Buying House Cash Buyer - Advice

martin1959

Bart1 wrote: »

As someone on here said before, if they ain't insulted by your first offer, it was too high.

Not true..


If someone made a silly offer on my property I would tell the EA to not accept any revised offers from them, and deal with another buyer.


My concern would be that if reluctantly increased their offer, then they may try and reduce it again, a few days before exchange.


Luckily in this area, houses are going under offer within a day or so of going on the market, unless of course they are ridiculously priced.

robatwork

Cash is great for buying second hand cars.
Not so good for new cars.
Not so good for sofas or TVs either.
For houses it's the same as an agreed mortgage really.
For bazooka joe it's the best.

DeafGoose

moneyistooshorttomention wrote: »

On the other hand - with £325,000 in cash literally sitting there in your bank account (because that is what is meant by "cash buyer") then you could take a leap up the ladder right away by using that £325,000 as a deposit and taking out a mortgage as well and buying a dearer house.

Not knowing how dear the area you live is, as that amount of money would buy some of the Forever Home level houses in my home area (ie I'd need a maximum mortgage of £45,000 to be able to buy any Forever Home I chose there the last time I looked, based on a deposit that size) or any Forever Home level home in my current area.

I wish I knew what "Forever Home" was, sorry not familiar with the term :-)

DeafGoose

Hi guys,

Sorry for the late reply, Easter holiday and all.

Thanks again for the input, I suppose from my point of view, the only advantage of being a cash buyer is, I don't have to deal with a mortgage payment every month and my circumstances changing, would not be concerned in having to make mortgage payments.

And yes, when I say "cash buyer" I meant money sitting in my account.

Just another note, houses I have been "interested" on have been on the market for 2-3 months.

Davesnave

DeafGoose wrote: »

I wish I knew what "Forever Home" was, sorry not familiar with the term :-)

A Forever Home is the one people would be happy to end up in, not the one they have now.

It is a somewhat nebulous concept, which ensures that many people who believe in its existence spend most of their lives unhappy with where they live and dissatisfied with what they can afford.

As with the Buddhist Nirvana, according to converts, once one acquires this Forever Home, an incredible stillness descends and the person becomes briefly at one with the universe, no longer troubled by feelings of inadequacy, or aspirations of upward mobility.

Unfortunately, reaching such an elevated, trance-like state seems, almost inevitably, to precede a Significant Event, such as early demise, or incapacity and removal to somewhere amusingly described as a 'care' home.

For the reasons above, seeking the Forever Home may be viewed as rather unwise, and actually attaining it, positively dangerous. It is not something I personally recommend.

Mickygg

Remember not all houses are priced to accept a lower offer. I don't work like that as I price reasonably to sell. I did in my previous house have exactly to the £1 a 10 % lower that asking price offer.

As per Martin 1959, I told EA not to consider them again as I would be too concerned if they upped their offer they would drop before exchange. By offering a rule of thumb rather than what the property was worth, I considered them to not be serious.

System

Depends on the house and the demand for it. For me personally on the house I am in the process of selling, if the EA came back with a low offer plus cash buyer I would not bother even negotiating because from my side it sounds like someone has lots of cash and is only willing to use the least amount possible so is going to be a nightmare to deal with. Why bother when other buyers tied into mortgage offers are keen.

densol_2

To me its not so much cash v's mortgage as its just money after all. The difference is lack of a chain that is the tempting part. Not for silly offers but no chain is a good plus I would say ?

andthethreebears

DeafGoose - don't assume that cash puts you in a stronger position than any other buyer. We've been looking for a year, sold up and moved into rented with cash in the bank.
We're local (ish) to you and in my experience sellers are still of the perception that it's their market - we've had asking price offers declined, sellers refusing to negotiate after appalling surveys.
Obviously this won't be universal - but being cash buyers hasn't given us any favours over anyone else

Mojisola

Davesnave wrote: »

A Forever Home is the one people would be happy to end up in, not the one they have now.

It is a somewhat nebulous concept, which ensures that many people who believe in its existence spend most of their lives unhappy with where they live and dissatisfied with what they can afford.

As with the Buddhist Nirvana, according to converts, once one acquires this Forever Home, an incredible stillness descends and the person becomes briefly at one with the universe, no longer troubled by feelings of inadequacy, or aspirations of upward mobility.

Unfortunately, reaching such an elevated, trance-like state seems, almost inevitably, to precede a Significant Event, such as early demise, or incapacity and removal to somewhere amusingly described as a 'care' home.

For the reasons above, seeking the Forever Home may be viewed as rather unwise, and actually attaining it, positively dangerous. It is not something I personally recommend.

That made me smile - thanks!

We have been here for 20+ years so I suppose that counts as a forever home in some people's eyes.