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Original poster

Would you accept a lower offer...?

28 replies

2moveornot2move · 09/09/2018 13:06

from a chain free cash buyer?

After finally selling our house we will be in this position - living in rented with the cash from our sale in the bank, no mortgage needed. My thinking is that this makes us the ideal buyer and as such we could negotiate a very good deal.

My sister says this is nonsense, that it doesn't matter where the money comes from and that people are happy to wait in a chain to get more money.

I get her point so just wondering, what would you guys do?

OP posts:

PickAChew · 09/09/2018 13:14

It depends how much of a hurry the vendor is to move. Some can wait for a better offer.

Jonathan1972 · 09/09/2018 20:21

I agree with your sister. Renting in the hope of getting a good deal on your next house seems like a lot of money to spend for a potential saving that may be much less. Plus you will have two lots of removal costs

Namechanger2015 · 09/09/2018 20:23

Cash buyer wouldn’t really be a deciding factor for me, I’d just got for the highest offer and would wait it out. I agree with your sister.

scaredofthecity · 09/09/2018 20:23

I thought people did this to increase their chances of getting the most suitable property. I can't see it saving money. Renting is so expensive.

Lilmisskittykat · 09/09/2018 20:30

When I sold mine I didn't care..

Makes no difference how I got the money for the sale. In my experience it was a chain free cash buyer that thought that gave them the right to knock the most off the asking price

Tigertill716 · 09/09/2018 20:30

We had a cash buyer once, they offered what we wanted so that didn’t change too much however we moved very fast because of this. That might be something to highlight to say you can move fast. Personally depends on what stage I was in selling, if my property had been on for longer then I liked I would factor in a chain free cash buyer, happy hunting!

redcaryellowcar · 09/09/2018 20:35

I think it might enhance your chances of being successful, I doubt you will save a lot of money though. Suppose as you are in a strong position a slightly more cheeky offer is tempting!?

MessySurfaces · 09/09/2018 21:12

Mumsnet is fickle! If you came on here asking whether you should accept a lowish offer from a definite cash buyer everyone would be queuing up to say "take the offer"!

Original poster

2moveornot2move · 09/09/2018 21:35

Thanks everyone. It is funny, having just gone through the selling process, I would bite the hand off anyone offering me such a deal. I guess every situation is different, I will have to wait and see.

OP posts:

FlotSHAMnJetson · 09/09/2018 21:37

We have been pipped by 3 or 4 cash buyers in our house hunt, doesn't matter if you are cash or mortgage, as long as you are chain free you are gold to estate agents!

bilbodog · 09/09/2018 22:18

You are in a much better position if you are in rented and a cash buyer. You have no mortgage to sort out and are more flexible time wise with no chain attached. An estate agent would definitely put you at the top of the list if there were other people interested in the same property.

shutlingsloe · 09/09/2018 22:33

Five years ago we were cash buyers in rented and managed to get quite a discount off the asking price of our current as the vendors were really wanting to move. They were buying a new house so it meant a chain of two and they were really keen on that.

Asdf12345 · 09/09/2018 22:55

If you can find someone able to afford to take a lower price who also needs to move fast you may do very well.

If the places you want happen to be full of people who can't afford to budge much or who are in no rush than you are probably not better off.

Penguinsnpandas · 09/09/2018 22:59

We were cash buyers for our last house got 15 percent off price within a week or it going on market so it can do.

AnalyticalChick · 10/09/2018 10:54

If there was a chain buyer who could near guarantee that the chain would hold together and move quickly to completion, the seller should go with the higher offer. However, I am not sure how such a guarantee would be possible. Cash buyers are far more certain and reliable, which makes a big difference. Which is the better offer: 90% of asking price from a cash buyer, or 0% of asking price from a chain buyer?

Washedwithrain · 10/09/2018 10:58

If you were chain free, I would accept a slightly lower offer from you or if it was a choice between you and another buyer offering the same amount, I would pick you over them.

It depends on the vendor's situation though, maybe they would need the full asking price to buy what they wanted.

AnalyticalChick · 10/09/2018 11:11

I think sellers who can barley distinguish between cash offers and chain offers are probably the most delusional type of seller around, and on that basis it should be a red flag that they should probably be given a wide berth.

Racecardriver · 10/09/2018 11:17

It depends on two things. Firstly the offer and secondly how sensible the buyer is. If the offer in unaffordably low for the buyer then they simply can't accept. If the offer is affordable but slightly less then they would like it comes down to the individual buyer. In the current market sellers in a chain take a big risk of loosing their buyer. The market is stagnant in some parts and dropping in others. Buyers are skittish and the temptation to switch to a different property that has come on can be strong, especially in places like South London where the market is falling quickly. If a buyer needs to sell before interest rates rise/prices crash and they are sensible they will take a lower offer from cash buyer if affordable. If they don't need to sell in this cycle then they can wait for a good price or wait for prices to crash and then recover in the next cycle.

HomeOfMyOwn · 10/09/2018 11:21

I'd sell for a few thousand less than asking and have previously done so, just for the security of sale it offers (no chain to collapse) and the fast move (pregnant and wanted it out of the way!). I had at the same time got a full asking price offer for the house but the person was in a long chain. I did still make a profit on the house though.

Ultimately it depends on whether the seller wants to move quickly, how much the seller wants security of no chain, etc.

If a house is empty owners are likely to accept less as empty houses cost money to keep, so a quick sale is more attractive.

I think rental costs would wipe out any savings though.

PuntCuffin · 10/09/2018 11:27

I don’t believe anything that comes out of the mouths of buyers having been burned by a ‘chain free, cash buyer’ last time round who turned out to be anything but.

It would depend on how long I had been on the market, what size of reduction was under discussion, is the market buoyant etc before I would accept any offer.

Washedwithrain · 10/09/2018 11:38

When I sold my parent's house last year to a cash buyer, the estate agent insisted on proof of funds, which would prevent the scenario Punt refers to.

AnalyticalChick · 10/09/2018 11:43

@Washedwithrain True. It is only natural that a cash buyer needs to prove they have the cash. Indeed, it is the proof, rather the promise, that makes them a cash buyer. Any old person can call themselves a cash buyer, but until they show the colour of their money, they are just a fantasist with delusions about having a lot of money.

fairydustandpixies · 10/09/2018 12:17

I've just done exactly the same thing - sold my house, cash in the bank but am staying with family whilst my purchase goes through. The benefit is the speed of the transaction, my purchase is going to simultaneously exchange and complete next Monday and will have taken less than four weeks from having my (low) offer accepted. not soon enough, living with family has been, er, challenging...! Good luck OP!

HomeOfMyOwn · 10/09/2018 12:21

punt I'd have been just as angry with estate agent - it's their job to check cash is really available (even in chains or with mortgage, they should get proof of funds before formally accepting any offer).

Littleblueted · 10/09/2018 16:56

My husband and I were in the same position as you, rented accommodation, cash in the bank and no mortgage needed. No one treated us with delight as we thought they might. We are led to believe by the property programmes on the telly that being a cash buyer means they'll accept a cheeky offer, in reality, that's not the case at all.

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