Which offer to accept 24 November at 10:35AM in Mortgages & Endowments 13 replies 585 views

Doshwaster

I'm in the process of selling my late aunt's house which needs a lot of work doing on it. It has been on the market for 2 weeks and we've already had a few offers. Once the cheeky ones have been rejected there are two which look credible.

1) For the full asking price of £60,000 and chain but will be needing a mortgage
2) For £57,000 cash from a developer

My concern is that if a FTB is needing a mortgage to raise £60k then there is a chance that they will get cold feet out when the survey comes back whereas the developer's cash is more certain.

So it is a good idea to accept a lower cash offer than a higher one which would be dependant on finance?

sheffield_soldier

Developer - only 3 k and will be less hassle.

justwhat

inform the developer what offers you have and ask him if he can match the higher offer..

london21

Developer might be better maybe get them to offer more to match but if the FTB requires mortgage, will the house be mortgageable is it in liveable condition with working bathroom and kitchen? 

joep2

As a FTB myself I hope you go for #1 and give them a chance to get on the ladder. 

comeandgo

Never a FTB, especially if work needed and they need a mortgage.

Brie

I fail to see what needing a mortgage has to do with anything.  Presumably they have seen the place and know even without a survey there's a lot of work to be done.  Maybe they are in the building trade or have family that are and so are happy to get a fixer-upper to get themselves on to the property ladder.  Then again you say there's a chain so how does that make them a FTB?

But for reassurance at least inform the developer that there's been a higher offer and that you'll contact him/her/it should the FTB pulls out.    

Secondly - are you acting on behalf of others as executor or just on your own behalf?  If it's not just for you solely then I would have thought you would have needed to maximise the price where possible.

Doshwaster

Brie said:

I fail to see what needing a mortgage has to do with anything.  Presumably they have seen the place and know even without a survey there's a lot of work to be done.  Maybe they are in the building trade or have family that are and so are happy to get a fixer-upper to get themselves on to the property ladder.  Then again you say there's a chain so how does that make them a FTB?

But for reassurance at least inform the developer that there's been a higher offer and that you'll contact him/her/it should the FTB pulls out.    

Secondly - are you acting on behalf of others as executor or just on your own behalf?  If it's not just for you solely then I would have thought you would have needed to maximise the price where possible.

Sorry - there was a typo. I meant "no chain" with the FTB.

You are right, I don't know their personal circumstances (and as a seller, should I care?)  just a concern that they could get cold feet.  The house is just about liveable right now but needs a total overhaul of new bathroom, kitchen, new roof, rewiring, some damp sorting out and a lot more.

I'm the executor for myself and two further beneficiaries so maximising the price is also an issue but for the sake of a couple of thousand, I'd want to avoid a lengthily sale process. 

Current thinking is to go back to the developer to see if they will increase their offer.

Thrugelmir

Doshwaster said:

Brie said:

I fail to see what needing a mortgage has to do with anything.  Presumably they have seen the place and know even without a survey there's a lot of work to be done.  Maybe they are in the building trade or have family that are and so are happy to get a fixer-upper to get themselves on to the property ladder.  Then again you say there's a chain so how does that make them a FTB?

But for reassurance at least inform the developer that there's been a higher offer and that you'll contact him/her/it should the FTB pulls out.    

Secondly - are you acting on behalf of others as executor or just on your own behalf?  If it's not just for you solely then I would have thought you would have needed to maximise the price where possible.

Current thinking is to go back to the developer to see if they will increase their offer.

Presumably you have an EA negotiating on your behalf. What's their view? 

Doshwaster

Just had a new round of offers come in and have accepted a all-cash offer of £58,500 from a local builder. The EA was unable to confirm the finance behind the £60k offer.

ACG

Just be careful with a builder/developer. 
I have seen this a few times over the years where they reduce the price at the last minute. There is no emotional attachment for them, it is all business. As there is no mortgage involved it is also quite easy for them to reduce the price and it not be a massive PITA. 

Depending on the work needed (is it just cosmetic?) is it likely to pass a valuation. If it is, i would go with the FTBer if for no other reason than its the nice thing to do. 

I remember selling my last home, we had 2 offers. One was a bloke downsizing, the other was a couple buying their first home, both offered the same amount. The bloke had a much bigger deposit, but we wanted to sell to the couple. They brought dad round - he was a builder. He started knocking on walls, pointing out every little problem. One of the jobs he made it sound like a £2-3k job until I told him I had already priced it up at £500 and would take the builder about 2-3 hours to do. He then backed down. 

The dad completely ruined it for them by acting the big man and telling me they would get a building survey done and any work needed they would reduce the price by the same amount. I basically told him we were hoping to sell to his daughter but he is too much of a risk so he has knackered it for them.