How much for cash?

pbouk

hello

i am in a position to purchase my first home for cash, nothing flash just a first time buyer house. i am lucky that the prices are not crazy where i live, but anyway, i wanted to ask your advice as to how much of a discount i could expect for a cash purchase? as an example if a house was on for £100k in the current market as a first time buyer i would expect to get at least 5% discount, but is it fair to think i could get a further 5%+ for being a cash buyer also? just wanted to know what you guys think. i am in no rush and can happily wait 6 months if i needed to but if the right house came up.

Alter_ego

All purchases end as cash ones. The mortgage company supplies the cash. Why is your cash different?

geoffky

You really need to clue up..this is not like buying a IPOD, this is the biggest amount of money you will spend...first thing is find out what houses are selling for in the area you are buying, find out how much the market has fell, and lots and lots of other things.

I got 120k off the price of my house but every house and the reasons it is being sold is different and i don't think being a cash buyer makes that much difference....
Please do as much home work as you can...look at places like home.co.uk to find out the state of the housing market in your area. or check zoopla for sold prices...is it a repo? divorce or death as these things make all the difference. Good luck

pbouk

my point being that i am not going to need a mortgage like some offers on the property that might fall thru and waste the sellers time. i can make an offer and the money is there.

[Deleted User]

I am in the process of selling my house, as the other posters have said all sales end up as cash ones. I wouldnt be inclined to accept 5k less for a cash buyer but if i had 2 similar offers on the table I'd go with the cash buyer.

pbouk

funk_punk wrote: »

I am in the process of selling my house, as the other posters have said all sales end up as cash ones. I wouldnt be inclined to accept 5k less for a cash buyer but if i had 2 similar offers on the table I'd go with the cash buyer.

thanks that was my point, i know alot of sellers have had problems with buyers being refused credit, especially in these times so i would have thought a seller would accept a fair offer if it is going to complete.

geoffky

pbouk wrote: »

my point being that i am not going to need a mortgage like some offers on the property that might fall thru and waste the sellers time. i can make an offer and the money is there.

Its how you get to your offer..look at every angle you can think of.i got 120k off and then got the seller to pay my stamp duty because i had done my homework for over two years and knew the position the sellers were in and used it to my advantage..i am sure they would of snapped my arm off if i had offered 50k more due to me not doing my research. my house was 299k and i paid 186k for it after i had been watching and waiting because the market where i live was on its knees and crashing fast and they had to sell. I was a cash buyer but i doubt it made much difference at the time.

Muhasib

pbouk wrote: »

thanks that was my point, i know alot of sellers have had problems with buyers being refused credit, especially in these times so i would have thought a seller would accept a fair offer if it is going to complete.

Why don't you go down the route of property auctions, isn't that the best place if you have the cash and are confident?

Johnhowell

When I put my house on the market, the EA said he had a cash buyer ready to come and view within the hour. The sale took 3 months to complete because he had to sell his flat. Cash buyer - yeh right...

jimjames

As mentioned above it also depends on the buyer. Find someone in the right position and you could get a good deal for cash. Say for someone that bought over 10-15 years ago, has a low or no mortgage, needs to move and can be flexible on price. For someone else in a similar property that bought 3-5 years ago the chances are their price is not as realistic and cannot adjust in the same way.

JQ.

A buyer having cash would make no difference to the level of offer I would accept. If there were more than one offer, it would factor into my decision making process, but it would not necessarily be the deciding factor. I'd much rather deal with a relaxed committed buyer with a mortgage than a nervous picky FTB with cash.

Don't forget on forums such as this you only hear the horror stories of sales. You're unlikely to hear people stating that they just sold their house and all went well. So don't assume everyone is struggling to get a mortgage.