Cash offer on our house how does it work?

spender717

Hi all,

We have received an offer on our house from a cash buyer. Obviously they don't need to go down the protracted route of a mortgage application, so how does it work exactly?

We were going to keep our house on the market until our buyer had had their survey and started their searches so we knew they were serious, but with a cash buyer, should we take it off once they start their searches?

Is it just searches that need completing and an optional survey then they're good to go?

Thanks in advance for any help you can provide

Guest101

Yes that's it. I would take it off straight away though.

Normally keep it Ina's mortgages can be rejected or take longer. Cash buyers are in a strong position, able to walk away more easily as they haven't invested like a mortgagee

Gwhiz

Anything can happen until exchange so I would keep it on the market until you know the deal is happening.

Obviously the buyer may ask you to remove which is a different story.

spender717

Thank you for your replies. I will see what the buyer/estate agent say about when to remove it from the market and decide from there

It's good to know in theory they can move quickly as we already lost one buyer and thought we were going to lose out on the house we wanted to purchase.

Malks

Are you sure they are a cash buyer? We had a cash buyer on ours, or so the agent claimed. Turned out they needed a mortgage. Be very weary of the phrase!
We found out when the survey was being done, as the surveyor said it was for the mortgage valuation report. The agent still tried to claim they were a cash buyer though.
I would keep it on the market until the Survey, that way you know the buyer is serious.

camptownraces

As cash buyers, we were deeply affronted to find that the vendor who had accepted our offer still had his property advertised. A full structural survey had been booked, and vendors' agent knew this.

We asked agent to consider whether vendor really wanted to go ahead or not, as we felt that continuing to advertise was not a mark of good faith. The ad was changed to SSTC on the websites that evening. Cash buyers are in powerful position.

pawpurrs

Also are they true cash buyers ie no chain or are they relying on cash from their sale, huge difference! Most buyers would get twitchy if property is not marked as sstc.

PierremontQuaker03

I would seek, or your Estate Agent should seek, proof of funds before going any further

bylromarha

Malks wrote: »

Are you sure they are a cash buyer? We had a cash buyer on ours, or so the agent claimed. Turned out they needed a mortgage. Be very weary of the phrase!
We found out when the survey was being done, as the surveyor said it was for the mortgage valuation report. The agent still tried to claim they were a cash buyer though.
I would keep it on the market until the Survey, that way you know the buyer is serious.

Know the feeling. We had a cash buyer for mums house - showed agent proof of cash.

However, he decided he wanted a mortgage after us accepting his cash offer....

Ended up threatening to put it back on the market as he was mucking about so much trying to get the mortgage sorted.

Guest101

PierremontQuaker03 wrote: »

I would seek, or your Estate Agent should seek, proof of funds before going any further

Again as a cash buyer I never showed any info to any EA. Perhaps it's big headed

Gwhiz

Malks wrote: »

Are you sure they are a cash buyer? We had a cash buyer on ours, or so the agent claimed. Turned out they needed a mortgage. Be very weary of the phrase!
We found out when the survey was being done, as the surveyor said it was for the mortgage valuation report. The agent still tried to claim they were a cash buyer though.
I would keep it on the market until the Survey, that way you know the buyer is serious.

Agreed. The question you should ask the buyer is; "do you have all the funds to buy sitting in the bank ready"?