Accepting an offer... What would you do?

[mummabubs]

Hi all, I'm turning to the mumsnet hive for your wisdom and insights please!

We put our house on the market last summer, was on for 10 weeks with 7 viewings and no offers so came off market again as we lost out on the house we were interested in.

We put our house on the market again last week and held viewings this morning- 8 in total. We're listed at £270,000 and have had two offers come in since then. One for £255,000 from a FTB (too low for us) and then another offer came in from a cash buyer at full asking price. Our agent advised waiting until tomorrow just to see if anyone else offers, and we do see the logic in this... But!... At the same time this person has offered us everything we've asked for and is a cash buyer so we don't really see how anyone will be able to better it. We're honestly happy to accept asking price and don't really like bidding wars. The only thing that's remotely awkward is that they want to complete asap (they've given a target date of 30th April), and I'm due to give birth 2 weeks later to our second child. But equally if it meant not losing the sale we'd be prepared to move into rented accommodation with our toddler and dog. The FTB was happy to be flexible to our time line but can't see them matching the offer at full asking price.

So in our position/ your experience is there any utility in waiting until tomorrow when we know none of the other viewers were cash buyers or is accepting an offer today a sensible thing to do? Just never thought we'd be in this position after last year! Thanks in advance

I think moving into rented might be harder than you think. It's also quite expensive.

I think you'll find that 30th April is too fast for most solicitors anyway, so rather a moot point.

Wait as advised by the EA. I'd be wary about the cash buyer - lots of stories of them dropping their offers, etc. Can the FTB up their offer? Lots to think about but I think the 30 April deadline may be impossible to meet given how busy conveyancers are at the moment and how long searches are taking to come back in some areas. If you don't wait you may look desperate.

I would contact your chosen solicitor and ask whether 9/10 weeks to completion is realistic at the moment.

From offer to completion, our last house sale took 7 weeks - we also had cash buyers who were keen to get things moving. But that was a couple of years ago and it seems like the current situation is having an impact on the speed of conveyancing. Honestly though if you have a cash buyer offering full asking price I think you’d be mad to turn them down!

I’d also be wary of the FTBs being willing to accommodate your own timescales - in my experience loads of people say this, but don’t really mean it and may pull out if they have to wait too long and/or if they find a more suitable house.

Agree with your estate agent. In any case 30th April might be too fast to complete just now.

What will you do if your baby decides to come early? 38 week births are pretty common! The upheaval of moving twice, once to rental) with a newborn and endless sleepless nights?

I'd wait to see what EA advises. Neighbours sold their house to a cash buyer and everything should have been signed & completed by Christmas. It went back on the market January.

Have the finances of the cash buyer been verified?

I only ask as a good friend accepted an offer from an alleged “cash buyer” (the agent bigged up the advantages of selling to a cash buyer) only to have the sale slowed down by the buyer eventually admitting they were waiting for their mortgage offer . Friend had accepted a slightly lower offer too just to have the convenience of a cash buyer.

Genuine cash buyer yes - go for it. But can you see evidence first?

I suggest you give it until Tuesday to decide at least, one of the other viewers might also offer with no drawbacks.

As far as speed, dp's ex completed in 5 weeks late last year

30th of April might just be doable but it doesn’t seem that realistic. We bought as cash buyers this summer and the sellers went into rented but it still took 12 weeks from start to finish. Slow points were waiting on the searches and availability of a surveyor as we wanted a full structural survey. Also, if the first time buyers can up their offer slightly then the gap between them and the cash buyer might not be as large as you think once you account for rent and potentially also storage fees. And you’d have the added bonus of not having to go at breakneck speed to meet a deadline that isn’t practical for you. I’d wait until tomorrow - see if anyone else offers, or if the first time buyers up theirs, and do some research into rent/storage costs. Also you mention a dog which might prove tricky when looking for a rental as a lot are no pets so make sure you have a plan there if you opt to accept the cash buyer’s offer. Good luck!

The finances need double checking.

Then I'd say yes.

They need to show evidence of good faith by having a survey done asap (so committing some money to the purchase).

If they say they aren't going to have a survey I would wonder why and be suspicious.

