Which offer to accept?

[TheWayTheLightFalls]

We're selling our lovely flat. We've had two offers in. WWYD and why? The wording below is the EA's.

"Offer 1: Bob – Bob's flat is under offer to a first time buyer, the agent has informed me it is progressing well, the mortgage valuation has been booked, draft contracts have been sent and they have a large deposit. Bob has offered £667,000. [Bob is a 40ish divorcee looking for a home for himself and his daughter.]

Offer 2: Mary – First time buyer so chain free, has been financially qualified by the mortgage advisor we work alongside, £35,000 deposit and has offered £665,000." [Single woman working at an investment bank.]

I have my own views, but interested in others'.

Chain free is good but a 5% deposit is ringing alarm bells for me.

Well, I think I’d go with bob. I may be wrong, but as he’s likely to have been through the process before, he may be less of a pain in the ass that some first time buyers can be. His sale has also progressed some way to give me comfort that his first time buyer is already through the pita system. Plus you get 2k more

Offer 1
2 sounds risky from a mortgage point of view.

tough one as Bobs sale may fall through.

Bob, higher offer and he is in a good position selling to ftb.

Having previously sold to FTBs that turned out to be absolute nightmares I'd opt for option 1 every time!

Bob. Any mortgage down valuation and offer 2 falls through.

2 seems to have a low deposit if she’s earning enough to get a mortgage for 600k
1 sounds more secure

I'm team Bob

I'd avoid a direct sale to a FTB. Bob sounds better although still risky as he is selling to a ftb.

I'm backing Bob too! Good luck 🤞

Have both of them got a AIP?

I would go for the shorter chain. Mary.

5% deposit on a property value that high? Could be the riskier option: less mortgage choices available and as PP have said, could be affected by valuation etc.

I'd go with bob. I worked at a solicitors and FTB were generally the ones suddenly demanding a reduction at the last minute for perfectly average surveys. My DH was a second time buyer and our survey pulled up issues that haven't needed fixing in the 6 years we have been here (new roof, pointing on the chimney??). Luckily he was vaguely experienced and had the benefit of a dad who reassured him that there was nothing unusual for a house of its age- it was built in the 60s.

This was our experienced - survey uneventful, a week before exchange and FTB suddenly asked for £25k off a house that is only worth £300k.

Team Bob for me too.

35k deposit for a 665k house? Too risky

I'd go for Bob.

Mary's 5% mortgage hasn't actually been approved by a bank, just qualified by the estate agents mortgage advisor (who can, and will, to put it bluntly, say anything to get you to accept).

I'm buying a property of a similar value, and am a high earner, and wanted to put 10% down, however bank wanted 15% which I had to find quickly. I also had a downvaluation of £20k, which the vendors met me halfway on, that I'm having to find myself. It doesn't sound like Mary has much wriggle room, so looks riskier.

FWIW I think Bob too. Mary's deposit is too small and FTB much more likely to freak out about survey.

Best of luck!

The people who are saying Bob:
yes his position is safer on paper but he is selling to a first time buyer, and therefore you would be selling to a ftb too

Only in this case you will have less visibility of what happens to the transaction - how do you know Bob's ftb is is a better situation than Mary?

Going for Mary, you have full visibility.

Bob. Mary has a very small deposit relative to offer. A good job can quickly disappear in current challenging times and depending on where she is currently living could just be less invested in the process. Bob is already used to buying and home ownership and has a dependent to house so would in my opinion be the more motivated buyer. The £2k difference is so small at that level so I would just see it as an added bonus that Bob's offer is higher rather than a distinguishing factor.

Check if bob is selling a flat and whether it is likely to be subject to any cladding issues or additional requirements from any mortgage provider.

That’s a good point green - I’ve emailed the agent to ask. Thank you. I’m leaning towards Bob. Mary’s deposit is spooking me a bit.

If you go for Bob you need to find out also the situation of his first time buyer, though. They could be better placed than Mary... or not.