How valuable is being chain free?

[nilbyname]

We have an offer, which we are probably going to accept. This might mean that we will move in with parents, and be chain free/proceedable. How valuable is this in real terms, how much can I negotiate off the next property?

The people interested in ours are buy 2 let, so we would be in a very short chain, is that as good as being chain free, or is chain free so much better?

Please oh wise mumsnetters advise me?


Thank you!

[Bearbehind]

Being in a chain isn't as good as being chain free- it's still a chain.

Many people find BTL investors a risk as they have little emotional attachment in their purchase so are more likely to pull out before exchange if they change their mind for whatever reason.

You really shouldn't be going into buying a house thinking you can get money off a purchase because you are chain free- it is just one factor in the process.

Much will depend on the specifics of the house you decide to buy.

For example-the vendor might not want a quick sale if they have a delay before their next move

The vendor might be prepared to wait longer for a higher sale price if there's lots of interest

It's not an exact science but thinking you'll get a discount for being chain free is likely to leave you disappointed.

[specialsubject]

it may not get you a discount, but it may make you a preferred buyer because there's nothing below you risking the transaction.

if the sale means you'll have more than £75k each in cash, don't forget to split it between banking licences (not brands). Inflation is far more than you can get in interest so don't hang around too long.

[ApplesTheHare]

I doubt you'll get a discount but as others have said you may jump the queue ahead of other potential buyers who are in chains.

[ThroughThickAndThin01]

Yep as others have said, no discount but your offer will be looked at more favourably than anyone in a chain.

[nilbyname]

Thanks all for your input. We are not in the south east, if that makes any difference.

Good to know, thanks for the input.

Any savings we have will just be for the doing up costs.

[ApplesTheHare]

We're in West Yorkshire. No discount for no chain here even though prices are rock bottom compared to the south.

[ThatsNotMyHouseItIsTooClean]

When we bought five years ago, we put in two offers. One for asking price but it involved us being in a chain; other was for £12k (about 2%) less and chain free. The vendor went for the chain free off.

[namechangedtoday15]

We were also chain free when we bought this house. We went to sealed bids and ours was successful, even though we found out later it wasn't the highest. So kind of a discount.

But as others have said it is just one part of a buyer's package. It really depends on the seller's circumstances (have they found somewhere & need to move quickly), how competitive the market is etc as to how valuable a chain free buyer is.

[TreadSoftlyOnMyDreams]

It was worth about £10k to us in our first home. Chain broke down close to completion date, we put in a cheeky offer at the top of our budget and blowmedown we were accepted.
Some friends have recently accepted an offer £25k lower for a quick sale to a chain free buyer as they are emigrating and want it sorted before they leave. London though so the house is into 7 figures anyway so makes it proportionally a small saving.

[nilbyname]

That's interesting, I do feel like chain free is valuable and will be looked on more favourably.

[Sunnyshores]

We're chain free and putting low offers in on several properties (all done openly), so far no buyer is motivated enough to sell. I think being chain free is only an advantage after sale price, moving timescales.

Dont become chain free if your only reason is to get a bargain property, youre likely to lose out more than you'll save on price inflation.

[limesoda]

We were chain free, but got absolutely no discount. I think the sellers were mostly just relieved that the sale could turn around as quickly as it did (and Christmas was quite significent in this, they were selling due to divorce, and I think being able to finish it all by the end of the year was appealing).

[ragged]

Being chain free gave us huge peace of mind, and less pressure (mostly).

Being chain free never gave us a single advantage in negotiating, I don't know why not, as sellers we were ourselves very attracted to chain-free offers. Especially it seems other people would strongly prefer more money. I suppose folk are jaded & most people plan to stretch themselves as much as possible in next purchase, so they can't trade money for anything else. And since they expect a chain and the buyer will mess them about for no good reason, chain-free status meant nothing.