A short rant-Cash buyers

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EvenStevens

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Not really asking a question here but just having a little rant so please remove if necessary


Have been bidding on a house and offered the asking price. I’m mortgage approved through the rebuilding Ireland scheme, first time buyer. Another bidder came in today and offered the asking price. As they were a cash buyer their bid was accepted.


I know if I were the seller I would also go for the quick sale but I just wonder how on earth you are supposed to compete with cash buyers as a first time or even second time buyer? The Irish times had an article last year that said cash buyers made up more than 5 in every 10 house purchases.
 
I did offer to up my offer and was told it wouldn't make a difference. It's the buyer profile that swung it.
 
I don't understand, if you are a first time buyer, with no house to sell, i.e. not in a chain, and you have mortgage approval, then in essence you are a cash buyer as well?
Am I missing something (it happens ;)) ? Does it take that long to draw down a mortgage that it would make a difference? (I don't know what the rebuilding Ireland scheme is)(but I do not what a tracker mortgage was :D).
 
Buddyboy said:
I don't understand, if you are a first time buyer, with no house to sell, i.e. not in a chain, and you have mortgage approval, then in essence you are a cash buyer as well?
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NO.

Cash buyer means no mortgage.

Cash buyer pays for house with 100% cash, no mortgage.
 
Buddyboy said:
Does it take that long to draw down a mortgage that it would make a difference? (I don't know what the rebuilding Ireland scheme is)(but I do not what a tracker mortgage was :D).
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The bank will insist on all sorts of survey reports prior to releasing funds. If there is anything amiss they will pull the plug on the deal. No such problems with Mr Cash.
 
Ahhh, Thanks Protocol, while I knew that a "cash" buyer paid 100% cash, I didn't see a difference as to where that cash came from. Elcato, that clears up the distinction, when the mortgagee bank gets involved.
Thanks.
 
And from the sellers point of view, if they know there is a problem with damp or something that is not too obvious, the chances are Mr Cash will not bother with a professional opinion that could unearth further problems.
 
;)Sometimes a cash buyer has an advantage under the table so to speak,keep an eye on the house price register,
some cash buyers can be slow enough to close deal,Mr/Mrs/Miss Cash can be careful enough with there money you know,
 
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elcato said:
And from the sellers point of view, if they know there is a problem with damp or something that is not too obvious, the chances are Mr Cash will not bother with a professional opinion that could unearth further problems.
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Come off it. You are implying that Mr Cash is stupid in that he / she will spend a lot of his / her cash on a property that has potential and uncosted problems. If he / she did this in the past he / she won't have any cash to make an offer in the first place.
 
PMU said:
Come off it. You are implying that Mr Cash is stupid in that he / she will spend a lot of his / her cash on a property that has potential and uncosted problems. If he / she did this in the past he / she won't have any cash to make an offer in the first place.
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I completely agree with @elcato
Any planning issues for example can be accepted by a cash buyer, whereas solicitor would note title issues to Bank.
 
elcato said:
The bank will insist on all sorts of survey reports prior to releasing funds. If there is anything amiss they will pull the plug on the deal. No such problems with Mr Cash.
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The only thing the bank wanted when I bought was the valuation and solicitors undertaking. Whats "all sorts of survey reports"?
 
EvenStevens said:
I did offer to up my offer and was told it wouldn't make a difference. It's the buyer profile that swung it.
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After being through a sale to 'mortgage aporoved' buyers, if I was to do it again, I'd happily take a lower offer from a cash buyer. It's amazing the list of things a buyer can try on to delay closing.
 
PMU said:
Come off it. You are implying that Mr Cash is stupid in that he / she will spend a lot of his / her cash on a property that has potential and uncosted problems. If he / she did this in the past he / she won't have any cash to make an offer in the first place.
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No. Mr Cash will make a call and see that there is a problem with something and will decide they are willing to still buy the property with the idea of paying to get the problem fixed themselves. The bank won't trust mortgage buyer to fix these problems before they get out of hand and and devalue the property as they may not have the money to do so - a reasonable call for the bank to make.
 
"Sometimes a cash buyer has an advantage under the table so to speak,keep an eye on the house price register,
some cash buyers can be slow enough to close deal,Mr/Mrs/Miss Cash can be careful enough with there money you know,"

That's just a silly, pointless, without substance comment.

If you're going to be splashing the cash around, you won't go near property.

LPT, stamp duty, CG50's, PPS numbers, etc.,etc., will have Revenue crawling all over you like a hot rash.

Actually, do hot rashes crawl ? or am I mixing my metaphors!

mf
 
mf1 said:
"Sometimes a cash buyer has an advantage under the table so to speak,keep an eye on the house price register,
some cash buyers can be slow enough to close deal,Mr/Mrs/Miss Cash can be careful enough with there money you know,"

That's just a silly, pointless, without substance comment.

If you're going to be splashing the cash around, you won't go near property.

LPT, stamp duty, CG50's, PPS numbers, etc.,etc., will have Revenue crawling all over you like a hot rash.

Actually, do hot rashes crawl ? or am I mixing my metaphors!

mf
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Not without substance 50% of houses sold are to cash buyers ,there are lots of cash buyers, buying and leaving them empty,

Looks like when you have a red hot rash Revenue keep away from you,:oops:
 
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