Any discount for cash buyers?

SouthLondonUser

Being a cash buyer can help only if the property has some big flaws which make it unmortgageable - eg structural works are needed to make it habitable, and banks won't lend until those works are completed.

Otherwise, what really matters is if you are in a chain or not. if you are not in a chain, whether you are a cash buyer or need a mortgage doesn't make much difference. In most cases, the main hold up are the solicitors (searches take time, etc), NOT the bank underwriters who have to approve the mortgage.

Crashy_Time

clare19811 said:

We're currently selling to a cash buyer and it's been a long drawn out process. They've questioned absolutely everything you could possibly think of and asked some incredibly stupid questions. They also seem to be continually asking for deductions for every little thing, we're very close to pulling the plug and remarketing but it will mean we lose our onward purchase too. 

Initially I was really pleased we had a cash buyer, assumed it would mean everything went through quickly without too much hassle, but that really hasn't been the case at all.

Most cash buyers are not going to overpay for a property.

kdotdotdotdot

Being a cash buyer AND having no property to sell are attractive to buyers, and therefore might get you a reduction on price, but only because this means the purchase can go through quickly.  And of course, it only matters if the sellers are interested in a quicker than usual transaction.  

Irishpearce26

Everyone is a cash buyer the only difference is they pay a bit more for that cash. If someone asked me for a 'discount' because they are a cash buyer i would be telling them to jog on. Makes no difference in my opinion.

SouthLondonUser

A cash buyer can proceed faster than a chain-free buyer who needs a mortgage only:

if the cash buyer and his solicitor rush through a very sloppy due diligence, which would obviously be something very stupid to do, or

if the non-cash buyer applies for a mortgage to a lender which turns out to be particularly slow, sloppy or inefficient.

Considering that searches can take 3 to 5 weeks, while many big lenders can underwrite in 1 to 2-3 weeks, I can't think of many situations where buying a cash-buyer is much of an advantage (vs a chain-free non-cash buyer).

Again, the real difference is whether you are chain-free or not.

lookstraightahead

Chain free much more important. However, if you know you are pushing it with regards to the price someone is paying, ie overvaluing, then a cash buyer is more likely to continue for obvious reasons.

The worst possible scenarios are high LTV and chains, where a buyer can't afford to make up the difference after 'down valuation' and people not prepared to be flexible, eg breaking the chain.