How advantageous is a good deposit and no chain?

Brodel

My partner and I started looking in August '21. We saw a house we liked so we put an offer in but didn't feel comfortable increasing it at the time because we hadn't viewed any other houses and so it went to someone else. Now that we've looked at quite a few it's clear it was the best by quite a distance.

Fast forward 6 months and it's back on the market for £25k more because the buyer couldn't meet the deadline set by the owner.

We know that the owner would like to sell it to someone local who is looking to start a family (which is our situation) and can move fast as the house has gone through probate and is sitting empty. We are renting so have no chain and have a deposit that is almost 50% of the asking price.

Interest on mortgage rates have gone from 0.99% when we were looking in August, to 1.59% today, which means offering at the new asking price would stretch us to our limit.

It's probably difficult to say, but how much of an advantage do we have with our deposit and no chain, is it enough to put a cheeky offer in, or does it not count for much given how crazy the market is right now?

Thanks in advance.

user1168934

In the current market, in South East, I would say it makes absolutely no difference at all. Even if you are a cash buyer the seller will still go for the higher offer. If you really like the house I would advise against a cheeky offer. It is seller's market at the moment.

Brodel said:

...

Fast forward 6 months and it's back on the market for £25k more because the buyer couldn't meet the deadline set by the owner.

I am not sure how you know that but do not trust a single word that comes of estate agent's mouth. The reason could be anything.

We know that the owner would like to sell it to someone local who is looking to start a family (which is our situation)

Again, I have no idea how you know that but the sellers I have seen are only interested in one thing - money.

and can move fast as the house has ...

Brodel

user1168934 said:

In the current market, in South East, I would say it makes absolutely no difference at all. Even if you are a cash buyer the seller will still go for the higher offer. If you really like the house I would advise against a cheeky offer. It is seller's market at the moment.

Brodel said:

...

Fast forward 6 months and it's back on the market for £25k more because the buyer couldn't meet the deadline set by the owner.

I am not sure how you know that but do not trust a single word that comes of estate agent's mouth. The reason could be anything.

We know that the owner would like to sell it to someone local who is looking to start a family (which is our situation)

Again, I have no idea how you know that but the sellers I have seen are only interested in one thing - money.

and can move fast as the house has ...

Yep, SE unfortunately.

It was originally advertised with a different estate agent to the one it is now. I called the old estate agent to ask what the why the sale hadn't gone through in case there were structural issues or other costly problems. They said the checks were fine but the buyer was messing around the seller and deadlines weren't being met so they decided to relist.

When we went to the viewing in August the estate agent told us it was the sellers parents home and they had said that they wanted it to be sold to a family and not developers.

Could have all been bs of course.

propertyhunter

Yep - makes no difference in today's market. Put an offer in that you can afford and that you wouldn't be upset with if you were rejected so you can say you did your best. You don't want to regret not putting your best foot forward. Also, knowing that they want a serious buyer who can proceed quickly will work in your favour - so highlight this. 

Your offer should make the best of your position to proceed, and emphasise your deposit (less likely to be subject to a lender's down valuation). We also enclosed the details of the solicitor and mortgage advisor so they knew we could move quickly, as well as attaching an email from the mortgage advisor stating that the amount offered was affordable. 

Ksw3

Makes no difference here in the south west either, especially with all the SE money that's come our way! 

Offer what you can afford. They can either accept or not but that's really out of your hands. Hope it goes well. 

Sistergold

A higher deposit does not make a difference to the seller as they get their money and would not care how much is coming from you and how much is mortgage. The higher deposit is an advantage to you as the lender will look at you favourably and you can secure a higher mortgage if you choose, also you can get lower rates possibly. No chain is favourable of-cause as seller knows there wii be no holdups.

theartfullodger

Not as advantageous as no chain cash buyer who can exchange and complete Monday or whenever suits seller.

Not as disadvantageous as long chain, struggling with deposit and mortgage .

IE same as it ever was.

Tiglet2

Brodel said:

My partner and I started looking in August '21. We saw a house we liked so we put an offer in but didn't feel comfortable increasing it at the time because we hadn't viewed any other houses and so it went to someone else. Now that we've looked at quite a few it's clear it was the best by quite a distance.

Fast forward 6 months and it's back on the market for £25k more because the buyer couldn't meet the deadline set by the owner.

We know that the owner would like to sell it to someone local who is looking to start a family (which is our situation) and can move fast as the house has gone through probate and is sitting empty. We are renting so have no chain and have a deposit that is almost 50% of the asking price.

Interest on mortgage rates have gone from 0.99% when we were looking in August, to 1.59% today, which means offering at the new asking price would stretch us to our limit.

It's probably difficult to say, but how much of an advantage do we have with our deposit and no chain, is it enough to put a cheeky offer in, or does it not count for much given how crazy the market is right now?

Thanks in advance.

The owner may 'set' deadlines, but there are usually quite a few third parties who are a party to the transaction, e.g. their/your conveyancer, the lender, Land Registry, the search provider, the local council. Deadlines become meaningless if those third parties are not able to meet them.  It would worry me that the seller could pull out again if they don't like the pace at which the transaction is moving.

If you really like this house, then don't chance a cheeky offer.  Offer what you think it's worth and let them know that you are very keen, don't need a 90% mortgage and don't have a property to sell.

steve866

No chain is often seen as very advantageous, large deposit will give the seller some reassurance but immaterial really.

To me this house sounds like a red flag. The seller wants to sell to a family but has decided to pump the price up £25k and pull out from a sale because the buyers couldn’t meet their deadlines? Doesn’t add up to me. 

eddddy

Brodel said:

When we went to the viewing in August the estate agent told us it was the sellers parents home and they had said that they wanted it to be sold to a family and not developers.

Just as an aside - if you initially viewed through the 'old' estate agent, and you now decide want to make an offer, it might be best to deal with the 'old' estate agent, rather than the 'new' one.

That reduces the risk of the seller having to pay 2 lots of commission (which might make them less likely to accept your offer).


But it depends on a number of factors

- like the date that the sellers terminated their contract with the 'old' EA (was it more or less than 6 months ago)
- and whether their 'new' estate agents contract is 'sole agency' or 'sole selling rights'
- and maybe whether the sellers gave your name to the 'new' EA as somebody previously introduced

Noneforit999

One thing I have learned from selling ours currently is that conveyancing and mortgage approvals take as long as they take, irrespective of a chain. 

A chain has more risk as more parties are involved, therefore more searches to be done, more surveys, more valuations, more credit checks etc etc but ultimately things take ages to happen regardless.