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Which buyer should we go with?
BohemianRhapsody
Posts: 35 Forumite
Hi,
We are selling our house and has received 2 offers this week:
1. BTL investors - the offer is £2,500 lower than the offer from the FTB. They usually raise cash by remortgaging their other houses. They don't view the house instead relying on the floor plan and their local knowledge. Only invest in end of terrace and semis. They extend the house and let it. I think they create a LTD company for each purchase. They have apparently a portfolio of 100+ properties. Our EA has sold to them before several properties and never had any issues.
2. FTB - they have offered £2,500 more than the BTL, have 40% deposit, viewed the house 3 times. EA says they are keen.
I am asking as we lost our buyer last week so extra nervous about accepting a buyer who is not going to mess us about. I know it's impossible to say as the previous buyer looked like a 'solid' buyer (he was a BTL but more of a one mans band). The difference in the level of their offer is not massive so would rather go with a buyer who is not going to get cold feet or drag this process forever which would cause us loosing the house we are trying to buy.
Many thanks..
We are selling our house and has received 2 offers this week:
1. BTL investors - the offer is £2,500 lower than the offer from the FTB. They usually raise cash by remortgaging their other houses. They don't view the house instead relying on the floor plan and their local knowledge. Only invest in end of terrace and semis. They extend the house and let it. I think they create a LTD company for each purchase. They have apparently a portfolio of 100+ properties. Our EA has sold to them before several properties and never had any issues.
2. FTB - they have offered £2,500 more than the BTL, have 40% deposit, viewed the house 3 times. EA says they are keen.
I am asking as we lost our buyer last week so extra nervous about accepting a buyer who is not going to mess us about. I know it's impossible to say as the previous buyer looked like a 'solid' buyer (he was a BTL but more of a one mans band). The difference in the level of their offer is not massive so would rather go with a buyer who is not going to get cold feet or drag this process forever which would cause us loosing the house we are trying to buy.
Many thanks..
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Comments
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I’d go with the FTB, but why did your last buyer pull out?0
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Would also go with the FTB. (Not that I'm favouring FTBs as I think they often come with a whole heap of issues.) I would rather sell to someone with an emotional attachment rather than someone who owns 100s who wouldn't think twice about pulling out, losing it, or who may be more inclined to drop the price after a survey. Especially if they'd not viewed it.2024 wins: *must start comping again!*0
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Is the BTL landlord buying with cash or just remortgaging to provide the deposit? In which case he does still need a BTL mortgage for the remainder of the purchase price. The remortgage would have to complete before your transaction can complete so that the deposit or cash is available. Would the BTL landlord be remortgaging just one of his properties, or several?
In your situation, I would choose the FTB.0 -
Go with the BTL Landlord, he can then rent it back to the pushed out of the market FTB.0
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FTB for sure.0
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Who offered first?in S 38 T 2 F 50
out S 36 T 9 F 24 FF 4
2017-32 2018 -33 2019 -21 2020 -5 2021 -4 20220 -
Thanks all for your input.
The original buyer pulled out because he said that the mortgage valuation came £15k lower than the agreed price and he wouldn't renegotiate. He never showed the letter as a proof of valuation to us or our EA.
On an emotional level, we would prefer to sell to the FTB as it would feel better to sell to a family who wants to live in our house rather than a BTL who will just rent it out. That said, we are worried that the FTB will panic more easily about home survey, Brexit etc and that they would keep raising issues with us, dragging out the process.
My understanding is that the BTL landlord is remortgaging to provide a large deposit with a small top up mortgage. I believe they would be remortgaging several properties. Our EA said that this might delay the process a bit as well as them setting up an Ltd company for the purchase. Apparently with one previous purchase they asked for 7 weeks gap between exchange and completion, to allow more time to remortgage. When the seller refused and asked for 3 week's gap, they agreed.0 -
BohemianRhapsody wrote: »Our EA has sold to them before several properties and never had any issues.
To paraphrase the well known Mandy Rice-Davies quote "Well they would say that wouldn't they?"
Even if the offers were the same I would go with the FTB as IMO they're less likely to pull out, the fact they've actually offered more makes it a no brainer.0 -
Morally and emotionally, I would go with the FTB. Give them a chance.
I think we're all over-playing FTB issues, also. Generally, it's a small minority who get panicked and totally put out of a purchase. 3 viewings mitigates that in my opinion. Also, investors aren't without their issues too - they'll be equally as likely to mess you around, and maybe try and gazunder and pressure your situation towards the end of the process.
FTB. Every. Single. Day.0 -
Out of interest, how much is 15k in percentage terms?BohemianRhapsody wrote: »The original buyer pulled out because he said that the mortgage valuation came £15k lower than the agreed price0
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