Buying a house with cash

homebound

[FONT=굴림]I'm in the fortunate position to be able to buy a house100% in cash. I'm working abroad at the moment, and have no house in the UK.[/FONT]
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[FONT=굴림]I'll be coming back to the UK late this year, plan to staywith the parents for a little while whilst I decide where to live and what tobuy.....[/FONT]
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[FONT=굴림]My question is, if I pay 100% in cash what benefits will thisgive me in terms of negotiating the house sale price/cost of estate agent feesect?[/FONT]
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[FONT=굴림]Do I even pay the estate agent fees, seems as I'm buying ahouse, but not selling one? [/FONT]
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[FONT=굴림]I think I know what area I want to live in, so I should beable to get the ball rolling ASAP when I get back, so assuming I find a house quickly- what realistic time span can I aim to be in the house, contractsexchanged......[/FONT]
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[FONT=굴림]I know a lot of that will depend upon the circumstances ofthe seller btw.... [/FONT]
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[FONT=굴림]Thanks for any advice! :beer:[/FONT]
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Old_Git

cash buyer means you can move quickly and not have to wait for a mortgage lender .
You are advised to get a survey done but you dont have to .

You dont pay the estate agent.

Time scale six weeks to forever ,depending on there the sellers are going .

Louise.H

Having bought both times in cash it does seem to help getting a lower offer accepted, especially if the seller is particularly keen to sell. Second house the agent told me my offer would never get accepted as they had turned down the same from someone else, he was wrong .

As mentioned above you will not pay the agent anything, your conveyancing fees should also be less.

Be warned though that the seller may still make it not a very fast transaction - my first one was four and a half months despite their being desperate to sell; sadly they had no idea on how to fill out any paperwork properly. Second house took two months, would have been quicker but the sellers kept going on holiday!

homebound

Thanks for the replies!

Would it be possible for me to insert a clause into the contract saying, once papers have been signed you have X amount of time to get out of the house...?

Although I love my parents, I don't want to spend too much time staying with them!

I know the seller needs to find another place to live but I dont want to be stuck in limbo for months whilst they find a new place!

Jenniefour

homebound wrote: »

Would it be possible for me to insert a clause into the contract saying, once papers have been signed you have X amount of time to get out of the house...?

That's not how it works. Neither party are tied in to the sale until exchange of contracts by which time all the searches will have been done, queries answered and so on. When you are ready to exchange then the completion date will be agreed. Nothing wrong with expressing your wishes - that you would like to complete asap but realistically the process takes 3/4 months. A bit of patience needed.

dominoman

If you are buying in a hot place like London then being a cash buyer won't be a big boost. I have found that at least half the buyers I am competing against (and this is in zone 3/4 - not prime London) are 100% cash buyers.

It all helps though.

If you really want to move quickly look for a chain-free property. In my experience around 30-40% of the houses I have seen are chain free.

Then get a decent solicitor and before signing up say you want to go for a 21 day exchange. If they say that is unlikely look elsewhere. Of course it all depends on the other side's response times too but in theory 21 days between offer and exchange is perfectly doable.

G_M

Would it be possible for me to insert a clause into the contract saying, once papers have been signed you have X amount of time to get out of the house...?

Jenniefour wrote: »

That's not how it works. Neither party are tied in to the sale until exchange of contracts by which time all the searches will have been done, queries answered and so on. When you are ready to exchange then the completion date will be agreed. .

Wrong. That is exactly how it works! (just substitute the word 'Exchanged' for the word 'signed' which was used by the OP who is not familiar with the terminolgy.

The contract will include a date by which the seller must "get out of the house". It is called the 'Completion Date' and is included in the contract.

katejo

Old_Git wrote: »

cash buyer means you can move quickly and not have to wait for a mortgage lender .
You are advised to get a survey done but you dont have to .

You dont pay the estate agent.

Time scale six weeks to forever ,depending on there the sellers are going .

You would have to pay the agent if they were using the new tender method.

MrRee_2

Most buyers these days are cash buyers (no mortgage) - it's just how it is in todays low Interest Rate environment .... people are drawing down their savings and buying property cash.

It's just not that unusual these days ... and a pushy buyer may well put a seller off who wants time to find their new place.

The world has changed, cash is no longer king as there is so much of it flying about looking for a home where the growth will beat inflation (and that's in bricks and motar).

I woudl buy right now if I were you - the market is getting to boiling point.

ognum

All cash buyers think they are due some sort of respect, I have yet to see it.

the time cash buyers get a better deal is with leasehold property that needs a lease extension. These properties are not mortgageable so sometimes a cash buyer can pick one up at a good price and then extend the lease.

Otherwise you are basically the same as the rest. If your funds are coming in from overseas be prepared to undergo money laundering checks!

DigForVictory

Minor thought - if by 'cash' you mean 'used notes', you are in for additional hassle under Money Laundering Regs.

All sortable, but just in case there is any misunderstanding.