Long story short, our house is under offer. Found a house that we both fell in love with. It’s been on the market for 10 months, needs work internally but structurally sound and in a perfect location for the kids with a school/friends nearby.

Put a cheeky offer in yesterday only to have it rejected so we upped the offer. Agents came back to us and said the sellers had accepted an offer of 4k less from a cash buyer. We’ve increased our bid to 10k over the cash offer and as it is we are stretching our budget.

It all smells a bit fishy that a cash buyer has appeared out of nowhere the same day we made an offer but until we upped our offer again the agent was adamant that would be the end of it due to the position of the seller needing s quick sale.

Even with our higher offer the house is still around the market valuation. Is there anything else we can try apart from offering more money?

I did wonder if a sizeable cash deposit would help but I can’t lay my hands on anything for a while (apart from selling the kids). Daft question I know, but does anyone have any sensible suggestions?

Play it cool.
Put in the offer you want and wait.
Tell the agent that if the cash offer falls through, you’ll be ready to proceed.
There’ll be other houses and you need to show the seller this and be prepared to walk away.

Can’t see how a big deposit would help. The deposit is paid over at exchange so the deal is binding at that point regardless of size of deposit and often exchange and completion happen on the same day anyway.

I’d take a cash buyer with no chain any day I’m afraid unless the offer from the chain was a good 15-20% higher.

You agreed that sounds fishy and if I may say is a typical estate agent trick which the seller may know nothing about – eg seller responds to your offer saying “it’s close but a bit below what I want” agent says “let me see what I can do, I think the buyer is keen and could do better” then makes up a story

So sit tight, ask to get the legal process started ASAP (house conveyancing is quite cheap these days so not a crises if you spend a £100 or so and have to lose it. Don’t increase your offer first if you are at/close to your limit a few £1000 wok t change the sellers mind. Make sure you have the mortgage lined up, the agent may legitimately ask to see proof you can proceed

Good luck

Quite often, cash buyers turn out not to be cash buyers.
This happened to the house next door to us; Probate sale,sealed bids, “Cash” buyer taking his time… turns out he was having problems getting a mortgage so offered to next highest bidder.

I’d stick with your original bid but make it clear to the vendor you are willing and able to proceed if it falls through. If it’s been on the market for ten months but they need a quick sale, you could be in with a shout.
Meanwhile, keep looking.

Cash isn’t really any better than a solid mortgage deal. As often as not there’s some legal hold-up that really takes the time. Our recent cash buyer’s lawyer farted about over trivial details for a month or two and my own cash purchase last year went the same way, but the current buyers of my Dad’s old house are super-fast with a part cash part mortgage deal (3 different houses in the last 12 months, I’m not really a property tycoon even though it feels like it right now).

So, um, the point is offer what you are comfortable with, if you want a bargain don’t fall in love with any one house too much, and don’t worry about not being cash.

Cheers guys, much appreciated.

Our house has been up for around 5 months and now under offer but we’ve been looking for a good year, all the good houses have sold locally. We didn’t consider this particular property as it was out of budget but it has recently been reduced.

Didn’t realise the deposit was paid at exchange so I guess that option is out, we’re just going to have to sit tight and wait I guess. It’s just gutting as it’s the first house we’ve both loved from the start, our kids have friends on the same street (quiet cul de sac) and it’s in a really nice area.

Thanks again.

After a soak and some tea I’m hoping we’re having our pants pulled down.

Is it normal for the agent to tell me what the other offerererer has offered? The agent told me how much they offered then later apologised for doing so saying they shouldn’t disclose other offers.

I should have mentioned we have no contact with the vendor, they bought the house new, then rented it out for the past 7 years hence the state of disrepair. They are out of the country and all contact between the vendor and the agent is done via email.

Allegedly.

In my experience all estate agents are lying scum, so I doubt the other offer is real. stick to your best price and cross your fingers. There will be another place sooner or later.

Cash offer just means they don’t need a mortgage. Assuming the agent is telling the truth. The cash could be tied up in the sale of their existing house.

In my (limited) experience talking to the owner of the house is always a good idea. Ultimately it is them who makes the decision over who to sell to. Agents play all sorts of games if they think they can get a few extra quid. Including lying to their own clients!

