Cash buyer - How much discount?

lovely_stuff

Hi I'm just wondering what sort of discount your could expect (or get away with) by offering cash for a particular property in the current climate.

For example if the property was £100k...what sort of figure would you offer for cash without taking the p?

Thanks

chewmylegoff

lovely_stuff wrote: »

Hi I'm just wondering what sort of discount your could expect (or get away with) by offering cash for a particular property in the current climate.

For example if the property was £100k...what sort of figure would you offer for cash without taking the p?

Thanks

if only buying was that easy "i'm a cash buyer so i get a 20% discount".

unfortunately, that's not how it works. the amount you are able to get off will vary from property to property and is entirely contingent on the vendor's willingness to reduce the price in order for the increased likelyhood of a sale going through because you won't be rejected for a mortgage.

some vendors won't accept a penny off, regardless of your buying position. others will be more flexible - especially if they've been on the market for a long time and have seen previous sales collapse when the buyer fails to get a mortgage.

QTPie

lovely_stuff wrote: »

Hi I'm just wondering what sort of discount your could expect (or get away with) by offering cash for a particular property in the current climate.

For example if the property was £100k...what sort of figure would you offer for cash without taking the p?

Thanks

Depends on how reasonable the asking price is, how long it has been on the market at that price and how "motivated" the vendors are to sell...

Most people wont consider offers from someone NOT in a position to proceed (i.e. only from vash buyers, "chain free" buyers or people who have already accepted an offer on their property). If you were one of several people to put similar offers in on a given property, then you are likely to be more attractive than the others who offer (assuming they are not cash buyers too).

Being a cash buyer will make you more desirable than any others, but you can't expect a fixed "discount" just because you are a cash buyer.

If you find a property that you really like, then do your research: what are similar properties ACTUALLY selling for in your area, how long has that property been on the market (using Property Bee on Rightmove, but bewarre - some people take a property off of the market and then re-market it, making it look like it is new to the market...) and find out what position the vendors are in. Work out a sensible offer, then maybe take it a LITTLE lower: you MIGHT get away with it being a cash buyer, but you might not. Then up to you: go up to that "sensible offer" or walk away.

Good luck
QT

Trollfever

Are you in a postion to exchange and complete the purchase within the next 2 weeks?

Pssst

What difference would it make? Cash from a buyers mortgage arrangement is just as good as cash from a buyers pocket.

chewmylegoff

Pssst wrote: »

What difference would it make? Cash from a buyers mortgage arrangement is just as good as cash from a buyers pocket.

because the cash buyer doesn't have the problem that a surveyor from the mortgage company might come around and saying that the house is worth £20k less than the agreed sale price and we therefore will not lend you the amount that we agreed to lend you in principle.

chickmug

Pssst wrote: »

What difference would it make? Cash from a buyers mortgage arrangement is just as good as cash from a buyers pocket.

Sorry but it isn't.

Another thread was about the time it was taking to get the surveyor in and the seller had a feeling they were trying to borrow a very high percentage and it may of even been 100% hence the delays whilst the lender was crunching it through their system. Credit Control/Underwrting or whatever they call that department.

Any mortgage has the potential to get downvalued especially in todays climate so a genuine cash buyer is a very very attractive proposition. It would cut down the time to do the legal work as well.

alexlyne

All talk on this ofrum is about 'we should offer x% less than asking price' by default, without considering how much the house is actually worth.

Me and the missus pulled out of a bidding war last week, because of this, but after looking at all other properties in the general area it appears that the house we were looking at was actually reasonably priced. Therefore we are going to see if we can get back in with an offer at the asking price, and maybe go a bit higher. This is with a chain-free offer (not cash).

By all means put in a silly offer, but viewings are picking up, we are getting a seasonal bump, so don't expect something for nothing

JMW77

If you are a cash buyer, don't have a chain and possibly don't bother with a survey you are in a great position my dad buys houses to let and gets good bargains as the sale is unlikely to fall through like many do .
Try with low offer and work your way up,as with all houses depends how much the buyer wants to sell but with the market like it is people are more likely to agree to any offer!
I would much rather sell to a cash buyer that is if two people are interested at my house at the same time!

QTPie

Wouldn't recommend NOT doing a survey (unless many it was a very recent, good quality new build...). :eek:

We sold to a cash buyer (and he offered what we believed to be a good price - the same as a couple who had gone on to attempt to gazunder us a month earlier) and - despite them not having a survey - it still took 5 weeks from offer to exchange...

QT