What to offer?

Faith1960

We have been in our present home for 26 years so moving to a new property now is like the first time all over again. So I am asking for helpful advice on what to offer on any potential new homes. There are four that we really like and all are valued at or around the £325k price range. We were initially thinking of starting around £305 - £310k and taking it from there but we have both agreed we do not want to go higher than £315k. Would you consider this acceptable?

Oh and forgot to mention that we and our house buyers are both technically cash buyers.

[Deleted User]

Faith1960 wrote: »

Oh and forgot to mention that we and our house buyers are both technically cash buyers.

That's an interesting categorisation.

How does a technical cash buyer differ from an actual cash buyer?

Faith1960

Ok point made. Correction, we are cash buyers.

babyblade41

Possibly not cash buyers if you are using proceeds of your house to fund the future house but possibly no finance required

A cash buyer is simply that, nothing to sell with cash in the bank..

[Deleted User]

What are selling prices like of similar properties?

Faith1960

Hard to tell as we are hoping to buy in small Suffolk villages. Our favourite property was initially up for £330k - they found a buyer but unfortunately the sale fell through so they have now advertised with a "new price guide" of £325k.

[Deleted User]

Difficult for anyone on here to advise you until we have links to the properties so can look at a) what the market is like in the area and b) the state of the properties you are interested in.

If you don't want to give the links, then you will have to do this yourself. Look at what has recently sold in the area and use that as a guide. How quickly do properties sell will be an indicator as to how much room you have for negation. If they are getting snapped up like hot cakes then you'll find it hard to negotiate below asking price. If they are sitting on the market for months with no offers then theres more likely to be room for negotiation. Be aware that some people will be more willing to negotiate on price than others if they are more keen for a quick sale.

MaxiRobriguez

It depends on the seller as to whether they'll find your offers acceptable. For example, a family upgrading may hold out for £325k as they need that to secure a mortgage on the next property, whereas an elderly couple who are downsizing may be more accommodating of a lower offer.

Generally if it's been on the market more than a month then that gives you some confidence that you're not going to be in a race to beat others to securing the property, so you can start lower and negotiate harder. Sub 10% off asking price as a starting position doesn't seem unreasonable in such a scenario.

Cakeguts

A cash buyer is someone who has the money to buy the house in the bank without having to sell the house they are living in. I suspect that this is not your situation. I would guess that you mean that when you sell the house you are living in you will not need a mortgage. That is not a cash buyer.



The point about a cash buyer is that the money to buy the property is not dependent on selling a property. Cash buyer also means that there is no chain below you. If you have to sell the property you are living in to get the cash you are not a cash buyer and if you have told the people that you are buying from that you are a cash buyer you need to now tell them that this is not correct because if I have read your OP correctly you need to sell your house to get the cash.



It is important not to mislead people by making incorrect statements about your financial situation. When we were selling my mother's house we had someone interested who said they were a cash buyer. It turned out that they were not a cash buyer because they needed to sell their house to get the cash to buy my mother's house. I don't think they intended to tell this lie I think that they just didn't understand what a cash buyer really was.



A cash buyer has the whole purchase price of the house in the bank ready to spend on the house.

gingerdad

Start at 10% below and work up..... you can always go higher - you can't go lower.

Faith1960

It is important not to mislead people by making incorrect statements about your financial situation. When we were selling my mother's house we had someone interested who said they were a cash buyer. It turned out that they were not a cash buyer because they needed to sell their house to get the cash to buy my mother's house. I don't think they intended to tell this lie I think that they just didn't understand what a cash buyer really was.

I have absolutely no intention of misleading anyone and once again, point taken as regards what is or is not a cash buyer.

And for those that have replied answering my query I thank you. Two of the properties we are second viewing are empty with the other two sellers both elderly and downsizing and/or moving in with family. All four properties have been on the market since early June/July although as mentioned, one has had a previous offer fall through and since dropped the asking price by £5k.

Interesting two of you mention 10% as a starting price which is lower than I would have expected but it's good to see that I am (roughly) on the right track by considering offering £305k/£310k as a starter.