A property cash buyer is someone who makes an offer on a home with the funds required already in their bank account. There’s no need to apply for a mortgage, which means the entire process is concluded a lot faster.
According to stats from the Land Registry, around a third of all house purchases in England and Wales involved a cash buyer in 2017. And this percentage has been rising in recent years. Why? Because there are several advantages involved — and here are a few of the most impressive.
The sale completes quickly
A cash buyer has the money needed to buy a property readily available. There’s no need for a lengthy mortgage application — something that often holds up a house sale. By cutting out the involvement of banks, a lot of the red tape is removed. Banks perform several checks before releasing funds, which always slows things down.
This is why more and more homeowners want to find cash buyers — whether that’s in the open market or through a house buying company such as Flying Homes.
There’s often a discount for cash
One of the most exciting advantages of being a property cash buyer is the opportunity to get a modest discount on market value. There’s no property chain involved, and no need for a long, drawn-out mortgage application process. This is highly desirable for sellers in a hurry, no need to bother with staging your home for a sale, just sell in an instance! And to attract cash buyers, a lot of homeowners will offer their property at a slightly reduced price.
No complex property chain
A broken property chain is a common cause of collapsed house sales. Some chains are very complex and involve 10 or more parties. When just one mortgage application or survey, the whole chain collapses.
Most chain collapses occur because of problems with finance. But take the need for a mortgage out of the equation, and an entire property chain can be put back together in a day. This is why a lot of sellers who’ve been let down by their buyer actively seek cash buyers.
If you’re in this position, it might be worth bypassing the open market completely. Flying Homes works with cash buyers around the world. If you need to find a buyer in a hurry, selling to a “we buy any house” firm could be your best option.
You’re less likely to be asked to perform repairs or modifications
Banks want to know that their cash is being used to purchase a safe home in a reasonable state of repair. Or at the very least, they want to know that the sale price reflects the current condition of the property. For these reasons, banks insist on surveys, searches and a range of other checks before they release cash.
If a problem is discovered that holds up the sale of your home, you’ll be expected to rectify it yourself. And this could be a costly process. But cash buyers don’t often impose such strict stipulations.
What’s the downside of selling to a property cash buyer?
Finding a cash buyer gives you a degree of certainty during the house selling process. But don’t expect a free ride. In return for this increased certainty and shorter timeframe, you’ll probably have to reduce your price expectations. Remember: selling to a property cash buyer gives you a chain-free quick sale. And this could be crucial if you need to raise funds quickly.
Selling your home to a cash buyer makes the entire process faster and less likely to fail. But you might need to lower your price expectations if speed and certainty are your priorities.