Best type of buyer?

traceyed1

We have someone coming for a second viewing tomorrow who is in rented and a cash buyer. Are these types of buyers the best? First time seller so not totally clued up.

SuzieSue

traceyed1 wrote: »

We have someone coming for a second viewing tomorrow who is in rented and a cash buyer. Are these types of buyers the best? First time seller so not totally clued up.

Yes, you can't get much better than that. They don't have a property to sell so you don't need to worry about their sale falling through and they don't need a mortgage so you don't have to worry about the bank rejecting them for a mortgage or withdrawing their mortgage offer later on.

ognum

SuzieSue wrote: »

Yes, you can't get much better than that. They don't have a property to sell so you don't need to worry about their sale falling through and they don't need a mortgage so you don't have to worry about the bank rejecting them for a mortgage or withdrawing their mortgage offer later on.

Off course suit sue has written the positive points to a cash buyer but there are a few negative point.

cash buyers often believe they are the superior buyer so believe they are due something for this so expect sellers to accept lowish offers.

Cash buyers are not as committed to a property, they have not paid a mortgage company and will not need to rearrange finance if they change their minds so they can be pretty fickle, p them off and they can easily walk.

Because they have no great commitment it is possible for them to spot another property they prefer half way through the purchase and move on to that.

I have bought lots of property as a cash buyer and have done all these things so I am speaking from my own experience! off course some cash buyers are perfect as well!!!,

Tagawiff500

You would think they were..... I am a cash buyer and finding it difficult to buy, first house we looked at put in very good offer then seller took off the market :-( second house we are offering on the seller appears to be getting greedy and trying to squeeze more money out of us, we are now looking at two more property's this week. To me if you are a cash buyer then would be in the strongest position but obviously not .

SuzieSue

ognum wrote: »

Off course suit sue has written the positive points to a cash buyer but there are a few negative point.

cash buyers often believe they are the superior buyer so believe they are due something for this so expect sellers to accept lowish offers.

Cash buyers are not as committed to a property, they have not paid a mortgage company and will not need to rearrange finance if they change their minds so they can be pretty fickle, p them off and they can easily walk.

Because they have no great commitment it is possible for them to spot another property they prefer half way through the purchase and move on to that.

I have bought lots of property as a cash buyer and have done all these things so I am speaking from my own experience! off course some cash buyers are perfect as well!!!,

Yes, all good points that I hadn't thought of, but I think the positives still outweigh the negatives.

DRP

I reckon a ftb with a big deposit makes a better buyer, personally.

Regardless of financial means, the best buyer is one who is committed, chases problems up quickly and is sensible about their expectations.

hazyjo

FTBs can be very nervous though and pull out over the most ridiculous of things - and some need a lot of hand holding and don't realise the urgency with other stuff...

I agree with the second paragraph DRP says. I think I've always been a great buyer - have always kept on top of it, chased, and been committed

Generalising though, cash in the bank is a good start - on the assumption they're not going to drop the price during the process.

Jx

DaftyDuck

There's no simple concept of a "best buyer" - it's entirely dependent on the type of seller you are. It's (or should, at best be) a symbiotic relationship.

If you are keen to move, enthusiastic to get that next particular house or job, then an experienced true cash buyer, no mortgage, possibly in rented, who is motivated for a quick, clean purchase is your desire. No chain, no slowdown, no faff over every last bit of paperwork. However, they may well not give you as good a price as the person who "loves, loves, loves" your home, and is already talking about it as their "keeper", or "they'll take me out in a box". There, you are pretty much guaranteed your sale to them, even if they have to unload their own property yet, and they'll pay through the nose. However, you may be waiting months, even a year, for them to get to exchange.

A FTB would not ever be my preferred route, I don't think, unless I knew there was a fault that might bypass their attention - noisy roads at weekends, smell from a refuse site, etc... and I hope I'd spot all that a mile off when I was buying....

The key to a good sale is to identify your needs before you market with an agent. If you have a choice (and accepting that you may well not), what do you want from this sale? Speed? Price low, include any extras that smooth the path (like curtains & carpets), ensure the house is well-presented, boiler serviced & on contract. You'll sell pdq, but may not make a killing. If you are after maximum profit, you may well choose to deck your house out with removable extras - quality furniture and paintings (you can borrow wonders {and I really do mean exquisite and valuable stuff} from your local art museum/gallery and even some libraries... even for free occasionally). Then, the buyer may truly desire your house and the lifestyle he believes he will achieve by owning it.

moneyistooshorttomention

DRP wrote: »

I reckon a ftb with a big deposit makes a better buyer, personally.

Regardless of financial means, the best buyer is one who is committed, chases problems up quickly and is sensible about their expectations.

That's the type of buyer I chose for my last house personally when I came to sell it.

My EA had told me, at the outset, to be wary of cash buyers (specifically investors). I was told that investors are a bad bet because THEY think they are a good bet iyswim.

EA said that an FTB with a decent size deposit and needing a mortgage for the rest was my best bet of all. Told me that investors, for instance (and imagine that applies to all cash buyers) were far more likely to try and gazunder me near to Exchange of Contracts time.

In the event, I had the chance to put their theory to the test, as I had an FTB person on the one hand and an investor on the other hand bidding against each other to buy the house. I chose the FTB buyer and things basically went according to plan and they got the house, at the price I had agreed with them.

I had a personal preference as well to sell to someone who was actually going to use it as a home and was a "local". My buyer is duly living in it themselves and is a "local".

hazyjo

moneyistooshorttomention wrote: »

I had a personal preference as well to sell to someone who was actually going to use it as a home and was a "local". My buyer is duly living in it themselves and is a "local".

Sorry, couldn't resist:



(League of Gentlemen, to those not in the know!)

Also just wanted to add that an investor bought a house off me once, and did drop a bit after survey, but not significantly, and didn't try to gazunder - and was actually very approachable and patient

In a rising market, people can be pickier as to who they sell to. In a static or falling market, an offer - ANY OFFER! - is usually snapped up irrespective of who's making it.

Jx

ognum

hazyjo wrote: »

Sorry, couldn't resist:



(League of Gentlemen, to those not in the know!)

Also just wanted to add that an investor bought a house off me once, and did drop a bit after survey, but not significantly, and didn't try to gazunder - and was actually very approachable and patient

In a rising market, people can be pickier as to who they sell to. In a static or falling market, an offer - ANY OFFER! - is usually snapped up irrespective of who's making it.


Jx

Thank you for this, I have invested in a few properties, have never asked for a deduction after survey, because I know what I'm looking for and pitch my initial offer with work in mind.

I also managed to complete most purchases in 6weeks. I always use the same solicitor, I understand how he likes to communicate and at what point to push the sale and when to wait.

I also think I know how to use the vendors EA to my advantage in order to keep a sale moving. So, while I agree some investment buyers may be sharks some are not.

I also have EAs who contact me to look at properties that want a quick sale because they know I won't mess about, and that works for their clients!