Lost out on my dream home to a cash buyer

Thrugelmir

Cash buyers aren't really any different to those that require mortgages. Still people, and people aren't always what they seem. 

MaryNB

[Deleted User] said:

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.

They can't get a mortgage offer before the valuation because the offer is dependent on the valuation. 

lookstraightahead

It's because cash buyers often don't require valuations, or surveys, and lots of sellers are wanting to sell for more than the house is worth (although it could be anything).

When  things settle down in the market your FTB status will be much more valuable as you have no chain. 

Not to raise your hopes but it might come back on the market again, as cash buyers are also quite savvy generally and won't want to pay over once things do settle down.

in the mean time, stay positive, the market isn't always like this and you will have your chance. Keep looking! 

Thrugelmir

lookstraightahead said:

It's because cash buyers often don't require valuations, or surveys, and lots of sellers are wanting to sell for more than the house is worth (although it could be anything).

Generally speaking anybody that doesn't have a survey for such an expensive purchase is foolish. Dream looking homes can hide a multude of sins. Been there myself in the past. 

MysteryMe

I'm not sure it's because of you being a FTB but more that you appear to be indecisive. If you've been looking for a few years, even speculatively surely by now you have a good idea as to what you want and where you want it? If you see a house that meets all or nearly all of your criteria including affordability, do you really need a second viewing?

You should have by now become attuned to what to look out for. Obvious potential issues such as a damp smell, rotting window frames, slipped roof tiles, the condition of kitchen / bathroom / heating system, how well neighbouring properties are kept and the feel of the general area. A survey will pick up any red flags. You are not committed until you exchange.

Obviously it's not a good idea to just make offers on properties on a whim but there does come a time when you have to do what millions of first time buyers have done before you, and every homeowner was a first time buyer once, and actually make the decision to buy and go with it.

pinkteapot

You can’t have a mortgage offer because it’s made for that specific property after the valuation survey. 

So, for starters, stop telling agents you’ve got the offer because they immediately know you don’t understand the house purchase process 

Thrugelmir

MysteryMe said:

do you really need a second viewing?

You notice far more on subsequent vists to the property.  Why rush an expensive purchase? People that view for 10 minutes then offer are often the ones to mess you about subsequently. 

[Deleted User]

MaryNB said:

[Deleted User] said:

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.

They can't get a mortgage offer before the valuation because the offer is dependent on the valuation. 

We know what it means. Offer in principle, pending survey on the house.

That's a major reason why cash buyers are preferred. Many of them intend to refurb too so are less fussy about issues.

MaryNB

[Deleted User] said:

MaryNB said:

[Deleted User] said:

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.

They can't get a mortgage offer before the valuation because the offer is dependent on the valuation. 

We know what it means. Offer in principle, pending survey on the house.

That's a major reason why cash buyers are preferred. Many of them intend to refurb too so are less fussy about issues.

OP specifically stated it was a mortgage offer, not just an AIP. 

caprikid1

"Sadly yes, cash buyers always win over FTBs."

Not always, cash buyers can be viewed negatively by some agents and sellers, they have low levels of investment and commitment into the property as they potentially have less fee's etc to lose. They also are more likely to try and chip the price prior to exchange as they have less to lose and often less emotionally involved.