Which buyer to go for dilemma??

lookstraightahead

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.

They don't have any hard funds. They are possibly in the worst position of all offers.  

Greymug

To me 3k is not a big enough difference to justify the risky and lengthy process of a mortgage application.

When I sold the flat I did have a cash buyer, but their offer was almost 10k lower than the highest offer from a first time buyer with agreement in principle. To me, that kind of money was worth the wait but for 3k less I wouldn't think twice.

babyblade41

my recent purchase my straight cash buyer pulled out a day before exchange, second in line  was a  couple with a hefty mortgage ..

Cash buyer waited 12 weeks to pull out, mortgage couple although irritating all done in about 7 weeks  

Noneforit999

Slinky said:

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

This, they are not a true cash buyer really if their funds are reliant on a sale which hasn't happened yet.

I would be wanting more specifics on them first, such as who is buying their house to ensure you are not entering into a big chain below them.

The £265k people seem a low risk too. If they have has a mortgage previously and with a 75% LTV, they have enough money to make up any down valuation, although they might not be prepared to.

There are risks either way really so you just have to make a call. 

Thrugelmir

What has the EA said?  

Gavin83

I'd go with the £265k couple personally. Nothing to go wrong with a chain below and they can easily cope with a down valuation. I think cash buyers are more trouble than they're worth a lot of the time so I wouldn't necessarily consider this an advantage.

The note is nice but I certainly wouldn't let it influence my decision. It's ultimately a business transaction after all.

lookstraightahead

Remember that those who can manage any down valuation might not want to pay the difference. Going for the highest buyer just because they have a lower LTV doesn't mean they want to throw their money away and lose a lower interest rate. 

movilogo

A chain free buyer is safer bet. Cash buyer in a chain = uncertainty.

I am intrigued why the EA didn't put the sale price as £275k instead of £250k.

newsgroupmonkey_

Slinky said:

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

This was my thoughts. This isn't a cash buyer. A cash buyer is someone who has already sold, cash in the bank, ready to rock and roll.

So actually, their chain (and there is one) could entirely fall apart. A surveyor could pick up subsidence or non-standard build or something. Whereas the FTB with their decent enough deposit (and emotional attachment) will continue, even if it gets slightly downvalued.

What I would say to the FTB is that if it does get downvalued, you're not negotiating the price - put it up front and see if their price sticks. Clearly, it's not binding, but you've planted that seed in their head.

markin

Too many developers and BTL buyers will use the note and sob story to get the house, so don't let that sway you.