Bridging loan or We Buy any House

boxermam

So, we sold our house last week, hardly any chain, over the moon as the house has been on the market since September. We went and reserved a new build property that we first looked at last August and loved but couldn't reserve until we had an offer on ours. We are downsizing so the new property is less than our existing. All looked rosy. until yesterday when our buyer changed his mind and withdrew his offer. So now we are in a pickle (to put it mildly). Do we get a bridging loan to buy our new property until we sell ours or sell to a cash buying site and get it all sorted. We have had one quote from a cash buying site which wasn't too bad. Also checked out bridging loans which has opened my eyes to the costs involved. Seeing a financial advisor on Friday to discuss things but would like some other opinions.
Leaving the house on the market and using a bridging loan wipes out all our profit anyway so we might as well sell to a buying site. Some advice please.

[Deleted User]

If you're considering using a buying site, you may as well just knock 30% off the asking price and get a quick sale yourselves.

Any off from a buying site will start to drop as you get to completion.

DCFC79

boxermam wrote: »

So, we sold our house last week, hardly any chain, over the moon as the house has been on the market since September. We went and reserved a new build property that we first looked at last August and loved but couldn't reserve until we had an offer on ours. We are downsizing so the new property is less than our existing. All looked rosy. until yesterday when our buyer changed his mind and withdrew his offer. So now we are in a pickle (to put it mildly). Do we get a bridging loan to buy our new property until we sell ours or sell to a cash buying site and get it all sorted. We have had one quote from a cash buying site which wasn't too bad. Also checked out bridging loans which has opened my eyes to the costs involved. Seeing a financial advisor on Friday to discuss things but would like some other opinions.
Leaving the house on the market and using a bridging loan wipes out all our profit anyway so we might as well sell to a buying site. Some advice please.

If your happy to lose some money if you use we buy any house then go for it.

Bridging loans would be ok but if your going to wait months for the house to sell then its not worth it.

If you were to put a link up of the listing then others could help with the listing.
It will either be the price, location or the condition.

Smodlet

Is there no option to ask the builder of the new house to buy your old one as part-exchange?

Slithery

Smodlet wrote: »

Is there no option to ask the builder of the new house to buy your old one as part-exchange?

Developers usually want the property you are purchasing to be 30%+ the value of the part exchange - the property the OP wishes to purchase is worth less than the one they are trying to sell.

p00hsticks

boxermam wrote: »

We have had one quote from a cash buying site which wasn't too bad.

Anecdotal evidence suggests it'll drop considerably once they get you hooked.....

boxermam

It isn't a case that they will buy the property from us as that would mean a 30% drop. This site have a list of buyers on their panel so we would be matched with a buyer, the price would be about £20k less than the sale price now and they have to pay a deposit up front (like an auction) If we went down the bridging loan route it would probably cost us that in fees and interest.

Correct about part exchange-it is not an option as we are moving to a cheaper property

TN1984

If it will genuinely cost you the same in fees/interest doing the bridging finance compared to the price reduction from a cash buying site, then the cash buying option might be worth considering. I would personally just be very nervous trusting anything from those sites though. I've never used them, so have no personal evidence, I've just never heard any positive comments at all. As others have said, they prey on the desperate and I am sure their 'matched buyers' are looking for as much of a bargain as possible.

hazyjo

What could possibly go wrong then... Do come back and tell us how it goes as we've never been able to recommend one of these companies before. How lucky that they have lots of buyers on their books who should match what you're selling - most find it hard to find buyers by 'normal' means!

Davesnave

boxermam wrote: »

It isn't a case that they will buy the property from us as that would mean a 30% drop. This site have a list of buyers on their panel so we would be matched with a buyer, the price would be about £20k less than the sale price now and they have to pay a deposit up front (like an auction)

£20k has no meaning at present, since none of us knows the price you are asking. For example, £20k off a £200k house is 10%, but it's 20% off a house of half that price.

However, if you believe that you are only going to lose a relatively small amount of money, like 10%, you are more gullible than most of us. It will be considerably more, whatever you've been told.

Simple business economics tells us that if some entity on this 'panel' buys your property, they have to do a really good deal and so do the introducing company, assuming the two aren't linked.


Or is this just the 'modern auction method?'


Do you really believe that these panellists with all that money sloshing around can't go out, find houses for sale themselves and negotiate a price? Why do they need 'matching' with you, unless it's through first getting you into a position where you become desperate? Perhaps you will suddenly lose your matched buyer when fully committed and the nice company that arranged the deal will offer to step in and 'save' you?

Tread warily.

Crashy_Time

hazyjo wrote: »

What could possibly go wrong then... Do come back and tell us how it goes as we've never been able to recommend one of these companies before. How lucky that they have lots of buyers on their books who should match what you're selling - most find it hard to find buyers by 'normal' means!

That is because most people struggle to get their head round the fact that they are asking too much for their house, the company offering to get you sold quickly obviously bridges the reality gap between buyers and sellers.