Do we accept cash buyer's offer?

[Odalisque]

Hoping some people can help with this dilemma

We currently live next door to an HMO. It's still being built/ converted so we don't know how much it will impact us, however we've decided to move.

We're in zone 3 London, it's a mid terrace 3 bed house on for £550K. Not actually on the market yet as we're waiting for the HMO to be finished so it doesn't look like a building site/ sound noisy for prospective buyers. The EAs have shown a few people round who are on their books- all developers, all gave really quite disappointing offers.

A developer has today made an offer of £540K, cash buyer, no chain, sounds ideal right?

We were expecting to accept an offer of around £520 from a civilian (!) with worst case scenario being £500k to a developer.

I'd love to accept the offer as we're keen to move, but I'm deeply suspicious that the developers will fuck us over by gazundering their offer as we reach completion.

Can anyone offer any insights as to what we should do? I'm not sure it's the done thing to tell your prospective buyer to stop playing silly buggers!

Mind me asking where you are OP? Currently house hunting and interested in where you can get a zone 3 three bed house for 550k wouldn't bother me being next to an HMO

Sorry I'm no help, no idea how reliable developers are.

Yep, no problem. We're in SW16. It's a lovely house, quiet road, great school literally at the bottom of the road. I'd much prefer to sell to a family rather than someone who is going to turn it into loads of tiny rooms.

you are waiting until HMO is finished to put your house on market so in the meantime no harm to get a deal with your developer. If he turns out to be unreliable you are just back to the same situation - waiting until HMO is finished.

Hmm, tricky. Can you get your EA to say something along the lines of 'before your offer can be considered, we need to see proof of your previous two offer amounts so we can check it against land registry sold prices as we're seeing a pattern of gazundering/we're checking for all our clients in this environment.'

It's pushing it a bit in this market. Otherwise, are they familiar with this developer and their tactics/ethics?

Also, ask yourself, if you were prepared to take 500k, if they gazunder by 40k at the final hour, does that really matter?

In the current climate I'd accept it and as PP have said if you get a low ball offer before exchange you can pull out and still be in a similar position.

You must be in a less fashionable area if SW16. I think selling before the hmo is a good idea, yeah they may drop but what can you do?

Oh we're definitely in the less fashionable bit of SW16! But it's still a nice road with nice neighbours. It'll be a shame to leave.

I completely accept that while we are willing to take 500K, a higher offer will affect our chain as we would be looking at different houses to if we accepted a £540K offer.

Am thinking we might accept the offer and move out and rent for a bit, meaning we are in a better position to accept a gazunder later in and then look for properties in our budget once we are chain free.

@KievLoverTwo

We can certainly ask our EAs and see what they say. They have flagged up already that cash buyers/ developers can be an issue but have already stated that they are not known to them and so could be a genuine offer.

Am thinking we might accept the offer and move out and rent for a bit, meaning we are in a better position to accept a gazunder later in and then look for properties in our budget once we are chain free.

Sensible approach. Esp if you can afford to rent for 18/24 months and hopefully buy at a far lower price.

@Odalisque I didn't mean that to be rude (apologies). But I think those parts will suffer more in this climate then then trendy parts so I would want to sell asap.

@radiatorpipe

No offense taken! Prices are slowing and stagnating where we are so hoping for a quick sale and a move out of London!

You could try renting, you need to weigh up the cost of it & there's always the risk you get stuck. Is there nothing in your lower budget that you could add to if you got the higher offer?

We moved & we're going to go into rented but found a house that week. I was unsure but it was the right decision as nothing better or on part came up till a yr.

@Odalisque where are you going if you don't mind me asking? I'm a SWL girl & live vicariously through others who leave as can't leave the elders.

@radiatorpipe
We're really torn at the moment -both sets of parents getting older into their 70s and 80s but still currently mobile and independent. But that won't be the same forever. Initial thought was to move nearer to my parents in zone 6 but it's complete snoozeville out there and I can't find any real enthusiasm for the type of houses we can afford, which are massively overpriced for what they are.

We're really taken with Worthing - two hours away from them by car or 3 on public transport. But I will lose all advantages of being near friends and family and would spend a lot of my spare time travelling back to see them, so I'm on the horns of a dilemma.

Loved in London my entire life but I'm early 50s now and absolutely done with it.

z6 is quite different tbf.

I've heard good things about Worthing, only been for a few day trips. I would love to move to the coast but discounted it due to parents.

We moved to z4 but had to consider schools for dc 🙄

Accept the offer. Shop with the £500k budget. If you get to the end with a penny more, you are doing OK

Very sensible and kind of how we're thinking. £500k gets you a hell of a lot more in Worthing than zone 6!

Have you looked at East Sussex? We moved down 5 years ago. Thoroughly recommend it!

We'd like a town being from London - I'm in retail so would like a relatively thriving job market to start hunting in. Brighton suburbs/ Hove is too pricey for us, DH has a dislike of Hastings/ St Lens for some reason.
Being on a train line with fast links back to London is a deal breaker. We have a few friends on the south coast so will have feet on the ground in the area which is nice. But I know if we choose Worthing I'll still be back up to see family very regularly.

I would accept it.

Anyone can try to get money off at the last minute or after the survey. A developer or a FTB or a middle aged couple. It's the buyer who runs up most of the bills in the process anyway, not the seller. Your main bills will only arise if the house sells.

You never know who is going to be the best buyer so I would just accept the best offer and let them start spending money. At least there's no chain.

You could accept the offer and act for yourself to avoid solicitor costs. Selling is not that hard, the buyer does the enquiries and issues the contract. You can get a conveyancer to take over once the contracts look ready for exchange, or even do the exchange yourself ( Ive done this). You probably need to use a solicitor for the actual transfer.

Good luck.

Great advice @Twiglets1 and @Allthegoodnamesarechosen

And thanks everyone - lots to think about.