Cash or first time buyer - which is better?

moneysavinggirl_2

It all depends on what is a "Cash Buyer" as certain people use this term even when they do not have the money but are able to get hold of it someway.

I too would opt for the cash buyer and you need to instruct your solicitor to make certain that funds are available for the sale.

With FTB's it is more difficult as they would have to find a mortgage in a market where mortgages are not easily accessible. As new regulations come in, it will become much harder for people to get mortgages. I personally think, mortgages should return to the old way of lending where it used to be 3 x salary (or 3 + 1 if joint). That way, these FTB's would be able to afford to live a reasonable life without worrying too much.

DYOR

sdooley

You could always tell your solicitor you have two buyers and have them offer a contract race - whoever gets their paperwork and funds in order first gets the house. Given the closeness of the two prices I'd put a counter-offer back saying whoever offers £125,000 gets it!

chickmug

sdooley wrote: »

You could always tell your solicitor you have two buyers and have them offer a contract race - whoever gets their paperwork and funds in order first gets the house. Given the closeness of the two prices I'd put a counter-offer back saying whoever offers £125,000 gets it!

Oh yes start laying the law down like this and end up with NO buyer.

franklee

If they have a mortgage offer I'd go with the starry eyed FTB, the cash buyer wants a bargain

Cissi

DiggerUK wrote: »

Don Cornetto,
It does seem that the cash buyer is in business. I would put a high chance they gazunder. If it doesn't work with you there are plenty of properties on the market for them to move on to.

We've just exchanged on our purchase as cash buyers. We used our position to negotiate the original price and did not gazunder. Largely because of our status, we managed to exchange contracts within just over 3 weeks.

I'd obviusly go for the cash buyer. Don't forget how many mortgages are being declined at the moment - most properties around us that go "under offer" come back on the market after a month or two...

chickmug

Cissi wrote: »

I'd obviusly go for the cash buyer. Don't forget how many mortgages are being declined at the moment - most properties around us that go "under offer" come back on the market after a month or two...

Is this based on somethuing you have read in which case it would be interesting to have a source of reference. Or based on your local observations?

themanbearpig

Have a look at property bee. There are a huge number of houses that STC and then come back on the market days, weeks or even months later.

Dont get greedy; stick to the cash buyer, they actually have real money, and dont need to jump through the hoops to gain finance.

princessamy86

But how do you know they actually have real money?

chickmug

princessamy86 wrote: »

But how do you know they actually have real money?

Get them on the Jermey Kyle show and get lie detectors tests done when you ask them:D

Cissi

chickmug wrote: »

Is this based on somethuing you have read in which case it would be interesting to have a source of reference. Or based on your local observations?

Sorry, I should have said "most properties around us that go "under offer" seem to come back on the market after a month or two" as this is purely observation. I base this both on local experience, rightmove etc and also from reading the numerous threads on here complaining of mortgages that get declined because the valuations come in lower than the agreed selling price.