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  • FIRST POST
    • lookstraightahead
    • By lookstraightahead 11th Mar 18, 9:06 AM
    • 246Posts
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    lookstraightahead
    How valuable is no chain?
    • #1
    • 11th Mar 18, 9:06 AM
    How valuable is no chain? 11th Mar 18 at 9:06 AM
    How much bargaining power do you think buyers with no chain have in this present climate ?
Page 1
    • cooltt
    • By cooltt 11th Mar 18, 9:13 AM
    • 586 Posts
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    cooltt
    • #2
    • 11th Mar 18, 9:13 AM
    • #2
    • 11th Mar 18, 9:13 AM
    If I were buying a house it's one of the things that would prevent me putting in an offer. Chains are a nightmare, it's a very valuable bargaining chip regardless of climate.
    • csgohan4
    • By csgohan4 11th Mar 18, 9:15 AM
    • 4,541 Posts
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    csgohan4
    • #3
    • 11th Mar 18, 9:15 AM
    • #3
    • 11th Mar 18, 9:15 AM
    It depends on how true it is, plenty of buyers say they don't have a chain and it transpires they do when they can't exchange/complete on a specific date
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • AnotherJoe
    • By AnotherJoe 11th Mar 18, 9:24 AM
    • 9,605 Posts
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    AnotherJoe
    • #4
    • 11th Mar 18, 9:24 AM
    • #4
    • 11th Mar 18, 9:24 AM
    It depends on the circumstances and psychology of of the seller.
    If they haven't yet found a house to go to they may look negatively upon a cash buyer* thinking they may be less invested in the purchase than someone witha chain and may arbitrarily pull out or gazunder last minute. Or they may fear they will apply a lot of pressure for a quick completion.
    If they have a long chain above them they may deem it irrelevant to have one less step in the chain.
    If they desperately need every penny of their sale price the lower price a cash buyer may expect will be of no interest to them.
    If they really need their sale to complete they may be very happy to take a lower price for a quicker or less complex sale.

    * I'm assuming no chain = cash buyer but it may simply mean no house to sell but still need a mortgage which then from the sellers POV may still involve hassle and delays.
    • lookstraightahead
    • By lookstraightahead 11th Mar 18, 10:06 AM
    • 246 Posts
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    lookstraightahead
    • #5
    • 11th Mar 18, 10:06 AM
    • #5
    • 11th Mar 18, 10:06 AM
    I remember years and years ago putting in the asking price for a property but the sellers took so long trying to find a property we pulled out.
    • eddddy
    • By eddddy 11th Mar 18, 10:31 AM
    • 6,483 Posts
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    eddddy
    • #6
    • 11th Mar 18, 10:31 AM
    • #6
    • 11th Mar 18, 10:31 AM
    How much bargaining power do you think buyers with no chain have in this present climate ?
    Originally posted by lookstraightahead
    Do you mean... can buyers with no chain below them get away with offering less than buyers with a chain below them?

    Generally, I doubt it. Most sellers will be more interested in the amount offered.

    For example, if somebody with no chain below offered 240k and somebody with a complete chain below offered 250k - I think the vast majority of sellers would take the 250k.


    Maybe if they both offered 250k, the lack of chain might make a difference.
    • PokerPlayer111
    • By PokerPlayer111 11th Mar 18, 11:34 AM
    • 252 Posts
    • 88 Thanks
    PokerPlayer111
    • #7
    • 11th Mar 18, 11:34 AM
    • #7
    • 11th Mar 18, 11:34 AM
    Do you mean... can buyers with no chain below them get away with offering less than buyers with a chain below them?

    Generally, I doubt it. Most sellers will be more interested in the amount offered.

    For example, if somebody with no chain below offered 240k and somebody with a complete chain below offered 250k - I think the vast majority of sellers would take the 250k.


