When being a cash buyer isn't all it's cracked up to be....

merlinthehappypig

We made an offer on a house last week. It was on at £365000, had been for 8 months and we offered £310000 cash, assuming that, in this market, that would give us an advantage when it came to negotiating.

They said no and told the agent they would take £355000. We told the agent that was too much and carried on looking at others.

The agent rang us today, on behalf of the sellers, to see if we were going to buy the house. I said no and explained that we felt that £355000 was too high compared with others we had seen.

They said o.k. and that they would get back to the sellers.

Half an hour later we get another call from the agents. The sellers are apparently a bit niffed that we want them to reduce the price further.

They don't see why they should have to because "if we can afford a cash offer of £310000 then we wouldn't have any problem paying the full asking price - even if we have to take out a mortgage it won't be much"

Someone is missing the point here I think.:rotfl:

obsessed_saver

Yup, obviously. At this point, you can probably to take out a mortgage of another £930,000 and pay them £1,240,000 for it. Since you can put down a 25% deposit. :P

MarkyMarkD

I think, OP, that you are missing the point.

It's fair enough to make a cheeky offer way below the asking price.

But if the seller comes down £10k, it's your turn to make a more sensible offer, not to tell them to reduce their price further.

mr.broderick

merlinthehappypig wrote: »

We made an offer on a house last week. It was on at £365000, had been for 8 months and we offered £310000 cash, assuming that, in this market, that would give us an advantage when it came to negotiating.

They said no and told the agent they would take £355000. We told the agent that was too much and carried on looking at others.

The agent rang us today, on behalf of the sellers, to see if we were going to buy the house. I said no and explained that we felt that £355000 was too high compared with others we had seen.

They said o.k. and that they would get back to the sellers.

Half an hour later we get another call from the agents. The sellers are apparently a bit niffed that we want them to reduce the price further.

They don't see why they should have to because "if we can afford a cash offer of £310000 then we wouldn't have any problem paying the full asking price - even if we have to take out a mortgage it won't be much"

Someone is missing the point here I think.:rotfl:

Wow the saga continues (continues continues).....

m00m00

I think merlin you are going to need a probate seller or a highly motivated seller to see sense in the market at the moment

too many people have blinkers on and think the current situation is a temporary blip

why should the OP make a 'more sensible offer' the offer he has made is very sensible in the current market.

tr3mor

MarkyMarkD wrote: »

I think, OP, that you are missing the point.

It's fair enough to make a cheeky offer way below the asking price.

But if the seller comes down £10k, it's your turn to make a more sensible offer, not to tell them to reduce their price further.

Yep. That's the timid British way of haggling.

Offer them £280k and tell them you'll still be around in 6 months!

:money:

PasturesNew

£355k. 10% down that'd be:

over £2000 per month every month to repay that at 6%... Jesus... don't break a leg!
http://www.tigertom.co.uk/ttcalc/mortgage.php?loan=355000&downpayment_percent=10&year=25&interest_rate=6&currency=%A3&amortization=on&periodicity=12&action=Calculate

So it would end up costing: £617,562.89

MarkyMarkD

tr3mor wrote: »

Yep. That's the timid British way of haggling.

Offer them £280k and tell them you'll still be around in 6 months!

:money:

If the OP wants to simply refuse to pay more, that's their prerogative. But the seller hasn't reduced their price in 8 months, so they probably aren't willing to take a silly offer.

PasturesNew

I'd tell the agent that the reason I am a cash buyer is .... I am unmortgageable. They can't argue the toss if you say that.

Let them know that's it. The pot's empty ... no more money where that's come from.

Oliveru

MarkyMarkD wrote: »

If the OP wants to simply refuse to pay more, that's their prerogative. But the seller hasn't reduced their price in 8 months, so they probably aren't willing to take a silly offer.

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WTF?_2

Don't worry. Just keep renting, watch your cash pile grow and prices decline. Slowly at first, then faster as the reality (and panic) set in.

You are in a great position, just a little more patience..... :cool: