Our offer was higher but other buyer's deposit was bigger

[MoistExplosion]

That's the reason we lost out on our dream house, according to the EA. We're FTB so assume we're being very naive and missing something here, but it seems strange. Any thoughts, or tips on how we can make ourselves more appealing as buyers? Really disheartened by this process and feel as though we'll never get to own a house we actually want to live in.

When we sold 10 years ago we accepted a lower offer from a cash buyer even though the other party had their mortgage all in place and were already sold and staying with family. We decided to do this as the first person had viewed the house immediately it came on the market, had been waiting for a house to come up for sale on our street and was desperate for an edwardian house. We also felt she had more money available if the survey came up with things needing doing on an older house and would be less likely to ask for the price to be dropped, or even pull out during the process. This buyer had also been more enthusiastic about our house and the young couple had been very tight lipped and not shown any enthusiasm at all.

Having sold and bought many, many times, and lost what I thought was my dream house a couple of times, I can promise you that the next house will be better

Questions are also asked to ascertain if the deposit is not subject to repayments. Eg a loan from parents. The other buyers might not have needed a loan at all. The buyers might know them. There are all sorts of reasons why you might be second best. However you won’t be all the time! Most sellers like first time buyers so you are in a good position.

When we purchased a few years ago, the bank valuation came back at nearly 80k less. As we had a high deposit, it meant we could still consider buying property without relying on the mortgage offered.

I would avoid selling to a FTB if at all possible as the ones I have sold to previously have all faffed about and been really picky about stuff. totally understandable as it is the first time they have been through a very complicated, stressful and expensive process but I can understand why others might choose not to sell to first time buyers.

@A1b2c3d4e5f6g7

I think its also to do with worries about down valuations by the mortgage company surveyor. For someone with a bigger deposit it wouldn't matter, as they could just go into a different LTV bracket. For someone with a smaller deposit it means they have to find the extra cash or they don't get their mortgage. With the high levels of down valuations currently, I'd imagine a higher deposit gives more comfort.

It is a bit rubbish though so sympathies. We found an amazing property and got trumped by a cash buyer :(

This is definitely a factor. We went with FTBs over a cash buyer who offered the same amount, then when our house was later down valued by their lender (as so many are currently) we had no choice but to renegotiate or lose the sale as our buyers literally didn't have any spare money beyond the deposit to make up the difference. We know the cash buyer would have presented different risks ie gazundering but I can see now why people may be warier of FTBs with lower % deposits. Sorry though OP, it isn't fun when a seller goes with someone else. We lost out on several houses last year that we were really keen on, but it all worked out in the end. It's a bit like wedding dresses, I don't personally think there's literally one perfect house for someone. Others will excite you just as much but maybe in different ways 😊

I guess we'll just have to keep looking and keep growing our deposit as much as we can at the same time. It's a shame that people would be put off by us being FTB as we thought that would be in our favour, but understandable if people have had unfortunate experiences in the past. I guess it's on us to be forthcoming with assurances that we're committed, realistic and ready to go next time.

I think £30,000 out of £200,000 is very good. It is 15%.

I think some people are being unnecessarily unkind about FTB's. I would sell to you! Indeed I have to people like you! No issues at all. I did not find them picky - but then the house was perfect and well priced! You are in a decent position - just not this time with this seller. Someone else will want your money. All buyers get surveys done. FTB's can be a bit twitchy about that but so can more experienced buyers. Good luck for finding your perfect house.

That's kind, thank you.