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Cash buyers/ can this significantly reduce the asked price?

EverGreen_2
Posts: 185 Forumite
Background: I had been working abroad for 8 y. I sold my house in Canada. Money is in my account (foreign bank). Still even in USD. No chain. Once all essential checks are done the exchange can take place in days. I know I can be considered as an attractive buyer. Can this reduce the asked price significantly (apart from the normal negotiation)?
Another point: I earned the money abroad and I paid taxes there. Can I do anything about the tax system here? The house will be bought using money earned abroad. Does this make difference when I sell that house in the future? Do I need to document the issue of the source of that money?
Another point: I earned the money abroad and I paid taxes there. Can I do anything about the tax system here? The house will be bought using money earned abroad. Does this make difference when I sell that house in the future? Do I need to document the issue of the source of that money?
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Background: I had been working abroad for 8 y. I sold my house in Canada. Money is in my account (foreign bank). Still even in USD. No chain. Once all essential checks are done the exchange can take place in days. I know I can be considered as an attractive buyer. Can this reduce the asked price significantly (apart from the normal negotiation)?
Another point: I earned the money abroad and I paid taxes there. Can I do anything about the tax system here? The house will be bought using money earned abroad. Does this make difference when I sell that house in the future? Do I need to document the issue of the source of that money?
Shouldn't have a problem - we've funded all our purchases with money earnt in Spain. Not had to pay any additional tax in bringing (transferring) the money into the country.Mortgage free for 5 months :T Then got another mortgage:rotfl:0 -
In regard to getting a discount as a cash buyer it will vary between vendors. If they want a quick or hassle free sale they may but the majority of people want the best price for their house. I personally wouldn't accept a lower offer from a cash buyer compared to a higher offer from someone needing a mortgage unless I needed a quick sale.0
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It may make you a marginally more atractive buyer since a) no delay while you sell an existing property and b) no delay while you get a mortgage.
The effect on the price however will be marginal.
If you offer the same price as a non cash buyer, the seller will choose you.
If you offer less than a non cash buyer, the seller may choose you, but may prefer the higher price. (depending also how big the difference in price). Depends on the seller and their circumstances.
Source of funds will make no difference to tax when you sell.
Whether the money you earned abroad is taxable is not a property-related issue.
If you use a solicitor, he will probably need to satisfy himself the funds were sourced legally.0 -
As above it makes little difference to the vendor whether it's cash or mortgage and as many have discovered, there are drawbacks with cash buyers.
They have far lower commitment, no mortgage fees, don't have to have a survey so can walk away at any time with very little cost to themselves.
There have been posts on here about cash buyers gazundering at the very last moment putting the vendor, who by now has paid out for surveys etc on another property in a very difficult position.
I've nothing against cash buyers, been one myself a few times, but if I was the vendor, cash would make no difference.0 -
societys_child wrote: », don't have to have a survey so can walk away at any time with very little cost to themselves.0
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The difference is the word 'have'. Non mortgaged buyers don't have to have any survey done or even searches but at least a home buyer's survey and some of the searches would be sensible. Mortgage lenders will demand at least a valuation survey and searches.Father Ted: Now concentrate this time, Dougal. These
(he points to some plastic cows on the table) are very small; those (pointing at some cows out of the window) are far away...:D:D
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These days it's a myth that there are significant discounts to be made by cash buyers. It has been so in the past... but sellers now have more options, more easily available to them to sell their house at a lower price/fast.
It's more about looking attractive to a seller -or- having the option to buy at auction where houses are listed for cash buyers only (reducing the number of bidders).0 -
But the general survey (checks) of the house is still in place. correct?
I didn't pay for surveys, I did my own.
I've put my tin hat on now . . .
:rotfl:0 -
societys_child wrote: »When I've bought cash, the only checks I had were the title and local searches.
I didn't pay for surveys, I did my own.
I've put my tin hat on now . . .
:rotfl:
Same here - no *official* surveys carried out on our three most recent purchasesMortgage-free for fourteen years!
Over £40,000 mis-sold PPI reclaimed0 -
phoebe1989seb wrote: »Same here - no *official* surveys carried out on our three most recent purchases
am not expert.
A construction builder is good friend. he is more than happy to view with me. is this good enough? how about wiring/elect check/gas etc? can he inspect that too?0
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