Cash buyer preferable?

krusty101

My 1 bed house is on the market for £115k and so far I’ve had 2 offers of £110k both buy to let investors who will need mortgages and 1 cash offer at £100k. I’ve got another viewing tomorrow and one on Saturday so will certainly let the tomorrow one play out but my question is:

• If none progress past the £110k mark and I can’t get the cash buyer to shift much, is the cash buyer still preferable?

Background is I bought the house 3 years ago for £100k. It was in a dire state and I’ve spent about £10k on it, new bathroom, etc. I’d be loathe to drop below £110k for that reason as I don’t want to ‘lose’ money but if a cash buyer is the holy grail should I? We’re buying a new build and have about 5 weeks left to find a buyer, then we can reserve and will have another 6 weeks to exchange. House should be ready some time in December. 

Any advice gratefully received!

davidmcn

BTL landlords probably know what they're doing and shouldn't have the same sort of difficulties sorting out their mortgages that e.g. first time buyers might, so I'm not sure it makes a great deal of difference in this case.

2bFrank

If possible I would make sure the cash buyer is indeed a cash buyer. A lot of people say that, but they then have other ideas. I would go with the one that is most proceedable, if thats the cash buyer then go for it, but for all you know, that cash buyer could have his savings tided up in a fixed term account that doesnt mature for a while.

Falafels

The advantage of cash buyers is that they are chain-free, but your BTL investors probably are, too. Vendors' experiences with cash buyers are quite variable, if you want to take a look at this thread:  https://forums.moneysavingexpert.com/discussion/comment/77515506#Comment_77515506

Wait to see what happens after your viewings, but if I were you I'd be going for the higher offer rather than the cash buyer.

coachman12

Given the improvements you have made, personally I would not sell at same price you bought it for.
As to the cash buyer, I see no advantage in taking that lower offer when, as david has already said, BTL buyers are usually pretty nifty when it comes to mortgages.

AdrianC

krusty101 said:

My 1 bed house is on the market for £115k and so far I’ve had 2 offers of £110k both buy to let investors who will need mortgages and 1 cash offer at £100k. I’ve got another viewing tomorrow and one on Saturday so will certainly let the tomorrow one play out but my question is:

• If none progress past the £110k mark and I can’t get the cash buyer to shift much, is the cash buyer still preferable?

The only time there's a difference between a cash buyer and one with a mortgage is if the place is going to be toxic to any mortgage lender for some reason...

Background is I bought the house 3 years ago for £100k. It was in a dire state and I’ve spent about £10k on it, new bathroom, etc. I’d be loathe to drop below £110k for that reason as I don’t want to ‘lose’ money

You know that's not how property values work, right?
How does your place compare to others on the market around you at £100k and £110k?

You've got two £110k offers. All three are chain-free. Unless there's something to make it unmortgageable, then Mr £100k needs to dig deeper or go home.

krusty101

AdrianC said:

krusty101 said:

My 1 bed house is on the market for £115k and so far I’ve had 2 offers of £110k both buy to let investors who will need mortgages and 1 cash offer at £100k. I’ve got another viewing tomorrow and one on Saturday so will certainly let the tomorrow one play out but my question is:

• If none progress past the £110k mark and I can’t get the cash buyer to shift much, is the cash buyer still preferable?

The only time there's a difference between a cash buyer and one with a mortgage is if the place is going to be toxic to any mortgage lender for some reason...

Background is I bought the house 3 years ago for £100k. It was in a dire state and I’ve spent about £10k on it, new bathroom, etc. I’d be loathe to drop below £110k for that reason as I don’t want to ‘lose’ money

You know that's not how property values work, right?
How does your place compare to others on the market around you at £100k and £110k?

You've got two £110k offers. All three are chain-free. Unless there's something to make it unmortgageable, then Mr £100k needs to dig deeper or go home.

Yes, I understand. It’s priced competitively for the area for the reason that I wanted to sell it quickly. Hence several offers I assume. Another reason why I don’t want to drop too much, as it’s not on at an over-inflated price to start with. I’d like to push on to close to asking if I can. 

krusty101

Thanks everyone. Very helpful and food for thought. 

newsgroupmonkey_

AdrianC knows his onions too

Certainly, even with a FTBer, I'd be surprised if the mortgage was the thing that held the sale up. I mean, the Cash buyer could have all kinds of surveys done and as someone else said, have it tied up or whatever. On the flip side, they might insist on you sorting it out in 28 days (as they would with an auction property) leaving you homeless.

I don't know about other people's experience, but I've certainly found in the past that houses are often not ready when they say they are. I'd be really surprised if you were in before Christmas, but maybe it's the cynic in me.

krusty101

newsgroupmonkey_ said:

AdrianC knows his onions too

Certainly, even with a FTBer, I'd be surprised if the mortgage was the thing that held the sale up. I mean, the Cash buyer could have all kinds of surveys done and as someone else said, have it tied up or whatever. On the flip side, they might insist on you sorting it out in 28 days (as they would with an auction property) leaving you homeless.

I don't know about other people's experience, but I've certainly found in the past that houses are often not ready when they say they are. I'd be really surprised if you were in before Christmas, but maybe it's the cynic in me.

I could move into my boyfriend’s if need be as we’re not quite selling his yet but I’d just rather not have to move twice and would have to put some bits into storage. But yeah I won’t hold my breath on the house being ready! Cheers