Sheffield house buying system -Closed bids?

[amazon123 17]

Where was this house? Some parts of Sheffield seem to be booming at the moment still, despite slowdowns elsewhere.

[nightrider 13]

26 minutes ago, Cyclone said:

Or the vendor decided based on some factor other than simply who offered the most.

Were you in a chain (cash buyer suggests not, but I never understand this term, nobody is buying will gold bars or shares, everyone is paying cash).

I take cash buyer to mean no mortgage is required i.e. the buyer has the "cash" available. This could be a plus, because things cannot be derailed due to a mortgage refusal (no guarantee mortgage offer in principal survives full application).

 

As you say though there are other factors too, such as are you in a chain or not, are you a landlord or first time buyer (yes I know someone who refused a cash offer because they felt it was of more benefit to society to sell to the first time buyer planning to live there) etc. When I bought my house the estate agent told me it was decided to sell to me on other factors (clear details showing my financial position and lack of a chain) than the value of the offer.

 

 

 

[lil-minx92 10]

25 minutes ago, Cyclone said:

Or the vendor decided based on some factor other than simply who offered the most.

Were you in a chain (cash buyer suggests not, but I never understand this term, nobody is buying will gold bars or shares, everyone is paying cash).

A cash buyer literally has the money in the bank (or the means to it).

Lots of people who have the deposit and nothing to sell wrongly think they are cash buyers. They are not, because they need a mortgage and the bank might say no. Even if they have an mortgage agreement in principle the bank still might say no (maybe the valuation survey comes back unfavourable_.

22 minutes ago, amazon123 said:

Where was this house? Some parts of Sheffield seem to be booming at the moment still, despite slowdowns elsewhere.

Hmmmm Id be interested to know too..

[Cyclone 10]

Ultimately the vendor gets paid in cash, whether the money comes from the bank, the great aunt a personal loan or a mortgage is basically irrelevant, apart from the risk of the mortgage not being approved if the offer is over the realistic value of the house.

The last problem can be avoided by having a large deposit of course, so at best the vendor should be interested in that detail.

But there's no overridingly strong reason to favour someone who claims to be paying out of their existing assets instead of borrowing.

[Billy-Jean 10]

2 hours ago, amazon123 said:

Where was this house? Some parts of Sheffield seem to be booming at the moment still, despite slowdowns elsewhere.

It was in pitsmoor Sheffield s4 

 

Earl Marshal Road, Sheffield

http://www.rightmove.co.uk/property-for-sale/property-68436103.html

[lil-minx92 10]

1 hour ago, Cyclone said:

Ultimately the vendor gets paid in cash, whether the money comes from the bank, the great aunt a personal loan or a mortgage is basically irrelevant, apart from the risk of the mortgage not being approved if the offer is over the realistic value of the house.

The last problem can be avoided by having a large deposit of course, so at best the vendor should be interested in that detail.

But there's no overridingly strong reason to favour someone who claims to be paying out of their existing assets instead of borrowing.

There's a very strong reason! As soon as the cooperation of a third party is required for a transaction to proceed it's much more likely to fail or at best be delayed.  

40 minutes ago, Billy-Jean said:

It was in pitsmoor Sheffield s4 

 

Earl Marshal Road, Sheffield

http://www.rightmove.co.uk/property-for-sale/property-68436103.html

Nice house. I suspect a local landlord (probably well known to the agent!) will have bought that to split up into an HMO.  Probably get 10 bedsits at £50/week

[woodview 10]

4 hours ago, lil-minx92 said:

There's a very strong reason! As soon as the cooperation of a third party is required for a transaction to proceed it's much more likely to fail or at best be delayed.  

 

It also means no chain. The preference for a seller would be:

1. Cash buyer (no chain, no lender)

2. First time buyer (no chain, with lender)

3. House mover (with chain, with lender)

[Cyclone 10]

Requiring a mortgage doesn't mean that there IS a chain though.

I was 3, but since I was keeping my previous house and the mortgage was small, still no chain and no chance of mortgage refusal on the basis of valuation.

[Olive 10]

Cyclone, you've created another category:

4. House mover (no chain, with lender (but a small loan to value ratio))!

[Cyclone 10]

So of 4 scenarios, 3 don't have a chain.

Two don't have a risk of refusal due to valuation.

Bring a cash buyer isn't so special.

 

We could add 5 as well, no chain used a bridging loan.

[Olive 10]

Yeah, I think the chain is more crucial than where the money is coming from.  But cash buyers are far more likely to be chain-free.

[lil-minx92 10]

2 hours ago, Cyclone said:

So of 4 scenarios, 3 don't have a chain.

Two don't have a risk of refusal due to valuation.

Bring a cash buyer isn't so special.

 

We could add 5 as well, no chain used a bridging loan.

By the time a mortgage has been approved a cash buyer could often have completed.