How much for cash?

ognum

Interesting post, I have been a cash buyer and sold for cash. I sold for cash and got 10% above the asking price, there were competing buyers it didnt matter to me which one got the house, cash or mortgage, the cash buyer won the biding war but then was very picky but new not to push to far because the other buyer was waiting in the wings.
In the past few months I have bought as a cash buyer, I got no special benifits from this, in fact if I was selling again I would prefer a mortgaged buyer, it is much more difficult for a morgaged buyer to drop out because there is a lot more work to get a new mortgage and start again, a cash buyer can walk away with no problems.
Sorry to say I dont really think there is a buyers benifit.

Cash-Cow_3

Cash buyers are worse in many ways. If it was me with cash I would make an offer and when it is accepted, I would go very slowly in the buying process. The longer it takes the more money I earn in interest not handing it over to the seller. Meanwhile the asset may increase in value. I will essentially be paying less for an asset that is (hopefully) worth more. You risk losing the house if they get a better offer but that's the gamble.

poppysarah

Offer low. 20k off if there keen to sell maybe...

Few people with mortgages at the moment so cash is starting to look better

G_M

The only times cash really makes a difference is when buying a repossession, or at auction.

Otherwise you're just another buyer making an offer.

zaksmum

If I had a cash buyer after my house I'd be happy to give at least a 10% discount on my asking price. It would be worth that to know there wouldn't be any hassle in terms of the lender valuing at less than asking price or the chain collapsing at some point, or the mortgage being refused for whatever reason.

With a cash buyer, the money you accept is guaranteed. Property prices are falling around here and the longer a property remains unsold, the lower it's ultimate value.

dorset_nurse

A cash buyer doesn't make me think that a house sale is any less likely to fall through.

Muhasib

zaksmum wrote: »

If I had a cash buyer after my house I'd be happy to give at least a 10% discount on my asking price. It would be worth that to know there wouldn't be any hassle in terms of the lender valuing at less than asking price or the chain collapsing at some point, or the mortgage being refused for whatever reason.

With a cash buyer, the money you accept is guaranteed. Property prices are falling around here and the longer a property remains unsold, the lower it's ultimate value.

Its not guaranteed if you later find out that the 'cash buyer' had bid on 3 properties with 3 agents as happened to me, by showing a building society balance they proved to the agents that they had the money, if they had been required to get mortgage finance this wouldn't have happened as the credit reference applications would have found them out.

ognum

zaksmum wrote: »

If I had a cash buyer after my house I'd be happy to give at least a 10% discount on my asking price. It would be worth that to know there wouldn't be any hassle in terms of the lender valuing at less than asking price or the chain collapsing at some point, or the mortgage being refused for whatever reason.

With a cash buyer, the money you accept is guaranteed. Property prices are falling around here and the longer a property remains unsold, the lower it's ultimate value.

Sorry but this is just not correct, as a cash buyer most if not all get a valuation and full structural survey by a local professional.
I have negotiated a reduction after offer using this in the same way as a mortgaged individual would
The fact it is your heard earned cash that is going into the purchase makes you just as determined to not over pay and reduce your offer for large faults.
I really believe that any procedable buyer is as fgood as any other.

neverdespairgirl

muhasib wrote: »

Its not guaranteed if you later find out that the 'cash buyer' had bid on 3 properties with 3 agents as happened to me, by showing a building society balance they proved to the agents that they had the money, if they had been required to get mortgage finance this wouldn't have happened as the credit reference applications would have found them out.

I don't understand that at all. You could bid on 3 properties with 3 agencies and show a mortgage approval in principle just as much as a bank statement. No credit checks or anything.

Davesnave

There are probably not so many properties where being a cash buyer would give you a huge advantage, but those few might be worth seeking out. It really depends upon how flexible you are, and a certain amount of luck.

When we bought, the seller put her property on the market at a low price because she needed out rapidly. Also, there was a good chance of creating a bidding war, since few properties of this type come to the market.

The result was that there were two potential buyers and another who arrived late. The vendor went with us and ignored a gazump attempt, because although we offered the least money, we had provable cash and she trusted us to complete on the agreed date. This also shows how you interact with your vendor can play a part in the way a sale goes.