It doesn't make sense - Warning rant alert!

firsttimetom

I find it odd that people would choose a mortgage buyer over a cash buyer.

Sure, a cash buyer could pull out at anytime, but with a buyer requiring a mortgage, the bank could pull out at anytime - this forum demonstrates how many have an offer refused after a survey.

That said, we just bought a house. According to EA, there was us and a cash buyer prepared to pay the same and another FTB with a smaller deposit than us prepared to pay more and they chose our offer, so maybe people do prefer it.

jimpix12

The_Mac_Attack wrote: »

I have worked as an EA, all be it briefly. The company I worked for regularly steered vendors away from cash buyers for the exact reasons given by the above two posts.

But were you an EA when the banks were happy to dish out mortgages?

With the way the economy is, I'd always prefer a cash buyer. A mortgage is definitely not guaranteed any more... Look how many posts on here appear when the bank has refused a mortgage etc.

serious_saver

I received a letter this morning confirming my offer and my name was written completely wrong. There are typos but this wasn't even recognisable. So I went into the EA this morning all ready for an argument because I thought this might be down to an admin error.

I am rather ashamed to say that I went in completely ready for confrontation and the estate agent was lovely, polite and incredibly professional. In fact if I ever have to sell a house I will probably go with them.

They seem as perplexed by the decision as I was. Apparently the specific asset management company, that is dealing with it on behalf of the bank, have a policy that the will not even consider an offer unless it is higher than the one that came in before it, no matter how much better the other all deal is. The offer that they accepted is in fact the worst of the three offers on the table.

When I went into the branch the mortgage advisor happened to be there and commented that in 20 years of working with that particular branch he had never seen a situation like it, where a cash buyer is turned down in favour of an offer that requires a very large mortgage.

It is incredibly annoying but perhaps it might reassure some buyers out here who are thinking about offering on a repossession and worried that a cash buyer will come in a whip it out from beneath them. Of course I still have my fingers crossed that I'll be able to do just that. My goodness property is a cut throat world!

The_Mac_Attack

spunko2010 wrote: »

But were you an EA when the banks were happy to dish out mortgages?

With the way the economy is, I'd always prefer a cash buyer. A mortgage is definitely not guaranteed any more... Look how many posts on here appear when the bank has refused a mortgage etc.

Fair comment and yes it was, it was back in 07.

That was the attitude of the EA I worked for at the time. Whether the same view is as prevalent these days I don't know. However any investor purchasing property lacks any geniuine need for the property which often results in deals falling through. I don't know how this would compare these days to deals collapsing through mortgage issues.

dawyldthing

serious_saver wrote: »

Thanks for the suggestion. Unfortunately because of the work that needs doing I won't be going up. The price we offered was the right price for that property.

I know that they accepted the other offer because I have spoken to the estate agents and he has said that he can't understand the decision either, given that they require a mortgage.

Alas, where I'm looking there really isn't a lot of property out there. However we will pick ourselves up and keep looking.

My father is a retired surveyor and when he looked at it he said the house would be lucky to pass a survey for a mortgage so who knows what will happen. Anyway the whole things is very odd!!

they may well not. theres a house round here thats similar: http://www.rightmove.co.uk/property-for-sale/property-30715156.html
that we've been told it would have been unlikely it would have passed any mortgage checks as someone with a mortgage apparently offered 42500 but can't get a mortgage because it has no front door and the window both sides were bowed. Its took months and has had to be sold 18k less than what they wanted it to, and round there they usually go for about 65k average, so you still may get it offered as its all relying on the mortgage company allowing it to go ahead.

dawyldthing

i'd offer an extra 100 quid and see what they say. They say offer more but don't say by how much.

serious_saver

dawyldthing wrote: »

i'd offer an extra 100 quid and see what they say. They say offer more but don't say by how much.

Thank you dawyldthing. We gave this a try and unfortunately it didn't work. It was worth a try though.

Ah well, there will be something else around the corner.

[Deleted User]

Personally, i'd rather sell my home to someone who wants to use it as a 'home' rather than an investment. It may only be bricks and mortar, but I'd much prefer that someone gets to 'live' in the property, rather than just use it as a part of their bloated pension fund.

And for that reason, i'd rather sell to someone with a mortgage than a cash buyer

agrinnall

ringo_24601 wrote: »

Personally, i'd rather sell my home to someone who wants to use it as a 'home' rather than an investment. It may only be bricks and mortar, but I'd much prefer that someone gets to 'live' in the property, rather than just use it as a part of their bloated pension fund.

And for that reason, i'd rather sell to someone with a mortgage than a cash buyer

What's to say the cash buyer hasn't already sold their home in order to be able to proceed with the purchase quickly? Your attitude seems a bit judgemental.

vuvuzela

ringo_24601 wrote: »

Personally, i'd rather sell my home to someone who wants to use it as a 'home' rather than an investment. It may only be bricks and mortar, but I'd much prefer that someone gets to 'live' in the property, rather than just use it as a part of their bloated pension fund.

And for that reason, i'd rather sell to someone with a mortgage than a cash buyer

Cash buyers aren't all 'investors'. With the current housing market, chains are breaking down regularly. There will be a lot of people who have decided to proceed with their sale even though their vendor has pulled out, and are therefore living temp in rented with a large bundle of cash in the bank ready to buy their next home.