    Maybe if they both offered 250k, the lack of chain might make a difference.
    Originally posted by eddddy
    Both offering 250k the cash buyer will win all day long unless exceptional circumstances. 1 estate agent told me they value cash buyer @ around 2.5% greater on average when i pushed them for a exact figure - thats the average though please consider all situations are different. Bare in mind the estate agent at the time was trying to talk my offer up and devalue my cash buying position as much as possible so for them to admit 2.5% was a result, might be higher % on average.
    • G_M
    • By G_M 11th Mar 18, 11:39 AM
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    G_M
    • #8
    • 11th Mar 18, 11:39 AM
    • #8
    • 11th Mar 18, 11:39 AM
    'value' in terms?

    Very little if any.

    'value' in terms of appeal?

    A buyer (or seller) with no chain below (or above) will appeal to the other party more than one with a chain.
    • victoriavictorious
    • By victoriavictorious 11th Mar 18, 11:42 AM
    • 287 Posts
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    victoriavictorious
    • #9
    • 11th Mar 18, 11:42 AM
    • #9
    • 11th Mar 18, 11:42 AM
    The term "cash buyer" seems to be interpreted in different ways by different people.
    I take it to mean just a buyer not requiring a mortgage (but possibly may have a dependent sale), whereas others may interpret it as a buyer who does not require a mortgage AND is chain free with no dependent sale.
    Not sure which is the correct one.
    • AnotherJoe
    • By AnotherJoe 11th Mar 18, 11:44 AM
    • 9,605 Posts
    • 10,683 Thanks
    AnotherJoe
    Both offering 250k the cash buyer will win all day long unless exceptional circumstances. 1 estate agent told me they value cash buyer @ around 2.5% greater on average when i pushed them for a exact figure - thats the average though please consider all situations are different. Bare in mind the estate agent at the time was trying to talk my offer up and devalue my cash buying position as much as possible so for them to admit 2.5% was a result, might be higher % on average.
    Originally posted by PokerPlayer111
    I disagree. I've seen several posts in here from sellers who were dubious about a cash buyer since they thought they would be less committed than someone else who had expenses like mortgages and surveys,a nd also were worried they might try a last minute gazunder with little to lose since they didn't have a house sale to worry about.
    • PokerPlayer111
    • By PokerPlayer111 11th Mar 18, 11:55 AM
    • 252 Posts
    • 88 Thanks
    PokerPlayer111
    I disagree. I've seen several posts in here from sellers who were dubious about a cash buyer since they thought they would be less committed than someone else who had expenses like mortgages and surveys,a nd also were worried they might try a last minute gazunder with little to lose since they didn't have a house sale to worry about.
    Originally posted by AnotherJoe
    ok maybe not all day long then on average though cash buyer wins.
    • G_M
    • By G_M 11th Mar 18, 11:55 AM
    • 44,415 Posts
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    G_M
    'cash buyer' means whatever the speaker intends it to mean, so unless you ask you may misunderstand.

    I am 110% sure that is the case (though note, I am not 120% sure, so I may be wrong).
    • eddddy
    • By eddddy 11th Mar 18, 12:03 PM
    • 6,483 Posts
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    eddddy
    Both offering 250k the cash buyer will win all day long unless exceptional circumstances. 1 estate agent told me they value cash buyer @ around 2.5% greater on average when i pushed them for a exact figure - thats the average though please consider all situations are different. Bare in mind the estate agent at the time was trying to talk my offer up and devalue my cash buying position as much as possible so for them to admit 2.5% was a result, might be higher % on average.
    Originally posted by PokerPlayer111
    I think that might just be an EA making stuff up to try to make you offer more.

    It's the vendor that decides what offer to accept - and, as above, I'm not sure that all/many would 'throw away' a few thousand pounds by accepting a lower offer from a cash buyer.
    • PokerPlayer111
    • By PokerPlayer111 11th Mar 18, 12:04 PM
    • 252 Posts
    • 88 Thanks
    PokerPlayer111
    Person with nothing to sell who can exchange at sellers convenience + has money sat waiting + give seller no reason to doubt their commitment is the best type of buyer and will beat any other type of buyer alll day long.

