Do you always get a discount if you are a cash buyer?

Legacy_user

my first home is probably going to be paid by cash, no mortgage.
Will I get a discount? How much if yes?

asharon

Maybe.

Depends on how much you ask for.
Depends on how much the seller is willing to accept.

david29dpo

As far as a seller is concerned, they still get the money the same way i.e. from there solicitor.
You may be able to exchange and compete quicker than a buyer who is getting a mortgage but if a seller does not care about that then why should you?

R_P_W

why would it make a difference? you dont physically pay them in cash. the seller gets the funds transferred to them whether you have a mortgage or not.

Paying cash might make you a more attractive buyer as you may be able to proceed quicker.....

DarlyPaws

I'm currently selling a house and I would be more likely to accept an offer from a cash buyer. This is because a cash buyer can proceed more readily and not have the issues of banks and mortgages (which is a real issue these days). However, having said that, it would need to be a fair offer. My house is currently listed for £120,000. It is in immaculate condition and needs no work doing to it at all (recently been totally renovated). I would consider a cash buyer if an offer came in at £116,000. Unfortunately, in my lower price bracket, there is less room for movement. However, in a high price bracket, there is more room for movement. I hope this helps you and good luck! :-)

ognum

DarlyPaws wrote: »

I'm currently selling a house and I would be more likely to accept an offer from a cash buyer. This is because a cash buyer can proceed more readily and not have the issues of banks and mortgages (which is a real issue these days). However, having said that, it would need to be a fair offer. My house is currently listed for £120,000. It is in immaculate condition and needs no work doing to it at all (recently been totally renovated). I would consider a cash buyer if an offer came in at £116,000. Unfortunately, in my lower price bracket, there is less room for movement. However, in a high price bracket, there is more room for movement. I hope this helps you and good luck! :-)

cash buyers can also walk away more easily!

I have been a cash buyer several times, only once have I walked and probably if I had a mortgage offer tied to that property I would have stayed with it but the seller was becoming difficult and I simply said I can't deal with him anymore.

If I was a seller I would give no extra discount to a cash buyer, the last house I sold to a cash buyer at well over asking price. I don't believe there is any reason to discount to cash buyers.

J_i_m

A vendor either accepts an offer or they do not. There isn't some discount code they're obliqued to use for buyers paying in cash, buyers with no chain or simply buyers with a jaunty hairstyle.

Cash, mortgage, chain & proceedability will be factors in a vendor accepting an offer or not, but it shouldn't dictate a "discount".

paddyrg

Be tempting to turn up with banknotes and see if peoples eyes dilate and they just sign on the spot ;-)

Fire_Fox

Nope. Depends on the asking price, offer price and buyer's attitude.

moneyistooshorttomention

DarlyPaws wrote: »

I'm currently selling a house and I would be more likely to accept an offer from a cash buyer. This is because a cash buyer can proceed more readily and not have the issues of banks and mortgages (which is a real issue these days). However, having said that, it would need to be a fair offer. My house is currently listed for £120,000. It is in immaculate condition and needs no work doing to it at all (recently been totally renovated). I would consider a cash buyer if an offer came in at £116,000. Unfortunately, in my lower price bracket, there is less room for movement. However, in a high price bracket, there is more room for movement. I hope this helps you and good luck! :-)

Based on that...that would make the price of my house lower by £5-£6k to a cash buyer - but my feeling personally is that I live in a part of the country where houses sell much quicker than in many - so I wouldnt give any discount at all to a cash buyer. Reason being that I would only expect a few weeks hold-up in proceedings because of a buyer not being a cash one.

My feeling is that whether a seller is prepared to give a discount to a cash buyer or no might be influenced strongly by whether they are in a part of the country where houses go relatively quickly or one where they hang on the market for some time.

I shall be interested to see if anyone gives a definition of a "cash buyer" here. To me a cash buyer would be someone with the money there literally in the bank and it would just be a question of wait several days whilst the cheque on that bank account cleared.

I would count my own personal position on buying another property as 2nd in line after a cash buyer - as I don't need a mortgage..so won't have any hassle from whether a bank will or won't give me a mortgage. The money for my next purchase will come from the money tied-up in my current house and it doesn't matter a jot that I doubt I'd get a mortgage anyway - as I don't need one. I don't expect a discount for being in the "next best to a cash buyer" position even in a "slow" part of the country. What I WOULD expect is preference to buy over someone needing a mortgage. (That reminds me that I must check out closely that MY buyer has provided me with firm evidence of THEIR funds/mortgage within a week or two of my "decision in principle" to accept their offer.)

ognum

moneyistooshorttomention wrote: »

Based on that...that would make the price of my house lower by £5-£6k to a cash buyer - but my feeling personally is that I live in a part of the country where houses sell much quicker than in many - so I wouldnt give any discount at all to a cash buyer. Reason being that I would only expect a few weeks hold-up in proceedings because of a buyer not being a cash one.

My feeling is that whether a seller is prepared to give a discount to a cash buyer or no might be influenced strongly by whether they are in a part of the country where houses go relatively quickly or one where they hang on the market for some time.

I shall be interested to see if anyone gives a definition of a "cash buyer" here. To me a cash buyer would be someone with the money there literally in the bank and it would just be a question of wait several days whilst the cheque on that bank account cleared.

I would count my own personal position on buying another property as 2nd in line after a cash buyer - as I don't need a mortgage..so won't have any hassle from whether a bank will or won't give me a mortgage. The money for my next purchase will come from the money tied-up in my current house and it doesn't matter a jot that I doubt I'd get a mortgage anyway - as I don't need one. I don't expect a discount for being in the "next best to a cash buyer" position even in a "slow" part of the country. What I WOULD expect is preference to buy over someone needing a mortgage. (That reminds me that I must check out closely that MY buyer has provided me with firm evidence of THEIR funds/mortgage within a week or two of my "decision in principle" to accept their offer.)

I am not greatly in favour of grading buyers but as you have I would suggest you are lower down the line than a first time buyer with nothing to sell. Not being in a chain would be a greater encouragement to me than someone who is selling even if they don't have a mortgage!