Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Estate Agent only wanted cash buyers

Options
  • 27-04-2017 1:28pm
    #1
    Beric Dondarrion
    Registered Users Posts: 2,046 ✭✭✭


    Currently in the process of looking for a place to buy. My partners house was on the market and has just gone sale agreed, my own house was sold several months, money is in the bank, balance will be from a small mortgage (approved and ready to go).

    We went to look at a house recently that fell within our budget and the estate agent inquired about our circumstances. Basically told him the above and he flat out told us that he would never do a deal or entertain an offer from us as anyone in such a chain was "too risky". The EA only wanted to deal with cash buyers. He basically told us to come back in several months when the deal was closed on my partners house.

    My question is : Is this behavior typical? Or did we just get an EA with a very narrow view of the property market?


Comments

  • Options
    #2
    ThisRegard
    Closed Accounts Posts: 27,833 ✭✭✭✭ThisRegard


    Seems a bit harsh really. I haven't come across it myself. They won't deal with you if your house if still for sale, but as once it goes sale agreed they're usually happy to deal with you then.


  • Options
    #3
    mydarkstar
    Registered Users Posts: 249 ✭✭mydarkstar


    I've heard similar. I'm Sale Agreed on our place, just waiting to sign contracts so we can move out/move on.

    Estate agent of our intended house said the sellers had no preference for a buyer (it's my first question at viewings to avoid wasting anyone's time) - until we actually made an offer and they said they wanted a mortgage or cash buyer only.

    In general, several estate agents have said to me they wouldn't accept any bids until we were either 'sale agreed' or 'sold'.


  • Options
    #4
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    Op, it is not the EA who has dictated this policy, that would only come from the vendor. Cash buyers are always more preferable to those whose bid is subject to selling another property. Cash sales are quicker, simpler and more reliable than sales where a mortgage is required.

    It's a seller's market, the only way you will get that property is if you make it worth the sellers while to hold on until your partner sells the house, that may mean paying significantly more than a cash buyer.


  • Options
    #5
    Cuddlesworth
    Registered Users Posts: 13,995 ✭✭✭✭Cuddlesworth


    Beric Dondarrion wrote: »
    My question is : Is this behavior typical? Or did we just get an EA with a very narrow view of the property market?

    Odds are there is a legal issue with the house in which a bank will not issue a mortgage but a cash buyer can tell their lawyer to ignore.


  • Options
    #6
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    Cuddlesworth wrote: »
    Odds are there is a legal issue with the house in which a bank will not issue a mortgage but a cash buyer can tell their lawyer to ignore.

    Odds are the vendor would prefer a fast sale where there is no messing around with a chain/bank/mortgage. I'm selling a property at the moment, absolutely nothing wrong with the property, and I would much prefer a cash buyer. I don't want to be telling other bidders I have agreed a sale, then in 3 months time the buyer can't sell their house or draw down a mortgage and I have to go through the process again. Every seller would prefer a cash buyer.


  • Advertisement
  • Options
    #7
    sandra_b
    Registered Users Posts: 246 ✭✭sandra_b


    Cuddlesworth wrote: »
    Odds are there is a legal issue with the house in which a bank will not issue a mortgage but a cash buyer can tell their lawyer to ignore.

    Legal issue or fire & safety/structural issue.


  • Options
    #8
    mydarkstar
    Registered Users Posts: 249 ✭✭mydarkstar


    Beric Dondarrion wrote: »
    Basically told him the above and he flat out told us that he would never do a deal or entertain an offer from us as anyone in such a chain was "too risky". The EA only wanted to deal with cash buyers. He basically told us to come back in several months when the deal was closed on my partners house.

    Just re-reading your original post OP.
    Perhaps I'm misreading you but it sounds like the estate agent (or their client) took issue with the fact your partner's house is not sold - his advice to you was to "come back in several months when the deal was closed" on your partners house.

    His advice wasn't to come back when you no longer needed to draw down a mortgage (i.e. when you are a cash buyer).


  • Options
    #9
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    sandra_b wrote: »
    Legal issue or fire & safety/structural issue.

    Chain issue.


  • Options
    #10
    Beric Dondarrion
    Registered Users Posts: 2,046 ✭✭✭Beric Dondarrion


    mydarkstar wrote: »
    Just re-reading your original post OP.
    Perhaps I'm misreading you but it sounds like the estate agent (or their client) took issue with the fact your partner's house is not sold - his advice to you was to "come back in several months when the deal was closed" on your partners house.

    His advice wasn't to come back when you no longer needed to draw down a mortgage (i.e. when you are a cash buyer).

    The EA made no mention of us having a mortgage as being an issue. It was specifically to do with the fact that the other house wasn't completely sold yet (it is sale agreed, not sold). Whilst I take your point about the definition of a "cash buyer" the EA was adamant he wanted only cash buyers i.e. not in a chain, not waiting for a property to sell.

