Cash offer- would you go lower?

Thumpette

Hi All,

Currently looking at a house on the market for 645k. Current owners have already moved out and have relocated to another part of Ireland. House is in North County Dublin, lots of new building in the area and they seem to get snapped up fast, but obviously this probably wouldn't be in the right range for most first time buyers.

We would need to sell our current house but based on a generous inheritance, we'd be able to offer cash on this new house. How attractive is this lightly to be do you think? We were thinking of making a cash offer of maybe 625 but my friend was advising to start at 610.

Any advice greatly appreciated.

TheShow

if you dont ask, you dont get. go for it, whats the worst that could happen.

Thumpette

This is true! We bought our first apartment in Portmarnock in 2007. I remember at the time it was on for 425, I'd watched a lot of Kirsty and Phil and insisted we offer 360. My husband was mortified! Anyway they laughed at us at first but ultimately came back (I suspect they knew something we didnt) accepted 365! We thought we were the biz until the bottom fell out of the market about a month later!

We sold it in 2012 for 157, but at least being so much lower than asking meant we were slightly less screwed!

Edgware

Thumpette wrote: »

Hi All,

Currently looking at a house on the market for 645k. Current owners have already moved out and have relocated to another part of Ireland. House is in North County Dublin, lots of new building in the area and they seem to get snapped up fast, but obviously this probably wouldn't be in the right range for most first time buyers.

We would need to sell our current house but based on a generous inheritance, we'd be able to offer cash on this new house. How attractive is this lightly to be do you think? We were thinking of making a cash offer of maybe 625 but my friend was advising to start at 610.

Any advice greatly appreciated.

Cash offers are attractive but will of course deend on the sellers situation. They might be interested in a quick sale with no chain, it might be an executors sale where there are family members anxioys to get their cut.
Dropping 20000 on their asking price isn't to much in my view. I would go below 600 to get the ball rolling. Just because they put it up for 645 doesnt mean they will get it.
I would put in 595, have a chat with the estate agent and let him know you are interested but not at 645.
Of course this all depend on if it is worth 595 and that there is demand

ted1

I’d start lower say 590k let them know you are actual cash, not in a chain and can close as soon as possible.

The_Conductor

A significant proportion of sales are falling through- as evidenced by the same properties hitting DAFT multiple times in a 6-12 month period. Annecdotally- some properties are falling through 3-4-5 times. Its no longer the seller's market that it was, just a short time ago. A cashbuyer is valuable, and has a premium associated with it. To what extent the OP decides to try and leverage the fact that they are a cashbuyer- is up to them- and they also need to be conscious of who the other prospective purchasers (if any) might be.

Nothing ventured though, nothing gained.

This segment of the market *is* falling- so price that into your offer.

Three things to consider.

1 cash buyers are preferable to financed because the sale process is quicker.

But:

2. Currently you are not a cash buyer, you are relying on inheritance.

3 The property is in an area where property is selling so the vendor might be happy to let the nodding process play out.