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    • joeypesci
    • By joeypesci 8th Jan 18, 7:53 PM
    • 508Posts
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    joeypesci
    Isn't everyone a cash buyer?
    • #1
    • 8th Jan 18, 7:53 PM
    Isn't everyone a cash buyer? 8th Jan 18 at 7:53 PM
    This discussion came up. Looking to buy a place and am a first time buyer with no chain. Have a decent deposit but need to get a mortgage. On a couple of places I've put offers in, "cash buyers" have come and taken it from me

    I mentioned this to someone who said

    "You are a cash buyer"

    I said "But I need to get a mortgage"

    They said
    "But when you get the mortgage you have the cash so are a cash buyer. The cash buyer term is rubbish. As long as you can get a mortgage then everyone is a cash buyer".

    Is it naughty to now start saying to agents when they say "Sorry but someone has offered more than the asking price and they are a cash buyer". To say "OK I up my offer and I'm also a cash buyer". I suspect lots of the so called "cash buyers" aren't and maybe stuck in chains. Once they sell their chain they then become a "cash buyer" but, as with us all, are just saying "cash buyer" in the hope the property then gets taken off the market giving them time to actually get the cash.
Page 1
    • JoJo1978
    • By JoJo1978 8th Jan 18, 8:10 PM
    • 356 Posts
    • 433 Thanks
    JoJo1978
    • #2
    • 8th Jan 18, 8:10 PM
    • #2
    • 8th Jan 18, 8:10 PM
    When you make an offer for a house and identify yourself as a cash buyer usually the EA and then the solicitors will check your status.

    We were cash buyers i.e. we had our own funds in the bank to buy our new house outright without needing to sell our existing home. The EA didn't ask to see proof although we were prepared to show our solicitor.

    As it turned out we decided that we wanted to keep that money in the bank and fund the purchase from the sale (almost.) At that point the EA wanted us to show proof of what the offer made on our house was and our solicitor asked us to show evidence we could find the difference. So we then became cash buyers reliant on sale.

    Whether it's right or not to do what you suggest is up to you to decide but your 'advantage' may disappear when your solicitor reveals to the other side that you are reliant on a mortgage.
    Hamster in the wheel (London) 1999-2017
    Mortgage free since 2015; Pension pot sorted 2017
    Part-time gigger and charity volunteer 2018
    • Dorian1958
    • By Dorian1958 8th Jan 18, 8:15 PM
    • 136 Posts
    • 99 Thanks
    Dorian1958
    • #3
    • 8th Jan 18, 8:15 PM
    • #3
    • 8th Jan 18, 8:15 PM
    IMO you are only a cash buyer if you don't need a mortgage and you don't have a property to sell. This might be attractive to a vendor as it means the cash buyer does not have to hang around waiting for mortgage approval and isn't stuck in a chain therefore both parties can move quickly to completion. If you claim to be a cash buyer, have your offer accepted and then say "oh hang about while I get my cash from my house sale" you run the risk of having the vendor pull out. At the end of the day, the price paid will be the deciding factor as to what is acceptable to the vendor, in the majority of cases.
    • Slithery
    • By Slithery 8th Jan 18, 8:31 PM
    • 727 Posts
    • 1,135 Thanks
    Slithery
    • #4
    • 8th Jan 18, 8:31 PM
    • #4
    • 8th Jan 18, 8:31 PM
    Unfortunately the term 'cash buyer' doesn't have a legal definition, different people use it to mean different things.

    Some people use to to mean they're not in a chain, but need a mortgage, whereas others use it to mean that they have the readies sitting in their bank.
    • PokerPlayer111
    • By PokerPlayer111 8th Jan 18, 8:31 PM
    • 252 Posts
    • 88 Thanks
    PokerPlayer111
    • #5
    • 8th Jan 18, 8:31 PM
    • #5
    • 8th Jan 18, 8:31 PM
    Cash buyers do not have to do survey, no searches needed unless they want, no waiting around for banks on anything at any point.
    • eddddy
    • By eddddy 8th Jan 18, 9:19 PM
    • 6,496 Posts
    • 6,381 Thanks
    eddddy
    • #6
    • 8th Jan 18, 9:19 PM
    • #6
    • 8th Jan 18, 9:19 PM
    They said
    "But when you get the mortgage you have the cash so are a cash buyer. The cash buyer term is rubbish. As long as you can get a mortgage then everyone is a cash buyer".
    Originally posted by joeypesci
    Has that person ever bought a property - and did they use that strategy?

    If you say that you are a "cash buyer" most EAs will ask to see bank statements to prove that you have the full cash amount.

    If you're unable to produce those bank statements, the EA is likely to think you're a timewaster.

    I'd say it's probably better to honest, and say that you are an FTB and you need a mortgage.
    • Cakeguts
    • By Cakeguts 8th Jan 18, 10:50 PM
    • 4,424 Posts
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    Cakeguts
    • #7
    • 8th Jan 18, 10:50 PM
    • #7
    • 8th Jan 18, 10:50 PM
    If you are competing with cash buyers you are not offering high enough on the properties you are buying.

    Cash buyers sometime get discounts because they can buy the house faster. They don't need to go through the mortgage application process or to have the house surveyed for the benefit of the lender. A cash buyer is someone who has the whole of the money in the bank ready to pay for the house. They don't need to sell a house to get it the money is already in their bank account. They don't need to borrow any money. They are useful because they break chains.
    • G_M
    • By G_M 8th Jan 18, 11:13 PM
    • 44,472 Posts
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    G_M
    • #8
    • 8th Jan 18, 11:13 PM
    • #8
    • 8th Jan 18, 11:13 PM
    For goodness sakes! Talk about pointless semantics!

    Words only ever have meaning in terms of their usage.

