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AIBU?

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Original poster

Cash buyer reduction

34 replies

Eviethyme · 28/04/2021 09:11

Hey all, just a quick question...

If I wanted to purchase a house that was only just put on the market for 595k and I'm a cash buyer with no chains etc how much would you ask for off it max (obviously they can refuse but I have no idea the protocol) ? Beautiful home but needs a lot of work inside. No houses to compare it too price wise unfortunately.

OP posts:
Seeingadistance · 28/04/2021 09:17

Offer what you think it’s worth. If the sale can through faster than usual, then emphasise that point.

As a seller I wouldn’t really be interested in whether you paid with cash in bank or mortgage from the bank.

Original poster
Eviethyme · 28/04/2021 09:18

Also in case anyone asks. The advert does refer to the fact that work needs done (very old house) and it's obvious that no one lives in the house and hasn't for years and years

OP posts:
Original poster
Eviethyme · 28/04/2021 09:19

@seeingadistance thank you, I think I will have to weigh up the cost of doing it up and offer maybe half of that less probably 15k I would say

OP posts:
crazylikechocolate · 28/04/2021 09:19

Ok so nothing to compare it with but how are other properties selling in the area , I'm about to look at a wreck that needs at least 150k spent on it but to get it I'm going to have to go above the asking price as the property of this type isn't coming onto the market here so it's a premium , it maybe different where you are , cash helps speed things along but there are a lot of cash buyers out there so I wouldn't expect any favours , it would just mean your ready to precede

arethereanyleftatall · 28/04/2021 09:20

To me, a chain free cash buyer is worth about £5k. I've just tried to sell our house, and next time, I'd choose £5k less from a cash buyer over a chain plus mortgage required buyer.

arethereanyleftatall · 28/04/2021 09:22

Op, we can't possibly comment on what 'your' house is worth. You need to know what it's worth by looking at other similar houses in the area.

StillCoughingandLaughing · 28/04/2021 09:22

On the basis of it needing work and you being a cash buyer, I would offer 570k and expect it to be rejected. Negotiate from there.

Zancah · 28/04/2021 09:23

I wouldn't take a significant reduction purely because they're a cash buyer, plenty of mortgage purchases go through smoothly.
I suppose it depends on their predicament and wether a fast cash sale is preferable to them.

Original poster
Eviethyme · 28/04/2021 09:23

That's the problem.. House is in middle of nowhere with no other houses nearby haha only other house is in local town and selling for 525k ughh I hate this haha think I may just have to throw an offer and see if they are getting bites from elsewhere

OP posts:
Whammyyammy · 28/04/2021 09:27

When selling i don't care whether the cash I receive comes from a Mortgage or someones savings(cash buyer), by the time my solicitor transfers it to my banks, its my cash. Highest offer wins

SparklyLeprechaun · 28/04/2021 09:27

Unless you know the seller's circumstances, just offer what it's worth to you.
If the house is not lived in, it's unlikely they'll care that much if it's a super quick sale, but you never know.

Didiusfalco · 28/04/2021 09:27

I think you really need to gage where it sits in the local market. It may be that all the work that needs doing is accounted for in the price, in which case there is no point in costing the work and knocking the figure down that way.

Blossomandbee · 28/04/2021 09:27

Can you talk to the estate agent?

If there's no comparable houses and it's new to the market the price is a bit of guesswork anyway. They will only be able to judge it based on interest and who's willing to pay what.
It could be worth you also getting some quotes for the work needed so at least you've got evidence to back up any price negotiation.
If the seller is keen to sell then they would be more likely to take an offer and be attracted to your good position. If they're not in a hurry they might want to hold out especially if it's new to market.

Tinkywinkydinkydoo · 28/04/2021 09:29

What’s the housing market like where you are? As in most places it’s crazy and houses are selling in hours above asking price, so it depends on if there’s much interest in the house? If there’s no one living in it they may snap up a cash no chain buyer or they might not be bothered and willing to wait for asking price, there’s only way to find out. Also the fact that it’s new to the market might mean they’ll wait to see what kind of offers they’ll receive.

