Cash Buyers

ReadySteadyPop

dinosaur66 said:

ReadySteadyPop said:

dinosaur66 said:

i used to be a house flipper always cash bar 2 times

makes no difference to the timeframe involved

i mostly bought probate propertys ,so cash buyer no chain either end

offer accepted to keys 4 months minumum and i have all proof of purchase /paperwork / video calls/messages done same day .

its the conveyencers who are slow

Can you still make money "flipping" property?

no

 essex and london prices have risen too much

i paid stamp duty  around the 1.5 k to 2.5k per property usually up to 2016

capital gains relief taken away

price of materials gone up

price of trades i am not good at or cannot do like plastering /electrician have doubled

i specalised in bungalows which now fetch a premium

my other area is scotland west coast which is fine for rentals but the area has slow capital growth

Interesting thanks.

[Deleted User]

I didn't even know people made a distinction. I've been a cash buyer on this and my previous, and will be again very soon, but I've never told a seller nor have I ever been asked. Why would they care, other than avoiding the potential for a mortgage offer to be refused, but I can't see how that's worth a discount?

AskAsk

[Deleted User] said:

I didn't even know people made a distinction. I've been a cash buyer on this and my previous, and will be again very soon, but I've never told a seller nor have I ever been asked. Why would they care, other than avoiding the potential for a mortgage offer to be refused, but I can't see how that's worth a discount?

doesn't make sense what you say as the EA will always ask how you are going to fund the purchase so i don't understand how you can say you never told anyone.

a cashbuyer tend to offer less than someone who has something to sell or who has to raise a mortgage.  it means that the sale will go through quickly and are less likely to have the mortgage turned down or the loan being less than what the buyer needs to buy the property.

however, in these days of strict ALM, i find cash buyers can fall into the proof of funds stumble so to me, a cash buyer isn't as safe as it used to be, but if you are selling a property that needs to be refurbished or has some sort of issue that needs work, then a cash buyer is a better bet as the mortgage lender may not lend enough to fund the purchase when they come to do the mortgage valuation.

[Deleted User]

AskAsk said:

[Deleted User] said:

I didn't even know people made a distinction. I've been a cash buyer on this and my previous, and will be again very soon, but I've never told a seller nor have I ever been asked. Why would they care, other than avoiding the potential for a mortgage offer to be refused, but I can't see how that's worth a discount?

doesn't make sense what you say as the EA will always ask how you are going to fund the purchase so i don't understand how you can say you never told anyone.

a cashbuyer tend to offer less than someone who has something to sell or who has to raise a mortgage.  it means that the sale will go through quickly and are less likely to have the mortgage turned down or the loan being less than what the buyer needs to buy the property.

however, in these days of strict ALM, i find cash buyers can fall into the proof of funds stumble so to me, a cash buyer isn't as safe as it used to be, but if you are selling a property that needs to be refurbished or has some sort of issue that needs work, then a cash buyer is a better bet as the mortgage lender may not lend enough to fund the purchase when they come to do the mortgage valuation.

I meant I never told a seller, nor been told similar by a buyer. Of course, you have to show evidence of funds to the EA.

Maybe I'll try offering less and telling people this time around, although personally I wouldn't knock anything off knowing that the potential buyer was a cash buyer.

Hoenir

AskAsk said:

[Deleted User] said:

I didn't even know people made a distinction. I've been a cash buyer on this and my previous, and will be again very soon, but I've never told a seller nor have I ever been asked. Why would they care, other than avoiding the potential for a mortgage offer to be refused, but I can't see how that's worth a discount?

a cashbuyer tend to offer less than someone who has something to sell or who has to raise a mortgage.  it means that the sale will go through quickly and are less likely to have the mortgage turned down or the loan being less than what the buyer needs to buy the property.

If someone has their ducks in order. Mortgages can be approved fairly promptly. Cash buyers aren't necessarily time advantaged. Though they seem to think it is. 

ReadySteadyPop

Hoenir said:

AskAsk said:

[Deleted User] said:

I didn't even know people made a distinction. I've been a cash buyer on this and my previous, and will be again very soon, but I've never told a seller nor have I ever been asked. Why would they care, other than avoiding the potential for a mortgage offer to be refused, but I can't see how that's worth a discount?

a cashbuyer tend to offer less than someone who has something to sell or who has to raise a mortgage.  it means that the sale will go through quickly and are less likely to have the mortgage turned down or the loan being less than what the buyer needs to buy the property.

If someone has their ducks in order. Mortgages can be approved fairly promptly. Cash buyers aren't necessarily time advantaged. Though they seem to think it is. 

Mortgage lenders are making down-valuations though as the market weakens, with a cash buyer you might have a chance that they stick to their original offer.

AskAsk

Hoenir said:

AskAsk said:

[Deleted User] said:

I didn't even know people made a distinction. I've been a cash buyer on this and my previous, and will be again very soon, but I've never told a seller nor have I ever been asked. Why would they care, other than avoiding the potential for a mortgage offer to be refused, but I can't see how that's worth a discount?

a cashbuyer tend to offer less than someone who has something to sell or who has to raise a mortgage.  it means that the sale will go through quickly and are less likely to have the mortgage turned down or the loan being less than what the buyer needs to buy the property.

If someone has their ducks in order. Mortgages can be approved fairly promptly. Cash buyers aren't necessarily time advantaged. Though they seem to think it is. 

banks can devalue a property and ask for more specialist surveys.  this takes time.

incus432

[Deleted User] said:

I didn't even know people made a distinction. I've been a cash buyer on this and my previous, and will be again very soon, but I've never told a seller nor have I ever been asked. Why would they care, other than avoiding the potential for a mortgage offer to be refused, but I can't see how that's worth a discount?

It makes a huge difference.  Knowing a buyer can proceed without needing to sell a house first, with all the associated risks of a chain is a a big plus.  Have always asked and checked.  And 'cash buyer' means someone with money in the bank not - as some EAs try to claim -  someone who has a property to sell .

ReadySteadyPop

incus432 said:

[Deleted User] said:

I didn't even know people made a distinction. I've been a cash buyer on this and my previous, and will be again very soon, but I've never told a seller nor have I ever been asked. Why would they care, other than avoiding the potential for a mortgage offer to be refused, but I can't see how that's worth a discount?

It makes a huge difference.  Knowing a buyer can proceed without needing to sell a house first, with all the associated risks of a chain is a a big plus.  Have always asked and checked.  And 'cash buyer' means someone with money in the bank not - as some EAs try to claim -  someone who has a property to sell .

Exactly, very important difference, too many people put a house on the market with a price tag in mind and start offering on the next house as if that is already cash in the bank, only to find that the market doesn`t agree with their valuation.

ReadySteadyPop

AskAsk said:

Hoenir said:

AskAsk said:

[Deleted User] said:

I didn't even know people made a distinction. I've been a cash buyer on this and my previous, and will be again very soon, but I've never told a seller nor have I ever been asked. Why would they care, other than avoiding the potential for a mortgage offer to be refused, but I can't see how that's worth a discount?

a cashbuyer tend to offer less than someone who has something to sell or who has to raise a mortgage.  it means that the sale will go through quickly and are less likely to have the mortgage turned down or the loan being less than what the buyer needs to buy the property.

If someone has their ducks in order. Mortgages can be approved fairly promptly. Cash buyers aren't necessarily time advantaged. Though they seem to think it is. 

banks can devalue a property and ask for more specialist surveys.  this takes time.

Yes, banks are being ultra cautious now I believe.