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'Cash offer' accepted, now buyer needs to draw down loan...

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  • 15-10-2018 3:00pm
    #1
    s7ryf3925pivug
    Closed Accounts Posts: 4,007 ✭✭✭


    A not-great offer was accepted on house in probate because it was a cash offer.

    I inquired what the closing date on the sales contract was. I was told they would take 6-8 weeks as they need to draw down a loan. I understand it is not a mortgage - but I dont see how a loan would be preferable to a mortgage. It appears the EA failrd to look for proof of funds or loan approval so it looks like it is all being done on faith...

    I've contacted the solicitor and the executor and asked them to cancel. My concern is that it could go on indefinitely. Also I dont know why no straight answer was given about closing date.

    Am I missing something? Is there any reason to proceed with it - or to trust they will even complete the purchase in a reasonable timeframe?


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    #2
    drunkmonkey
    Registered Users Posts: 28,192 ✭✭✭✭drunkmonkey


    Closing will always take a few weeks, why would you accept a bad cash offer over an approved mortgage with a better offer?


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    #3
    super_furry
    Registered Users Posts: 27,322 ✭✭✭✭super_furry


    If it's a personal loan to top up a cash lump-sum that's already on had, 6-8 weeks seems a very long time to draw down.


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    #4
    knucklehead6
    Registered Users Posts: 6,783 ✭✭✭knucklehead6


    I would’ve understood cash offer to mean an offer from a buyer not in a chain


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    #5
    s7ryf3925pivug
    Closed Accounts Posts: 4,007 ✭✭✭s7ryf3925pivug


    https://en.m.wikipedia.org/wiki/Cash_offer


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    #6
    s7ryf3925pivug
    Closed Accounts Posts: 4,007 ✭✭✭s7ryf3925pivug


    Best offer so far and i will save significant miney each month once I receive funds. So holding out several months to look for an extra 10k would be a gamble, if there is an option to get guaranteed money sooner


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    #7
    rovertom
    Banned (with Prison Access) Posts: 150 ✭✭rovertom


    drunkmonkey wrote: »
    Closing will always take a few weeks, why would you accept a bad cash offer over an approved mortgage with a better offer?

    Because possibly the property could have some issues that a cash buyer may be happy to proceed with while a bank / surveyor might pull the plug over.


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    #8
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    I would have always understood that a cash buyer is someone who didn't need to borrow the funds. There may still be some lead time such as the money being in a notice account, but there would never be any question of the funds not coming through.

    6-8 weeks is definitely mortgage territory.


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    #9
    Ray Palmer
    Registered Users Posts: 8,394 ✭✭✭Ray Palmer


    knucklehead6 wrote: »
    I would’ve understood cash offer to mean an offer from a buyer not in a chain

    You would be wrong. Cash offer really means they have the money to pay right away. The fact they have a loan to get means it is not a cash offer.

    Not being in a chain is what you described and that is what it is called.


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    #10
    com1
    Registered Users Posts: 459 ✭✭com1


    Has the property exited probate yet?


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    #11
    cordy1969
    Closed Accounts Posts: 129 ✭✭cordy1969


    As someone trying to buy currently and I am cash buyer, I am finding it extremely difficult to find competent estate agents or even sellers.

    The whole process of buying a house in the country seems borderline ridiculous. If someone is ready to sell a house, why not get your paperwork in order first. Agents why don't you ensure that before taking a property on your books for sale you make sure the property can be sold and not in negative equity. And don't even get me started on the chain garbage, why is it my problem where the seller is going to go after the sale?

    Sorry for the rant but who would have ever envisaged buying a house would be made so difficult.


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    #12
    Ray Palmer
    Registered Users Posts: 8,394 ✭✭✭Ray Palmer


    cordy1969 wrote: »
    As someone trying to buy currently and I am cash buyer, I am finding it extremely difficult to find competent estate agents or even sellers.

