3 quick questions to help with dream house!(13 Posts)
So, we've seen a house that we intend to make a cash offer on. I now have three things I'd really like advice on:
1) at what point in price negotiations do we tell the estate agent we're making a CASH offer?
Background - we are first time buyers, it's a popular area and likely to be a popular house. The vendors don't have somewhere to move to yet so aren't necessarily in a hurry, although do want a bigger house for a new baby.
My husband thinks we should go in with a lower offer that will likely get rejected, with the plan to up this offer when they reject the first one, and say we'll offer the higher amount and cash. He says we shouldn't say the first offer is cash because the estate agent will know we can probably afford to mortgage and go higher - either on this house or on others if we miss out of this one.
2) if we are buying cash, should still get a survey done? or would it be better to go round with a builder, plumber and electrician and get them to assess what needs doing and estimate a cost? We do want the security of knowing someone with an expert eye checked for potential issues - however if we're not getting a mortgage, this doesn't actually have to be a surveyor. Would it be more useful if it were the three tradesmen?
3) I'm going back to the house to look at the loft just to check no nasty surprises. What should I look for? State of insulation, missing roof tiles, rotten beams, water ingress spring to mind - but I am an amateur at these things!
Any help much appreciated... I'm getting nervous!
in no particular order;
surveyors are often sharks but you should have a survey done for some ammo against the big one, subsidence. You could have even more aggro from the insurers about that
I also agree with the 'do your own survey' approach. Open all cupboards, check in loft, run taps, flush toilets, look up at gutters and roof, visit at several times of day, days of the week and evening. Ask around for any local planning things in the pipeline; if no application made nothing will come up on the search but local knowledge may tell you if next door are planning to convert to a nightclub.
say it is cash; expect to prove with bank statements as some people say cash and mean mortgage. Your offer is your offer and there's no reason to assume you'll take out a mortgage to get more. Someone with real money is a big bonus.
We have bought for cash before and always told the agent at the outset, vendors will often accept a lower offer from cash buyers because they know the money is secured and don't have to wait for mortgage offers.
Always get a survey, even if it tells you things you know, it is not always easy for the untrained eye to see problems.
All the things you mentioned are what to look for, but a surveyor will see more and have an opinion.
Thanks that's super helpful. Feeling a bit more reassured.
As others have said, be honest about it being cash. Also, be prepared for the fact that not everyone thinks cash buyers are great- the lack of investment in mortgage fees etc can make vendors worry that you'll pull out at the last minute as your not so financially commited.
I think a survey would be worth it. For example ours spotted the possibility of asbestos in a couple of places that I wouldn't have thought to look.
Thanks - will certainly get a survey!
DH and I are not in agreement over whether to be upfront about being cash buyers... he thinks it'll mean the estate agent knows we can go higher.
It doesn't mean you could go higher- for all the EA knows you might not be able to get a mortgage for some reason so the cash you have is all you have- as I said above, cash isn't as highly desirable as your DH seems to think it is.
It's a funny market currently and it is not all about price.
Having recently had an offer accepted and chatting to a few estate agents it is worth paying all you cards on the table.
The price you are offering, how you are funding the purchase, do you want to move fast or are you prepared to wait etc.
I beat a cash buyer as they were putting pressure to move fast where as I went in as super flexible and able to accommodate them. Interestingly my vendors then also beat a cash buyer for other reasons.
Interesting points about cash purchases. The agent will want to know where the money is coming from, when you make an offer. Our first buyer needed a mortgage, did all the surveys etc. then after 2 months had to pull out because of a problem with his income and getting the mortgage confirmed.
Completely wasted our time.
I would always have a proper survey done - in the long run you are not talking about that much money in relation to your house. I've never met any shark surveyors - I've always asked around for local recommendations of surveyors and had a full building survey. It means you are buying with eyes wide open to any potential problems.
And totally agree with everyone else re laying cards on the table - I think it also pays to just be very straight-forward when you are in quite a competitive situation.
We sold to cash buyers after 4 offers were made on our previous house but it wasn't the fact they were cash buyers that made us accept their offer, it was because they offered the most & were in rented and prepared to wait. I don't think being a cash buyer always gives you the upper hand iyswim.
Do tell the estate agents you are cash buyers, a lot of people selling do want cash buyers me and hubby did when selling.
Always get a survey done!
As for question 3 do check all the things you listed
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