Are investment buyers good?

GrumpyTeacher

Hi all,

We have an offer under asking price from FTBs and we're now anticipating an offer from an investment buyer. We also have a viewing tomorrow who are FTBs I believe.

Are investment buyers good or bad news? More proceedable? More likely to walk away mid transaction?

Trying to weigh up the pros and cons.

Thanks!

Pixie5740

I would think that an investment buyer would try to get the property for as low a price as possible because it's just business. I know that people buying the property to live in are also looking for the best possible price but you tend to be more emotionally invested if it's going to be your home so might be willing to pay a bit more than an investor.

Investors also don't need to buy that property, they already have somewhere to live so they could potentially try to gazunder you.

FTB can be nervous though and it might take longer to sort out a mortgage.

GrumpyTeacher

Thanks Pixie,

Ive just heard we have another viewing tomo, cash buyers who have already sold their property. That would obviously be the most ideal scenario!

Tbh were close to losing the house we want and our floor price (OIEO) provides us with more than enough equity to refurb the new house. If we had more time Id wait for a higher offer but as long as we clear our floor then anything else is a bonus!

Daerve

Investment buyers can often move quicker but will pull out if a mouse farts.

If I had 2 equal offers I'd choose someone who was going to live in the house every single time.

GrumpyTeacher

Thank you Daerve, appreciate your help. Tricky one if the investor offers more than our FTBs... They've hit their ceiling too so I'm concerned their mortgage may not go through if they've maxxed on affordability.

Prob worrying too much tbh!

Pixie5740

Cash buyers are probably more likely to gazunder than any other type of buyer.

princeofpounds

Both have reasons that they might be flakey - as do almost all buyers - and predicting in advance which might hit is really hard.


Neither (presumably) have chain risk, which helps massively on the timescales, and that's about all you know.

GrumpyTeacher

Is there a way of protecting ourselves from being gazundered?

LEJC

I've been a FTB....and an investment buyer.

I tend to feel that the FTB can be a little more picky or jumpy about the transaction,particularly the searches and surveys,possibly because they are inexperienced in buying.
They are more likely to want to challenge survey findings which could sometimes stall the process.
On the other hand as an investor I'm looking for a property that will provide an income and sometimes the need to replace windows/kitchen or bathroom for example doesnt phase me in the slightest.

It really boils down to personal preference over who you wish to sell to...

Daerve

emmajanekitchen wrote: »

Thank you Daerve, appreciate your help. Tricky one if the investor offers more than our FTBs... They've hit their ceiling too so I'm concerned their mortgage may not go through if they've maxxed on affordability.

Prob worrying too much tbh!

We originally had an offer for ours from an investor, we then found somewhere and had an offer accepted on our dream house. Our buyer suddenly decided he didn't fancy it anymore and pulled out.

We were then in the position of either dropping the price for a quick sale to secure our dream house or waiting and possibly losing our purchase. In the end we chose the former and lost out on 5 grand.

The point is, if you choose the investor you may indeed be looking at an extra few grand but you may equally end up losing money like we did by taking a higher offer.

An investor will think nothing of walking away or lowering their offer when it suits.

Daerve

emmajanekitchen wrote: »

Is there a way of protecting ourselves from being gazundered?

No, none at all I'm afraid.