Lost out on my dream home to a cash buyer

FTB0212

Hi there

I know I won't be the first to feel disappointment at my offer being rejected on a property. And I've read advice from lots of people that say no house is perfect, etc. But I found one that I really felt like for me was perfect. I have been looking (curiously and seriously) for years and had nothing but disappointment so far. 

It seems like any nice property in my area is just being taken by cash buyers. Are they really that much better than a FTB? I already have my mortgage offer (not just AIP).

I have heard cash buyer as a reason my offer has been rejected 3 times now, each on desirable properties. But I have a suspicion that not all these cash buyers are legit, because in this most recent example the agent really wanted to deter me from increasing/making an offer which would only make sense if they really wanted the buyer to not be swayed by any offer other than this supposed "cash offer". But that isn't normal agent behaviour which makes me wonder what estate agents do if someone they know wants the property, or even if they themselves want it... Something just didn't seem right with how quickly it came to the market, the interest they were trying to drum up to go to best and final, and then all of a sudden I am being called the next day after my 1st viewing (had a 2nd booked) that it was off the market now with an offer accepted when they said viewings would be honoured.

I'm just feeling very disappointed, fed up, and concerned that properties that are within my price range now I still have no chance of getting because I didn't seem to have a chance on this one. If any one has any advice for someone whose lost out on a property where it felt like it was definitely in your reach and you loved it, would be great to hear from you about your experience and any advice you have.

[Deleted User]

We can only speculate at best. Most likely the highest offer will be accepted, on other occasions vendors may be less keen on a FTB, or might prefer the concept of a cash buyer. They may tell you the truth about your unsuccessful offers or provide a more palatable explanation. 

If you have been looking for years, and have had only 3 offers, then you have to accept the consequences of what sounds like a very slow and selective approach.

MaryNB

FTB0212 said:

Hi there

I know I won't be the first to feel disappointment at my offer being rejected on a property. And I've read advice from lots of people that say no house is perfect, etc. But I found one that I really felt like for me was perfect. I have been looking (curiously and seriously) for years and had nothing but disappointment so far. 

It seems like any nice property in my area is just being taken by cash buyers. Are they really that much better than a FTB? I already have my mortgage offer (not just AIP).

I have heard cash buyer as a reason my offer has been rejected 3 times now, each on desirable properties. But I have a suspicion that not all these cash buyers are legit, because in this most recent example the agent really wanted to deter me from increasing/making an offer which would only make sense if they really wanted the buyer to not be swayed by any offer other than this supposed "cash offer". But that isn't normal agent behaviour which makes me wonder what estate agents do if someone they know wants the property, or even if they themselves want it... Something just didn't seem right with how quickly it came to the market, the interest they were trying to drum up to go to best and final, and then all of a sudden I am being called the next day after my 1st viewing (had a 2nd booked) that it was off the market now with an offer accepted when they said viewings would be honoured.

I'm just feeling very disappointed, fed up, and concerned that properties that are within my price range now I still have no chance of getting because I didn't seem to have a chance on this one. If any one has any advice for someone whose lost out on a property where it felt like it was definitely in your reach and you loved it, would be great to hear from you about your experience and any advice you have.

How did you get a mortgage offer without an offer accepted on a property? That's not how things work. You shouldn't be applying for mortgages on properties that sellers aren't willing to sell to you.

What you're describing is what so many people in the country are going through. It's a very difficult time for buyers and where I live many properties are going SSTC for well over asking withing a few days. For many properties viewings are booked out before the listing is even published. 

GentleGiant01

How did you get a mortgage offer before having an offer accepted? If you’re applying for a mortgage before placing an offer that’s why you’re missing out - this isn’t how you should be doing it. The searches won’t be healthy for your report 

Thrugelmir

Desirable properties will always attract a lot of interest. Cash buyers can afford to go that little bit higher to secure the property. There are only so many cash buyers though. Like buses. Another property will come along shortly. Keep proactively looking and engaging with EA's, then you'll find one. 

comeandgo

There are some people, me included, who would prefer not to sell to FTB, especially when houses are selling for more than they are valued at by mortgage companies.

Ramouth

We sold to first time buyers but would have chosen a cash buyer if the made the same offer.  

I would say the only thing you can do is to outbid the cash buyer.  However, if the agent has an inkling that the price is a touch high, they may not suggest you do this because of the risk of devaluation by the mortgage valuer and the sale falling through.

All you can do is keep trying and perhaps try to be a little more flexible with your criteria.  I know you don’t want to hear this but there will be other houses you love or that you can change to make them like the ones you love.

anselld

There is not always a logical reason.  The only thing I would say is that booking two viewings up front is a very FTBish thing to do.  Try to get an early viewing, see what you need and make a quick decision.  You can still do research, etc, but you will not make a better decision in three days to what you can make in three hours.

Flugelhorn

I have been a cash buyer on the last 3 occasions - yes we are a better deal than a FTB, didn't  get surveys (2 leasehold flats, one modern property and a lot of experience), no other interested party involved, just a case of getting the money from A to B.

Doozergirl

Viewings might be honoured but why did you need a second one before offering if you already believed it was perfect? 

You're not really doing yourself any favours by waiting. 

[Deleted User]

Sadly yes, cash buyers always win over FTBs.

Even if you have a mortgage in place, your bank will still want to survey the house and might value it differently (especially in these insane times). Plus there is prejudice against FTBs due to perceived lack of experience.