Cash Buyer - how much lower to offer?

calligraphysenior

A house I'm looking at sold for 250k 3 years ago. From what I can see of it, they have changed the carpets...now it is on for 340. My budget is 340 including a new kitchen, new windows, paintwork, etc.

I am a cash buyer. Can I go in with a 305 offer or is that simply rude? Where would you go in?

Slithery

Are you a first time buyer?

NameUnavailable

Offer what you think its worth to you. Being a cash buyer might or might not make any difference to them - if they're in a chain and getting a mortgage then what advantage is cash over another buyer with a mortgage? If they're desperate for a quick sale however.......

Redwino222

 It’s never rude to offer what you think a house is worth to you, they might say yes, they might say no.

it doesn’t matter what they paid for it a few years ago or how much they have spent, all that matter is what the market thinks it’s worth now, and for your perspective what they want.

being a cash buyer is an advantage, but to what extent depends on the seller,  do they need a quick sale, or is there something that would  flAg in a bank survey.

You will only be a few weeks faster than a chain free buyer who needs a mortgage.

moneysavinghero

If it was the other way round and you were selling, would you take a £35,000 hit to sell to a cash buyer? Or would you rather sell to someone with a mortgage and get that extra 35k?

hazyjo

It's not really that relevant what it sold for 3 years ago. How does it compare with others on the market now? How long has it been up for sale? What's their position? What's the local market like right now - slow or fast moving?

Cash buyer wouldn't mean much to me as far as price goes. I'd rather it take a month longer and get possibly tens of thousands more.

calligraphysenior

no, not a first time buyer. I'm buying a second home. It would be chain free on both ends. I looked up an estimate of its value and it came in at 282, so 305 is still over that quite considerably. The other property that I have been hankering after in that area is so overpriced that today we withdrew our offer. I guess it wouldn't hurt to try less.

[Deleted User]

I think it's completely situation dependent. As others have said, you have to offer what you think it's worth. Worst case is they can say no. We are currently for sale and because we have got an onward purchase hopefully lined up and they will be going in to rented, I am a lot more inclined towards a cash purchase and no chain and I would sacrifice on the financials for that. However, that's due to our situation that our onward purchase is not stretching us and we have a large deposit so I would go for what is 'hopefully' the simpler and quicker of the situations. But in previous moves money has been the much bigger part and our deposit was lower so I would choose the higher offer in that situation. Worth a go!

calligraphysenior

Deleted_User said:

I think it's completely situation dependent. As others have said, you have to offer what you think it's worth. Worst case is they can say no. We are currently for sale and because we have got an onward purchase hopefully lined up and they will be going in to rented, I am a lot more inclined towards a cash purchase and no chain and I would sacrifice on the financials for that. However, that's due to our situation that our onward purchase is not stretching us and we have a large deposit so I would go for what is 'hopefully' the simpler and quicker of the situations. But in previous moves money has been the much bigger part and our deposit was lower so I would choose the higher offer in that situation. Worth a go!

Thanks. I'm tempted to ask under the 300 threshold, for stamp holiday reasons...

calligraphysenior

Slithery said:

Are you a first time buyer?

No, this would be a second home.

Crashy_Time

How long has it been for sale, how many offers have they had?