Cash offer of same amount

abechan

Hi,

We made an offer on a house we are interested in. The following day the EA calls back and said another offer came in for the same amount but is all cash. He said we should raise our offer or it would probably get rejected.

Is there any rules than someone can not offer the same amount? All I can think of is the EA is just pumping the price as much as he can get away it.

daheff

abechan wrote: »

Hi,

We made an offer on a house we are interested in. The following day the EA calls back and said another offer came in for the same amount but is all cash. He said we should raise our offer or it would probably get rejected.

Is there any rules than someone can not offer the same amount? All I can think of is the EA is just pumping the price as much as he can get away it.

No rules around it.

Don't be pressured into a higher offer. If it's above what you wanted to pay then don't go higher.

What was the bidding history like?

Smee_Again

No rules.

Bid more or risk losing the house.

The cash buyer might have been waiting in the wings to see what sort of bids came in knowing they could match and be the more favourable bid.

abechan

daheff wrote: »

No rules around it.

Don't be pressured into a higher offer. If it's above what you wanted to pay then don't go higher.

What was the bidding history like?

The house has been on the market since November and there was a low ball bid on it before we made our offer.
Its a tricky situation now because I'm sure the other person with the cash offer can out price us easily.... And if there is no rule they don't even have to offer more, just match our offer. That sucks.

daheff

abechan wrote: »

The house has been on the market since November and there was a low ball bid on it before we made our offer.
Its a tricky situation now because I'm sure the other person with the cash offer can out price us easily.... And if there is no rule they don't even have to offer more, just match our offer. That sucks.

They don't even have to accept your offer if it's higher. Up to the seller to decide which offer they want to accept.

If it were me I'd tell the EA you are out, but if the cash offer we're to fall through to call you back.
If that happens offer 5-10k less than you did originally.

Darc19

I was in competition with another person for a commercial premises.

They offered €48k a year for a 5 year term.

I offered €45k, 10 years lease, but would pay 6 months up front and close the deal within 2 weeks.

I got it.

Basically, delays in how property deals are done, especially solicitors trying to find the most minor issue to argue over, means a buyer that is not getting a mortgage is worth a lot more than someone who does need a mortgage.

I expect to buy another investment property this year, I usually go for auctions, but if I went private treaty I would think a straight sale is worth up to 5% difference.

But it depends on how quickly the seller wants the deal to close.

Sleeper12

abechan wrote:

We made an offer on a house we are interested in. The following day the EA calls back and said another offer came in for the same amount but is all cash. He said we should raise our offer or it would probably get rejected.

Most common meaning of "cash buyer" is that they have the money sitting in a bank & doesn't need a mortgage. This is the ideal person to sell to in that it would usually be a quicker less hassle sale.

Estate agent is giving you warning that although the others offered the same amount as you, the seller is more likely to sell to the other bidder. By offering more than the cash buyer you will get the sellers attention. This does not mean that the other bidder won't match the higher offer.

Despite what people believe, cash is king.

bilbot79

In previous bidding wars I just got used to push up the price as I wasn't ready with my house already sold etc. Got to the point sometimes where the EA was discouraging me from bidding anymore as he got what he needed from me and was only interested in those who could help him close the sale.

Claw Hammer

bilbot79 wrote: »

In previous bidding wars I just got used to push up the price as I wasn't ready with my house already sold etc. Got to the point sometimes where the EA was discouraging me from bidding anymore as he got what he needed from me and was only interested in those who could help him close the sale.

What is the point of bidding when you can't buy? You are just causing trouble.

bilbot79

Claw Hammer wrote: »

What is the point of bidding when you can't buy? You are just causing trouble.

I could buy but they'd have to wait for my house to be sold.

Claw Hammer

bilbot79 wrote: »

I could buy but they'd have to wait for my house to be sold.

The problem you are causing for the auctioneer is that having spent weeks or months convincing the owners to accept a reasonable price you put in winning bid, subject to the sale of your own house. The owners then want the same amount from the ready-to-go buyers and no sale happens.

ec_pc

It all depends on the sellers circumstances and what their plans are. Perhaps it's the cash offers best offer, you never know. Are you willing to pay more?

In the past we were effectively cash buyers and got the house for less than asking primarily for a few reasons : Money was ready, no chain and we were in no rush to get in which let seller have time to find a new home (took 5 months in the end). There was an offer of asking price from someone in a chain, so I guess we were lucky. I would have gone to asking but chanced my arm.

the_syco

bilbot79 wrote: »

I could buy but they'd have to wait for my house to be sold.

You didn't have the cash, so you were effectively a maybe. The issue with chains is that the buyers house may not sell, or decide to pull out of the sale as they found something nicer.

Mad_maxx

abechan wrote: »

Hi,

We made an offer on a house we are interested in. The following day the EA calls back and said another offer came in for the same amount but is all cash. He said we should raise our offer or it would probably get rejected.

Is there any rules than someone can not offer the same amount? All I can think of is the EA is just pumping the price as much as he can get away it.

my mother bought a house recently and paid 5 k less than the other bidder , it was accepted as it was a cash bid

If you think the cash buyer can easily outbid you want is the point in continuing, just leave it and say thank you very much that you are not in a position to go any further with your offer.

spaceHopper

I hope you have mortgage approval. If so point out the EA you have bank approval, deposit and aren't in a chain, your offer stands but expired on the 31st.

Don't try to bid higher as if they match you then all you've done is drive up price of house in an area you want to buy.