Highest bidder, purchase offer refused

pieroabcd

Hi,
it's already the second time that I'm the highest bidder but my offer is refused. In both cases I've offered significantly more than the asking price.

The first time the seller chose a cash buyer. Time wise the difference is 2-3 weeks at most, as both the EA and the mortgage broker guaranteed me that the chances of not getting a mortgage in my situation for that price range are close to 0%. The deposit is 20-25%.
Even the cash buyer would have to go through the survey and the conveyancing times, so it doesn't really make a huge difference to the seller.

The second time the seller hasn't even provided a reason. He never answered any of my messages on Purplebricks.

So, what do sellers want nowadays? The money is no more enough? A sworn allegiance to keep the house exactly as is for the next 20000 years?

Sorry for the rant, but it's become extremely stressful.
Is there anything that puts the sellers off? Something to avoid at all times?

Kyrae

I think quite often the seller will pick a first time buyer or cash buyer even if their offer is less, as they think it will complete quicker and with less problems  

Sellers also pick the buyer they like most sometimes! Some sellers view it as a financial transaction but others do let their emotions get involved, especially if it's their own family home and they're very attached to it. If the top offers come from a young family with a baby who have shown how much they love the house, or another person who didn't talk much and they didn't really connect with.... they might pick the family just as they'd rather the house went to them! So be as pleasant as you can when you view a house, chat with the sellers, and try and connect with them..... it shouldn't be the way things go but sometimes it is!

pieroabcd

I'm a first time buyer myself.
I've never seen or spoken to the sellers, but I've always profused loads of appreciation on the houses, because I really liked them a lot.
I really hope that I won't be turned down just for being alone and without children!
I've also been quite insistent with the EAs in both occasions, trying to convince them of my being serious. It didn't serve any purpose.

Slithery

Some sellers just don't want to deal with FTB's at all even if their offer is higher.

theartfullodger

Indeed: Depending on vendor's circumstances - or indeed their whims/etc etc. The "best" offer is not always the "highest" bid.

e.g. Cash buyer, needs no mortgage, can exchange & complete within a week, will not ask any further questions and promises to under no circumstances to later reduce their offer, but £5k less than Highest is likely to be more attractive for many vendors.

No offence but mortgage brokers "guarantee" applicants that things will happen within some specific timescale is but one of the many economical-with-the-truth tactics I personally expect**

Good luck, keep plugging away!

** Short story.  Applied for a (re-)-mortgage.  Through "reputable" (in as much as any are) broker.  I filled in the required forms and off we went.  

Two problems not of my making:
1) The broker entered in my home post code to whatever bleedin' system they used: And got one character wrong.  'phone call then numerous emails about why I was claiming to live with my wife at address xxxxx but was actually living elsewhere with someone else...  Sigh!
2) The application asked which bank account the mortgage monthly payments would come from, & a couple of copies of statements, plus all the other stuff about income etc etc.. About a week later another email asking what the h*ll was going on, I, the dodgy evil client had claimed I had £xxxx income (as it happens from 5 pensions) but there was absolutely no evidence of this in account I'd provided.  I have a number of bank accounts  & bankers and my "main" bankers various accounts details were different.  Sigh!

As it happened there was no rush so all sorted about a couple of months: These things happen, regardless of what the broker "promised".   (NB HOW did the broker "guarantee"? Bet it wasn't an unequivocal in-all-circumstances commitment, in writing: But I may be wrong)

comeandgo

I would be very unlikely to pick a first time buyer.

Noneforit999

Its not likely to be the time difference in terms of picking a cash buyer, its the lack of lender valuation that is attractive in a market where people are offering above the asking price.

A house is quite literally worth what someone is prepared to offer when they are a cash buyer as their is no lender to satisfy and no risk of a down valuation for the vendor to be concerned about.

pieroabcd

Noneforit999 said:

Its not likely to be the time difference in terms of picking a cash buyer, its the lack of lender valuation that is attractive in a market where people are offering above the asking price.

A house is quite literally worth what someone is prepared to offer when they are a cash buyer as their is no lender to satisfy and no risk of a down valuation for the vendor to be concerned about.

In my case I've kept my deposit % low for the only reason that for the kind of mortgage that I'm interested in  the difference in interests between an 80% LTV and 60% LTV is very low, so much as not to be worth paying in advance a larger amount of money.
The documents that I provided with my offer showed it very clearly, so even a down valuation wouldn't have affected me in any way.

pieroabcd

comeandgo said:

I would be very unlikely to pick a first time buyer.

so first time buyers are banned from buying? 

Slinky

We had an offer accepted from a vendor, that wasn't the top offer. We realised that the vendor was interviewing us, as we'd worked out he was moving into the house being built in the garden and would be our neighbour. In the end, we withdrew, as we didn't like the way the vendor was being controlling trying to retain ownership of a path from our front to back garden, in order that he could maintain the back of his newly built wall. Interviews work both ways.

If you are viewing a house with the vendor present, be as pleasant as if you were being interviewed for a job you wanted.

Slithery

pieroabcd said:

comeandgo said:

I would be very unlikely to pick a first time buyer.

so first time buyers are banned from buying? 

Not at all, it's just that a lot of vendors don't like dealing with them.