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Discount for paying cash

If someone were able to buy a house without needing a mortgage, is there a standard discount that would it be reasonable to include in their offer to reflect this?

Comments

  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    What difference does it make to the vendor? They get the money in cleared funds no matter how you pay. It's the same as someone buying your house with a pre-approved mortage subject to valuation. As long as the valuation is fine then the money is released by the bank.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • BitterAndTwisted
    BitterAndTwisted Posts: 22,492 Forumite
    10,000 Posts Combo Breaker
    No. If I was selling I wouldn't care about the source of the funds, only achieving what to me was a sensible price. Being chain-free and able to complete quickly after survey might make a difference to some.
  • ViolaLass
    ViolaLass Posts: 5,764 Forumite
    I thought it might make a difference that then the bank don't need to be involved, there's no risk that the buyer won't get a mortgage or a mortgage of the right amount etc.
  • paddyrg
    paddyrg Posts: 13,543 Forumite
    If you have cash, promote the advantage in terms of how fast you can complete
  • cattie
    cattie Posts: 8,844 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Don't we wish!
    The bigger the bargain, the better I feel.

    I should mention that there's only one of me, don't confuse me with others of the same name.
  • System
    System Posts: 178,361 Community Admin
    10,000 Posts Photogenic Name Dropper
    ViolaLass wrote: »
    I thought it might make a difference that then the bank don't need to be involved, .
    Do you mean that you just hand over a suitcase full of used £50 notes to the seller?
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • kingstreet
    kingstreet Posts: 39,298 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ViolaLass wrote: »
    I thought it might make a difference that then the bank don't need to be involved, there's no risk that the buyer won't get a mortgage or a mortgage of the right amount etc.
    The usual concern around a mortgage is the survey or valuation. As your typical cash buyer has a survey anyway, the "risk" to the vendor of an adverse survey remains.

    Unless of course, the cash buyer approaches the vendor and says I won't have a survey if you give me x% off?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • arbrighton
    arbrighton Posts: 2,011 Forumite
    Ninth Anniversary Combo Breaker
    kingstreet wrote: »
    The usual concern around a mortgage is the survey or valuation. As your typical cash buyer has a survey anyway, the "risk" to the vendor of an adverse survey remains.

    Unless of course, the cash buyer approaches the vendor and says I won't have a survey if you give me x% off?

    Our buyer didn't have a survey done, but then proceeded to gazunder us on the basis of the price of the buildings insurance (which we'd told them about anyway). Buyers will always be aware that a purchaser might manage to come up with a way to further reduce price. Depends on how much they want to move and what they an afford
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