Quick question please

Aliss08

Hello - can anybody tell me what a cash buyer is. Would a cash buyer be someone who doesn't need a mortgage to buy their next property as they are downsizing and their mortgage is paid. However their buyer does need a mortgage so does that make a difference?

Thank you

Werdnal

Yes, cash buyer is buying with their own cash! Often you see properties advertised as "cash buyer only" as they have some structural or other issues which means lenders will not grant a mortgage on them.

Are we permitted to know why you are asking?

19lottie82

A cash buyer is just that. They have the cash to buy the property in question, so they don't need a mortgage and they aren't in a chain. This is ideal for a seller as it drastically reduces any potential hiccups in the sale, such as the buyer being refused a mortgage, or relying on their property selling to fund the purchase.

G_M

Some people include in the description those who will not be needing a mortgage, but who DO need to sell their current property in order to finance their purchase.

However strictly speaking these are not 'cash buyers' since until they sell, they do not have the cash!

Aliss08

Just asking on behalf of a friend. She is thinking of moving and has paid off her mortgage and will be downsizing. However she will be in chain with any potential buyers probably needing a mortgage so really makes no difference that she has paid her mortgage off when part of chain. Thanks for the very quick replies.

cattie

Cash purchaser, looking for chain free property and my buyer in rented, no chain involved This is the position I'm in and makes you much more attractive to many vendors. You can often use it as part of the bargaining process.

Your friend has the added complication of being in a chain, so a bit less appealing to some as so many sales are currently falling through thanks to a chain breaking down somewhere along the lines.

Aliss08

Thanks again for all the replies. I think I am going to disappoint my friend when I tell her that being mortgage free and downsizing doesn't really help her in this instance.

tbs624

cattie wrote: »

Cash purchaser, looking for chain free property and my buyer in rented, no chain involved This is the position I'm in and makes you much more attractive to many vendors. You can often use it as part of the bargaining process.

My bolding .You *will* be in a chain there, just a short one

cattie wrote: »

Your friend has the added complication of being in a chain, so a bit less appealing to some as so many sales are currently falling through thanks to a chain breaking down somewhere along the lines.

Look back - there is a possibility that they may end up selling to someone who needs a mortgage. Mate's circumstances may therefore be no less appealing than your own, if she too finds a buyer who has nothing to sell.

tbs624

Aliss08 wrote: »

Thanks again for all the replies. I think I am going to disappoint my friend when I tell her that being mortgage free and downsizing doesn't really help her in this instance.

Sounds a bit nah, nah I told you so......are you good friends?;)

Fact is that anyone who does not personally [edit:need] a mortgage to be able to buy still has an advantage over those who don't, all other things being equal.

Aliss08

It wasn't meant to come across like that all and yes we are good friends. She will be disappointed as she thought being mortgage free might help her be one step ahead so to speak.

tbs624

It may still do - if I had a choice of two or three buyers offering a similar price, all of whom had a property to sell, but 2 needed to obtain mortgages to be able to complete purchase of my property and the other didn't, I'd go with the mortgage free one.