    So far as the term 'cash buyer' is concerned, within the context of property purchases, it has two very generally understood meanings: Either

    a) someone who does not need to borrow ie via a mortgage in order to obtain the required cash, and/or
    b) someone who does not need to sell a property they already own in order to obtain the required cash

    Describing yourself as a cash buyer at an early stage if you need to do a) or b) above is deliberatey misleading, and when it comes to light (as it will) is going to seriously annoy all other parties involved.

    By all means go out of your way to annoy, if that's what you want, but don't try to justify your actions (to yourself or others) with semantic arguments.
    • seven-day-weekend
    • By seven-day-weekend 9th Jan 18, 7:04 AM
    • 30,710 Posts
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    seven-day-weekend
    • #9
    • 9th Jan 18, 7:04 AM
    • #9
    • 9th Jan 18, 7:04 AM
    We were cash buyers as we had the money in the bank and were not in a chain. We could have paid in cash the following day if necessary.

    I think if you need a mortgage you are not a cash buyer as you have to hang around waiting for the mortgage to go through.

    Do not describe yourself as a cash buyer in this situation as all you will do is alienate your sellers.
    Member #10 of 2 savers club
    • SG27
    • By SG27 9th Jan 18, 7:09 AM
    • 2,180 Posts
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    SG27
    Cash buyer means you dont need a mortgage.
    • vacheron
    • By vacheron 9th Jan 18, 7:28 AM
    • 831 Posts
    • 764 Thanks
    vacheron
    The term "cash buyer" suggests lower potential risks and time-frames to the seller (and therefore their EA) because the buyer is far less dependent on third parties not to disrupt their buying process.

    No house to sell wipes out their buyer / solicitor / /chain / EA risks, not needing a mortgage free wipes out funding / affordability / survey issues.

    In my world, "Chain Free" is already available to use when you don't have a property to sell. Cash Buyer means that you have all sufficient liquid funds to cover the entire purchase at the time you call yourselves a cash buyer.

    If I were the seller or an EA I'd be a bit annoyed if someone called themselves a cash buyer when they were in actuality simply "chain free" but still required a mortgage.
    Last edited by vacheron; 09-01-2018 at 7:31 AM.
    The rich buy assets.
    The poor only have expenses.
    The middle class buy liabilities they think are assets.
    Robert T. Kiyosaki
    • theartfullodger
    • By theartfullodger 9th Jan 18, 8:21 AM
    • 9,592 Posts
    • 12,906 Thanks
    theartfullodger
    Forget the term: Consider the attraction of a prospective purchaser who can buy today (or such timescale as vendor desires), might wish to have survey & searches done, but that can be quick.

    That's what you are up against. Time, more certainty:
    • moneyistooshorttomention
    • By moneyistooshorttomention 9th Jan 18, 8:21 AM
    • 15,851 Posts
    • 43,883 Thanks
    moneyistooshorttomention
    Cash buyers do not have to do survey, no searches needed unless they want, no waiting around for banks on anything at any point.
    Originally posted by PokerPlayer111
    True - but to really be a "cash buyer" then the cash has to be sitting in the bank. The name "cash buyer" spells it out quite clearly what it means = someone who has cash.

    I didnt have to do a survey/searches/etc on swopping to my current house - as I didnt need a mortgage. But the sale was being funded from the proceeds from my last house - and therefore I wasnt a cash buyer (because my money was tied-up in that house, rather than sitting in the bank). So I didnt lie and say I was a cash buyer.

    I guess the fact I didnt need a mortgage was evident by the agegroup I'm in (ie an agegroup where we should be clear of mortgage by now - retirement age). But I didnt even state that I didnt need a mortgage. I just put my offer in and that was that - take it or leave it.

    Telling lies seems to be a pretty standard practice in the course of house buying/selling in Britain - not surprisingly, because we don't score very highly on any research as to how honest (or otherwise!!) we are as a nation. Saying one is a cash buyer when one isnt at all is one of the lies many people go in for. The one in the other direction being - "Oh yes....of course we'll go into rented...so the buyer can proceed smoothly" - and then many don't do so at all, as they just lied to get the buyer.

    Your friend is telling you to lie - don't.
    *******************
    • saajan_12
    • By saajan_12 9th Jan 18, 8:24 AM
    • 1,254 Posts
    • 875 Thanks
    saajan_12
    If you describe yourself as a "cash buyer", the first response from the EA will be to ask and prove what you mean. One of the following situations will be soon unearthed
    a) chain free
    b) mortgage free
    c) cash in bank, no chain & no mortgage

    The EA will then describe it as they choose to the vendor / other buyers. Unfortunately it doesn't always work the other way, but you should try to ask what the EA means if they use the term 'cash buyer'
    • Comms69
    • By Comms69 9th Jan 18, 11:38 AM
    • 2,970 Posts
    • 2,939 Thanks
    Comms69
    Cash buyer to me mean you have the cash to buy - no chain, no mortgage.


    It means you can progress quickly and not rely on any other transaction (mortgage or sale)
    • kingstreet
    • By kingstreet 9th Jan 18, 11:47 AM
    • 33,575 Posts
    • 18,212 Thanks
    kingstreet
    Cash buyer means you dont need a mortgage...
    Originally posted by SG27
    ... and you are not dependent on the sale of a property for your cash!
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Cakeguts
    • By Cakeguts 9th Jan 18, 11:54 AM
    • 4,424 Posts
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    Cakeguts
    1 You are not a cash buyer.

    2 You are a first time buyer.

    3 It isn't the cash buyer that takes it from you. It is the vendor, the person selling the house who decides who to sell to.

    4 House sales can fall through anytime between offer accepted and contracts exchanged. Many do.

    5 You are expecting too much. You need more patience.
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