4 possibly 5 offers and want advice about the decision to take.

LADYXXMACBETH

We are in an unusual position of having 4 offers for our house. Asking price is 105k (we paid 120k in 2006 but it needs work) and we have :
cash offer of 90k (originally accepted his offer of 100k but he didnt get in contact so put it back on the market)
cash offer 90k (not negotiable)
mortgage 100k
mortgage 102,500k

and possibly another cash buyer but he wanted to check some things before offering.

we told everyone that we would wait until Friday afternoon to make a decision so that people can sort out things like mortgages and stuff. No upward chain for us and all are buying as BTL .Any thoughts? My gut is saying go with the person that offeres the most because if they find anything on the survey they can knock a bit off. I'm happy I have so many offers but anxious that people are messing us about ! what would you do ?

pawpurrs

I would inclined to knock first person on the head if they have messed around already.
If there is that much interest already i would maybe ask the agent to ask for best and final offers or sealed bids.
It sounds like your asking price is very reasonable, in our area prices are higher now than 2006, although they may not be where you are, and thats quite a bit off what you paid.

getmore4less

what sort of estimates(cost & time) for the work to make good as a let.

Whats the likely gross yields with that spend on top of 90k against 100k.

Any first time landlords. what portfolio sizes?

a cash full time developer/landlord will have a better grip on the numbers than a first timer, might account for the £10k

bylromarha

I'd also discount the one who messed you around.

In addition, I'd discount the non negotiable one - that is a big drop %wise from your asking price.

Not your problem how much they have to spend making it good for let - you want the most money least hassle for your house sale. I personally wouldnt drop as much as £10k for a cash buyer when the asking price is £105k

I'd get the 2 mortgage people to put in sealed bids personally and, assuming they can prove funds, go with the best bid.

BigAunty

The non-negotiable one - have you let him know that you have 5 offers but if he could up it by x sum,its in the bag for him. Or is this person really non-negotiable?

At least you can take your time as there's no upward chain.

ACG

I would knock the first 2 on the head.
Non negotiable makes him sound like he is after a good deal (possible builder).
First person, not worth wasting your time on.
It then comes down to the last 2, in which case assuming theyre pretty much even i would go for the highest.

moneyistooshorttomention

From where I'm standing...numbers 1 and 2 are not worthy of consideration.

Why bother with someone who couldn't be bothered to get back to you? Why bother with someone who has just made one offer (presumably) and said "non-negotiable"?

Cut them out...that leaves 2/maybe 3 to consider. It's a start.

dominoman

Be open and tell everyone that there has been a lot of interest and ask for last and final offers.

If you're unsure they are serious you can ask for a non-refundable deposit to be paid up front.

getmore4less

bylromarha wrote: »

I'd also discount the one who messed you around.

In addition, I'd discount the non negotiable one - that is a big drop %wise from your asking price.

Not your problem how much they have to spend making it good for let - you want the most money least hassle for your house sale. I personally wouldnt drop as much as £10k for a cash buyer when the asking price is £105k

I'd get the 2 mortgage people to put in sealed bids personally and, assuming they can prove funds, go with the best bid.

It is a good idea to establish what the returns these people are looking at.
it gives a good idea where the offers pitch.

if the 100k+ refurb means a yield that is low <6% then they might pull out once they crunch the numbers properly remember these are BTL investors, not fall in love and pay anything people.

bylromarha

getmore4less wrote: »

It is a good idea to establish what the returns these people are looking at.
it gives a good idea where the offers pitch.

if the 100k+ refurb means a yield that is low <6% then they might pull out once they crunch the numbers properly remember these are BTL investors, not fall in love and pay anything people.

I see where you're coming from, but for a non BTL seller that's a lot of calculating and researching finding out typical rentals in the area, knowing how to calculate yield and the like.

Any buyer, BTL or not, will be an unknown. Any buyer may or not have done their sums correctly. All the seller can do is go with the offer they are most comfortable with. For me, the fact there are 4 competing offers says that someone is trying to turn a tidy profit and trying to maximise as much as possible.

DRP

Don't discount anyone yet.

Make your decision after they have all submitted best and final offers.

You are under no obligation to make your mind up until you exchange contracts...