Cash Buyer - How Much Off Asking Price

NameUnavailable

I guess as a geniune cash buyer you can offer speed of transaction and a degree of certainty (no hold ups or hiccups due to mortgage valuation issues etc) but whether or not that is an incentive for your vendor is another issue.

The best way to get a bargain as a cash buyer is to buy at auction I guess.

alex_163163

I wouldn’t give any money off for a cash buyer. In fact my experience of a cash buyer was negative as they decided to change the name of the buyer (originally mother, then changed it to daughter) the day before exchange was planned causing delays that nearly lost me my onwards purchase. Doubt that would have happened with someone buying with a mortgage. 

Davesnave

happy_2008 said:

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

Because maybe no one but a cash buyer is able to buy the house? Lenders don't lend on everything, even if the property is sound, or if they do, it's at rates no one wants.
Due to a legal restriction, our vendor couldn't sell to anyone who needed a mortgage ,so she advertised at a low price to cash buyers only. She wanted it all done and dusted in 3 months, and we obliged. We wouldn't have paid the usual going rate for the property, which was around £25-£30k higher; that was money in our pocket for some of the work needed.

DCFC79

I wouldnt expect to be given any discount nor would I give any.

blue_max_3

Mortgage valuations sometimes come back with lower valuations and reduced offers, so a cash buyer should avoid this issue. And with mortgages getting harder to find (especially lower LTV), it's just another stumbling block.
I'm a cash buyer and certainly expect to be taken very seriously. We'll see.

Angela_D_3

blue_max_3 said:

Mortgage valuations sometimes come back with lower valuations and reduced offers, so a cash buyer should avoid this issue. And with mortgages getting harder to find (especially lower LTV), it's just another stumbling block.
I'm a cash buyer and certainly expect to be taken very seriously. We'll see.

In my experience when you expect anything you tend to be disappointed 

lesalanos

Davesnave said:

happy_2008 said:

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

Because maybe no one but a cash buyer is able to buy the house? Lenders don't lend on everything, even if the property is sound, or if they do, it's at rates no one wants.
Due to a legal restriction, our vendor couldn't sell to anyone who needed a mortgage ,so she advertised at a low price to cash buyers only. She wanted it all done and dusted in 3 months, and we obliged. We wouldn't have paid the usual going rate for the property, which was around £25-£30k higher; that was money in our pocket for some of the work needed.

So in this instance where only cash buyers could buy it would be priced accordingly and no discount would be acceptable

davidmcn

lesalanos said:

Davesnave said:

happy_2008 said:

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

Because maybe no one but a cash buyer is able to buy the house? Lenders don't lend on everything, even if the property is sound, or if they do, it's at rates no one wants.
Due to a legal restriction, our vendor couldn't sell to anyone who needed a mortgage ,so she advertised at a low price to cash buyers only. She wanted it all done and dusted in 3 months, and we obliged. We wouldn't have paid the usual going rate for the property, which was around £25-£30k higher; that was money in our pocket for some of the work needed.

So in this instance where only cash buyers could buy it would be priced accordingly and no discount would be acceptable

Yes, I presume the question is "how much cheaper can I get this than a buyer who needs a mortgage" - whereas in Davesnave's case, there isn't a buyer with a mortgage.

SpiderLegs

lesalanos said:

Davesnave said:

happy_2008 said:

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

Because maybe no one but a cash buyer is able to buy the house? Lenders don't lend on everything, even if the property is sound, or if they do, it's at rates no one wants.
Due to a legal restriction, our vendor couldn't sell to anyone who needed a mortgage ,so she advertised at a low price to cash buyers only. She wanted it all done and dusted in 3 months, and we obliged. We wouldn't have paid the usual going rate for the property, which was around £25-£30k higher; that was money in our pocket for some of the work needed.

So in this instance where only cash buyers could buy it would be priced accordingly and no discount would be acceptable

Yes I’d love to know what happened when dave went in at 10% under because they were a cash buyer on a cash buyer only property, marketed at a cash buyer only price.

Davesnave

lesalanos said:

Davesnave said:

happy_2008 said:

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

Because maybe no one but a cash buyer is able to buy the house? Lenders don't lend on everything, even if the property is sound, or if they do, it's at rates no one wants.
Due to a legal restriction, our vendor couldn't sell to anyone who needed a mortgage ,so she advertised at a low price to cash buyers only. She wanted it all done and dusted in 3 months, and we obliged. We wouldn't have paid the usual going rate for the property, which was around £25-£30k higher; that was money in our pocket for some of the work needed.

So in this instance where only cash buyers could buy it would be priced accordingly and no discount would be acceptable

No , in this instance the seller had discounted already. The usual cash price was at least £25-30k higher, maybe more. Hard to tell exactly with rural, landed property, but we'd seen nothing similar that low.

We felt the price was more than fair, so we offered it, rather than piddle about. If our own survey had shown anything major, we'd have negotiated, but we saw nothing worrying. It was a sound, hard-to-repeat property.

6-8 weeks later a significant gazump attempt was made via the vendor's estranged OH and the agent tried to bid us up, but we stuck to the original agreement and so did the vendor, who didn't want to start over again.

* edited, this time without four and five year old's help!