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Which buyer?

(27 Posts)
JadeFeather Tue 02-Feb-16 09:16:18

Just interested which buyer would you go for. One ha a mortgage in principle but is offering 5k less than the other who has a meeting arranged with the lender.

JustWantMyMoneyBack Tue 02-Feb-16 09:24:04

Any chain info? Do they have a broker, or are they arranging everything themselves? FTB?

MaryPoppinsPenguins Tue 02-Feb-16 09:27:57

When is the meeting with the lender? A mortgage in principle doesn't mean a lot, they're still going to have to go through the whole application process and could still be turned down.

Can you think about the offers until they've seen a lender? We got a MIP in a day from a broker over the phone, it shouldn't take that long.

JadeFeather Tue 02-Feb-16 09:36:43

Neither is in a chain. Buyer 1 is an investor and buyer 2 is a FTB. I think they will be going direct to the lender. Will check when the meeting is! Interesting to know mortgage in principle doesn't mean much.

MaryPoppinsPenguins Tue 02-Feb-16 09:41:33

Well, it might be different for others, but for us they just took our information (salary, credit commitments, deposit etc) over the phone with no proof, and then did a soft credit search.

After we had an offer accepted on a house we then had to send in statements to be gone over with a fine tooth comb, payslips, accountants info, money laundering forms and proof of deposit... And they spent a few weeks going over it all, looking at our outgoings and working it all out, plus a much more in depth credit check.

TobleroneBoo Tue 02-Feb-16 09:50:16

A FTB would be grateful for the chance - it's hard in some places when everything gets snapped up by investors. If I were in your position I would remember the many houses we lost to investors when we were FTB

Wuffleflump Tue 02-Feb-16 09:52:54

They can still fail to get a mortgage after having a mortgage in principle, as the banks don't look in detail at a MIP.

If one were to broadly stereotype about the buyers, an investor may be more hassle as they are doing this for money. They may press for more discount at a later date, because they lose little by just dropping out before exchange. FTB are more likely to be emotionally invested in the process.

JadeFeather Tue 02-Feb-16 09:54:06

Toberone that's true and I am always more inclined to a FTB I guess only concern would be if the mortgage didn't go through then we are back to square one. I need to check if their meeting is soon.

JadeFeather Tue 02-Feb-16 09:55:33

Also FTB has put down a condition about repair to the flooring which we just can't do so for that reason we may have to go with the investor.

ThroughThickAndThin01 Tue 02-Feb-16 09:56:21

Ftb who haven't seen a lender so therefore aren't guaranteed a mortgage would worry me.

ThroughThickAndThin01 Tue 02-Feb-16 09:58:45

And therefore the floor repair will cost you £££ so lessens the £5k gap, plus you have inconvenience of doing it.

sparechange Tue 02-Feb-16 09:59:10

Although I hate myself for saying this, I'll never, ever sell to a FTB again, having done so twice.
Their lack of experience of the process really does show and they will nit pick over every.single.thing. Our last buyer threatened to drop the price by a few £K to cover getting the 3 year old boiler replaced because we didn't have the original guarantee, and couldn't prove it had been serviced every year, for example.
I also remember being a FTB and panicking when the survey picked up a small amount of damp in a victorian house, and threatening to drop the price. The agent had to gently explain that wasn't how things worked...

If you are in a chain and need a quick sale, go for the investor every time...

Zebrasinpyjamas Tue 02-Feb-16 10:00:05

Will the investor be liable for the extra stamp duty when the rules change in April? Do they know this? If so are you sure their numbers stack up? I had my flat sale fall through (costing me money in fees) after an "investor" realised their initial estimate of their future rental income was twice the actual market rent. If I'd known from the start their expectations I would not have proceeded with their offer.

Your estate agent needs to get proper evidence of both buyers' ability to proceed before you spend any money. Don't let the agent do a sales pitch on you.

JustWantMyMoneyBack Tue 02-Feb-16 10:00:27

It is nice to think of the circumstances of the potential buyers, but I do think you need to be ruthless in these situations and look out for yourself. Put everything down on paper, and choose whomever will get you what you want (a sold house!!).

JadeFeather Tue 02-Feb-16 10:06:57

Yes my FTB is also saying subject to survey. I'm ok with that in the sense that I don't think property has any major issues and it's not that old but if they are being nit picky over small things already suggests they may be likely to do the same later whereas investor hasn't put down any conditions.

Borninthe60s Tue 02-Feb-16 10:10:27

Although I'd say FTB when I've read your posts I'd go with investor in this occasion.

JadeFeather Tue 02-Feb-16 10:18:04

I think we may be able to get him to remove the condition about the repair but not the "subject to survey" as that's quite common right? Anyway to ensure they don't start causing an issue over minor things later?

BeaufortBelle Tue 02-Feb-16 10:25:12

On the,basis that you can't trust anything the agent tells you, ever, I'd accept the higher offer and if they visit the property again to be present to give them the once over. IME various individuals are "sharp" whatever their circumstances. Good luck. My advice is whichever offer you accept go with a really good, established local conveyancing solicitor rather than trying to cut corners and using a panel based in outer Timbuktu whom you can't meet face to face.

JadeFeather Tue 02-Feb-16 10:33:02

For conveyancing we are using a friend of the family. He's not local but hopefully he will do things well for us.
Such a difficult decision!!

sparechange Tue 02-Feb-16 10:49:04

I would put money on the FTB trying to renegotiate the price after the survey if this is what they are being like now.
And because they haven't got a chain below them hurrying things along, they have little incentive to stick to timetables

JadeFeather Tue 02-Feb-16 10:51:41

Actually now the difference between their offers is 10k.
I'm definitely considering that they will try to re negotiate later. Hmmmm

lalalonglegs Tue 02-Feb-16 10:59:27

I have sold four properties to FTBs in the past four years and, with one exception, they have all been flaky and complete pita's. I have just sold a flat to an investor and the whole transaction was completed in less than two months including an almost two-week break over Christmas. If I had a choice, I know which buyers I would go for.

JadeFeather Tue 02-Feb-16 11:05:46

Would you pick an investor even if they are offering 10k less?

lalalonglegs Tue 02-Feb-16 11:08:03

Ha! Missed the £10k update - for £10k, I might be willing to put up with some flakiness grin.

sparechange Tue 02-Feb-16 11:34:09

What is your position? Have you found somewhere, is there a chain?
Is this £10k on a £100k house, or a £500k house?

I would work on the assumption that best case, your FTB will drop their offer by £5k when the survey comes back. Worst case, they'll pull out and you'll lose your house.

We came within a whisker of this happening to us when the FTB was wrongly convinced we had subsidence - because he had done a search on the planning site for the local council for 'Acacia Road' and found an application to repair subsidence, where as we were 'Acacia Street', nearby. At this point, if someone had said I could pay £5k to make it all go away, I would have done, even though it would have made things tight for buy the new place.
It all worked out ok in the end, but we had a few sleepness nights.

Oh, and his parents were putting up the deposit, so they wanted to come and do additional viewings and their own checks on things, so be wary if they are in that position as well..!

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