As above, agent reckons she’s only in contact with the vendor via email as the vendor is abroad.

Agent is due to call in the morning so I’m going to ask for the vendors email address, saying that I bet she won’t give it to me due to the DPA. I will ask her to pass mine on to the vendor.

Wont happen either way.

We did this recently, bought a place and beat the cash buyer. The thing to consider is that buying and selling houses is an emotive process for most people. We were purchasing a project. We made sure that when we engaged with the seller (albeit via the estate agent) we made sure that they knew it was for us to make a family home, not just a quick buck and that we would be attentive and quick to get the deal done.

Worked for us a developer wanted the house to split in two we got it for an equivalent offer for being the right people for the house…

Cash isn’t really any better than a solid mortgage deal.

I assume cash offer is often a shorthand for no house to sell/ no chain. In which case it is better.

My advice – sell yours asap and be prepared to move into rented so you can be that cash buyer on the next one you see or ready to swoop if the current one becomes available.

I’m trying to work out why the EA would tell you this “lie”.

If he wanted you to up your offer he would say they’d had a higher offer, and hop you’d better it. He wouldn’t say they’d had a lower offer, but it’s cash, so don’t even bother…

In simple terms, offer what you are prepared to pay. Not a penny more, don’t get drawn in by what anyone tells you.

Our house was on the market at £435k, just reduced to £425k. Estate agent told me if I was lucky I’d get it for £410k. I wouldn’t pay more than £400k so offered at £375k. Eventually got it for £392k. Still a very big project that we’re working on but I wasn’t going to be manoeuvred into paying more than I thought it was worth by some bloke on commission at an estate agents…

OP agents tell buyers all the time the price others have offered (actual and imaginary). My nose tells me the seller wants a specific price and the agent is trying to get you up to it. As for cash offers they are very valuable, when we sold our house as part of divorce we sold to a lower cash offer as there was no chain risk. This is partly why I think the agent is telling you porkies.

We’ve sold to first time buyers who have a deposit and mortgage in place and are desperate to get in asap. Agent knows this so I’m just going to sit on my hands and hope for the best.

Sold to the cash buyer (developers).

Wanksticks.

Given the ball ache we’re having with dozy vendors right now, I’m tempted to say your news could have been worse, they could have accepted your offer.

I wouldn’t be suprised if you get a call back saying cash buyers pulled out.

All estate agents are lying shysters.

10 months on the market and a cash-buying developer has bought it? Well I don’t buy that – developers would snap up anything suitable before they even reach the open market…

I wouldn’t be suprised if you get a call back saying cash buyers pulled out.

And when they do, put that original offer back in, *NOT* the higher one you were pushed to.

See, you’re all getting me excited now.

Agent is adamant that the vendor would have taken the cash option (20k less than asking price) even if we offered the asking price.

I now can’t see it as a huge show to get more money out of me, the agent is risking me putting an offer in for another house.

10 months on the market and a cash-buying developer has bought it? Well I don’t buy that – developers would snap up anything suitable before they even reach the open market…

Not if it’s too expensive, they wouldn’t.

Now the seller is disillusioned and it’s been reduced in price. The agent recommends the vendor accepts an even lower offer.
Is it being sold to the agent’s mate, at mates’ rates? Does the vendor even know of your offer? It wouldn’t be that tricky to find them and make them aware of your offer, even if abroad, Shirley?

India is a big place, I don’t like curry or planes!

OP hard to beat a developer as they guaranty the agent the sale once the property is done up too. Some developers pay brown envelope retainers too so they get the first call and preferential information. For a business which represents our largest financial transaction the fact it’s unregulated is a travesty.

Better luck next time

EDIT: I would go round and speak to the seller direct to verify the story even if just for peace of mind. I did the same years back and end up taking the agent to the ombardsmen and winning the case, compensation a princely £100 🙁

Just seen seller is in India, I suspect it’s dodgy. Not sold for ages then suddenly reduced ?

unless of course the agent gets a kick back off the developer for not passing on your higher offer to the vendor….. wouldnt be the first time.

EDIT: same as wot Jamba said.

I have a friend who was a developer, he pulled out of the town we lived in as the retainers got too high. Very dirty business.