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Original poster

As a chain-free cash buyer what is a realistic offer?

34 replies

WindUpBird · 22/04/2024 16:29

I’m in the SE, about to offer on a £450k house, EA says ‘overs over’ the asking price.

Is it worth putting in an offer as a cash buyer with no chain? If so, what, £440k?

many thanks 🙏

OP posts:
neverknowinglyunreasonable · 22/04/2024 16:29

Yeah go for it pal.

Winter2020 · 22/04/2024 16:35

If you have been following your local market you will have an idea what the house is worth (in your local market) and what you would pay for it - so offer that - minus maybe 10k so there is room to negotiate.

Whether the house is worth more or less than they are asking - in your local market and to you only you can know.

I don't think you being a cash buyer would make them accept much less but might make them choose you over another person.

Are you actually a cash buyer (cash in the bank) or do you need a mortgage (not a cash buyer). Don't say you are a cash buyer if you need a mortgage as then any delays due to your mortgage will annoy them.

DrySherry · 22/04/2024 16:35

That's a very strong offer. 10% under asking is a pretty common starting point these days.

Winter2020 · 22/04/2024 16:40

Be aware that if you offer say 400k (as advised above) and someone else offers 455k the sellers will probably refuse to negotiate further with you as they will decide you are a time waster/chancer.

Obviously if you only think the house is worth 400k offer that - but in that case you won't mind if they sell to someone else for 455k as that would be far more than you were willing to pay.

Tracker1234 · 22/04/2024 16:50

Have you got cash ready to go? Its just we had a 'buyer' for our last house who said they were cash. What the twit really meant was that he was going to have no problem getting a mortgage because he was well known in the area and why on earth would a financial institution turn him down?

Our very good EA found it out very quickly.

Original poster
WindUpBird · 22/04/2024 16:52

Thank you @Winter2020 - yes I am a ‘cash buyer’ (no mortgage)
@DrySherry thank you, so you think I could offer less?
I don’t actually think the house is over-priced, and the EA does say ‘offers over’ which none of the other local EAs state

OP posts:
Gladespade · 22/04/2024 16:55

WindUpBird · 22/04/2024 16:52

Thank you @Winter2020 - yes I am a ‘cash buyer’ (no mortgage)
@DrySherry thank you, so you think I could offer less?
I don’t actually think the house is over-priced, and the EA does say ‘offers over’ which none of the other local EAs state

In that case £440k, sounds like a good bet - it is lower than they have asked, but not so low that if it really does go to offers over they will feel like your a timewaster and not want to deal with you.

Geebray · 22/04/2024 16:57

DrySherry · 22/04/2024 16:35

That's a very strong offer. 10% under asking is a pretty common starting point these days.

Not round here it isn't. Are you in the South East?

Original poster
WindUpBird · 22/04/2024 16:58

Yes @Geebray I’m in the SE

OP posts:
PickledPurplePickle · 22/04/2024 17:02

I would go for £425k and really push the fact that you are a cash buyer with no chain

PastorCarrBonarra · 22/04/2024 17:03

For how long has it been available? I’d go lower if it’s been knocking about unsold since January or earlier.

Geebray · 22/04/2024 17:03

WindUpBird · 22/04/2024 16:58

Yes @Geebray I’m in the SE

No I meant was @DrySherry in the SE, because no way to do offers (that want to be considered) start at 10% lower around here!

mummymummymummummum · 22/04/2024 17:05

You can offer what you like. I had several offers 20%+ below asking (both when on at offers over, and no mention of offers over) from cash buyers. If I had wanted to sell quickly, and the finances worked I would have accepted. As it was, I wasn’t in a hurry (my onward purchase didn’t have a roof yet!) and I needed a certain amount from the sale to fund said partially built house. I wasn’t offended by those offers though.

CroftonWillow · 22/04/2024 17:08

It entirely depends how motivated the seller is to sell and how much you like the property. Anyone who's been messed around in a chain will know how frustrating and stressful it can be and will value a cash buyer highly. On the other hand if they've not had that experience it may not carry much weight. I would start on the lowish side and emphasise your flexibility.

Geebray · 22/04/2024 17:10

Are you a first time buyer OP? Because that would cancel out some of the cash buyer advantage for me.

Original poster
WindUpBird · 22/04/2024 17:13

@geebray no, not a first time buyer

OP posts:
Geebray · 22/04/2024 17:14

WindUpBird · 22/04/2024 17:13

@geebray no, not a first time buyer

Well that's good 😄

Original poster
WindUpBird · 22/04/2024 17:18

@Geebray out of interest, why would a first time buyer be worse? Just because of more potential for dithering/time-wasting?

OP posts:
DrySherry · 22/04/2024 17:19

WindUpBird · 22/04/2024 17:13

@geebray no, not a first time buyer

Does that mean you have already sold your home ? Most won't consider you a cash buyer if that cash is coming from a sale that hasn't completed. To be a cash buyer you need to have funds banked and ready to start the process ?
No I am not SE, I am central South Geebray. I see SE completed sales are more like 5% down yoy.

Original poster
WindUpBird · 22/04/2024 17:19

Thanks everyone, really useful, and swift, responses!

OP posts:
Geebray · 22/04/2024 17:19

WindUpBird · 22/04/2024 17:18

@Geebray out of interest, why would a first time buyer be worse? Just because of more potential for dithering/time-wasting?

Yup. And general knicker wetting and faff.

gingerbreddy · 22/04/2024 18:07

CroftonWillow · 22/04/2024 17:08

It entirely depends how motivated the seller is to sell and how much you like the property. Anyone who's been messed around in a chain will know how frustrating and stressful it can be and will value a cash buyer highly. On the other hand if they've not had that experience it may not carry much weight. I would start on the lowish side and emphasise your flexibility.

You’re muddling two things here - being chain free and being a cash buyer.

Personally I was delighted to sell to someone chain free and would value that over being a cash buyer. Great if both are true, but it’s only the chain free part that would make me go lower on price.

Tracker1234 · 22/04/2024 18:07

FTB are as fussy as hell and very nervous. I am sorry to labour the point but you dont have a house to sell do you OP? My sister had one of them and they also claimed to be a cash buyer but it was dependant on selling their current place!

flippingflips · 22/04/2024 18:11

You need to start, around 20% under so that you can negotiate. Seriously.

gingerbreddy · 22/04/2024 18:14

flippingflips · 22/04/2024 18:11

You need to start, around 20% under so that you can negotiate. Seriously.

I really wouldn’t go this low in the SE.