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campfirechazard

Starting To Feel That Cash Is A Disadvantage!

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Hi there,

I'm a new person here and would appreciate some thoughts on my dilemma. I'm a (100 per cent) cash buyer and have been seeking a home for some months.

After a previous offer falling through (vendor removed property from the market), I've finally found another house that I love and that is a good option for me; due to my age and health, this is likely to be my 'forever home' so it is a big decision. The location is nothing special :lol: but I've lived here all my life and it allows me easy access to health services etc.

My first offer at 90 per cent of the asking price was rejected, which I expected. The vendor counter offered and I met him half way. The agent contacted me yesterday and advised that there was another interested buyer but they 'were waiting to see how much he would offer' once his mortgage was approved. :huh: I said that my offer would stand for 48 hours. Had a call today from the agent saying that the FTB had offered marginally more than me so the vendor would probably opt to go with them. I matched the offer (96% of the asking price) but I'm still waiting to hear back. If I go up a penny more, I'm over the stamp duty threshold.

I respect that the vendor ultimately has the choice of who to sell to but I'm concerned that the Agent is favouring the the other buyer. I've offered 4 times to go into the office with evidence of my finances and the agent has brushed me off. So how can he present the strength of my position if he won't verify that I have the funds in place? He seems disinterested. When I asked for copies of the correspondence relating to my offers, I didn't get a response. I'm suspecting that perhaps the other buyer may be using the agents brokers/solicitors etc hence more commission for the agent. I think I'm going to lose out despite the strength of my position. I'm getting a little discouraged that I'm at a disadvantage to those who will ultimately bring in more commission for the agent. It seems ironic that cash could be disadvantageous.

Any thoughts/advice welcome. Should I put a time limit on my offer? I know there are other properties on the market but just being pragmatic, health matters etc make the searching a bit overwhelming though I'm very committed to steaming ahead in the event that my offer is accepted and have reiterated that several times.

Thanks in advance for any help! :)

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I have the same problem in Ireland coupled with the 'were not selling to the English' attitude. Unfortunately I think it's just a characteristic of a rising market these days.

Cash does not give you an advantage.

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Hi there,

I'm a new person here and would appreciate some thoughts on my dilemma. I'm a (100 per cent) cash buyer and have been seeking a home for some months.

AfThe agent contacted me yesterday and advised that there was another interested buyer but they 'were waiting to see how much he would offer' once his mortgage was approved. :huh: I said that my offer would stand for 48 hours. Had a call today from the agent saying that the FTB had offered marginally more than me so the vendor would probably opt to go with them. I matched the offer (96% of the asking price) but I'm still waiting to hear back. If I go up a penny more, I'm over the stamp duty threshold.

Thanks in advance for any help! :)

I bought 4 properties in the Uk over an extended period. On three of them, a mystery 'buyer' popped up after my offer. I now treat all such claims by EAs as outright lies designed to get more money out of you.

I would say fine, go and sort it out and come back to me if it falls through - I have other properties I am offering on. Also insist on direct contact with the seller to ensure the EA is not acting decietfully without their knowledge.

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Yes, it's a common ploy - although one I have only experienced once. I told the EA who tried it with me that I was no longer interested in the property since they now had a buyer who was keener than I was and I had no wish to compete with them.

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Thank you. That's what I'm thinking.

Thank you for the responses. If this falls through, I guess my 'best hope' is a seller who is wanting/needing to exchange quickly. I was originally under the impression that the vendor of this property needs to complete soonest. Also, they are relocating due to one partner taking up a new position in April. They seemed decent, honest folk...the vendors, I mean not the agent! :lol:

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Thank you for the responses. If this falls through, I guess my 'best hope' is a seller who is wanting/needing to exchange quickly. I was originally under the impression that the vendor of this property needs to complete soonest. Also, they are relocating due to one partner taking up a new position in April. They seemed decent, honest folk...the vendors, I mean not the agent! :lol:

Its a tough game but I would say estate agents want to close as many deals as possible with the least amount of effort to maximise their commission. IF they are buying and selling a property i.e they are involved in both sides of a chain; they may go against a cash buyer but otherwise it would seem odd.

I would push your financial details to the estate agent and ask him to confirm in writing that he has passes these on to the sellers. Line up your solicitor too and ask them to ring the agent and let them know you have completed their paperwork and are ready to accept the sellers documentation; they should tell the agent their client is ready to proceed in the next x hours to exchange/complete. Ask your solicitor to get confirmation of when the agent will come back with a reply as you have another property you are also interested in.

Your aim should be to move so quickly that its a no brainer for the agent to see the $$$ from the commission without doing too much work himself.

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