Most vendors will get at least one breathless call from their estate agent, regaling them with news of a cash buyer interested in their property. A cash buyer offering at or above the asking price is pretty much the ideal scenario for everyone involved, so when it works, it works well. It’s not always as simple as, however, so don’t accept any offer blindly.
What is a cash buyer?
A cash buyer is someone who doesn’t need to get a mortgage to buy your property. However, this doesn’t mean they have the readies waiting around in their account because they might need to sell their property to free up this cash. This makes them a cash buyer in-waiting, essentially. If they sell up quickly, all well and good, but it might take longer than another potential buyer who just needs lender approval to proceed, so keep an open mind.
The sales process is the same with a cash buyer from the vendor’s viewpoint
Although there’s no hurdles to clear with lenders, your cash buyer will still want to have all their surveys and property searches done before actually parting with any of the cash. In many cases, you might find the legal hoops are cleared a little more rapidly with a cash buyer as they’re not waiting on a lender’s decision before spending hundreds or more on these checks.
What are the pros and cons of cash buyers?
A true cash buyer is something of a rare bird, but if you do get lucky and find one in your garden, you’ll still need to balance the advantages and disadvantages before taking things further.
The pros of a cash buyer
They’re chain-free
If the buyer doesn’t need to apply for a mortgage and doesn’t need to wait to sell their property, then there’s no chain. The absence of a chain means that your sale is much less likely to fall through due to someone further up it.
There are fewer hurdles
If your buyer doesn’t need to apply for a mortgage or keep their fingers crossed that their buyer doesn’t need a mortgage, then that’s one of the biggest obstacles to a sale eliminated.
Cash buyers are often more mature
Very often, cash buyers have built up equity over a few decades of climbing the property ladder, so they’re older, less impulsive and more patient. These buyers are more likely to make genuine offers and to see them through, so it’s worth considering their offer even if it’s a touch below your ideal.
Cash buyers are highly proceedable
Or, to the layperson, they can get a move on! Genuine cash buyers can complete in a few weeks rather than in a few months, which is why they’re so sought after. Sometimes, as they’ve freed up their equity, then can sell their place and move into a short-term rental while you buy your new property.
The cons of a cash buyer
Cash buyers will often make lower offers
They say a bird in the hand is worth two in the bush and so cash buyers trade on the fact they’re more proceedable and reliable to push down your price. For many sellers, the increased certainty is worth a lower offer, but make sure you have an absolute minimum so you don’t end up short-changed.
There are occasional scams
One of the pitfalls of cash buyers is the – thankfully rare – scammers. Make sure you use a trustworthy estate agent and conveyancer to handle everything, even if your buyer promises you the earth.
