Asking price over from a cash buyer - do I accept now or wait for second viewings from others tomorrow?

[Hoop148]

Selling in SE London in a very hot market! Property listed this week, today was the launch day and about 15 people came. One cash buyer came back right away (about an hour after viewing) with an asking price offer. Two asked for second viewings tomorrow.

Do we take the offer?! It was a “take it off the market now” type offer. Or should we do the second viewings tomorrow?

And, if we hang on, do we tell the viewers coming tomorrow we have an asking price offer already in advance?

(We also have a lot of bookings in for next week already - the bookings were taken before the offer.)

Definitely do the other viewings. If he wants it that badly he'll still take it in 24 hours after the other viewings! And the reason it was a 'take it now' type offer is because he knows someone else might want it. You're in a great position. It's worth the tidy up 😊
And yes, definitely find out what he means by cash buyer. My friend referred to herself as a cash buyer last week but I know for a fact she'd need a mortgage - I think she meant that she'd sell her place first and would have the cash from that in the bank... That's not a cash buyer at all! Good luck!

I've just accepted an offer from a cash buyer of £5k less than the other offer I would've accepted based on position. (My EA had already confirmed they have the money sat in the bank and has dealt with them regularly before.) For me, I want to complete by end of June and the smaller chain (and no need for mortgage etc) was a big bonus. My solicitor reckons chains will need to be complete within the next 2 weeks across the country on average to complete by end of June.

We bought a house 4 years ago after the ‘cash’ buyers couldn’t actually get the money together. Before this purchase was successful we had tried to buy 4 or 5 houses, all went to final & best offers. In most cases (can’t remember now) the higher bidder dropped out & we were contacted by the Estate Agents.

Have the EA seen proof of funds? That the buyers definitely have the cash available? If they have and the cash offer is acceptable to you. I would accept it.

Well I’ve just got off the phone with the EA. It appears that viewings were worth it! The two second viewers yesterday both offered, which means we have three offers on the table! Asking price, asking price plus 2% and asking price plus 5%. These are their “best and final” offers (I think!), and the first person who offered - the cash buyer - is now being told to go to “best and final” too. It’s like eBay!

The cash buyer is legitimately a cash buyer apparently, the other two have mortgages in place and no chains.

I don’t mind if it takes longer (the mortgages), is the only reason to go for the cash buyer the speed? Or is it also less likely to go wrong?

I actually just want this sale to happen, and not dwindle or drop out! So I’d take a good price for the person most likely to actually go through with the purchase and not mess us about!

I think I’m nervous because I hadn’t expected it to go over asking price and now I’m wondering if the price is over inflated because the market is crazy?!

We were in the same position (as per my post upthread!) Like you we definitely didn't expect to get multiple offers and also had a cash buyer in the mix. We were a little afraid that with a cash buyer they might be tempted to gazunder at a later stage or pull out (we were offered two houses last year where we were initially trumped by offers from cash buyers but one pulled out after 2 weeks and the other tried to hugely renegotiate on price). Not saying that would happen with yours mind, it's all an unknown risk really that you can't control for.

Re: downvaluing it could well happen as apparently it's very common at the moment due to the market being what it is and prices being inflated. In our case we got 2 valuations on both ours and the house we're buying. On our property the first came in £10k under and the other £5k under, so we negotiated to take the £5k hit. Then we had a surprise with the property we are buying, as one valuation came in bang on what we've offered and the second was £30k less!! Luckily our vendor agreed to negotiate down a little too so we've at least recouped the £5k hit we took on our house.

If it’s a genuine cash buyer with the money in the bank and the EA has seen proof of funds I’d personally go with them. Lenders are very cautious at the moment and there’s a reasonable chance that your higher offers could have to come down. If you want to complete before the end of the stamp duty holiday you have the best chance with a motivated cash buyer.

It's difficult, as there is also the 'motivation factor' - is the cash buyer someone actually looking for their home to live in, or are they an investor / developer ? as, whilst I agree with pp about mortgages and mortgage valuations, I also think a family keen to get into your house would be likely to be more motivated and less likely to walk away than a business investment.

The cash buyer is buying for his daughter - but one of the other bidders wants the house for the primary school catchment area and is only viewing in that catchment.

After what you say, I am a bit inclined to go for the family who want the school because that’s a very powerful motivator to want to actually complete and get it over the line!

For us, while more money would be amazing, really we want a motivated buyer and make the sale to happen without reductions here and there and back-and-forth. A nice and simple sale. Do they exist?!

Hmm, I think I'd be more inclined to go with the family too in that case. Our cash buyer was a dad buying the house for his son and the agent dropped some hints that the son was the one driving the offer more so than dad, so another thought for us was that dad might decide our house wasn't so great and end up convincing the son to pull out abd find somewhere else. It's such a privileged position to be in having multiple offers but also really tricky to decide! Good luck x

cash buyer as in property developer? or someone who wants to buy a house to live in?

proper cash buyer - go for it.
developer - proceed with caution, gazundering likely

Cash buyer, will they still want it and afford it if it goes over the June deadline for stamp duty? I would be more inclined to go for the family who want it for school catchment since how long the process takes doesn't matter to you.

Go with the family, 100%.

When we were trying to sell our previous house a few years ago, we had our cash buyer pull out on the week we were supposed to be exchanging. Our buyer's mum was buying the house for her, cash, but they'd had a fallout and Mummy then pulled the plug on the cash. Neither of them gave a fuck about the fact they'd messed us about and scuppered our onward purchase.

Based on your update, go for the family, especially if they need to be in for Reception entry in 2022. Base your finances for your next purchase on achieving asking price, then anything over if a bonus.

Yes I would go with the family as well. Their motivation is the strongest to proceed and not mess around.