Which buyer to go for dilemma??

[Deleted User]

bambi1980_2 said:

Well we put our house up for sale last Thursday for £250k and were inundated with requests for viewing. We had 15 viewers, 3 of which offered asking price and one slightly over. It went to best and final offers and the result is, £255, £258,555, £262 and £265.

From the top two offers;

The £262 couple are cash buyers from the sale of their own property. 10th June has been agreed by their parties for sale of their house although contracts have not yet been  exchanged. They can move in with family once their sale completes.

The £265 couple are living in rented after selling their property and with finance with 25% deposit and 75% mortgage. They have a DIP in place. They have paid 6 months advance on their rent up to October. There is always the issue that their full mortgage application won't be successful or the mortgage valuation may be lower.

We are unsure whether to take a chance that there won't be a lower mortgage valuation or go with guaranteed cash buyer. 

We also feel bad as the £265 couple are in love with our house and posted a lovely note through saying how much they loved it and wanted to bring up their kids there.

What do people advice? Is is common for the valuation to be lower?

Thanks in advance

£265k for me. Not because of the higher offer but because they seem to have some skin in the game that they love it that much and the emotional does play a part. Whenever we have moved and had to try and pull chains back together when something has broken down, it's really helped when people are emotionally invested because they are less likely to think 'oh there will be another house, that one's a bit cheaper' etc. They have thought about it as their family home, moved their furniture in mentally, considering schools etc. They are still in a great position - good deposit and in rented. 

Slithery

bambi1980_2 said:

It went to best and final offers and the result is, £255, £258,555, £262 and £265.

Surely you go for the £258,555.

It's 1000x more than the other offers...

TheJP

nicknameless said:

Instead of assuming why not ask the mortgage folk if they would make up the difference should lender valuation not match the 265?

Cash buyers are not a certainty.  We are mortgage buyers who just stepped into a sale where a cash buyer changed their minds.

Why bother when you have a cash buyer at £3k under? Its a no brainer for me here. Skip the potential set backs and go with the party that have proof of hard funds.

TheJP

lesalanos said:

265 every time.  They have 25% deposit so even if down valued and they have no spare £ they could drop to 20% deposit 

A lot can happen in 5 months though, the higher offer isn't going to complete before their rental is up (6 months paid up front). Can the OP and their onward sale wait that long?

twoLou

You haven’t said what your position is. For example do you need to move quickly and/or have a complete chain ahead of you? 

If you need time to find somewhere then maybe a cash buyer isn’t the answer as despite saying they’ll move in with family people say all sorts of things and they may decide they want you to get a move on.The same with the note through the door tbh, as someone else said it’s a business transaction and I’ve seen people advised to do that with a note several times on these very boards, who knows if the sentiment is true or not?

Unfortunately I’ve discovered over the years and none more so than with my current move that people will say anything. I now don’t trust what anyone says so I apologise for sounding so cynical.

The very best of luck with your move.

pipscat

We went with the cash buyer (who loved our house) and she pulled out after a few weeks and a change of heart!

Luckily we had a few offers on our house so could go back to the other offers and found a FTB who also offered at the same amount via a mortgage! We were also worried about the valuation on our house - but it went through ok and his application was approved. 

Hope it all goes ok! 

nicknameless

TheJP said:

nicknameless said:

Instead of assuming why not ask the mortgage folk if they would make up the difference should lender valuation not match the 265?

Cash buyers are not a certainty.  We are mortgage buyers who just stepped into a sale where a cash buyer changed their minds.

Why bother when you have a cash buyer at £3k under? Its a no brainer for me here. Skip the potential set backs and go with the party that have proof of hard funds.

An agent told me recently that 50% of their cash buyers were not completing atm vs a much lower % for mortgage buyers.  One agent, one conversation - but the cash buyer is no certainty.

lesalanos

TheJP said:

lesalanos said:

265 every time.  They have 25% deposit so even if down valued and they have no spare £ they could drop to 20% deposit 

A lot can happen in 5 months though, the higher offer isn't going to complete before their rental is up (6 months paid up front). Can the OP and their onward sale wait that long?

Nothing to stop them moving out/completing before the 6 months are up, it's paid for already and most of that time will be the sales time anyway. 

Slinky

TheJP said:

nicknameless said:

Instead of assuming why not ask the mortgage folk if they would make up the difference should lender valuation not match the 265?

Cash buyers are not a certainty.  We are mortgage buyers who just stepped into a sale where a cash buyer changed their minds.

Why bother when you have a cash buyer at £3k under? Its a no brainer for me here. Skip the potential set backs and go with the party that have proof of hard funds.

But they aren't a true cash buyer are they. They're waiting on funds being released from the sale of their current home where they haven't yet exchanged contracts. There's also the possibility of the unknown chain behind that purchase falling apart somewhere

lookstraightahead

Out of interest, what about the lower two? The two higher ones still have risks attached - out of the two I would go for the higher one as they are chain free (your other one hasn't even exchanged yet)