Buying a house for cash

thegambler_2

I am in a position where I can buy a house without a mortgage. I have seen a property I want to buy but strange as it may sound, am not sure how to buy it. For example do I need to get a home buyers report before I make an offer, is the property valued at the right price for the area etc. I have to do all the donkey work that a mortgage company has to do.

The property has been on the market for more than a year & the vendor dropped the asking price by 20k a few months ago but I still feel that it is overvalued by 20k. The vendor did 15k+ worth of refurbishments which were not necessary to be honest & I just think that they are now trying to pass this on to the buyer & make a profit as well.

Always thought not having a mortgage would be hassle free, BUT, its not proving to be the case.

domcastro

The people who bought my house were cash buyers. They didn't bother with a valuation - they paid what they thought the house was worth. If the house is old, maybe you get a survey just in case. You only need to think about things like this AFTER your offer has been accepted. You are in a brilliant position - go in 50k (or 30k if the 20k is already off) under the asking price and work your way up. They are probably desperate - be cheeky - be brave. All they can say is No and there's plenty of other houses if it doesn't work out

PasturesNew

You decide if you want a survey, what sort and who will do it for you. You then phone them and instruct them and pay their bill direct.

You advise your solicitor that you want to buy, who the EA is and who the seller's solicitors are (maybe after the survey, maybe before, it's up to you). If you are having a survey done, let the solicitor know that if you feel it might affect if you proceed or the price.

The only difference is where the money comes from. Instead of your solicitor asking the building society for the money, you have to get cleared funds in full to the solicitor in time for the completion date.

You should be able to get a bit of a reduction from the solicitor fees as they don't have to deal with a mortgage company for you.

Getting your cash funds to them in a timely manner is the crucial part you have to get right.

thegambler_2

Thanks Domcastro thats exactly what I was think. The only reduction I would get from the solicitors was £40 odd, for the environment survey which I do not really need apparentley. The property is oldish & there was a hint of damp on one of the walls & the electric fittings seemed to be the original ones, which makes me think that the wiring might need to be done. The Vendor only got house in 2006 and they put for sale just about a year after. They have their reason for wanting to sell wether it is valid or not I dont know. It just seems strange for them to want to sell the house less than a year of moving in.

hethmar

Check out the neighbours then Knock on their doors ask them what the area is like etc.

thegambler_2

I know the area well, it just that the property is much bigger & has more land than the other properties around it.

mikey72

I've bought for cash, no difference to a mortgage really. I made the usual offers to the EA, they eventually accepted.
The solicitor still has to do all the searches, I didn't want/need a survey, and I wrote a check from my bank account when he asked for the money.
It was a local solicitor, he knew the area, and could advise on any snags that could happen.
The only difference is that I have the deeds, not a BS.

domcastro

thegambler wrote: »

The property is oldish & there was a hint of damp on one of the walls & the electric fittings seemed to be the original ones, which makes me think that the wiring might need to be done. The Vendor only got house in 2006 and they put for sale just about a year after. They have their reason for wanting to sell wether it is valid or not I dont know. It just seems strange for them to want to sell the house less than a year of moving in.

mmm worrying bits there. Have you checked house prices since 2000? Check it hasn't be bought and sold loads of times - could indicate a problem

dag_2

I would say definitely get a survey, especially if you're not an expert on stuff like building structure or drainage. But don't shell out for a survey until you've had an offer provisionally accepted. And don't be afraid to change the offer, or pull out completely, if you're not happy with the survey once it comes back.

It's your money, and you don't want to be ripped off.

thegambler_2

The house was only sold once in 2006. An old lady used to live in there and then was in a res home where she died. She left it to a relative who sold it on to make a bit of cash. You can tell by some of the features that not much might have been done. So I shall put my off in today and see where we go from there.

Mutton_Geoff

A full structural survey will cost you less than £1,000. Peanuts compared to the cost of repairing just about any single fault the survey will reveal.

Just because you have cash doesn't mean you need to be cavalier with it. 90% of mortgage companies only check a property physically exists and represents the security they need for the loan. Only a proper survey gives you the information you need.

I bought my Mums house for her as a long term tenant with cash and still instructed a surveyor so we knew what we'd be getting into.