Concerned about massive over-offer on house

[BeingATwatItsABingThing]

My friend has had her house on the market for a while. It’s quite a niche house so it wasn’t selling quickly and finding the right buyer was going to take a while. They reduced the price twice in hopes to sell.

They had some viewings the other day and got an offer from someone who said he buys houses on a buy to let to rent to vulnerable families. He has offered £25,000 over the asking price. No bidding war or other offers.

Initially, I was chuffed for them but I’ve been thinking and something isn’t sitting right. Why would he offer so much over the asking price? Especially if he is hoping to rent it out for vulnerable families. I haven’t spoken to my friend about this yet because I can’t decide if I’m overreacting.

AIBU to be worried about this? Is this a scam?

(I know it’s not my house and none of my business but I wouldn’t want them to be caught up in a scam.)

I would doubt that the rooms meet the size requirements if I’m being honest.

👀

Can you explain how money-launderers get past mortage provider, banking system, & 3rd party lawyer scrutiny to achieve their nefarious ends?

This happened to someone I know! They were massively over offering by a ridiculous eye watering amount. He pulled out as he “no longer had the finances” was a weird situation.

Is it at all possible he saw or was given the details at the previous price?? Is it a very recebt reduction? Doubtful I know but.....

Well, usually they would have a seemingly plausible enough reason (and trail) for having that amount of cash (well, liquid funds - it's unlikely to be physical cash, of course). Banks, solicitors, estate agents etc.. only make a report if they are suspicious. Purchasing property is usually the last stage in the laundering process - the dirty cash usually goes through placement and layering (in order for it to look clean) before getting as far a property purchase.

And of course, the buyer might also turn out to be rubbish at actual money laundering, in which case they would get caught (by a bank, solicitor, estate agent..) at some point before the transaction goes through.
I know someone who was caught at money laundering precisely because they were actually terrible at it.

Is there development potential for the house/land? Maybe the ‘vulnerable families’ thing is just a line? My local church hall was sold to someone who said they would be running it as a nursery church/PCC happy as it would benefit local families - 2 years later the council had mysteriously allowed a previously impossible change of use, and the site is a row of terrace town houses worth a couple of million.

Unlikely as it was reduced a while ago.

I mean, I guess so. Not sure about getting the planning permission though because of neighbours.

I think it would be flagged as potential money laundering if he was paying that much over the asking price.

some sort of bait & switch con?

We offered way over asking price once because we knew we were in a weak position as we were selling two houses to buy and one wasn't on the market yet.

They still didn't sell it to us but we were legit.

Does he work for serco?

No idea I’m afraid

Sounds very dodgy. His intention may well be, as others have said, to gazunder on Exchange Day. If he knows your friend is buying somewhere else, committing to that purchase, he could offer less, knowing they would need to either get a bridging loan or accept his low offer. If he is a philanthropist, unlikely, he would save the money to do good works elsewhere. It's a scam.

Paid/offered over asking 3 yrs ago when it was mental market & houses were selling in a couple of days, wasn't 25k over but over.

Another thread reminded me I’d started this so thought I would update in case anyone is ever in a similar boat.

Just before exchange, the buyer “suddenly realised” he couldn’t afford the extra £25k. The options for my friends were to:
a- pull out of the sale
b- accept £25k less and hope their mortgage provider would cover it for their new house
c- hope that everyone in the chain would accept £25k less.

Option C was luckily accepted by the whole chain.

I still don’t know what the buyer had to gain from this as he could have just offered the asking price or even lower at the time.

Posted before seeing update!
Sorry. 😁

Thanks for the update, op! What a strange thing that is and how lucky in the end it turned out okay as it wouldn't for many chains. Usually someone just has to swallow the change in price which isn't always possible. That happened to our buyers almost on exchange day but they were just able to come up with some more money to buy our house and it was thankfully not mentioned to us until it was sorted. Some people are so strange and buying a house brings out the worst in them, that's all I can think. It's their one chance to feel like a big wheeler dealer and for some reason they love it.

I guess the people who miss out are the ones at the end of the chain who are £25k down!

Worked out well for my friends in the end and they’re happily living there now.