making a cash offer - what reduction, anyone?

torontoboy45

OK, so maybe I'm dreaming here a bit. I doubt I'll have the necessary bucks by spring next yr. but if I did, what type of reduction could I realistically insist on?
(e.g. asking price £100k).
a long time before I could achieve 'cash' but I'm still curious.

ad9898_3

Too many variables their to factor in mate, if they are desperate to sell, big discount, if they are not, or in denial, virtually none.

Cannon_Fodder

Too soon to say. As per ad9898, too many variables.

Can't say where Interest Rates will be for example - will they have shot back up, to counter inflation, or stayed low because we're flat-lining.

Save hard, bide your time, be patient.

chucky

from experience - and only done this once. the vendor did not care if it was cash or mortgage as could wait to sell, so no real reduction there. however the benefit to him was that i was not in a chain which was more attractive. when the survey was done, we found some issues that needed to be fixed so was lucky there and then reduced the price from there.

however, if the vendor is someone who does not want to wait a few months and needs cash quickly you can probably set your own price, within reason. the problem that you would have here is that it has to be a very motivated seller unlike the one that i encountered above. identifying them is the problem.

torontoboy45

I'm clear about the personalities/situations being different from vendor to vendor - each would have to approached from a slightly different angle.
that said: I met a chap last week who called himself a property developer and insisted that it was possible to make money in a falling market but only by buying in cash. mildly interested (like I said, I'm nowhere near a position to buy with a wedge) I asked him what his opening offer would be for a property marketed at, say, £100k.
'20% down immediately, then work up to 15% but never beyond 12%'.
never having met this guy before he could easily have been billy bullsh1t in person, but it did prompt me into thinking.

chucky

i would say you can make money in a falling market depending on the price that you pay for the property.

however, a falling market makes it much harder to sell on a property and find a buyer that will pay the price that you are expecting.

mitchaa

What is the difference between cash and FTB mortgage?

What benefit would having cash offer

ad9898_3

mitchaa wrote: »

What is the difference between cash and FTB mortgage?

What benefit would having cash offer

Given the current climate, cash is 'in the bank' and gauranteed, a FTB with a mortgage offer isn't gauranteed, I have experience of the rug being pulled on 2 buyers I had, and that was a while ago, things are much worse now.

Cannon_Fodder

mitchaa wrote: »

What is the difference between cash and FTB mortgage?

What benefit would having cash offer

Try accepting a mortgage offer, go off and survey the house you want, then find the mortgage offer does not hold water, and the house you want does not want to wait for you to find a new buyer...

Might work in your favour in a falling market, but you've still spent on a survey that was not necessary.

(might operate a bit differently in scotland, so might explain your puzzlement)

torontoboy45

mitchaa wrote: »

What is the difference between cash and FTB mortgage?

What benefit would having cash offer

from what I've managed to glean: cash is attractive because a) it speeds up the transaction, and b) cash buyers are (allegedly) more likely to complete; given the high %ages of non-completion this, on its own, is a big plus.

chucky

torontoboy45 wrote: »

from what I've managed to glean: cash is attractive because a) it speeds up the transaction, and b) cash buyers are (allegedly) more likely to complete; given the high %ages of non-completion this, on its own, is a big plus.

and c) not being in a chain