Which offer?

[nameychange]

We have three offers:

1. £370k - already in a chain SSTC
2. £366,500 - FTB with a £60k deposit and AIP for a 10% mortgage
3. £361k - cash buyer (funds confirmed by EA)

Which would you take? House was on market for offers in the range £325-£345k

In our current, lengthy process of moving we have lost out to several ‘cash’ buyers. For various reasons, several of these properties appeared back on the market without the sales going through. Also the term cash buyer can sometimes be used to refer to those that have already sold a property, but will still need a mortgage to move on (that to also happened to us).

I’d go with FTB.

[quote surreygirl1987]@starseeking why would cash buyer not have a survey done? Thanks.[/quote]

As cash buyers don't need a survey for mortgage purposes, they may consider it to be an extra expense they don't want to fork out for, if they judge it to be low risk.

My purchaser who I sold an Edwardian property to earlier this year, did not have one. Whole sale transaction from viewing to completion was done and dusted in 8 weeks, just in time for the stamp duty deadline.

I have sold before to a chain, a cash buyer (that is someone without a mortgage, someone with a mortgage but no property is chain free nor a cash buyer and EA hasn't done proper checks if they tell you otherwise) and to a FTB. FTB dropped out after 2 months for very dubious reasons, basically got spooked by something normal. Cash buyer then came in proceeded but took 5 months as btl and they were in no rush. I have been a cash buyer twice and proceeded in 2 months both times, once with a full survey, once with no survey, both to live in.

Our fastest sale was to a chain of 1, already 5 weeks in, with everyone buying to live in, and that went through in 3 months even with issues for a month at the level below. There's a fair few falling through in old area but suspect it's ones being down valued by surveyors as its the ones selling for over what you would expect by 50 to 100k.

Nor is not

Old time- we went to best and final so can’t go back to the cash buyer

I'm pretty sure you can.

DD offered on a house in March, it went to best and final. Apparently her best and final wasn't quite enough but the seller wanted her to have it (Both HCP, same NHS trust, FTB, good deposit etc) The EA called DD and explained the above and asked whether she would match the highest offer. Which was only 1250.00 more than she offered anyway, she agreed and completes in 2 weeks.

A cash buyer can have a survey come back with a down value and ignore it, as no mortgage company involved.
Mortgage company will only lend to surveyors value

I'd go with whoever is least likely to mess you about / most desperate to complete quickly. I think in the current market it's most likely to be FTBs.

Cash buyer sounds great in many ways but if their move is 'optional' they may change their mind about moving and/or start negotiating the price down at some point.

2 or 3

I avoid chains like the plague, both ways. Just takes one person to mess it up for all

@starseeking oh I see! Thanks for explaining. I can't imagine ever buying a property without a survey but I guess some people might!

3
Currently selling to a FTB.......the stress!

Unfortunately ther is no way of knowing who is 'flakey' or would mess you about! The horrid system let's anyone to mess you about as much as they want, months down the line!
My cash buyer then switched to a mortgage, them switched to a better deal - it's been a nightmare. Some people haev flaket FTBs.

Until the system changes it's purely a matter of luck. If you are selling a modern house then FTB may be best as no survey issues likely - otherwise they are bound to panic after survey (could be for a good reason if they have no funds to cover the present and future issues pointed out by survey).
Also in the mad fast market, people often offer without loving the house just to get in, then they may see another one they like more and pull out - FTB more likely to do that due to lack of expeience and not knowing ther minds.

*lets not let's

We’ve gone with the FTB and now I’m avoiding the threads on here with all the horror stories of FTBs and crazy post survey requests. They have a very healthy deposit so even if the house isn’t valued at what they’ve offered then it should be ok.

@catandhiskit that's exactly what happened to us last week!! FTB panicked about survey (they seemed shocked thst anything at all was raised!) and requested thet we knock of a few k. We had already lost a buyer due to chain collapsing (hence going for FTB this time round) and couldn't bear the thought of having to remarket yet again, so just said yes. I'd still go with FTB though as even though they freaked out about the survey, at least they were proceedable and the house is going to be sold, unlike our previous buyers.

2

@StrongArm

Our cash buyer changed his mind and moved to a mortgage and slowed our entire chain down terribly. His solicitor let slip by accident that he had never intended to be a cash buyer - he told us that to persuade us to take his offer as we wanted to move quickly.

He did show the EA proof of funds - just that he never intended to use them to buy a house!

We were told by our HA that our buyers were 'as good as cash buyers' as their house had sold to some organisation or other, forget the name, so we picked them over a FTB couple. I wish we'd questioned more closely- it turned out they were nothing of the sort- they had buyers for their house who were FTBs and did all the worst sort of FTB playground cr*p, delaying the sale for about 2 months because it suited them. It was fortunate we had no upward chain, but our own (wonderful) conveyancer had to do a Rottweiler impression to get it done at all. Our buyers had been talked by their HA into using the same solicitors as their buyers, and those solicitors basically only did anything if our buyer's buyer's wanted them to. Porkies were involved, too, which made me furious.