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Original poster

Advice for cash buyer please - I am struggling to navigate property market

38 replies

heartfullofpineapple · 31/07/2023 22:44

Not sure that the title gives this post justice but there are a number of things niggling me and I'd really like a buyers/sellers' perspective please.

In short I am a cash buyer who has recently (six weeks ago) put in and had an offer accepted on a house.

I have instructed solicitors, proved funds and recently paid for a Home Buyers Level 2 survey with valuation.

The survey has come back with a few "number threes" such as damp, secondary gazing, gas boiler and electrics. Most of these were because the vendor did not have the correct certificate at hand and I know they will be addressed in fuller solicitors inventory.

The main issue for me is electrics so will get someone in to double check those and give me a quote for the work.

I know from looking online I do that via estate agent and also sent part H of survey report to solicitor - however how do negotiations then start (if the work is estimated to be at several thousands) - do I offer to do 50/50 with vendor or do I ask them to do the work? Do I try and negotiate for full price of works to be deducted from agreed price?

For context I thought I was in an excellent position for vendors - I am mortgage free, not in a chain and have agreed price at 2% less than asking price.

The seller has put house on market once before and withdrew (before any offers) two years ago. They are now looking for a suitable property to downsize to but don't seem to be doing anything (the estate agent says they need "careful handling" as they were the previous agents when she listed before - and it is sensitive as she has had a bereavement (three years ago) - she wants a flat/bungalow of which there are hundreds near us!)

My question is how do I approach the survey and ask re further investigation on electrics without "spooking" her?

Also what do I do if she is protracting this more than she needs to?

I know in the current market I am an "attractive" buyer to many and I'm not sure she realises this.

In other circumstances I'd still be looking elsewhere but I really like this property so am trying to be as diplomatic as possible.

Any advice and views greatly appreciated - thank you.

OP posts:
Timeisallwehave · 02/08/2023 07:57

Every single house I’ve ever bought has needed the consumer unit replacing. It’s something people tend to not touch and it goes out of date quite often. Not a huge job and very standard for any electrician.

oiltrader · 02/08/2023 08:24

Timeisallwehave · 02/08/2023 07:57

Every single house I’ve ever bought has needed the consumer unit replacing. It’s something people tend to not touch and it goes out of date quite often. Not a huge job and very standard for any electrician.

Cable has a shelf life too. thats where expense is

lljkk · 02/08/2023 08:27

my limited experience (only twice bought, last in 2004) goes like this:
Nobody cares if you are cash-buyer or chain-free (so were we, no seller seemed to particularly like us for that). Maximising sale price trumps everything, and even small sale price increase from someone else (£1k+) destroys any chance of you appearing to be an “attractive buyer"

Being chainfree reduces your stress massively, of course, enjoy that part.

Your seller will only sell if easy for them. They clearly don’t really want to move, they just know it’s sensible to move (their adult child talked them into it) so have motivated themselves this far, so far. You’ve laid out a clear case why the electrics was not part of your initial assessment and asking for some money off for the electrics problem would be very reasonable. If your query on that is very short, factual, specific about the reduction you want & evidence based your seller won’t be put off selling, but they also may not budge or may counter offer with a much smaller reduction. Then you would have to decide whether to stomach the extra cost or househunt elsewhere. Advised by overseas offspring who may not understand collapse of Uk house market...: residential property sales are down 9% in June 2023 compared to June 2022.

Getting the EA onside to talk up your merits could be helpful. DS nearly lost a house purchase 2 months ago (small delay outside his control, of like 2 weeks before he could exchange) until EA talked the vendors into it. That happened when those vendors really needed to sell up.

ps: DS also ended up replacing electric circuit box and that wasn't even part of his negotiated price reduction (which was for asbestos removal). Damp in his situation too, although cause of DS's house damp was / is fixable with sledgehammers so we/DS can sort it at reasonable cost.

UK monthly property transactions commentary

https://www.gov.uk/government/statistics/monthly-property-transactions-completed-in-the-uk-with-value-40000-or-above/uk-monthly-property-transactions-commentary

oiltrader · 02/08/2023 08:28

lljkk · 02/08/2023 08:27

my limited experience (only twice bought, last in 2004) goes like this:
Nobody cares if you are cash-buyer or chain-free (so were we, no seller seemed to particularly like us for that). Maximising sale price trumps everything, and even small sale price increase from someone else (£1k+) destroys any chance of you appearing to be an “attractive buyer"

Being chainfree reduces your stress massively, of course, enjoy that part.

Your seller will only sell if easy for them. They clearly don’t really want to move, they just know it’s sensible to move (their adult child talked them into it) so have motivated themselves this far, so far. You’ve laid out a clear case why the electrics was not part of your initial assessment and asking for some money off for the electrics problem would be very reasonable. If your query on that is very short, factual, specific about the reduction you want & evidence based your seller won’t be put off selling, but they also may not budge or may counter offer with a much smaller reduction. Then you would have to decide whether to stomach the extra cost or househunt elsewhere. Advised by overseas offspring who may not understand collapse of Uk house market...: residential property sales are down 9% in June 2023 compared to June 2022.