Diamondnights · 28/04/2021 09:32

The price SHOULD already have taken into account the work that will need to be done so I wouldn't expect to get a big discount for 'work needed'.

We are selling now and were keen for a proceedable offer, not nec a cash one. We accepted asking price from someone proceedable rather than trying to go to sealed bids with the less proceedable ones that were also offering. Might have gone with v slightly less for cash but it's a hot market here currently. It's mainly guesswork in the end though and hoping for the best! Good luck!

Dashel · 28/04/2021 09:33

I would also consider how long the property has been on the market for as if it’s been 6 months they will more than likely be receptive to offers. I would potentially ask for another viewing and feel out the estate agent in person to see if they would let on about offers. For such a large sum, it’s worth the extra time taken.

With houses apparently selling quickly and above asking price around here for rural properties you may not get accepted but I would say it’s worth trying.

TracyHorrobin · 28/04/2021 09:33

As a seller I have been lied to, twice previously by "cash buyers". On both occasions I accepted an offer based on the purchaser being a cash buyer. On both occasions the cash buyer then proceeded to proceed to mortgage application. Be prepared to prove you are a cash buyer and are going to remain so.
If you are a genuine cash buyer, good luck, I hope you get a good deal.

TeenTitan007 · 28/04/2021 09:34

We sold to a cash buyer. We offered £10 discount which was 1.25% of the asking price. Ours was a vacant buy to let and our mortgage was about to move out of the fixed rate into the variable rate (double). A mortgage buyer would've taken an additional 6-8 weeks which would've cost us an extra £4000 anyway. Plus the risk of the sale falling through due to change of financial circumstances which could've meant more delays costing 6-8000..So we agreed to reduce the price to enable an quick and sure sale which was a condition of accepting the offer.

The first offer they made was £20k below asking and we met in the middle. The transaction was completed in < 6 weeks.

Depends on whether or not your seller places any importance on a quick sale.

TeenTitan007 · 28/04/2021 09:35

I mean £10k discount, not £10 Grin

SarahAndQuack · 28/04/2021 09:36

Is the amount/type of work liable to prevent other buyers from getting a mortgage? I've seen a couple of houses where, realistically, I know the bank won't lend the amount the potential buyers would want to borrow. It'd be really nerve-wracking to buy in that situation anyway (because it's likely the house isn't worth the price), but if you love this house I guess that'd be in your favour. I've come across places that won't give you a mortgage if there isn't a working kitchen, for example.

Gogetsalife · 28/04/2021 09:36

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This has been deleted by MNHQ for breaking our Talk Guidelines.

BuyYourOwnBBQGlenda · 28/04/2021 09:36

I imagine they will have priced it to account for renovation works. Start a bit lower than you are willing to pay and see what they say.

Personally chain free is v. attractive but I'm not sure if I care if cash vs. mortgage if the people are in a strong financial position and the mortgage in principle is agreed.

Countrylane · 28/04/2021 09:37

It would be a plus for me selling, but I've also had problems with investors buying a flat off me in the past, because they're less emotionally invested, if you see what I mean? Either way, I'd expect someone to prove that they had the money in cash (again, had issues with people saying they were cash buyers and then not be). But yes, def plus for me.

Skysblue · 28/04/2021 09:37

Ask the agent if they’re open to offers and what a sensible price would be. They are working for the seller and should try to get your highest offer - but some are incompetent and I have had an agent tell me right away what the sellers bottom price was.

It’s irrelevant that it needs work, they took that into account when they priced it. Many many people want houses that need work doing.

The key question is how much you want it / will someone else takenitnwhile you dither. Personally if I loved the house I’d spend no more than a few hours haggling with the agent then oay whatever needed to get it off the market

Aprilx · 28/04/2021 09:38

I would have no interest whatsoever in whether my buyer was paying with their own cash or whether they were getting a mortgage. Being chain free is another matter and I would drop maybe about £5k for that.