House buying OIEO

[Semple]

Lost out to a lower offer but cash buyer.
I can see this being an expensive long winded process where by we can't compete with such methods.

So few houses that we like.

Makes me wonder if its better to emigrate

Sorry to hear that.

I do know that feeling though, we spent about 18 months looking at dozens of houses and very few ticked our boxes.

We did have a stroke of luck with our current house that we weren't the highest offer, but because we were FTB and without a chain, the vendors were happy to accept our offer.

 

[Liefrich]

Lost out to a lower offer but cash buyer.
I can see this being an expensive long winded process where by we can't compete with such methods.

So few houses that we like.

Makes me wonder if its better to emigrate

It sounds like you can't afford your "dream home" just yet. If you are a first time buyer then unfortunately you will have to suck-up some of your wish list and just simply buy on location. If you buy well then the house should increase in value and in 2-5 years time you may then be able to afford the house you want.

 

[touch]

Lost out to a lower offer

It sounds like you can't afford your "dream home"

Assuming that he can afford to pay what he offered, it sounds to me like he can afford it but was unlucky this time.

 

[Liefrich]

Assuming that he can afford to pay what he offered, it sounds to me like he can afford it but was unlucky this time.

He lost out to a cash buyer i.e. they have more money than the op. He then also went on to say that it will be "an expensive and long winded process whereby we can't compete with such methods".

It's also pretty reasonable advice not to have a must-have list when you are a FTB!

 

[413x]

Not looking at dream home but I am looking past a dump.
I don't want to be 40 and still living in a 'first home'

Biggest mistake is not buying as soon as I could. In my 20s. Thank goodness I don't want kids family that's one thing that's keeping me from being concerned about my future.


Shouldn't be this annoyed so early on, but if keep getting prices out of houses at some point I may look elsewhere

 

[touch]

He lost out to a cash buyer i.e. they have more money than the op.

It doesn't matter how much money the buyer has if they were not willing to pay as much for the house.
Some sellers would take the lower offer for an easier/quicker sale, some would risk taking the OP's higher offer. I can't see anything he has posted to suggest he is looking at property outwith his budget.

 

[danlightbulb]

Not looking at dream home but I am looking past a dump.
I don't want to be 40 and still living in a 'first home'

Biggest mistake is not buying as soon as I could. In my 20s. Thank goodness I don't want kids family that's one thing that's keeping me from being concerned about my future.


Shouldn't be this annoyed so early on, but if keep getting prices out of houses at some point I may look elsewhere

Bad luck. This has also happened to me on 3 occasions now despite being in an excellent position myself, just not a cash buyer. I wish all cash buyers would just die because its impossible to compete against them.

So few nice houses for sale, 99% of them are crap. When a nice one comes up it sells in a day. And the correlation of price to quality is poor.

 

[Skillmister]

Lost out to a lower offer but cash buyer.
I can see this being an expensive long winded process where by we can't compete with such methods.

So few houses that we like.

Makes me wonder if its better to emigrate

Wait till they find out the "cash buyer" is actually only a cash buyer because they are selling a mortgage free home to fund it like half the "cash buyers" I see in chains.

A mortgage doesn't make the blindest bit of difference to timescale in 9/10 cases and they would be foolish to pass up on more money from a first time buyer. If anything first time buyers are usually the keenest to get things done and have everything in order long before everyone else

 

[RockLobster]

Not looking at dream home but I am looking past a dump.
I don't want to be 40 and still living in a 'first home'

Biggest mistake is not buying as soon as I could. In my 20s. Thank goodness I don't want kids family that's one thing that's keeping me from being concerned about my future.


Shouldn't be this annoyed so early on, but if keep getting prices out of houses at some point I may look elsewhere

I assume you're looking in Cardiff? Thought about towns just outside?

 

[Semple]

A mortgage doesn't make the blindest bit of difference to timescale in 9/10 cases and they would be foolish to pass up on more money from a first time buyer. If anything first time buyers are usually the keenest to get things done and have everything in order long before everyone else

This really, during our purchase, everything from the mortgage perspective was practically wrapped up in a week. The longer waits were all the search enquiries, and the duration of that doesn't really matter whether you're a cash or mortgage buyer.

 

[shadow_boxer]

Lost out to a lower offer but cash buyer.