Getting the EA onside to talk up your merits could be helpful. DS nearly lost a house purchase 2 months ago (small delay outside his control, of like 2 weeks before he could exchange) until EA talked the vendors into it. That happened when those vendors really needed to sell up.

ps: DS also ended up replacing electric circuit box and that wasn't even part of his negotiated price reduction (which was for asbestos removal). Damp in his situation too, although cause of DS's house damp was / is fixable with sledgehammers so we/DS can sort it at reasonable cost.

Disagree, we accepted a lower offer than highest as the lower offer was chain free and a nice couple x

lljkk · 02/08/2023 08:37

must be so cool to deal with sellers like oiltrader.

Us as sellers or buyers, no seller or buyer ever indicated that they cared that we were chainfree or cash buyers. We were invited to get into a bidding war, though, which nicely would have taken us 5-10k over the then-stamp-duty threshold. EAs like cash buyers/chain free, at least they let you view properties if they think you are that proceedable.

Bodgejobvendors · 02/08/2023 08:40

heartfullofpineapple · 01/08/2023 21:43

@UsingChangeofName

I understand what you are saying but I am no expert in electricals.

I have let a fair few things "slide" in the report and I "may" ask for negotiation if further investigations in regard to the electrics uncover a shedload of work and expense that I as a layperson did not notice on making an offer.

This is not directed at you but I feel these threads are combative without the need to be.

I am a buyer who wants things to be as seamless and "honest" as possible.

I know there are very many people on MN and beyond struggling to secure a sale/purchase but sometimes the tone seems resentful to someone asking a question.

Nothing the survey has thrown up seems serious or unusual so talking of “letting things slide” misses the point. Selling a house isn’t like selling a car and declaring it as having a full MOT. The seller is under no obligation to address or fund anything in the survey. Personally I don’t think dated electrics do justify a renegotiation unless the house was priced for immaculate condition. It’s like repointing - at some point it’s going to need doing.

I agree with others that your energies need to go into negotiating timing. Your vendor is in no rush to move so that diminishes a lot of the value a cash buyer normally brings.

StillWantingADog · 02/08/2023 08:44

Lastqueenofscotland2 · 01/08/2023 10:27

Electrics will almost always come back at level 3, surveyors are not electricians and will cover their arse

Indeed an electrician may well say “yeah it’s fine and won’t need upgrading for a few years at least”. I lived in a very old house where the wiring was very old but still safe.

Missingpup · 02/08/2023 08:56

**my limited experience (only twice bought, last in 2004) goes like this:
Nobody cares if you are cash-buyer or chain-free (so were we, no seller seemed to particularly like us for that). **

Were you a cash buyer and/or was their a cash buyer bidding with with a non cash buyer to you?

Missingpup · 02/08/2023 08:56

@lljkk

Missingpup · 02/08/2023 08:57

Sorry I see you were a cash buyer

how do you know no one cared? Did you get ina bidding war?

lljkk · 02/08/2023 14:19

Hi Missingpup : I don't know circumstances of the other bidder because
a) EA didn't say
b) we were not willing to go over stamp duty threshold & extra costs that would bring, so we didn't play
c.1) EA did say the other bid was clearly higher than us, so the difference was large, I guess at least £5k over £249.99k
c.2) but not much more than £5k since EA was keen to encourage us to bid higher, it wasn't crazy to think we could move that much
d) sellers paused consideration of offers for 2 months when the house they wanted sold to someone else. They didn't really need to move. EA phoned to say they were again considering offers 2 months later but we were in proceedings for another house by then ... and frankly I didn't want to keep getting messed around. The seller saw me at toddler group maybe another month later & said no one wanted to buy so they wouldn't be moving after all. Did I mention how the seller didn't really need to sell?

yeah, I just never got impression that anyone was keen to hear we were cash & no chain. It sure benefited us in other ways, though, I have no idea how people stuck in long chains cope with the uncertainties.

How much would any of you be wiling to sell your home for cheaper if the buyer was cash and no chain? Seriously, those who sold for cheaper for this reason, or bought for cheaper for this reason, how much advantage did it get you / how much discount did you allow?

I'm betting no one will say > 0.5% discount on the higher offer. Prove me wrong.

lljkk · 03/08/2023 12:10

I'm gonna start a separate thread about my question. Wish me luck...

Original poster
heartfullofpineapple · 03/08/2023 22:56

@lljkk Will follow other thread with interest - in the meantime just want to say thank you to everyone for your great advice and tips/experience. Am currently weighing up information. Good luck to everyone in this situation (buyers and sellers) - I hope you all get what you want.

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