Any discount for cash buyers?

powerful_Rogue

lookstraightahead said:

powerful_Rogue said:

I'd personally rather go with someone with a mortgage than a cash buyer.

Why is that? 

A cash buyer has less to lose and can easily play silly games at exchange wanting additional discounts.

lookstraightahead

powerful_Rogue said:

lookstraightahead said:

powerful_Rogue said:

I'd personally rather go with someone with a mortgage than a cash buyer.

Why is that? 

A cash buyer has less to lose and can easily play silly games at exchange wanting additional discounts.

But anyone can do that. And actually if the lender values the house below the silly amount the buyer is happy to pay, then it's a bigger problem surely? 

powerful_Rogue

lookstraightahead said:

powerful_Rogue said:

lookstraightahead said:

powerful_Rogue said:

I'd personally rather go with someone with a mortgage than a cash buyer.

Why is that? 

A cash buyer has less to lose and can easily play silly games at exchange wanting additional discounts.

But anyone can do that. And actually if the lender values the house below the silly amount the buyer is happy to pay, then it's a bigger problem surely? 

House for sale £150k.

Cash buyer and person with mortgage both offer £150k.

Cash buyer just before completion knowing the vendors are buying another property drop their offer to £135k. They have nothing to lose.

Mortgage buyer if doing the same would have to get their mortgage offer edited etc, so less likely to do this - Especially if relying on the sale of their property as well/

Again, just my opinion. Cash buyers seem to think they are something special when it comes to real estate. Heard far too many stories of them trying it on at the last moment.

JJR45

powerful_Rogue said:

lookstraightahead said:

powerful_Rogue said:

lookstraightahead said:

powerful_Rogue said:

I'd personally rather go with someone with a mortgage than a cash buyer.

Why is that? 

A cash buyer has less to lose and can easily play silly games at exchange wanting additional discounts.

But anyone can do that. And actually if the lender values the house below the silly amount the buyer is happy to pay, then it's a bigger problem surely? 

. They have nothing to lose.

Mortgage buyer if doing the same would have to get their mortgage offer edited etc, 

Incorrect, their mortgage is up to the value the mortgage that as been offered at.
They can offer lower at the end without needing to change anything with their mortgage, they just draw down less.

theoretica

The purchase in question is in Scotland - so less issue of changing offer at the last minute, or of mortgage valuation surprises.

JJR45

We accepted less for a cash offer as it was less hassle and less chance of anything going wrong.
House was down valued,  but as they were a cash buyer they did not renegotiate.

hazyjo

JJR45 said:

powerful_Rogue said:

lookstraightahead said:

powerful_Rogue said:

lookstraightahead said:

powerful_Rogue said:

I'd personally rather go with someone with a mortgage than a cash buyer.

Why is that? 

A cash buyer has less to lose and can easily play silly games at exchange wanting additional discounts.

But anyone can do that. And actually if the lender values the house below the silly amount the buyer is happy to pay, then it's a bigger problem surely? 

. They have nothing to lose.

Mortgage buyer if doing the same would have to get their mortgage offer edited etc, 

Incorrect, their mortgage is up to the value the mortgage that as been offered at.
They can offer lower at the end without needing to change anything with their mortgage, they just draw down less.

Depends on the size of the deposit and LTV. The lender would of course need to know the new price and adjust paperwork.

TripleH

MoJoeGo said:

Not any more. Plus the EAs will all hate you as they can't flog you their tied financial services!

I hate this, my brother had this on a purchase. The agent became borderline obstructive when he found out there was no chance for his mate to flog a mortgage (specialist broker used) and give him his 'thank you'. In the end my brother ended up having to go direct to the buyer to sort out surveys and valuation appointments because the agent took his time in contacting the vendor.

kyleDyer

cash buyer pays less everytime.

user1977

hazyjo said:

JJR45 said:

powerful_Rogue said:

lookstraightahead said:

powerful_Rogue said:

lookstraightahead said:

powerful_Rogue said:

I'd personally rather go with someone with a mortgage than a cash buyer.

Why is that? 

A cash buyer has less to lose and can easily play silly games at exchange wanting additional discounts.

But anyone can do that. And actually if the lender values the house below the silly amount the buyer is happy to pay, then it's a bigger problem surely? 

. They have nothing to lose.

Mortgage buyer if doing the same would have to get their mortgage offer edited etc, 

Incorrect, their mortgage is up to the value the mortgage that as been offered at.
They can offer lower at the end without needing to change anything with their mortgage, they just draw down less.

Depends on the size of the deposit and LTV. The lender would of course need to know the new price and adjust paperwork.

The price generally forms part of the mortgage offer, so if it changes (usually beyond a de minimus level), the lender will need to be told and amend the offer - even if it doesn't affect the LTV bracket.