Cash buyer, who cares?

tabbyfish

My house is up for sale for a very modest £79950. 2 up 2 down.
I need to sell for £75k to pay off the mortgage and fees.
I have a deposit already saved and don't want to use that for the fees or mortgage so I am happy with what I need.

However, I've had a couple of cheeky offers for less than £70k and they come with the "I am a cash buyer" line.

Why do people think that makes a difference?

It's not like they will give me a suitcase full of cash and it will be mine is it!

I know what I need to sell for to cover things so why keep going on about being a cash buyer and offering well below the asking price?

Surely the only benefit of selling to a cash buyer is that it may go through a lot quicker having to to wait for a mortgage?

Had a viewing today, yes cash buyer lol. These were a young family not investors, I know certain cultures only deal in cash so to not pay interest but to me it makes no odds. Or should it?

Rant over...

Old_Git

well a cash buyer would be chain free .

tabbyfish

But so would a first time buyer, with a mortgage. I just feel like they say it to allow them to make a cheeky offer. Like its some kind of mind trick lol.

Better_Days

If you have been through the stress and uncertainty of a troublesome chain over which you have no control then a cash buyer will seem like manna from heaven.

Have a look at this programme for an idea of some of the things that can go wrong
http://www.channel4.com/programmes/the-property-chain/4od
Series 1 episode 3 is a real eye opener
So glad I watched it after my sale exchanged!

GL with your sale.

Jennifer_Jane

I agree with Better Days (although, assuming your house is worth £80,000 or thereabouts, then the £70,000 is ridiculous). I have lost two houses (with surveys, searches and some legal fees done, let alone the emotional side of things) because the chains fell through and then my buyer pulled out completely. I would be hard-pressed to give precedence to someone in a chain over one who is not.

Nevertheless, 14% below asking price either means your house is way over-priced, or they are very cheeky. But being in a chain is horrible.

PS - first-time buyers also aren't the easiest, they can be very fussy about surveys and such... well, at least, I was!

G_M

Chains are troublesome - they can add huge uncertainty and delay.

Mortgages are troublesome - they can add uncertainty and price re-negotiation and delay.

Cash is trouble-free.

If that is worth a reduction in price to you, accept a lower offer.

If not, don't!

pinkteapot

Chains are problematic. FTBs can have their mortgage application turned down. Cash buyers are the least hassle and generally that's seen as worth a few £££.

Do bear in mind that while you might not care that they're cash buyers, they equally don't care what you "need". They'll offer what they think the house is worth compared to others on the market. What you need is completely irrelevant to them.

We viewed a house three years ago where the seller told us he "needed" £270k. Every similar house was selling for £250k or less. Thee years later, his house is still on the market.

DRP

tabbyfish wrote: »

But so would a first time buyer, with a mortgage. I just feel like they say it to allow them to make a cheeky offer. Like its some kind of mind trick lol.

i agree. Our cash buyer offered at 88% (was eventually pushed up to ~95%).

If you are selling a FTB home then there isn't really much of a practical difference to be paid with cash or a FTB mortgage.

In fact we have experienced one of the pitfalls of having a cash buyer is that there is less motivation to stay with your property - ie. arranging a mortgage etc makes the buyer commit to your house a little bit more (at least mentally), compared to a cash buyer who can be a bit more flighty...

ognum

G_M wrote: »

Chains are troublesome - they can add huge uncertainty and delay.

Mortgages are troublesome - they can add uncertainty and price re-negotiation and delay.

Cash is trouble-free.

If that is worth a reduction in price to you, accept a lower offer.

If not, don't!

I seldom disagree with you but I would add that I have been a cash buyer many times and cash buyers can walk at any time.

If you have invested time and effort in getting a mortgage you are less likely to walk unless you have too. As a cash buyer if a better house comes up you can just move on.

Kynthia

As well as being chain free and progressing quicker, they don't have mortgage lender. I've known so many purchases fall through because the buyer couldn't actually get a mortgage, the lender withdrew the loan offer, the AiP ran out, the lender had a problem with the survey value, or something else related to the property, etc. A cash buyer is often worth a discount to those in a chain or needing to move quickly.

Old_Git

I have just had my offer accepted on a house .The asking price was £88,000 I offered £81,000 four weeks ago .On Thursday the agent said they had an offer off £82,000 ,I increased mine to £83,000 the £82,000 (if there was one ) backed out and my offer was accepted .Going for a second viewing today ,but should be fine . The vendor has separated from his wife so they need to sell quickly .The house has been on the market 4 weeks and being a cash buyer I am procedable .