Cash buyer discount in this market

[Dinosauraddict]

Hi all, wasn’t sure whether to put this in property or investments, so sorry if I opted for wrong place, but thought people on this board may have more knowledge. Looking at buying a small house as part of my long-term retirement plans. I’d be a cash buyer and am ready to purchase. The sort of property I’m after doesn’t become available very often (but is not hugely popular when it does), it’s not in London or SE and would come on the market for approx £250k. Friends/family are giving me conflicting information about what offers I should put in. DF thinks that as a cash buyer that should result in quite a reduction. If I was selling a property though, whilst I’d be pleased re no chain, it wouldn’t change my position and I’d have a number in mind below what I wouldn’t accept. Any thoughts on what percentage below asking price may be an appropriate expectation based on cash purchase (if anything)?

Bump, anyone?

Most sellers are pretty informed as to the value of their property and have set prices to reflect on what they are willing to sell for. You may find a small discount for a no chain quick sale but on the whole you need to look more at Auction type properties if you are seeking a bargain for cash.

I bought mine last year at auction and got a property that is now worth £95,000 more than I paid for it but it required renovating which I did mostly myself.

I'm not so sure sellers are that informed on the value of their properties. That's certainly not true in London now, not sure elsewhere. The value of an illiquid real estate asset is the price other people are willing to pay for it; if so many properties stay on the market for so long, are reduced multiple times and sometimes pulled from the market altogether, it means the sellers' expectation of value is very wrong.

@callkiki - I’ve never bought at auction; and not something I’d be confident in doing I don’t think.

@southlondondaddy - I would agree that not all sellers know the value of their properties. Out of 2 I’m interested (both on market atm for around £250k), one has already been reduced by £40k, and one hasn’t been reduced, but has been on market for 6 months, which to me says they probably have unrealistic expectations...?