Don't be disheartened. We missed out on several houses also due to cash buyers. I would make it clear to the estate agents that your offer is on the table at the moment and you are willing and able to proceed very quickly. A lot of sales are falling through at the minute as people have second thoughts once the initial excitement dies down after the viewing with a quite uncertain outlook etc. Cash buyer isnt the golden goose that most vendors think. Very few people have that much cash liquid unless they've already sold their primary residential property and are temporarily renting. As mentioned above a lot of people are selling themselves as cash buyers but what they really mean is that they just won't need a mortgage after selling their own property.

Agree with the above. First time buyers are generally excellent buyers as long as they have a firm mortgage in principle ready.

 

[tom_nieto]

Isn’t everybody a “cash buyer” when they’re making offers to estate agents?

 

[Participant]

Our last house was OIEO £300k but we ended up paying £295k.

It had been on the market for months as it was in a right state. So the right offer depends on so many variables that I just ignore it when I see it.

At most it's useful for trying to understand the counterparty's motivation.

 

[Psycho Sonny]

Wait till they find out the "cash buyer" is actually only a cash buyer because they are selling a mortgage free home to fund it like half the "cash buyers" I see in chains.

A mortgage doesn't make the blindest bit of difference to timescale in 9/10 cases and they would be foolish to pass up on more money from a first time buyer. If anything first time buyers are usually the keenest to get things done and have everything in order long before everyone else

I was thinking this myself. Why take lower money from someone who is likely selling a property in order to be a cash buyer? If anything they can afford more.

We had some guy who thought he was a big shot. Offer on the home and enquired about neighbours and if they would sell. Saying he wanted both. You are talking 2 semi detached properties worth £700k+ each. Then he started asking about extending and if there were any issues with planning permission when the attic was converted, etc. He wanted to know exactly how big the back garden was, etc.

When it came to the crunch the guy couldn't get the money together and said his money was frozen as it was coming from overseas and subject to money laundering, etc. He kept saying he wanted it but refused to sign to say when exactly he would be wanting to move in. He dragged it out for a year before it was out back on the market.

I wouldn't entertain anyone again. If someone offers more and signs with the lawyer then I'd take it off the market. Until then it stays on the market and I listen to other offers and I'd give them the provision I'm going to be listening to other offers until you sign on the dotted line. It works slightly differently up in Scotland I believe they can still back out until the missives are signed but I can sue them if they back out after agreeing to buy by signing the first bit.

 

[Psycho Sonny]

Depending where the property is, it can work in your favour.
Recently spotted a property, needing quite the update. First time up for sale, 420k, down to 380k, 340k, now 325k. I think it's worth that last price, but decided to stay at my almost finalized house, instead a new project. Just show that the market, despite being close to Cambridge isn't as fast and demanding as it was 2 or 3 years ago.

I don't understand how a home could be valued at £420k is then put up for £320k. With £40k drops in between. Who valued it at that price? Especially at those figures
That is a whopping 25% off. The housing market needs some sort of regulation and home valuers need to be properly trained and have formal qualifications. They literally just pick a number at times.

 

[Azza]

I don't understand how a home could be valued at £420k is then put up for £320k. With £40k drops in between. Who valued it at that price? Especially at those figures
That is a whopping 25% off. The housing market needs some sort of regulation and home valuers need to be properly trained and have formal qualifications. They literally just pick a number at times.

Seeing a house on Tuesday that's up for OEIO £400k. It was first up at £450k in March, then down to £425k in July and now this price start of September.

What I find amusing is we seen another house of the same road last weekend, and they had it up with the estate agent doing the above house earlier in the year before they moved to PurpleBricks and said they were really poor to deal with.

 

[Skillmister]

Seeing a house on Tuesday that's up for OEIO £400k. It was first up at £450k in March, then down to £425k in July and now this price start of September.

What I find amusing is we seen another house of the same road last weekend, and they had it up with the estate agent doing the above house earlier in the year before they moved to PurpleBricks and said they were really poor to deal with.

First house I tried to buy was up for 112k iirc. Agreed 107.5k then agreed 105k after I had my survey which pointed out a few things. Then they changed their mind and put it back on the market at 120k. It's still on the market over 2 years later, now its down to OIEO 105k. Half tempted to go back to them and offer 90k and get it for a BTL

 

[Ninco!]

My property was an OIEO and yet I offered below with a view to negotiate (still a fair offer and not one to take the pee or rile the seller). It was luck as I was an early viewer and in a strong position - we met in the middle and yet below the OIEO. The seller was great in fairness. It depends on the seller and your position.

However, the whole process has not been plain sailing, it took 12 months to find the right place, a couple of properties were in demand and prices were escalating; so opted out of entering into a bidding war and walked away.

Painful, but looking back now, it was the right thing to do.