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Original poster

Think chose wrong offer!

39 replies

violetfern · 30/04/2022 13:51

We have recently out our house on the market and quickly had 8 offers which went to best and final. 4 offers came with all documentation and proof of funds etc and the other 4 didn’t so the estate agent advised us to discount these. We were advised that the best offer was a cash buyer who offered 3k over guide price, who had sold his house to someone who was renting. Rest were FTB with 10% deposit but who had offers higher than this, average 10k over asking. Went with advice of estate agent as she was concerned re mortgage down valuation.

On they buying front we have lost out twice already in beat and final, and again lost out today despite being highest offer due to being in a chain.

I’m kicking myself, why didn’t we go for a FTB and risk the down valuation! It wasn’t for much more over guide price so I think the risk was minimal but felt we weren’t very experienced so had to go with what estate agent said.

Did we do the wrong thing?? Only a accepted offer last week and I don’t know if we could or should change our minds?

OP posts:
DinosaurOfFire · 30/04/2022 13:57

Surely the chain is that you are selling anything and your onward purchase is reliant on your current house sale going through? So whether it was a ftb or someone else, you would still be reliant on your chain going through.

KateMcCallister · 30/04/2022 14:01

But a cash buyer is better than a ftb in a lot of respects (no need for lender approval, as pointed out by your EA) and is as "chain free" as a ftb if he has actually sold.

For you to be chain free you'd have to sell your own place, go into rented and then be a "cash buyer".

Clymene · 30/04/2022 14:03

I'm really confused. The cash buyer is definitely proceedable whereas the FTBs may not be. Your estate agent's advice was sound - that is the least risky offer to accept.

None of them have property to sell. The only chain is that you have property to sell. What you need to do is get your sale moving so that you're ready to go.

Thunderpunt · 30/04/2022 14:08

You may also find the cash buyer is a builder/developer and IME they often aren't worried about homebuyers reports/surveys/searches so are likely to move quicker, and less likely to get cold feet. (Our first lot of buyers pulled out for a really ridiculous reason (in our opinion obvs flagged on the homebuyers report)

Original poster
violetfern · 30/04/2022 14:15

Thanks all. I think it just hit
me when we got rejected today as it came across as our chain was too long despite being highest, as though if it was shorter we’d have got it!

Getting frustrated as we keep losing out, but aware lots in same boat!

Feel reassured that we made right decision then, thank you!

OP posts:
Original poster
violetfern · 30/04/2022 14:17

Our buyer is cash but cash dependent on his sale going through. He’s SSTC

OP posts:
JeffThePilot · 30/04/2022 14:17

So not a cash buyer then, as such…

Clymene · 30/04/2022 14:18

He's not a cash buyer then!

That puts a totally different spin on things

fourofwands · 30/04/2022 14:18

You'd be in a chain regardless of who you're selling to though?

Re it being downvalued...we are buying at 10K over asking and were worried about this. Our mortgage broker told us it was very unlikely at that amount and she was right, bank were fine. The reason estate agents push cash buyers is because the sale should be quicker, they get their commission and the house off the books. Not because they're worried about down valuations, in which case you could negotiate with the buyer, it's not an automatic lost sale.

As FTBs we lost out time and time again to cash buyers, it still actually feels like a shock we had our offer accepted.

girlmom21 · 30/04/2022 14:18

That was really bad advice from your EA if he's not actually sold.

fourofwands · 30/04/2022 14:20

Just seen your update...so your "cash buyer" is selling, you're in a longer chain than you would have been with a FTB!

Babyvenusplant · 30/04/2022 14:24

If the 'cash buyer' hasn't sold yet then you've lost the potential of getting more money for your house for absolutely zero benefit

PointyMcguire · 30/04/2022 14:26

Your EA was wrong to tell you the offer was from a cash buyer if the purchase is dependent on their sale going through. A cash buyer is someone that's got the money in the bank and is not reliant on selling in order to buy. The FTB would have given you a shorter chain.

Original poster
violetfern · 30/04/2022 14:27

Ahhh right, these are all my thoughts too! I feel so stupid, and that we’ve made things harder for ourselves and lost out on a higher price too

OP posts:
WoolyMammoth55 · 30/04/2022 14:29

Yes OP, I'm sorry but when we were cash buyers we were chain-free with the cash sitting in our bank account.

THAT'S what's attractive to vendors and what's worth taking a lower offer for - not SSTC.

Your EA has given you bad advice here.

Original poster
violetfern · 30/04/2022 14:29

Congratulations on having your offer accepted! You do start to feel that you can’t compete with the cash buyer don’t you, which then made me feel worse when we were advised to choose one!

OP posts:
Original poster
violetfern · 30/04/2022 14:32

WoolyMammoth55 · 30/04/2022 14:29

Yes OP, I'm sorry but when we were cash buyers we were chain-free with the cash sitting in our bank account.

THAT'S what's attractive to vendors and what's worth taking a lower offer for - not SSTC.

Your EA has given you bad advice here.

Argh! Do you think we could go back to the EA? I would hate to do that to our buyer but I think we’ve not been advised properly as above!

OP posts:
girlmom21 · 30/04/2022 14:34

It also concerns me that your EA is knowingly overpricing the property in the hopes of a cash buyer, if they are worried about mortgage companies down-pricing the value.

sarahc336 · 30/04/2022 14:34

You could always pull the sale and then re sell to an actual cash buyer or a first time buyer to keep the chain as short as possible, so many people call themselves cash buyers that aren't it's so bloody annoying!! Good luck op xx

SylvacSaver · 30/04/2022 15:04

violetfern · 30/04/2022 14:17

Our buyer is cash but cash dependent on his sale going through. He’s SSTC

Then he is not a cash buyer and your agent lied to you

Cash buyer=nothing to sell, access to funds within 28 days (release investment etc)

Clymene · 30/04/2022 15:18

I mean you're a cash buyer if those are the conditions if you've SSTC aren't you?

Have you signed anything or is it just a verbal agreement? I'd call back on Tuesday and ask to speak to the head of the agency. You've been misled and either your EA has a reason for suggesting that person (some kind of connection) or they're incompetent. Your buyer is not a cash buyer and your EA should never have described them as such.

Ask them what they're going to do about it.

Thunderpunt · 30/04/2022 15:51

Ahh ok so not truly a cash buyer...... that's slightly different

Westair · 30/04/2022 17:25

violetfern · 30/04/2022 14:17

Our buyer is cash but cash dependent on his sale going through. He’s SSTC

Oh crikey - he's not a cash buyer! He's in a worse situation than the FTBers!

tadil · 30/04/2022 17:30

cash buying has changed for some reason. It hardly ever means that person has the house value in cash in their bank accounts. Not sure why it changed.

tadil · 30/04/2022 17:33

It also concerns me that your EA is knowingly overpricing the property in the hopes of a cash buyer, if they are worried about mortgage companies down-pricing the value.

Yes we lost out on a house last month, the EA said no point offering a crazy amount as it will get downvalued, apparently happening alot. We offered a realistic amount (still 30k over) but it went higher. Now I think we should have offered more & tried to renegotiate when down valued.