    The whole process of buying a house in the country seems borderline ridiculous. If someone is ready to sell a house, why not get your paperwork in order first. Agents why don't you ensure that before taking a property on your books for sale you make sure the property can be sold and not in negative equity. And don't even get me started on the chain garbage, why is it my problem where the seller is going to go after the sale?

    Sorry for the rant but who would have ever envisaged buying a house would be made so difficult.
    Pretty much the same in other countries nothing uniquely strange to Ireland. Better than some countries like Spain where after living and owning a property for a number of years when a local official turns up and says you need to knock it down as it was built illegally.


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    #13
    cordy1969
    Closed Accounts Posts: 129 ✭✭cordy1969


    Ray Palmer wrote: »
    Pretty much the same in other countries nothing uniquely strange to Ireland. Better than some countries like Spain where after living and owning a property for a number of years when a local official turns up and says you need to knock it down as it was built illegally.

    Maybe a northern hemisphere thing, where I'm from houses are vacated and ready to move into within 45 days of contracts being signed. And from offer to agreed sale normally only 14-21 days.

    Also before houses are listed for sale contracts must be prepared and title searches done before listing can occur.

    But saying that once a deposit is paid it is non refundable if you change your mind.


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    #14
    Eric Cartman
    Registered Users Posts: 26,280 ✭✭✭✭Eric Cartman


    This is where processes in other countries are much better, 30 day escrow , funds lodged , keys handed over and contracts signed, whoever delays has to compensate the other side.


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    #15
    utmbuilder
    Registered Users Posts: 471 ✭✭utmbuilder


    market is slow now with buyers with excemptions gone, if it does sell you might get better offers in 2019


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    #16
    heroics
    Registered Users Posts: 1,878 ✭✭✭heroics


    cordy1969 wrote: »
    As someone trying to buy currently and I am cash buyer, I am finding it extremely difficult to find competent estate agents or even sellers.

    The whole process of buying a house in the country seems borderline ridiculous. If someone is ready to sell a house, why not get your paperwork in order first. Agents why don't you ensure that before taking a property on your books for sale you make sure the property can be sold and not in negative equity. And don't even get me started on the chain garbage, why is it my problem where the seller is going to go after the sale?

    Sorry for the rant but who would have ever envisaged buying a house would be made so difficult.

    I’ve been involved in the sale of 2 properties and both times asked solicitor/estate agent to have paperwork sorted first. Contracts signed and now solicitor is asking for bills back to 2008. This all could have been done months ago ffs. It’s not necessarily the sellers fault. Other than picking a useless solicitor


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    #17
    myshirt
    Registered Users Posts: 5,245 ✭✭✭myshirt


    You wouldn't believe the amount of people who think a cash offer can include getting a mortgage in order to secure the cash to make a cash offer.


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    #18
    happyfriday74
    Registered Users Posts: 194 ✭✭happyfriday74


    There was a thread a week or two about a buyer being upset about being asked to show proof of funds.

    This type of situation is exactly why he was asked to do this.

    The purchaser has claimed he is a cash buyer to get to the top of the pecking order of potential purchasers and get the other bidders out of the picture.


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    #19
    super_furry
    Registered Users Posts: 27,322 ✭✭✭✭super_furry


    If you've accepted an offer for less than you normally would because of the 'cash offer' inducement and it turns out not to be a cash offer, then I think you're well within your rights to say that you won't take the house off the market until they buyer is actually ready to do business.


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    #20
    JohnCleary
    Registered Users Posts: 10,210 ✭✭✭✭JohnCleary


    super_furry wrote: »
    If you've accepted an offer for less than you normally would because of the 'cash offer' inducement and it turns out not to be a cash offer, then I think you're well within your rights to say that you won't take the house off the market until they buyer is actually ready to do business.

    Damn right. I will be viewing a property this week and I already know the figure i'm going to provide for a true cash offer. I am going to have that exact amount in an account, which i'm happy to show the EA there and then on the phone as proof. Happy to whack him a booking deposit there and then, if it helps do a deal, as it's a cheeky cash offer approx 15% below asking.


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