I think what most others have said it right your preferred timeline probably isn’t achievable, also going into rented isn’t easy especially to get a short term rental unless you do Air B&B, do you really want to move several times either pregnant or with a new baby?
I would also wait to see if anyone else is interested before accepting offer, I think most people would expect a day or so before getting an answer (don’t think it’s alway like on Kirsty & Phil who get a phone call and say yes it’s yours 😂).
I would also make sure your estate agents have properly checked buyers circumstances, we also had cash Byers who ended up having to sell another property! Very annoying.
Real cash buyer do exist though, especially now, quite a lot of people have sold in the current crazy buoyant market and are waiting for the right property hoping being a cash buyer will help then to get first in the queue. I’m one of them 😊

Just be aware that a cash buyer is sitting pretty wrt calling the shots on the sale. The CB who was buying from my buyers demanded a very substantial decrease in the sale price just before exchange, when everyone had spent money on surveys etc. and they were willing to let the chain collapse if they didn't get it.

Thanks for all the replies so far, you've been really helpful. I clocked a current thread asking about average completion times with cash buyers at the moment and seems like 2 months (or thereabouts) might not be a million miles off. Moving into rented is definitely not our preferred option (I'd done it for 8 years before we bought here in 5 different parts of the uk so remember the hassles all too well and that was before having a child). However we have no family within a 200 mile radius to stay with and given the market right now it feels like it would be better to see the sale through and then also be in a much stronger position to offer on houses ourselves. The market in the areas we're looking to move to is very quiet right now and with a crash being predicted we're cautious of being back in the position we were last year of being unable to sell again.
Our agent does checks at the point of an offer being made, this person has sold their property already (via the same agent) so they are definitely a cash buyer.
Our agent has contacted the other two viewers that she got a sense might offer to say that we've received offers that we're seriously considering so are asking for anyone who intends to offer to make that position clear.

Are the cash buyers buying it to live in or rent out?

If it's to rent, could you ask if you ask to complete with them and then rent it from them whilst finding your next house?

I concur - make sure this is really a cash buyer!! If so then they don't have to have a survey, although they would be daft not to do so.

finding a rental that will accept a dog will be difficult - ill thought out campaigning has made sure of that. You need to get a shift on with your own house hunting and possibly bridge a gap with an airbnb. Tricky times for all this.

To be fair, you did put it on the market knowing you were expecting a baby? Did you not expect to sell it? I think I would do as others have said. Get the cash verified and move into rented. I would take the very decent offer. Unless the FTBs can match it? Their limit might be exceeded though. I don’t blame anyone wanting a quick purchase but you must have thought this could happen?

@PresentingPercy

To be fair, you did put it on the market knowing you were expecting a baby? Did you not expect to sell it? I think I would do as others have said. Get the cash verified and move into rented. I would take the very decent offer. Unless the FTBs can match it? Their limit might be exceeded though. I don’t blame anyone wanting a quick purchase but you must have thought this could happen?

Honestly, given just a few months ago we were on the market for 10 weeks with limited interest and no offers... No! We hoped we'd sell obviously by didn't expect to get the offers we have today. In a shock turn the ftb has messaged to say they're willing to increase their low offer to asking price to match the other person.

We went back on the market as a property came up in the place we're hoping to move to, we viewed, loved it and offered above asking but weren't successful (understandably) as we weren't proceedable.

Our current house is too small for us as it is, never mind with another baby (hence why we were already house hunting and on the market just before I found out I was pregnant). Think we'll ask our agents for advice, I'm wary of the ftb saying they'll be flexible and then pulling out but then the same thing could happen with the cash buyer. Ours is a new build so they may choose not to have a survey done.

Our cash buyer was a time waster.

He told us to drop the price once we accepted the offer and was finding all sorts of 'faults'.

He was stringing us along months and months. Then he couldn't get a mortgage 🤔

We put the house back on the market and sold for considerably more after 40 viewings over two days and a fierce bidding war.

My daughter is due to complete her move in three wks and worried the FTB will drop out.

@NachoNachoMan

Are the cash buyers buying it to live in or rent out?

If it's to rent, could you ask if you ask to complete with them and then rent it from them whilst finding your next house?

It's a dad buying a house for their son. He would also be moving in with the son initially.

