When it comes to buying or selling a home, everyone knows that being in a property chain can be a complicated process. However, as a seller, there are a number of reasons why using property cash buyers can be advantageous but, as with anything, there are pros and cons.
What is a cash buyer?
The meaning of a cash buyer is often misunderstood, with some homeowners thinking they are a property cash buyer if they can afford to buy a house without a mortgage once they have sold their current house. This is incorrect. If a buyer doesn’t have the cash readily available at the current time of putting in an offer, they are not cash buyers.
The correct definition of a cash buyer is:
“A cash buyer is someone who is able to buy without needing to take out a loan or mortgage.”
The Pros and Cons of Property Cash Buyers
· The sale is less likely to fall through:
Unlike other methods of selling a property, when a cash offer is accepted on a house, the sale is almost guaranteed to go ahead. As a result, by cutting out the middle man (the bank), you are taking away a great source of uncertainty as, according to the HomeOwners Alliance, a third of property sales fall though as a result of the buyer’s finances.
As a result, accepting a cash offer from a buyer can ensure the process is as smooth as possible and where you may otherwise be worrying whether the seller can raise the correct funds before the completion date.
· There is no complicated house chain
Another advantage of a property cash buyer is that there is no house chain to worry about. Cash buyers don’t have to wait until someone has bought their property in order to purchase yours, which can be a major problem.
Further research by the HomeOwners Alliance found that one in five sales collapsed after a sale further up the property chain fell through – the last thing you need, as a vendor, leaving you at risk of losing the house you are wanting to move into.
As a result, if you are looking for a quick house sale, a cash buyer who isn’t tied down to a property chain is ideal for securing a successful deal.
· The process is much faster
Another benefit of using a property cash buyer is that property sales are often much quicker and straightforward than the average house sale. They are often ready to move in and can be in their new home within a matter of weeks (after legal checks and surveys are completed), which is ideal if you are looking to move quickly.
The main reason for cash buyers ensuring a quick house sale is because they do not need to secure a mortgage or loan from the bank, which non-cash buyers must do. This can delay the process as it can take around a month (from application) for them to get back to you – typically between 18-40 days.
· Cash offers are often less than the asking price
It is worth noting that although advantageous, cash buyers often put in an offer that is below asking price. This happens because people who are looking for cash buyers are often looking for a fast home sale and understand the seller is looking to move out as soon as possible. As a result, by putting in a lower offer, they are likely to be accepted – especially if there is very little attention from potential buyers.
As you can see, the pros clearly outweigh the cons. So when it comes to selling your home, it is a good idea to consider selling your house to cash buyers only, to make sure the property chain moves quickly.
It is worth bearing in mind, however, that homeowners who ask for “cash buyers only” can be suspicious to potential buyers, as it may be a sign that there is something wrong with the property. So if you do wish to sell your home via this route, it is a good idea to make it clear that there are no issues with your home from the off.
If you feel this is having an impact on the attention your property is getting, you may want to conduct a house survey to show potential buyers that there is nothing wrong with your home and it is worth the full asking price.
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