Think chose wrong offer!

[violetfern]

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?

If there really is a danger than it would be downvalued and the FTB didn't have the ready cash for the difference then yes, I think you've made the right choice because the buyer you went for isn't dependent on a mortgage valuation matching their offer. Your buyer is mortgage-free, so the valuation isn't going to affect their finances.

I think this is what has happened to us! You feel pressured into offering more as a buyer but then estate agents tell you as a vendor to avoid these offers! Madness!

Don't forget though real cash buyers often have no qualms in reducing their offer at the last minute as they know they have power.

@violetfern we have moved in with family to be chain free but doesn't seem to be helping.

Although maybe it's a good thing. the market seems to be shifting.

That’s true. Maybe if he has to sell he’s less likely too.

Argh it’s so stressful.

I wish it could all be more transparent.

good luck with the search

You too, I'm already over it.

The buyer isn't dependent on a mortgage is I think what the EA must have meant. So if he is overpaying that's his business and there's no bank to prevent him from proceeding. The downside of him compared to a FTB is an extra link in the chain. So it's not 100% clear cut which offers were better / worse to accept - don't beat yourself up about it. You might be losing out on bidding wars to people in rented accommodation with no chain at all and cash in the bank, where you just can't compete. I think confusion abounds when people say they "sold" their house when they just accepted an offer on their house, even though EAs reinforce this language by saying "SSTC". Imo a house isn't really sold til the money arrives!

I was in the position of your buyer. I had sstc to a cash buyer, I didn't need a mortgage but cash from my sale. I saw a property and offered asking price. I was about ten days away from exchanging on my sale. Seller went with another buyer who offered £25k less, and who would also be able to get the full £15k stamp duty relief.
But it does make me sad. For want of a few days I missed out on a good property in my preferred location, and in the end, due to another purchase where the seller pulled out, I missed the stamp duty deadline, spent about £5k in Airbnb costs as I went through with my sale, and bought somewhere on the far end of the street which needed more work.
So the seller lost out on £25k, and I lost out on at least that and probably a lot more (certainly in stress and having to move my family three times) simply due to my very short chain.
I'd keep with the buyer you have. For the want of £7k? There's such a thing as honoring your agreement, even if you are not legally obliged to. There's no certainty going with a first time buyer either.

Oh so sorry this happened to you, it sounds so stressful. I just said to my mum I’d hate it if someone pulled out of the sale on us if we were in our buyer’s position so will just keep looking and offering and hoping!

Sounds like your EA misinformed you by saying they are cash buyers. They are definitely not cash buyer if they are waiting for a sale of a house to go through first. On those grounds if you are unhappy then you could pull out of the sale. I’m not sure what area you are in but it’s a very competitive market out there. We were in similar situation losing out on several properties to people who were either chain free or cash buyers so we made the decision to sell and move into rental.

@violetfern That seems strange to view a buyer who is sale dependent as a cash buyer.
I have just made an offer and am under offer to buyers living with relatives ,they have their mortgage offer in place and finances confirmed .I dont need a mortgage.......told I am not a front rummer as not a cash buyer.

Oh that’s interesting! I would have thought you’d be a definite front runner!

@violetfern Apparently not, the property I want to buy is in a very hot market (cornwall) and there seems to be a lot of actual cash buyers (as I cash in the bank ,no chain. )
I have lost out on 3 properties due to this .