@fairyannie

Our cash buyer was a time waster.

He told us to drop the price once we accepted the offer and was finding all sorts of 'faults'.

He was stringing us along months and months. Then he couldn't get a mortgage 🤔

We put the house back on the market and sold for considerably more after 40 viewings over two days and a fierce bidding war.

My daughter is due to complete her move in three wks and worried the FTB will drop out.

I don't know why but that's sort of our hesitancy too, that the offer looks amazing on paper but they may try and reduce it and are also very clear on wanting a quick completion. Whereas the first time buyers have emphasised that they can move quickly but have also said they're happy to be flexible to suit our timeline.

If it's a genuine cash buyer, I'd bite their arm off if I were you. You don't want to get stuck in your current property, or have to sell for less when the market turns down.

The FTB increasing their offer could mean they're at the top of their limit, and may not be able to get a mortgage. A cash buyer won't have those issues. I'd accept the cash buyer, and be prepared to go into rented. If the sale hasn't completed in 2 months (for whatever reason), it seems unlikely the cash buyer would withdraw.

I would see if the first time buyer is willing to negotiate up and then you can decide. Cash buyers are often seen as preferable but don't forget, someone arranging a mortgage will have paid money out to arrange it early on in the process, they therefore make more commitment to buying your home and are less likely to withdraw.

From your last update it sounds as though the cash buyers are in a chain, and if they have sold to someone with a mortgage then there won't be a quickest transaction time.

I don't think there's a right or wrong - just consider all the angles!

Transaction times are circa 20 weeks in the U.K. right now so make sure you do discuss things with your solicitor! My experience is that all the focus is going on those people trying to beat the SD deadline so newer transactions aren't progressing quite as quick. The whole industry is blocked up right now.

Exciting times for you though and congrats on getting your offers!!

A cash buyer doesn’t need a mortgage! That’s why the agent should check on the status of funds. Often agents have sold the buyer’s house so they know they have the money. They could be someone investing an inheritance or a pension payout. Not all cash buyers are devoid of cash!

All sales can fall through. I would rather these two offers than a chain though.

I would expect all buyers to have a survey. The FTBs will presumably need a mortgage so a survey will be required. Don’t forget they might not get the mortgage they want. This can be problematic at the moment - so do they have a mortgage agreed in principle? Or is this a flight of fantasy? I would be asking the agent all these questions before deciding. You are in a good position and I would grab somebody’s money!!

@Allthehotchocolate

I would see if the first time buyer is willing to negotiate up and then you can decide. Cash buyers are often seen as preferable but don't forget, someone arranging a mortgage will have paid money out to arrange it early on in the process, they therefore make more commitment to buying your home and are less likely to withdraw.

From your last update it sounds as though the cash buyers are in a chain, and if they have sold to someone with a mortgage then there won't be a quickest transaction time.

I don't think there's a right or wrong - just consider all the angles!

Transaction times are circa 20 weeks in the U.K. right now so make sure you do discuss things with your solicitor! My experience is that all the focus is going on those people trying to beat the SD deadline so newer transactions aren't progressing quite as quick. The whole industry is blocked up right now.

Exciting times for you though and congrats on getting your offers!!

Thank you, your message makes a lot of sense. We're under the impression from our agent that their sale has completed so they are not in a chain. I think there's definitely a part of me that is tempted to go with the cash buyer and just hope that the process gets drawn out long enough for us to at least find somewhere else to buy so we'd know if we did end up needing a stop gap then it would be short term. Just still can't believe how different this experience has been compared to late last year, although I get that the market has shrunk a lot since then so properties are more in demand.

Buyers are not cash buyers in a chain! Cash buyers have the money in the bank. All “cash” means in this case is no mortgage but they don’t have the cash! FTB for me if they have the mortgage. They could, of course, pull out if you don’t move out!

@starseeking that's pretty much where our minds are going. Even though truth be told we prefer the idea of selling to first time buyers (as we were when we bought here) and they've messaged to say how keen they are on our house. Cash buyer didn't submit any message with their offer at all so it all feels less personal from their side (which I guess is what's made us question how serious they were being about their offer or whether they assumed we'd automatically accept given their position).