ftb near their limit or minimal chain?

oh_know

A. I have an offer from FTB who has no ties and can move quick, they have a mortgage agreed in principle

B. I also have a similar offer from someone who has accepted a cash buyer offer on their place, which would make them a cash buyer on my place

I guess A. could fall over due to the mortgage in principal failing, the buyers changing their mind as its top of their budget

I guess B. could fall over due to the sale falling through on their side (although it sounds a simple one you never know!), and of course they too could change their mind

So which is best !?

I am looking to make a strong bid on a property and reckon that to be in the best position i should inform the estate agents that I have accepted an offer - but when they check the chain which would they think is better A. or B. ?

(I suspect its obvious but i want to canvass opinion)

oueddy

Surely A will always be a better option, there are still more things could go wrong with option B even with a "cash offer" (can they even prove this is true to the sellers agent?). Upto sellers agent to do their research I suppose. I expect A could move just as quick as B if not a lot quicker depending on how fast a sale they need.

Full disclosure, I'm a little biased as I happen to be in the buyer A's situation and I'm hoping the seller see's how serious I am!

bmunky7

Surely your estate agent is best placed to advise having done a bit of research / enquiry on both your offerors?

Procrastinator333

Cash buyer is nice. But I personally would have thought having 2 parties (your buyer and you) and 1 house in the chain is better than having 3 parties (your buyer, your buyer's buyer and you) and 2 houses in the chain.

Plus, take everything you are told with a pinch of salt. We offered on a property that was advertised as no ongoing chain. We checked this. Told them it was important. Assures it was the case. Went ahead with the purchase and about 6 weeks in, after much nagging and chasing, we finally got the property information forms through from the solicitor. They had ticked the nox to say they were making an onward purchase.

Apparently they didn't like the rental properties around, so in the space of 6 weeks they decided to buy instead. Oh, and they needed a mortgage to do it. So even if there swear to you something is true. Don't be sure. You have zero way of actually knowing if your buyer's buyer actually needs a mortgage or has cash.

ReadingTim

B is not necessarily a cash buyer unless they've paid off the mortgage on the place they're selling and don't need a new one for your place.

Suggest you ask the EA to check out each buyer's position more closely, them double check what the EA tells you.

oh_know

I think thats fair enough and obvious I will accept the FTB as on paper lesscan go wrong. Thanks for all your thoughts.

The FTB’s have a mortgage agreed in principle and I have been told its an80% with a 20% deposit.

I guess I should just leave it at that and be done with it! But….

Would it be fair of me to see if my EA would do a bit of additional checkingincluding; 1) credit check, 2) try and manually validate the mortgage - i.e.determine if its joint and get an idea of how many multiples of their salary itis.

The reason I ask is that I just want to have some understanding and am aworrier - I would worry that it may fall through and that I would lose out onwhere I am offering on

The above would mean I would be able to put my bid in with more gumption (soto speak) i.e. i could say I have sold subject to completion to FTB's who havea mortgage agreed in principle and who my EA has done a best endeavoursfinancial sanity check -or words to thateffect.

(Maybe I am losing my marbles)

Cade_Foster

I am not sure how many times their salary and if it is joint and wanting a credit check for thier mortgage are any of your business to be honest, that is between them and their lender.

oueddy

Well based on my experience today, the seller went with option B because of £4k. Greed seems to trump sense as usual.

bmunky7

I think if the EA has seen the mortgage agreed in principle letter that's the best you can expect. How would you feel if the vendors you hope to buy from started asking all these questions about your situation and asking if they can credit check you etc... I'd be offended.

bmunky7

oueddy wrote: »

Well based on my experience today, the seller went with option B because of £4k. Greed seems to trump sense as usual.

£4K is quite a chunk of cash and in the OPs circumstances which you refer to there is clearly not a huge difference between A and B.

oueddy

Strange you see it that way, I guess it all depends on circumstances of seller I will never be party to. I know I'd take a 1% lesser offer from A every day to avoid the risk and time that B could take.