Cash buyer - proof of "cash"!

dweeby

For clarity, I'm the cash buyer!

We completed the sale of our previous house in early december (lucky us!), and we're living in a rented house. We're now about to put in an offer on a house we'd really really like to buy, but this is new territory for us - being a "cash" buyer.

As we make our offer, the caveat is that we want the seller to take their house off the market. My experience of estate agents suggests that they'll need "proof" of our credentials, and proof that we can indeed complete on a purchase before they'll allow the house to be taken off the market.

What proof will the estate agent need, or how can we prove that we're "cash" buyers??

My intent is to have a mortgage guarantee certificate, and a few bank statements. Is this how it's done?

merlinthehappypig

Most agents wouldn't consider you to be a cash buyer if you need a mortgage so be prepared for that.

Personally I wouldn't be prepared to show an agent anything. It's nothing to do with them and, after some previous bad experiences, I certainly wouldn't want to let them know what proportion of the price we were borrowing. We have had details of our financial situation passed by an agent to a seller once who inferred from that that we could afford more than we offered.

We have also had an agent bombard us with calls about how they could offer us a better deal on the mortgage, having seen the figures.

I'd tell them that if they want proof they can write to your solicitor and he/she will confirm that you are serious, without giving any details.

Alan_M_2

Cash buyer means you're paying outright.

If you're in rented accommodation you're chain free, slightly different but and important difference.

Doozergirl

You're effectively a FT or chain free buyer, not a cash buyer.

The mortgage guarantee should suffice although I've never been asked for proof unless it was a reposession.

dweeby

Doozergirl wrote: »

You're effectively a FT or chain free buyer, not a cash buyer.

The mortgage guarantee should suffice although I've never been asked for proof unless it was a reposession.

You've all made some good points, thanks!

So, we're effectively FT buyers with a large deposit and no chain. Just hope that this (coupled with a mortgage guarantee certificate) is enough to get a "sold" sign on the house, and prevent further viewings.

I was a paranoid seller, now I'm a paranoid buyer! We're actually in a super position, in a slow and uncertain market.

lynzpower

Yes, thats exactly right,

When I used to be an EA there was a number of cash buyers around. this meant that they had cash in the bank for all of it and didnt need any lenders lending. Eg one lady was buying a flat for her daughter for 180 and she had all the cash in the bank for it.

Our "proof of cash" request went straight to her accountant who wrote us a letter on headed paper and faxed to us basically saying as her fidiciary & accountant, he could professionally state that she had 180k in the bank in various options and that she could comfortably cover the 10k fees/removal/legal bills.

Funnily ( or not) enough is when the EA accepts the face value that a buyer says they are a cash buyer when they are not. It happened to me and it was inrfuriating. The EA accepted they were cash buyers as they said they were, so my sols were working on the fact that ok, w should complete in a month. then im planning for all that, then suddenly out of the blue a surveyor wants to come round from the abbey for thier mortgage!!! Its delayed me massively nad was SOOOOOOOOO stressful!

Nicki

Our house was bought by a 100% cash buyer, and she proved this was true by giving us the telephone number of her personal banker, and authorising him to speak to us. He confirmed over the phone that she had sufficient funds in her account to buy outright. We turned down an offer from another cash buyer, who brought his building society book to the viewing and showed us the last page of it!

ukmike

If they refuse to stop marketing after accepting your offer,just tell them YOU will continue looking at other properties untill they do.Also don't provide the agent with any proof of your finances,it's nothing to do with them,if need be do it through solicitors.