Offer choices

Soot2006

Definitely trust the agent who showed them around as well; they do develop a good sense as to who is likely to be the best prospect. You're also likely to find more buyers like #1 but not as many #2s about, so that would also be my choice.

Snookie12cat

I would go with number 2. He viewed it the first time and still wants it so he has thought it through. Less likely to drop out. 
The FTB seems but bothered they probably are not.

khickey88

Cheers peeps sort confirmed my feeling 

eidand

number 2 for me, as well

khickey88

Spoke to both agents mine and our buyers and both agree number 2 the cash buyer is the right move and has proof of money BUT had a spanner thrown in the works as someone came in viewed the house tonight looks very interested then offered 230k 1st time buyers. So it now down to either number 2 or number 3. Surely the 230k offer will get down valued by the mortgage lender. 

Snookie12cat

khickey88 said:

Spoke to both agents mine and our buyers and both agree number 2 the cash buyer is the right move and has proof of money BUT had a spanner thrown in the works as someone came in viewed the house tonight looks very interested then offered 230k 1st time buyers. So it now down to either number 2 or number 3. Surely the 230k offer will get down valued by the mortgage lender. 

Number 2 isn't a cash buyer though, he has something to sell - he just doesn't need a mortgage..£30k is a lot to turn your nose up at on the off chance the surveyor down values it. Do they have a good deposit and an AIP for a mainstream lender? 
Hard decision but I would potentially steer toward the additional money if the checks work out.

khickey88

My next question to my agent was going to be find out what sort of deposit they have and maybe even be blunt with them and ask them what they would do in if that situation happened.
 The offer is  a lot of money over what the house is worth probably 30k more

Noneforit999

khickey88 said:

Spoke to both agents mine and our buyers and both agree number 2 the cash buyer is the right move and has proof of money BUT had a spanner thrown in the works as someone came in viewed the house tonight looks very interested then offered 230k 1st time buyers. So it now down to either number 2 or number 3. Surely the 230k offer will get down valued by the mortgage lender. 

Ok well that changes things and its not so clear cut anymore, that is an extra £30k potentially.

I would get the EA to check the status of that buyer, do they have a DIP and what is their LTV.

A down valuation might not occur but if it does, you will either need to drop the price of the house, ask the buyer to make up the difference (unlikely if they already have a low LTV) or relist.

Down valuations are more common these days with people offering well over asking, ours was recently down valued by £10k but the buyer offered £30k over what we were expecting so I wasn't surprised and they are going to make up the difference. Their lender did not instruct the valuation for 7 weeks after I accepted their offer so you could be fairly far into conveyancing before a down valuation becomes a factor and you waste weeks/months and have to relist anyway. 

Deedoodee

Noneforit999 said:

I would get the EA to check the status of that buyer, do they have a DIP and what is their LTV.

A down valuation might not occur but if it does, you will either need to drop the price of the house, ask the buyer to make up the difference (unlikely if they already have a low LTV) or relist.

Down valuations are more common these days with people offering well over asking, ours was recently down valued by £10k but the buyer offered £30k over what we were expecting so I wasn't surprised and they are going to make up the difference. Their lender did not instruct the valuation for 7 weeks after I accepted their offer so you could be fairly far into conveyancing before a down valuation becomes a factor and you waste weeks/months and have to relist anyway. 

A surveyor told me that banks are looking out for their own interests (ie how much they lend you), so if your LTV is sufficiently low, a downvalue won’t happen/ is unlikely. Eg if you’re buying a house that’s worth 200k for 230k but only borrowing 50k from the lender, whether it’s true value is 200 or 230 doesn’t matter to the lender because they only need to recoup 50k+ costs of repossession and sale is it all goes south. 

khickey88

I'll be taking to my agent but basically unless they 230k offer has a large deposit I won't even consider.
Imagine tell people I turned down 30k more for my house.