Chain free, cash buyer - what is it worth?

BigCoffeeMonster

Hi everyone,

As a chain free, cash buyer, would you offer below asking price on a property? If so, is there a rule for what's a fair % to offer below asking without insulting anyone? 

Thanks in advance for your thoughts.

caprikid1

Nothing, cash buyers find it easier to chip at the last moment, potentially less invested due to less effort to achieve finance. 

Some may view otherwise but family vs a cash investor at the same price , family gets it all day long.

Just my opinion, if you are buying from an investor he may think differently.

Flugelhorn

I have bought 3 as chain free cash buyer and TBH it only  made a (difference in one instance where I got about 10% off the price (which was overcooked anyway) but the others it made no difference as I was not the only one in that situation

Hoenir

Other than a potential saving of a few weeks in time. What else are you offering to the vendor.  Less money isn't an attraction in itself. 

caprikid1

As a cash buyer previously , I was once told by an agent, if you expect cash to make a difference to the price you need to buy at auction where it is more restrictive for those on finance.

sheramber

The seller may have a minimum they can accept for thier omgoing purchase.

If it was someone who needed a quick sale it may be an advantage.

BarelySentientAI

Nothing.  Your position doesn't make a difference to the value of the property.

It might make yours the more attractive of several similar offers, but you're not in the power position you might expect.

FlorayG

It depends on the property. I got a substantial reduction (£19,000) because two previous would-be purchasers were refused a mortgage and the property was empty and had been on the market almost a year and starting to look unkempt. The problem that caused this refusal doesn't bother me, I'll be dead before it's an issue. They wanted a sale, I had cash

annetheman

I think the answer is: it depends!

My dad - cash buyer, no chain
For this £325k house in Surrey, my dad offered £310k in March. He is a cash buyer (house has been sold in January to a developer who is demolishing it to build some flats; mortgage fully paid years ago, so he is allowed to stay for an indefinite period until he finds a house - they are also helping him with moving costs, stamp duty, disturbance lump sum etc but no time frame demanded).

The offer was declined, a counter of £319k given, probably due to Zoopla valuation.

It's still on the market, like many houses where the seller is reluctant to concede to the market ebb...

Me - mortgaged buyer, chain
For this £375k house in London, I offered £365k and it was accepted in January (I have a shared ownership leasehold to sell, so it took far longer than a normal sale because of additionals such as waiting aimlessly for the 6-week exclusive nomination to lapse, etc). Timelines didn't work for the seller so it collapsed, but they had other offers and accepted mine after I got my mortgage in record time (3 days from full app to offer).

I'm now buying another house approx £25k under asking, where the competing offer was a cash buyer investor - EA said they kept chipping away the offer price for small things and so went with me because I was "straightforward" and honest. 

So I guess it really does depend, in my limited experience...

35har1old

Hoenir said:

Other than a potential saving of a few weeks in time. What else are you offering to the vendor.  Less money isn't an attraction in itself. 

Sold to a cash buyer but had second cash buyer was agreed within in a week for asking price no survey carried out but once solicitor's got involved it took a further 18 weeks to complete.

lfc321

On most houses, it would make no difference to the price. It is amazing how many 'cash buyers, no chain' later turn out to be more complicated than originally described.
It will mean that you have an advantage on properties that, for whatever reason, are difficult to get a mortgage on (e.g. some kinds of non-standard construction). But then you'll face the same issue when you come to sell, so probably not a huge advantage in the long run....