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Chain-free cash buyer. Thinking of offering 20% lower than asking price - Too low? Or reasonable?

First time buying, so I'm completely new to this.
Is 20% less a common kind of offer? Obviously I know you can offer anything you want, but I'm more curious as to if this is a common kind of ballpark for a first offer (possibly then increasing to 15% if turned down). I'm also assuming that my having the advantage of being being chain-free cash buyer could make an offer like this seem more reasonable to some sellers. 
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Comments

  • gingercordial
    gingercordial Posts: 1,681 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 8 February 2022 at 7:51PM
    It depends on the market where you are.  In some places properties are going for well over the asking price, so in that case no it wouldn't be reasonable.

    Cash buyers may not necessarily be universally well-received.  Some sellers may be sceptical as there is nothing to stop you saying half way through the transaction that actually you want to keep your cash for renovations and apply for a mortgage.  And at least with a mortgage-funded purchase, you must have a solicitor involved to keep things on track as the lender requires one - I have heard horror stories of cash buyers skimping on legal advice until too late because they thought they didn't need it then derailing things.

    On the other side, somebody needing a mortgage with a good deposit at a not-too-high multiple and LTV could be very easy to deal with.

    If the difference is going to be tens of thousands, I doubt many sellers will go with a lowball offer from a cash buyer.   
  • Flugelhorn
    Flugelhorn Posts: 7,131 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    my last three purchases over the last 3 years have been as a cash buyer - I didn't find it impressed anyone at all and often people being "under offer" and having mortgage in principle got more luck - probably because I hate best and final . Having said that I paid FAP for the first and got 7.5% off the second  and 4% off the third 
  • comeandgo said:
    If you came in at 20% under and first time buyer I’d think you had no clue about house buying so would have nothing to do with you.  Don’t make yourself look stupid.
    I'm basing this from suff I've read online about buying a property. "Stuff online" also includes snarky people on forums. So where do I look to for accurate advice on this? 
  • I don't have a clue about house buying, lol, that's literally why I'm here. 

    And no advice on the kinds of offers I should reasonably be making. Hmm. 
  • Flugelhorn
    Flugelhorn Posts: 7,131 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    I don't have a clue about house buying, lol, that's literally why I'm here. 

    And no advice on the kinds of offers I should reasonably be making. Hmm. 
    really does depend what you are buying and when - it is currently a very active market and no-one is selling under the asking price (unless it is me buying and I think the seller got the wrong price but that is a long story) - lots of people offering over the asking price etc 
    if in another universe ie a few years ago or in the future, when some properties are harder to sell and people are desperate they may well look at something 10% under and then expect you to inncrease your offer a bit but that is about it 
  • mclaren32
    mclaren32 Posts: 283 Forumite
    Part of the Furniture 100 Posts
    Do your research, find out what similar houses nearby have actually sold for. Get a feel for the market in your area, are houses moving fast and for asking price or not?

    This is a huge life decision, do your homework.
  • giraffe69
    giraffe69 Posts: 3,595 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    All the current news suggests that there is a shortage of properties for sale and thus many of those that are for sale are easily commanding their asking price or more at present. There may be times when offering -20% might work but not, I think, in 2022 unless there is something spectacularly wrong with the house.
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