as someone up thread said, they're emotionally attached and have been great so far!

InsertUsernameHere Tue 18-Feb-14 21:23:59

How sure are you that your cash buyer is actually a cash buyer? I'm sure I've read a few threads on here where the cash buyer actually ended up needing a mortgage. If you have several offers I would go with the highest. I might take somebody (non-investor) sitting in rented with cash in the bank (confirmed) over a similar offer in a chain.

InsertUsernameHere Tue 18-Feb-14 21:34:33

Sorry - just re-read and see you made your decision. Happy house hunting!!

TakingTheStairs Mon 24-Feb-14 17:09:35

Ahhhh the FTB pulled out. Pants

HaveToWearHeels Mon 24-Feb-14 19:41:39

better now than 6 weeks down the line !
Get you agent to approach the investor and see if they are still interested.

cupcake78 Mon 24-Feb-14 19:48:45

Accept highest offer if you don't need to move fast! Get agent to go back to investor and tell them your open to higher offers. If investor can't outbid ftb then tough.

The only real advantage a cash buyer has in this instance is the ability to move faster. Should anything happen to your ftb and the sale not progress then you go back to the investor.

Your in a great position.

TakingTheStairs Mon 24-Feb-14 23:38:30

Absolutely better now than 6 weeks along the line, I fully agree havetowearheels
We've had an offer accepted on a house, but I don't think the vendor has found somewhere else to buy yet, so higher offer may still win like cupcake78 suggested.
Our estate agent has gone back to those that missed out and new final bids are to be in by 9am tomorrow. The investor is still interested (along with two other parties) I guess we'll see what the offers are and go from there.
Do I have to have a completion date to exchange contracts? I want to get this locked in as soon as possible.
We should still be able to keep to our offer on the house we're (hopefully) buying, but now may not be able to do the kitchen extension we'd like to, just depends what the offers are like tmr. Keep your fingers crossed for us please!

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