Lost out on my dream home to a cash buyer

youth_leader

I came on here for help when I was buying a house on my own for the first time, and this book and website were recommended, I found it very useful.  I've now sent the book to my daughter, who hopes to buy her first house later this year. 

Home • Help me, I'm buying a house (helpmeimbuyingahouse.co.uk

lookstraightahead

user1977 said:

lookstraightahead said:

Slithery said:

lookstraightahead said:

Thrugelmir said:

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. 

I absolutely agree 

Not necessary foolish at all.

I've bought properties for cash before without searches or surveys because I lived in the area and knew what I was looking at.

How much more money-saving can you get?

Wow really how do you know everything about the house without any surveys and searches?

I've bought a house 200 years old this year with a very small mortgage so the lenders weren't that bothered, but it was really useful to have a structural engineers report to hand as I'm no expert. Will save us loads of money down the line with lots of things, and the order to do things in.

A survey on a 200 year old house is fair enough - but what did the searches tell you that was news to you, and/or couldn't have been figured out from other sources? Things like planning applications are freely available on the council's website. If you already know the area then you'll know that e.g. HS2 isn't about to be built through the back garden, you don't need to wait weeks/months for somebody else to reassure you.

Planning applications that are readily available on the council website don't necessarily go back very far.

I know you can check out a lot of things yourself (I'm glad i checked my deeds as half the garden belonged to the people who updated the property and it had to be transferred), but having a structural engineers report was really useful together with the survey. I'm not a structural engineer or a chartered surveyor and although lots of what they say can be figured out by jo public, some things require their skills. 

I think the biggest part is educating yourself to work out what is important from the reports. They scare people sometimes when it's not necessary. But one bit of valuable info can save you thousands. 

I also think if you do want to plan upgrades it's useful to know if there is anything that needs doing before you do it. We're still using our reports for on going work.

I also learned all about damp from the mention of it in the cellar in the survey. And actually how it's not a problem, or at least not a big problem. The survey probably stopped me getting so called "damp specialists" out.

Having the reports enabled me to ask sensible and sometimes silly questions on here, and from that you glean all kinds of info.

lookstraightahead

youth_leader said:

I came on here for help when I was buying a house on my own for the first time, and this book and website were recommended, I found it very useful.  I've now sent the book to my daughter, who hopes to buy her first house later this year. 

Home • Help me, I'm buying a house (helpmeimbuyingahouse.co.uk

This looks great. Being prepared even before viewing is great.

Be as equipped as possible. 

user1977

lookstraightahead said:

user1977 said:

lookstraightahead said:

Slithery said:

lookstraightahead said:

Thrugelmir said:

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. 

I absolutely agree 

Not necessary foolish at all.

I've bought properties for cash before without searches or surveys because I lived in the area and knew what I was looking at.

How much more money-saving can you get?

Wow really how do you know everything about the house without any surveys and searches?

I've bought a house 200 years old this year with a very small mortgage so the lenders weren't that bothered, but it was really useful to have a structural engineers report to hand as I'm no expert. Will save us loads of money down the line with lots of things, and the order to do things in.

A survey on a 200 year old house is fair enough - but what did the searches tell you that was news to you, and/or couldn't have been figured out from other sources? Things like planning applications are freely available on the council's website. If you already know the area then you'll know that e.g. HS2 isn't about to be built through the back garden, you don't need to wait weeks/months for somebody else to reassure you.

Planning applications that are readily available on the council website don't necessarily go back very far.

They go back far enough for you to be aware about any potential developments for which there are live consents or applications - which is the point of the search really.

Spiderroo

The same has happened to us, our dream home went to a cash buyer for ‘significantly more’ than all the other offers at best and final. It’s gutting and it does make me feel like we’ll never get anywhere, I’m quite disillusioned and this was only our fifth offer. 

I can see why the buyer chose that offer though, not only was it the highest offer but it was so high you’d never get it past a mortgage provider. It’s about £100k over the last similar sale on the street (2020) and £40/£50k over similar sales on surrounding streets. One of our biggest worries is being undervalued, it’s really common where we are because the market is so spicy, Hopefully losing out to this cash buyer will make it easier to get a mortgage if we’re successful offering on other places in the neighbourhood! 

lookstraightahead

Spiderroo said:

The same has happened to us, our dream home went to a cash buyer for ‘significantly more’ than all the other offers at best and final. It’s gutting and it does make me feel like we’ll never get anywhere, I’m quite disillusioned and this was only our fifth offer. 

I can see why the buyer chose that offer though, not only was it the highest offer but it was so high you’d never get it past a mortgage provider. It’s about £100k over the last similar sale on the street (2020) and £40/£50k over similar sales on surrounding streets. One of our biggest worries is being undervalued, it’s really common where we are because the market is so spicy, Hopefully losing out to this cash buyer will make it easier to get a mortgage if we’re successful offering on other places in the neighbourhood! 

Don't think of it as undervalued, think of it as the correct value for the risk the lender is willing to take. That's how everyone should buy their home, cash buyer or not. 

Lots of cash buyers pull out or try to negotiate further down the line.