Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Flip

1 2

Original poster

Any chance against a cash buyer?

30 replies

MrsJ28903 · 17/11/2019 15:01

We like a house but before we went to view the agent told us there had been an offer after our viewing was booked. At the viewing the seller mentioned it was an asking price cash offer. We can go above the asking price (to a limit!) but is there much point competing with a cash buyer? What % extra would make you take a buyer who needs a mortgage over a cash buyer?

OP posts:

TiceCream · 17/11/2019 15:06

It depends if you’re in a chain or not? If you’re a FTB and not relying on your house selling before you can proceed, then your mortgage is just as good as a cash buyer. If you’re in a chain then it would have to be a significant additional sum to beat a guaranteed cash offer that won’t fall through, maybe 10% extra.

BernadetteRostankowskiWolowitz · 17/11/2019 15:07

Are you a first time buyer? Have you got your deposit ready and an Agreement in Principle ready?

Original poster

MrsJ28903 · 17/11/2019 16:35

Not FTBs. We have ours under offer to FTBs. DIP is all sorted and this property is well within our affordable limit so getting a mortgage shouldn’t be an issue at all.

OP posts:

ShellieEllie · 17/11/2019 16:42

At the viewing the seller mentioned it was an asking price cash offer.

Maybe they said that in the hope you would offer more. Are you certain they have a cash offer at asking price?

TempestHayes · 17/11/2019 17:28

Watch out for fibs. And I mean by fibs I mean they openly lie their arses off. Telling you "there's a cash buyer literally waving the asking price in our faces as we speak" would strike me as a clear, in fact TOO obvious, ploy to get me to offer more and offer it fast.

Offer asking price, or minimally over, but keep this 'cash buyer' out of your mind. They probably don't exist.

The house we're buying, they've been trying to sell it for a couple of years. It needs work and was extremely over-priced so there was no interest at all. We were still sold a cock and bull story about a 'rich buyer' who was 'very keen' but hadn't yet made an offer, but had another viewing planned. Funnily enough, he's not been heard of since. Because he didn't exist.

Original poster

MrsJ28903 · 17/11/2019 17:46

I really think that this cash buyer does exist. The area is a very fast moving one and cash buyers are quite common. There’s a lot of demand and not a lot on the market.

OP posts:

Puffthemagicdragongoestobed · 17/11/2019 17:53

We are currently selling our house and had four offers. One of which from someone the agent called a ‘cash buyer’. After some probing it turned out that this was someone who was short before exchange on their property ‘only a couple more enquiries to solve’. Eh?? That’s not a cash buyer! So it all depends on how the agent defines a cash buyer!

CatUnderTheStairs · 17/11/2019 17:55

I’d offer asking price, emphasise you chain is short and yourself in a positiion to move.

My friend was in a chain and was chosen over a cash buyer and he’s just done the same when selling his dads house.

lunasunshine · 17/11/2019 17:59

We were cash buyers for our first property and someone else offered more money than us .. the sellers went with the other people! So it definitely does happen. They went about 30k over the asking price though and we could only afford asking. Good luck!

AuntieDolly · 17/11/2019 18:22

My friend wanted a house, but the vendor accepted a 'cash buyer' instead. 8 weeks later she knocked on the door and asked about the sale. The cash buyer had done nothing so they agreed there and then to sell it to her.

Original poster

MrsJ28903 · 17/11/2019 19:52

The woman selling seemed genuine and apparently the cash buyer has been into the agent with proof of funds.

Surely I’ll have to offer over asking to even get anywhere with this?

OP posts:

CatEyeliner · 17/11/2019 20:11

I’d chance it and go to what you can. There’s always a possibility there’s no truth in this.

CatAndHisKit · 19/11/2019 00:04

Yes, I@d believe that buyer exists, really not many agents are such blatant liers and if it's a hot market of course it rings true. Go a little above the asking and emphathise your positive points, especially htr speed you can buy with..

Slightlysurviving · 20/11/2019 07:34

The most important thing here is what do you want to pay for the house. We were in an identical situation to you. We ended up offering higher ( got the house) but importantly to me I don't care if the cash buyer was fiction or not as I am happy with the price I paid. Good luck OP

MarieG10 · 20/11/2019 08:28

I think the cash buyer will exist. The estate agent would be stupid to say this as if they didn't exist it could lose other offers.

Depends on the property price but but I wouldn't go over 3-5% tops

Original poster

MrsJ28903 · 20/11/2019 10:40

I didn’t even get the chance to offer. The agent phoned and told me the seller was accepting the cash offer. I asked if they would like to hear my offer and was told no. So there we go!

OP posts:

CatUnderTheStairs · 20/11/2019 11:22

It would be worth it, if you love the house, to state that you are still interested and that you want your offer put to the buyer in case anything falls through with the cash buyer. Put it in an email.

foxatthewindow · 20/11/2019 11:27

I'd be skeptical - we had a cash buyer right up until the moment of exchange where they decided that they weren't any more and needed to tie in a sale. The agent maintained that they had seen a bank account with the funds in at the time of the offer, but the buyer started making noises about not being able to get the funds easily. In the end, I had to insist that the buyers sent a deposit and prepared for exchange or the house was going back on the market. We did actually manage it in the end, so the cash did exist, but I've no idea what the issue is. I'm just pretty certain it wasn't just cash sat in the bank somewhere waiting. So from that experience, I'm not really sure that I would choose a cash buyer over another motivated buyer in the future. Can't speak for these owners though...

MarieG10 · 20/11/2019 11:39

The estate agent HAS to pass on any offer you make. They cannot refuse to do so

CatUnderTheStairs · 20/11/2019 11:48

news.bbc.co.uk/1/hi/business/2946170.stm

Original poster

MrsJ28903 · 20/11/2019 11:56

I know that they legally have to pass an offer on but they have been pressuring the seller to accept the cash offer since this person viewed it before it has even gone on the market. The seller told me he was a bit concerned the agent has undervalued it. I even told the agent I would be able to offer more than asking and they were very insistent about putting me off. I don’t even know if they would pass it on. Maybe I need to put a letter through his door!

OP posts:

CatUnderTheStairs · 20/11/2019 13:28

Why not?

Slightlysurviving · 20/11/2019 14:19

I agree why not do a letter, you have nothing to lose.

Rolypolybabies · 20/11/2019 16:24

Sounds like the estate agent knew the cash buyer or something dodgy

Original poster

MrsJ28903 · 20/11/2019 17:06

I do think the house was undervalued.

OP posts:

Flip

1 2