Cash buyers ruining it for everyone

o_johnston

I'm guessing with the interest rates on savings being so close to 0, people are using their savings to buy up property, but this is driving the prices up to the point where 3 different houses I've bid on this month I've been outbid a ridiculous amount by cash buyers (if they even exist at all).
House 1: asking price was offers over 199. I offered 200, price got driven up to 225 and cash buyer has bid 226.
House 2: asking price 200, got outbid by cash buyer 205 and not worth more than that
House 3: absolute dream of a house (link below), just around the corner from us. Asking price 250k (maximum allowed for help to buy). Got a mortgage in principle this morning for 250k, been awake since 5am excited to make the offer, only to be told a cash buyer has offered 260k. 
https://www.propertypal.com/30-rushfield-avenue-ormeau-belfast/645441
If 250 is the asking price, why the hell is the EA keeping it on the market if there's an offer of 260?!
It's so incredibly frustrating to find the perfect house (the first 2 were good, but needed small compromises).

Any experience of cash buyers and advice for me would be much appreciated! Thanks

greatcrested

Nothing to do with buyers being 'cash buyers'. It's to do with what buyers (of any category) believe it's worth paying for the property in question.

Cash buyers are no more willing to pay more than they think a property is worth than any other buyer.

SpiderLegs

Well if ‘non-cash buyers’ wanted to they could just outbid the cash buyers.
then we could have a thread called non-cash buyers are ruining it for everyone.

hazyjo

Not all cash buyers are investors!

If they are investors, they'll be less likely to pay top dollar/ get into a bidding war for a property.

Angela_D_3

Some people’s definition of cash is cash from the bank,  I’d want to actually see the cash balance in their account if it was me 

AdrianC

How somebody is funding a property is irrelevant. It's all about the willingness to pay the price...

o_johnston said:

If 250 is the asking price, why the hell is the EA keeping it on the market if there's an offer of 260?!

The EA isn't. The vendor is.

Maybe it's as simple as they're hoping for more...?

Davesnave

Whatever it is, it's the result of free market choices by individuals with the freedom to choose what they buy.

How else would you like to arrange things?

o_johnston

AdrianC said:

How somebody is funding a property is irrelevant. It's all about the willingness to pay the price...

o_johnston said:

If 250 is the asking price, why the hell is the EA keeping it on the market if there's an offer of 260?!

The EA isn't. The vendor is.

Maybe it's as simple as they're hoping for more...?

So why not adjust the asking price to 260 on the site?

o_johnston

Davesnave said:

Whatever it is, it's the result of free market choices by individuals with the freedom to choose what they buy.

How else would you like to arrange things?

I'm fine with people out bidding each other - the first house was offers over 200k which could mean anything at all, hence why I went to 225.
This one on the other hand with a defined specific asking price that is met and still stays on the market, why not just say offers over 250?

Also with the market headed the way it's going, the government's cap of 250k on help to buy ISAs mean you can't buy as nice a property. Our mortgage in principle is for 285k, but that means missing the 6k bonus from the government (2 x 13k+ help to buy ISAs)

Angela_D_3

o_johnston said:

AdrianC said:

How somebody is funding a property is irrelevant. It's all about the willingness to pay the price...

o_johnston said:

If 250 is the asking price, why the hell is the EA keeping it on the market if there's an offer of 260?!

The EA isn't. The vendor is.

Maybe it's as simple as they're hoping for more...?

So why not adjust the asking price to 260 on the site?

It’s not always that simple.  My stupid ex put ours on for £5,000 less than I was going to accept so the poor estate agents had to explain that to everyone viewing.  It Was awkward 

GDB2222

Angela_D_3 said:

o_johnston said:

AdrianC said:

How somebody is funding a property is irrelevant. It's all about the willingness to pay the price...

o_johnston said:

If 250 is the asking price, why the hell is the EA keeping it on the market if there's an offer of 260?!

The EA isn't. The vendor is.

Maybe it's as simple as they're hoping for more...?

So why not adjust the asking price to 260 on the site?

It’s not always that simple.  My stupid ex put ours on for £5,000 less than I was going to accept so the poor estate agents had to explain that to everyone viewing.  It Was awkward 

Yes, as soon as I hear there’s a divorcing couple involved, I lose interest. It’s bound to be grief.