Cash Buyer - How Much Off Asking Price

Davesnave

SpiderLegs said:

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.

Well, nobody knows. My gut instinct is that it would have been accepted, but problems would have arisen later. The vendor really didn't want to be here, due to commitments elsewhere, but what that was worth in £££ is anyone's guess.

My first post was a suggestion that those who have cash, like we did, may look around for properties where the vendors need a quick sale for some reason, then offer less.

In this instance, viewing made us think others were likely to offer, as the property was already at least 10% less than the normal cash purchase price, so we offered asking.

That was not the case with two other properties we bid on not long before.There, both bids were rejected out of hand; not even a counter offer.  The eventual selling prices and the time taken to achieve them later proved our offers were fair and we were correct not wasting time on them.

So, it sometimes pays to be a cash buyer, but you might either have to wait a long time or be better off looking at auctions. Depends what you're after.

eddddy

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.

It sounds like you're saying that as a cash buyer, you would pay more than a potential mortgage lender's valuation.

i.e. If you offer £200k, you will pay £200k - whereas somebody needing a a mortgage might offer £200k then have to reduce it to £180k following a mortgage valuation.

I think the OP's goal is to pay less than somebody who needs a mortgage, not more.

[Deleted User]

Cash buyers have only caused me grief and they’re not getting a discount on my house. 

billy2shots

Surely there are only cash buyers? I've never been offered magic beans or gold bars for a property I was selling. 

Where the cash comes from is of no concern to me because it all gets funneled from one solicitor to another before arriving in my bank. 

Unless it's a specific reason like buying a property that you can not get a mortgage on, I would keep quiet and not boast about having plenty of disposable 'cash'. You may find vendors playing hard ball thinking you can afford more. 

Saying you are chain free is completely different and should be made known. 

All in my opinion if course. 

hazyjo

billy2shots said:

Surely there are only cash buyers? I've never been offered magic beans or gold bars for a property I was selling. 

Where the cash comes from is of no concern to me because it all gets funneled from one solicitor to another before arriving in my bank. 

Unless it's a specific reason like buying a property that you can not get a mortgage on, I would keep quiet and not boast about having plenty of disposable 'cash'. You may find vendors playing hard ball thinking you can afford more. 

Saying you are chain free is completely different and should be made known. 

All in my opinion if course. 

The term "cash buyer" with regard to buying property is different to your interpretation.

It simply means someone has nothing to sell, and doesn't need a mortgage (I'm referring to mortgageable properties). Sometimes people stretch the meaning so it's important to clarify.

Scotbot

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.

I was a cash buyer but still got a survey and valuation done. Pulled out of first offer due to valuation coming in lower.  I was taken seriously but it depends how much competition there is. Today most vendors insist on viewers being proceedable and whilst a sale can fall through a cash buyer can change their mind. As a seller would you accept a lower  offer from a cash buyer over a proceedable offer? I doubt it.

billy2shots

hazyjo said:

billy2shots said:

Surely there are only cash buyers? I've never been offered magic beans or gold bars for a property I was selling. 

Where the cash comes from is of no concern to me because it all gets funneled from one solicitor to another before arriving in my bank. 

Unless it's a specific reason like buying a property that you can not get a mortgage on, I would keep quiet and not boast about having plenty of disposable 'cash'. You may find vendors playing hard ball thinking you can afford more. 

Saying you are chain free is completely different and should be made known. 

All in my opinion if course. 

The term "cash buyer" with regard to buying property is different to your interpretation.

It simply means someone has nothing to sell, and doesn't need a mortgage (I'm referring to mortgageable properties). Sometimes people stretch the meaning so it's important to clarify.

My interpretation of 'cash' buyer' is perfect thanks. 
I am merely pointing out that as a cash buyer I would refer to myself only as chain free. No need to shout from the rooftops that you have plenty of liquidity as that could go against you during negotiations. 

Obviously if an offer is accepted you would need to explain how you are funding the purchase to the EA and completing the paperwork. 

Scotbot

billy2shots said:

hazyjo said:

billy2shots said:

Surely there are only cash buyers? I've never been offered magic beans or gold bars for a property I was selling. 

Where the cash comes from is of no concern to me because it all gets funneled from one solicitor to another before arriving in my bank. 

Unless it's a specific reason like buying a property that you can not get a mortgage on, I would keep quiet and not boast about having plenty of disposable 'cash'. You may find vendors playing hard ball thinking you can afford more. 

Saying you are chain free is completely different and should be made known. 

All in my opinion if course. 

The term "cash buyer" with regard to buying property is different to your interpretation.

It simply means someone has nothing to sell, and doesn't need a mortgage (I'm referring to mortgageable properties). Sometimes people stretch the meaning so it's important to clarify.

My interpretation of 'cash' buyer' is perfect thanks. 
I am merely pointing out that as a cash buyer I would refer to myself only as chain free. No need to shout from the rooftops that you have plenty of liquidity as that could go against you during negotiations. 

Obviously if an offer is accepted you would need to explain how you are funding the purchase to the EA and completing the paperwork. 

Thanks to covid agents  now ask to see proof of funds before you view

blue_max_3

Scotbot said:

I was a cash buyer but still got a survey and valuation done. Pulled out of first offer due to valuation coming in lower.  I was taken seriously but it depends how much competition there is. Today most vendors insist on viewers being proceedable and whilst a sale can fall through a cash buyer can change their mind. As a seller would you accept a lower  offer from a cash buyer over a proceedable offer? I doubt it.

Well, It would tick a box for me. Whether that proved to be the most important thing is not something I could say until I was in that position. If I'd seen the perfect place to move to and it absolutely had to sell, I may think it made the most sense.

Angela_D_3

Scotbot said:

billy2shots said:

hazyjo said:

billy2shots said:

Surely there are only cash buyers? I've never been offered magic beans or gold bars for a property I was selling. 

Where the cash comes from is of no concern to me because it all gets funneled from one solicitor to another before arriving in my bank. 

Unless it's a specific reason like buying a property that you can not get a mortgage on, I would keep quiet and not boast about having plenty of disposable 'cash'. You may find vendors playing hard ball thinking you can afford more. 

Saying you are chain free is completely different and should be made known. 

All in my opinion if course. 

The term "cash buyer" with regard to buying property is different to your interpretation.

It simply means someone has nothing to sell, and doesn't need a mortgage (I'm referring to mortgageable properties). Sometimes people stretch the meaning so it's important to clarify.

My interpretation of 'cash' buyer' is perfect thanks. 
I am merely pointing out that as a cash buyer I would refer to myself only as chain free. No need to shout from the rooftops that you have plenty of liquidity as that could go against you during negotiations. 

Obviously if an offer is accepted you would need to explain how you are funding the purchase to the EA and completing the paperwork. 

Thanks to covid agents  now ask to see proof of funds before you view

One of the better things to come out of the pandemic