    Seller can even ask for a holding deposit if they want a token of financial commitment.

    ^ is that fair ?

    No way any other type of buyer beats that unless exceptional circumstances + this position does has to have some value objectively - whether is does practically in many circumstances is dependant on situation.
    • PokerPlayer111
    • By PokerPlayer111 11th Mar 18, 12:10 PM
    • 252 Posts
    • 88 Thanks
    PokerPlayer111
    I think that might just be an EA making stuff up to try to make you offer more.

    It's the vendor that decides what offer to accept - and, as above, I'm not sure that all/many would 'throw away' a few thousand pounds by accepting a lower offer from a cash buyer.
    Originally posted by eddddy
    Maybe they were making up stuff, dont know for sure. But has to have some extra value on average.
    • AnotherJoe
    • By AnotherJoe 11th Mar 18, 12:34 PM
    • 9,605 Posts
    • 10,683 Thanks
    AnotherJoe
    Person with nothing to sell who can exchange at sellers convenience + (now theres an assumption, they may wish to push for a quick completion or have reasosn for delaying) has money sat waiting + give seller no reason to doubt their commitment (they may give no reason but seller may still have doubts) is the best type of buyer and will beat any other type of buyer all day long. What about the young couple with the cute baby who will look after the cherished house rather than the property developer looking to stick some tenants in? Or the nice young couple trying their best to get a mortgage rather than the cocky so-and-so who looked very smug having the money to hand?

    Seller can even ask for a holding deposit if they want a token of financial commitment. Dodgy. Maybe now the cash buyer wonder why. Has it got knotweed

    ^ is that fair ?

    No way any other type of buyer beats that unless exceptional circumstances + this position does has to have some value objectively - whether is does practically in many circumstances is dependant on situation.
    Originally posted by PokerPlayer111
    Exactly. Theres money but there's also sentiment and feelings.
    • PokerPlayer111
    • By PokerPlayer111 11th Mar 18, 1:13 PM
    • 252 Posts
    • 88 Thanks
    PokerPlayer111
    Exactly. Theres money but there's also sentiment and feelings.
    Originally posted by AnotherJoe
    For me...

    Putting in offer wrapped with a sob story i find manipulative.

    Or a seller chosing a buyer based on a sob story or emotive reason... i feel like they wanting a power trip if so. If someone has a geniune need im all for chairty but this is a house trade. Many desperate people needing help wont be found buying houses ?

    But hey i get your point, recently i put in an offer with an xfactor sob story of.... the house is going to be for a family member who needs it - which is very likely true but its purely a tactic by saying it with offer, feels dirty but if everyone else is going around doing that kinda thing i guess you have to compete.
    • Lauralou79
    • By Lauralou79 11th Mar 18, 1:19 PM
    • 203 Posts
    • 193 Thanks
    Lauralou79
    Our lower offer accepted over higher offers as we were chain free. Our vendors were keen to move quickly and out position obviously was worth more than a couple of extra thousand on the price.
    • Margot123
    • By Margot123 11th Mar 18, 1:54 PM
    • 842 Posts
    • 865 Thanks
    Margot123
    Just made a cash offer on a property that has been taking ages to sell.
    I spoke with the vendor directly; their response was 'it makes no difference to me as my solicitor is slow and I haven't found anywhere else yet'.

    So, all down to the individuals concerned. The old saying 'if you don't ask, you'll never know' comes to mind though................
    • agatham
    • By agatham 11th Mar 18, 2:00 PM
    • 29 Posts
    • 5 Thanks
    agatham
    Buyers with no chain doesn't have much bargaining power. It depends upon the sellers circumstance. If the seller is desperate to sell a property, then the no-chain buyer has an advantage.
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