Cash buyer discount

N79

poppysarah wrote: »

Such a vague cmpletion date is what new build buyers off plan often got sucked into doing. It's a risk though as you might be paying more than it's worth - and a mortgage might not be available.

Indeed - but in the new build case it is imposed by the seller for their own convenience. In the cash buyer case it is an offer from the buyer that allows the seller to increase their convenience (and the mortgage risk does not exist).

poppysarah wrote: »

As a cash buyer you'd want to ensure you weren't overpaying for such a generous offer.

Quite - hence the key point is to pay the right price. Note that if you are investing in property for the long term then price fluctuations over 6 to 9 months are not a big deal.

Catatonia

Thanks for the responses. Poppy - I don't understand your point about the survey. I'd be getting the same level of survey as if I was buying with a mortgage, as I still would want to be aware of potential problems.

Niv

If I were selling my house I would not give any discount based on the buyer being a cash buyer. It makes no difference to me where the buyer gets their money for the purchase as long as its confirmed.

Richard_Webster

Unless there is some legal or other problem with the house that could deter a mortgage lender, most sellers would not give much of a discount for cash. It is more a case of looking at price bands for negotiation - you might accept a thousand or two less for a cash buyer.

Remember however that some people say they are "cash buyers" when they are not getting a mortgage but still have a property to sell!

sak123

The benefit of a cash buy is that they can complete quickly and if you're in a situation where you desperately need to sell then it may be worth considering. If you have time to wait then try and get the asking price you want through an estate agent. From my experience cash buyers offer about 25% below market value so make sure you know how much your propery is worth before you start negotiations. Propertycashbuyer.co.uk have quite a lot of useful information on their site about how selling your home quickly for cash works.

N79

sak123 wrote: »

The benefit of a cash buy is that they can complete quickly and if you're in a situation where you desperately need to sell then it may be worth considering. If you have time to wait then try and get the asking price you want through an estate agent. From my experience cash buyers offer about 25% below market value so make sure you know how much your propery is worth before you start negotiations. XXXX.co.uk have quite a lot of useful information on their site about how selling your home quickly for cash works.

The scam cash buyer companies offer way below market value (such as the one you are spamming for). They are very different to normal buyers who just happen to have the money to buy a house sitting in a bank account!

Running_Horse

We had a potential cash buyer (rich daddy) who never missed the opportunity to shout I am a first time cash buyer. She got a good discount, then got greedy, demanding £20,000 discount for £2,000 work mentioned in the survey. We told her to get stuffed, and she eventually paid more for an inferior house. Meanwhile we sold to a normal couple with a mortgage for full asking price and everything went like clockwork.

The main advantage to being a cash buyer is if someone else was interested, you might get preference. But ultimately the seller still needs to make a certain amount to move to their next house, and won't sell below that just because you don't have a loan to arrange, which is quite normal in most cases.

azkaban420

Hi Catatonia,

I agree, it depends on the situation. If I was desperate to sell and needed to move quickly, I may entertain a smallish discount for a cash buyer knowing they could complete quickly. However there have been so many stories of delays beyond buyers/sellers control that drags the exchange/completion process unnecessarily, that it doesn't seem to really make much of a difference. Someone may promise a fast completion, but then employ a really rubbish convenyancer, or just become lazy. That's why in the grand scheme of things I probably wouldn't view a cash buyer as any different to someone with a mortgage. What matters to me more is if they have a house to sell or not, and how long or short a potential chain is.

All the best,

Az

sonastin

As a seller, I couldn't care less where your money is coming from - your own bank account or the mortgage companies - makes no difference to me.

Yes there is a risk that the mortgage application might delay the transaction but it is just as likely that a delay could come from a) the buyer being too dithery to get on with the purchase b) the solicitor being overzelaous in interpreting the conveyancing docs and searches c) the searches being slow to come back d) disagreements over things the survey throws up etc etc. Mortgage or not is such a small part of the whole debacle that not getting one makes the offer only marginally more appealing and not worth much at all in £ terms.

Rov

If your seller has recently put the property on the market, dont expect any discount. However, if they've recently returned to the market after being SSTC for a few months you might get a decent discount.

You need motivated sellers, one who's recently been through a failed purchase should be a good one, also use property bee to see the ones that are reducing their price frequently, again they just want to get rid ASAP and will consider your offers.

The chance of finding a motivated seller, combined with the house you want are slim of course, but you might get lucky.