    In fairness he did us a favour because at least now we know not to waste their or our time again with any of his properties (his remarks extended to any property that were currently on his books).


  • Options
    #11
    LirW
    Registered Users Posts: 4,825 ✭✭✭LirW


    The problem in the sale agreed stage is that it actually means quite little. There are a million and one reasons why a sale could fall through up until the last minute. I do get that a lot of people are not keen on depending on a chain of things because in the worst case it can delay the sale for months.


  • Advertisement
  • Options
    #12
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    Beric Dondarrion wrote: »
    The EA made no mention of us having a mortgage as being an issue. It was specifically to do with the fact that the other house wasn't completely sold yet (it is sale agreed, not sold). Whilst I take your point about the definition of a "cash buyer" the EA was adamant he wanted only cash buyers i.e. not in a chain, not waiting for a property to sell.

    In fairness he did us a favour because at least now we know not to waste their or our time again with any of his properties (his remarks extended to any property that were currently on his books).

    Unfortunately you are likely to find that most sellers/EAs would prefer not to deal with buyers who must sell their property to buy another. The ideal buyer is a cash or first time buyer.

    You will be in a much better position when your property is sold, you will be able to tell all EAs that you do not have to wait to sell your house which will make your bids more likely to be accepted over another bidder who is in the same position you are now.


  • Options
    #13
    Beric Dondarrion
    Registered Users Posts: 2,046 ✭✭✭Beric Dondarrion


    davo10 wrote: »
    Unfortunately you are likely to find that most sellers/EAs would prefer not to deal with buyers who must sell their property to buy another. The ideal buyer is a cash or first time buyer.

    You will be in a much better position when your property is sold, you will be able to tell all EAs that you do not have to wait to sell your house which will make your bids more likely to be accepted over another bidder who is in the same position you are now.

    In an ideal world maybe, but there are practicalities and real life issues about selling and buying that can't be ignored. For one thing, where do people live after selling one home and looking to buyer another? Rent short term? Maybe, but that isn't always possible (especially considering the rental market at the moment).

    Sometimes chains are unavoidable. I just found his stance very odd and a little bit arrogant. I wonder if it was like that in 2013 during the slump, guess I'll never know.


  • Options
    #14
    .......
    Closed Accounts Posts: 9,057 ✭✭✭.......


    This post has been deleted.


  • Options
    #15
    LirW
    Registered Users Posts: 4,825 ✭✭✭LirW


    Beric Dondarrion wrote: »
    In an ideal world maybe, but there are practicalities and real life issues about selling and buying that can't be ignored. For one thing, where do people live after selling one home and looking to buyer another? Rent short term? Maybe, but that isn't always possible (especially considering the rental market at the moment).

    Sometimes chains are unavoidable. I just found his stance very odd and a little bit arrogant. I wonder if it was like that in 2013 during the slump, guess I'll never know.

    You kind of answered your question here: There is a lack of supply and the EA will most likely have no problem to find other buyers for the property that aren't in a chain.


  • Options
    #16
    Beric Dondarrion
    Registered Users Posts: 2,046 ✭✭✭Beric Dondarrion


    LirW wrote: »
    You kind of answered your question here: There is a lack of supply and the EA will most likely have no problem to find other buyers for the property that aren't in a chain.

    And attitudes like his will make sure that the property market in this country continues to be an absolute basket case too I suppose.


  • Options
    #17
    LirW
    Registered Users Posts: 4,825 ✭✭✭LirW


    I really don't wanna defend the EA here and I can see where you're coming from, but in the end he's only following the orders of the seller. They would much rather prefer a buyer without a chain, that's the way it is and unfortunately this is not in your favour.
    I do understand why you're upset though, I would be too.

    It's a seller's market at the moment, they can afford to have the pick.


  • Options
    #18
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    ....... wrote: »
    Yes but where is someone supposed to live when their property is sold?

    Given the state of the rental market and the complete uncertainty around close dates with Irish conveyancing.

    I know, but as long as there are more buyers than properties available, sellers/EAs care only about selling the property.


  • Options
    #19
    4ensic15
    Banned (with Prison Access) Posts: 4,691 ✭✭✭4ensic15


    davo10 wrote: »
    I know, but as long as there are more buyers than properties available, sellers/EAs care only about selling the property.

    Why shouldn't they. Where the purchaser lives before closing is not their problem. They don't want to start a deal only to find out that the "sale agreed" has collapsed because the "sale agreed " it depended on has collapsed.
    If selling a car, would you take a cash buyer or a trade in?
    You take what is likely to cause you the least hassle.
    Bridging finance is the only way to avoid short term renting.


  • Options
    #20
    jimmycrackcorm
    Registered Users Posts: 14,339 ✭✭✭✭jimmycrackcorm


    Beric Dondarrion wrote:
    My question is : Is this behavior typical? Or did we just get an EA with a very narrow view of the property market?

    Sellers market. There's a huge number of cash buyers out there and it's a quick profit for the EA.


Advertisement