Cash buyers ruining it for everyone

o_johnston

AdrianC 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?

<shrug> Does it matter?
You know it's going to go for more than you want to pay. Your offer has been refused, and you don't want to up it.

The rest is irrelevant.

It's not I won't go higher, what's !!!!!! me off is the government help to buy isa cap is 250k, but with the current inflated market, the best we can afford is one with an asking price of 200k.
I guess I must just be in a minority of people that assumes if someone asks for X and you offer X, you get accepted 

SpiderLegs

o_johnston said:

AdrianC 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?

<shrug> Does it matter?
You know it's going to go for more than you want to pay. Your offer has been refused, and you don't want to up it.

The rest is irrelevant.

It's not I won't go higher, what's !!!!!! me off is the government help to buy isa cap is 250k, but with the current inflated market, the best we can afford is one with an asking price of 200k.
I guess I must just be in a minority of people that assumes if someone asks for X and you offer X, you get accepted 

If that’s what you believe then I’d suggest you appear to have a fundamental misunderstanding on the workings of the housing market.

Scotbot

Put yourself in the sellers position. You market your house for 250k and get two  offers, one at 250 the other at 260. Which do you accept ? The house won't  be marked SSTC until the buyer has provided proof of funds, cash or mortgage. This often takes a few days. 

As for cash buyers being investors paying more and going for property I don't agree. Investors with a pile of cash keep it by being financially savvy and won't offer over market rate. It's  not going to be their home they don't care if they lose the sale.  Plus right now property looks a poor buy as an jnvestment, the market is forecast to plateau or fall. 

o_johnston

Salemicus said:

They aren't ruining it for the sellers, are they? It seems that by "everybody," you really mean "you."

No I mean first time buyers or people that need a mortgage, so the properties get so inflated the bank values them at 80% the price, so you end up with a 85-90% LTV with much higher interest rates.
Or in our case having to settle for the help to buy ISA cap of 250k meaning with an inflating market, what that 250k can get is much much less. We could go higher than 250, but then have to add 6k for the bonus we don't get

o_johnston

Scotbot said:

Put yourself in the sellers position. You market your house for 250k and get two  offers, one at 250 the other at 260. Which do you accept ? The house won't  be marked SSTC until the buyer has provided proof of funds, cash or mortgage. This often takes a few days. 

As for cash buyers being investors paying more and going for property I don't agree. Investors with a pile of cash keep it by being financially savvy and won't offer over market rate. It's  not going to be their home they don't care if they lose the sale.  Plus right now property looks a poor buy as an jnvestment, the market is forecast to plateau or fall. 

If I was selling a house for 250 and the EA told me there's an offer of 250, but we'll keep trying for more, I would just say "take the 250 in case no one else matches that and they go somewhere else"

trex227

o_johnston said:

AdrianC 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?

<shrug> Does it matter?
You know it's going to go for more than you want to pay. Your offer has been refused, and you don't want to up it.

The rest is irrelevant.

It's not I won't go higher, what's !!!!!! me off is the government help to buy isa cap is 250k, but with the current inflated market, the best we can afford is one with an asking price of 200k.
I guess I must just be in a minority of people that assumes if someone asks for X and you offer X, you get accepted 

Most sellers don’t treat selling as first come first served i.e. first offer at asking price gets the house. Most sellers are going to go for the highest offer, with the potential buyers position sometimes having an impact.

I agree with others that cash buyers (genuine money in the bank cash buyers), especially investors, tend to offer less on the basis they are in a strong position to complete quickly. The only instances I know of cash buyers offering over and above is where they are older, don’t care they are overpaying and just want that specific house to live in.

pbhb

If you want a nice house at £250k or less there are plenty, perhaps you are looking in the wrong place? Or are you unwilling to compromise on location?
As for house prices, if a house is listed at 250k and a cash buyer has offered 260k it’s likely he/she had to beat another bid. No one is going to offer £10k over asking price for fun. That’s how house prices work. A bourse is worth what someone is willing to pay.
I am a first time buyer and cash buyer and I have not been treated more favourably than someone who needs a mortgage. If that person bigs higher than me then that’s who the seller will sell to, unless they’re selling just to make a fast buck and they want to go with the ‘safest’ option

Slithery

o_johnston said:

Scotbot said:

Put yourself in the sellers position. You market your house for 250k and get two  offers, one at 250 the other at 260. Which do you accept ? The house won't  be marked SSTC until the buyer has provided proof of funds, cash or mortgage. This often takes a few days. 

As for cash buyers being investors paying more and going for property I don't agree. Investors with a pile of cash keep it by being financially savvy and won't offer over market rate. It's  not going to be their home they don't care if they lose the sale.  Plus right now property looks a poor buy as an jnvestment, the market is forecast to plateau or fall. 

If I was selling a house for 250 and the EA told me there's an offer of 250, but we'll keep trying for more, I would just say "take the 250 in case no one else matches that and they go somewhere else"

Even if it was only just on the market and you had more viewings already booked in over the next few days?

You do realise that EA valuations are just estimates? The only true value of a property is what someone is prepared to pay for it.

AdrianC

o_johnston said:

Nothing wrong with that, just in my experience so far of really wanting 2 houses, they've both been inflated over and above the asking price by cash buyers, which gives 0 chance of out bidding since they have the cash to just get a mortgage if they really want to beat you, then the risk of the bank valuing the house much lower which = higher deposit or higher LTV.

Unless somebody is right up against the top end of their affordability, a devaluation is unlikely to make a signficant difference to their borrowing.

Plus Belfast has a LOT of people buying property just to rent it out

Aha... Now we get to the cause of the bubble. It's not "cash buyers". It's BtL buyers providing the demand to outstrip supply...

o_johnston

pbhb said:

If you want a nice house at £250k or less there are plenty, perhaps you are looking in the wrong place? Or are you unwilling to compromise on location?
As for house prices, if a house is listed at 250k and a cash buyer has offered 260k it’s likely he/she had to beat another bid. No one is going to offer £10k over asking price for fun. That’s how house prices work. A bourse is worth what someone is willing to pay.
I am a first time buyer and cash buyer and I have not been treated more favourably than someone who needs a mortgage. If that person bigs higher than me then that’s who the seller will sell to, unless they’re selling just to make a fast buck and they want to go with the ‘safest’ option

I'm only aware of a 260k cash bid. The EA just said if the cash bidder pulls out I'll be the highest bidder. That's what made me suspicious if this buyer even exists