Guzumped by a BTL buyer something dodgy?

Okydoky25

I was in the process of purchasing a Repo. Full asking price.
The vendors would not accept my offer until we had a mortgage offer as the previous sale had fallen through as the buyers could not afford a retention for Damp work on the property.

The Morning we get our full offer with no retention (good deposit) we get told the venders have accepted an offer from someone else. We assumed a cash buyer as ours was not accepted until we had mortgage in place.

We upped our offer but again they said they wanted to see the mortgage offer in writing 1st (but not from the other buyer who outbid us!)

I have since found out it is a BTL and they do require a morgage.

I am happy to raise my offer again but I know the property is only valued at what the other buyer is now willing to pay.

I have also offered to go with the original mortgage offer and pay the rest in cash to save time however they are still insisting that our lender needs to send an amended offer to show the new purchase price. Does not make sense to me. Why does it matter?

Am I being paranoid something dodgy is going on. Why accept an offer from a BTL needing a mortgage but not a 1st time buyer?

anselld

The vendors are normally obliged to accept the highest offer on a repo, which at this point seems to be the other investor.

Agents sometimes get in the way and impose their own requirements for sometimes dodgy reasons. If you want to outbid the other investor then make a formal bid and insist it is passed on to the vendor.

duchy

Maybe you offered too low and they simply prefer to deal with someone who came in with an offer they liked or just a mortgage already agreed so were viewed as more serious ?

If they felt your offer was a cheekly low bid (no idea if it was) perhaps they just preferred to deal with the later prospective buyer. Sellers can sell to who they like -if this is a repossession they have to get the best price so presumably your offers are the same and you won't go higher and if they resented your low offer.....or know the other buyer through other purchases and consider them a "known quantity" that might be why they are preferred.

I wouldn't get paranoid - if the property is worth more to you- offer more-if it isn't -walk away and don't take it personally either way.

Gwhiz

To be honest you'll never know if something dodgy is going on or not.

All I would say is this; if you think it's dodgy then walk away or keep upping your offer till accepted (if it ever is). Only you know what the property is worth to you.

Okydoky25

I offered the asking price. They accepted an offer for the same amount from a BTL who has no mortgage offer when we had just received ours?

anselld

Okydoky25 wrote: »

I offered the asking price. They accepted an offer for the same amount from a BTL who has no mortgage offer when we had just received ours?

The asking price is irrelevant for a repo. You stated the investor outbid you. Is that not the case?

Okydoky25

What I don't understand is why they didn't say to the other buyers that they would not accept the offer until they had a mortgage offer in writing as they did us. Or tell them they needed to out bid us At the very least.

Gwhiz

Okydoky25 wrote: »

I offered the asking price. They accepted an offer for the same amount from a BTL who has no mortgage offer when we had just received ours?

I'd walk away. It sounds like you are not going to be allowed to purchase the property whatever you do.

You could always say to the agent, "what do I need to do to secure the property"?. Whether you get an honest answer is a different matter though.

Okydoky25

anselld wrote: »

The asking price is irrelevant for a repo. You stated the investor outbid you. Is that not the case?

Not to start with no. I offered £95k and was told yes but would not formally accept until we had our mortgage offer. So off we trot and get this. Instruct solicitors etc. All v quickly.
We call to say we have the offer to be told sorry but they are selling to someone else for £95k who also happens to need a mortgage (a BTL mortgage).
Fine I up my offer, they up theirs. Now I want to up ours again they won't accept it again until we can show a mortgage offer. We have said we will just pay the rest in cash but they won't accept this!?

anselld

Okydoky25 wrote: »

What I don't understand is why they didn't say to the other buyers that they would not accept the offer until they had a mortgage offer in writing as they did us. Or tell them they needed to out bid us At the very least.

The other bidder may have been more insistent that the agent pass on their offer (as they are obliged to do). Who knows? The fact is you are now not the highest or the accepted bidder so either do something about it or accept it and walk away.

AdrianC

Okydoky25 wrote: »

Am I being paranoid something dodgy is going on.

In what way "dodgy"?

Why accept an offer from a BTL needing a mortgage but not a 1st time buyer?

For whatever reason they like. Maybe that buyer talked to their cat and laughed at their bad jokes? Remember, the fact that you're an FTB and they're a BtL might be relevant to _you_, but they couldn't care a toss what happens to the house next. They just want to get to exchange and completion in the fastest, most hassle-free time possible, with the maximum amount of money reaching their pocket. Neither of you have a chain. Both require a mortgage - BUT you're clearly struggling at the upper end of your affordability, and you've already thrown a potential spanner at them, with the damp retention request. The other buyer is just happy to hand them money, and is clearly more flexible on the affordability. It all points towards an easier sale.