re buying a house/Offer as a cash buyer?

Question

Is there a benchmark for putting an offer on a house which is approx 1 year old and you are a cash buyer?

Answer 1

Chaneland is correct, a good agent will argue your case that the risk of your pulling out of sale part way through the process is statistically dramatically reduced if you are a cash buyer. (industry average of fall throughs currently just over 20%) and the purchase can potentially go through a lot quicker than if you were arranging mortgage finance, or worse still, had a property to sell. If it is a home for yourself... perhaps 5% off the asking price WOULD be viable, but bear in mind I advise 99% of sellers to reject the first offer...so if you want it for 95%, start a tad lower

it would really help if you could glean inside knowledge from the agent marketing the home as to levels of interest and comparables for properties sold in the area. (enter the post code into www.nethouseprices.com for sold prices of properties sold in the area

However it is quite normal for investment buyers who buy any property regardless of location, to offer 85-90% of the asking price/market value if offering CASH with no related sale, and a quick 3/4 week exchange.

Also bear in mind stamp duty brackets...i dont know what price you are buying at but £125,001 = 1% 250,001= 3% and 500,001 =4%

(whoever has given acermill thumbs up you are misleading the asker... completely incorrect, there are many other factors which the seller will make their decision upon, and a well advised seller would avoid property "chains" and "mortgages" if there is an alternative of a straight cash buyer. This is why straight cash buyers can be a little cheekier with their offers!!)

Answer 2

The fact that you are a cash buyer is irrelevant, since the seller is going to want cash, no matter how you provide it. The seller is not concerned if you have the cash available or will need to borrow it, as long as you certify that you have it available in one form or another.

As far as the value of an offer is concerned, you will need to check market values of similar properties in the area and gauge your offer accordingly.

Answer 3

Put in an offer that you wish to pay for the property,if the vendor agrees then ok,if not,up the offer until it is accepted.You are in a good position as a cash buyer,but the vendor will still want to get the best price possible for their property.

Answer 4

As A cash offer any you make will be seen in a favourable light as you should be able to move fast without having to raise the funds through a loan ect I would offer price less 5% good luck