How valuable is no chain?

lookstraightahead

How much bargaining power do you think buyers with no chain have in this present climate ?

cooltt

If I were buying a house it's one of the things that would prevent me putting in an offer. Chains are a nightmare, it's a very valuable bargaining chip regardless of climate.

csgohan4

It depends on how true it is, plenty of buyers say they don't have a chain and it transpires they do when they can't exchange/complete on a specific date

AnotherJoe

It depends on the circumstances and psychology of of the seller.
If they haven't yet found a house to go to they may look negatively upon a cash buyer* thinking they may be less invested in the purchase than someone witha chain and may arbitrarily pull out or gazunder last minute. Or they may fear they will apply a lot of pressure for a quick completion.
If they have a long chain above them they may deem it irrelevant to have one less step in the chain.
If they desperately need every penny of their sale price the lower price a cash buyer may expect will be of no interest to them.
If they really need their sale to complete they may be very happy to take a lower price for a quicker or less complex sale.

* I'm assuming no chain = cash buyer but it may simply mean no house to sell but still need a mortgage which then from the sellers POV may still involve hassle and delays.

lookstraightahead

I remember years and years ago putting in the asking price for a property but the sellers took so long trying to find a property we pulled out.

eddddy

lookstraightahead wrote: »

How much bargaining power do you think buyers with no chain have in this present climate ?

Do you mean... can buyers with no chain below them get away with offering less than buyers with a chain below them?

Generally, I doubt it. Most sellers will be more interested in the amount offered.

For example, if somebody with no chain below offered £240k and somebody with a complete chain below offered £250k - I think the vast majority of sellers would take the £250k.


Maybe if they both offered £250k, the lack of chain might make a difference.

PokerPlayer111

eddddy wrote: »

Do you mean... can buyers with no chain below them get away with offering less than buyers with a chain below them?

Generally, I doubt it. Most sellers will be more interested in the amount offered.

For example, if somebody with no chain below offered £240k and somebody with a complete chain below offered £250k - I think the vast majority of sellers would take the £250k.


Maybe if they both offered £250k, the lack of chain might make a difference.

Both offering 250k the cash buyer will win all day long unless exceptional circumstances. 1 estate agent told me they value cash buyer @ around 2.5% greater on average when i pushed them for a exact figure - thats the average though please consider all situations are different. Bare in mind the estate agent at the time was trying to talk my offer up and devalue my cash buying position as much as possible so for them to admit 2.5% was a result, might be higher % on average.

G_M

'value' in £££ terms?

Very little if any.

'value' in terms of appeal?

A buyer (or seller) with no chain below (or above) will appeal to the other party more than one with a chain.

victoriavictorious

The term "cash buyer" seems to be interpreted in different ways by different people.
I take it to mean just a buyer not requiring a mortgage (but possibly may have a dependent sale), whereas others may interpret it as a buyer who does not require a mortgage AND is chain free with no dependent sale.
Not sure which is the correct one.

AnotherJoe

PokerPlayer111 wrote: »

Both offering 250k the cash buyer will win all day long unless exceptional circumstances. 1 estate agent told me they value cash buyer @ around 2.5% greater on average when i pushed them for a exact figure - thats the average though please consider all situations are different. Bare in mind the estate agent at the time was trying to talk my offer up and devalue my cash buying position as much as possible so for them to admit 2.5% was a result, might be higher % on average.

I disagree. I've seen several posts in here from sellers who were dubious about a cash buyer since they thought they would be less committed than someone else who had expenses like mortgages and surveys,a nd also were worried they might try a last minute gazunder with little to lose since they didn't have a house sale to worry about.

PokerPlayer111

AnotherJoe wrote: »

I disagree. I've seen several posts in here from sellers who were dubious about a cash buyer since they thought they would be less committed than someone else who had expenses like mortgages and surveys,a nd also were worried they might try a last minute gazunder with little to lose since they didn't have a house sale to worry about.

ok maybe not all day long then on average though cash buyer wins.