Selling a home can be a complicated and, at times, unpredictable process.
This is why cash buyers are such appealing prospects.
No chain, no mortgage, no worries – at least that’s how the logic goes.
But, as is so often the case with property matters, sometimes things aren’t quite as black and white as they first seem.
So let’s take a closer look at what cash buyers can bring to the table.
Pros
- With most cash buyers, you avoid one of the main causes of friction in the selling process – a chain. Hence, you don’t have to wait for your buyer to find a buyer for their property, who in turn might need to find a buyer for their property and so on. As a result, the transaction should be simpler and more streamlined.
- Without the hassle of a chain or the need for mortgage approval, a cash buyer should be able to move more quickly – adding a welcome degree of flex to the process.
- There is no chance of hitting a mortgage-related obstacle, such as a down valuation (when a lender refuses to lend on the full purchase price).
Cons
- The term ‘cash buyer’ can mean different things to different people. To some, it means a person who literally has the cash sitting in the bank ready to go. However, others describe themselves as a cash buyer because they won’t need a mortgage for their next property purchase. But they still need to sell their existing property to be in that position.
- Hence, they’re not chain-free. It’s always worth digging a little deeper when someone tells you they’re a cash buyer to ensure you’re on the same page as them.
- Cash buyers often drive a hard bargain (because they know they’re in a strong negotiating position). While you gain flexibility, you could end up losing out on the final selling price.
- A cash buyer may not have a sense of urgency. As they’re not desperately trying to keep a chain together, they may take their time with their admin.
- Alternatively, the cash buyer may be pushing for the process to move more quickly than you can accommodate (you may be trying to buy a property, and that transaction may be taking time). The cash buyer might become impatient and decide to withdraw.
- Some unscrupulous cash-buying companies make generous offers – subject to an official valuation. They then expect the seller to pay a valuation fee (never agree to this).
Other issues to consider
A buyer who is proceedable is highly desirable, but there are other issues to consider also.
What’s critical is that sellers and buyers are on the same page regarding time scale and ambitions.
An experienced estate agent will ask prospective buyers lots of questions and be able to advise on which buyer has goals that best align with your own.
Planning on listing your property? Call us today for a free valuation.