Cash Buyer - How Much Off Asking Price

Kernower

What percentage is realistic to take off the asking price of a house as a cash buyer? Share your experiences...

SpiderLegs

Erm... nothing.

numbercruncher8

You'll probably get some emotional responses and some anecdotal 'makes no difference to me'.

In reality there is no standardised figure, all really depends on the seller and the property. On something that is tricky but not impossible to mortgage you will have an advantage, on something where the seller needs to sell quickly you will also have an advantage. 

Even in these scenarios it may not amount to anything, as another cash buyer could outbid.

greatcrested

Zero.

It might make you a more likely choice given two potential buyers with equel offers, but some people argue that cash buyers can be more troublesome than those applying for a mortgage or selling a property. They have less investment up front in the purchase so are more likely to gazump or withdraw.....

OldMusicGuy

No logic you can use. Depends how desperate the seller is. I was a cash buyer in rented, made an offer 6% under asking on a property that had been on the market for 2 years just as COVID was hitting and was told to get lost. Seller not prepared to drop, we were not prepared to go higher. I was able to negotiate some good incentives on the new build I bought as they were keen to deal with a cash buyer. 

As always, offer what you think the house is worth. Being a cash buyer might make you more attractive as a buyer to some sellers.

davidmcn

Numerous tales here of "cash buyers" who turn out to have "cash" which needs time-consuming extraction of investments somewhere else, or "cash" once they've sold their own property, or who apparently did have cash but would prefer to buy with a mortgage after all...so expect a certain amount of cynicism rather than offers of discounts.

eve824

I would rather have a non cash buyer. I’ve always had trouble with cash buyers so would opt for someone with a small chain. They have much more investment in the process and so less likely to pull out. Both aborted sales I’ve had were cash buyers. 

eidand

I don't know why cash buyers expect reductions. I couldn't care less, you either fork out the asking price or you're not buying.

DRP

If there’s a chain it doesn’t really make any difference does it?

happy_2008

Why would you expect a discount just because you're a cash buyer is beyond me??

hazyjo

Do you mean investor, or someone who's already sold and doesn't need a mortgage, or someone who needs to sell and will then be buying without a mortgage, or something else?

It might make you more appealing as a buyer, depending on your answer to the above, but I don't think I'd accept anything lower from a cash buyer than any other buyer.