Do Cash Buyers Offer Less? 2024 Update

Estimated reading time 8 minutes

If you’re selling your home, you’re likely looking to get the best deal in the shortest timeframe. Going with a cash buyer might guarantee you can sell your house fast, but will it get you the best price? Do cash buyers always offer less when it comes to buying property?

Read on to find out exactly what a cash house buyer is and what advantages using a cash buyer can bring your house sale.

What is a property cash buyer?

A cash buyer is someone who will be able to buy your property outright. Meaning, they will have all the funds required to pay the full amount upfront. This is contrasted with other types of buyers who will need to get a mortgage or loan in order to buy property.

This can be particularly relevant for properties that might be challenging to mortgage, such as those structural issues, cladding, squatters etc.

A property cash buyer is not just an individual but can also be a professional buying company such as Gaffsy. These companies specialise in purchasing properties directly from homeowners for cash, offering a more streamlined and often quicker transaction process than traditional property sales.

Why do cash buyers offer less?

Cash buyers will often, but not always, offer below the asking price or market value of the home. This is seen by many as a ‘cash buyer discount’.

Many sellers will see this lower offer as an acceptable ‘payment’ in return for the quicker and more secure house sale that usually comes with cash house buyers.

Further to the ‘cash buyer discount’, it’s important to note that cash buyers often factor in the cost savings they provide to the seller. These include avoiding estate agent fees, no risk of fall-throughs, and often covering legal fees. These savings can sometimes offset the lower offer price, making it more palatable for sellers looking for a straightforward and guaranteed sale.

What are the benefits of a property cash buyer?

Below are the reasons why a seller will happily accept a cash offer for their property that might be below the market value of the property.

Quick house sale

Cash house buyers will usually mean that you can sell your house quickly. This is thanks, in part, to the fact that they won’t be part of a chain, so won’t be waiting for other property sales to be completed before they can buy another home. It is also because they won’t have to wait for a mortgage approval for money to be transferred – they will already have the necessary funds available to buy the property.

A quick house sale can be attractive to sellers for a number of reasons. It may be that you have to move quickly for a new job or relocation. It might be that you’ve inherited a property that will be a challenge to sell because it needs a lot of work done, whereas a cash buyer might be more willing to take this on. It might be that the seller needs to stop repossession, and a fast house sale will mean they can secure the funds they need quickly. In 2023, properties were taking an average of four-six months to sell, despite demand for property remaining high. The reasons – aside from the time it takes to complete conveyancing and legal paperwork – stem from the complex cost of living crisis, inflation and interest rates. Combined, they made 2023 a hard year for properties to sell. Cash house buyers forgoe the need to take these into account quite so much and can get your home sold regardless of the market condtions. In 2024, we can expect homes to become more affordable, however, the drop in prices is expected to resemble a trickle downwards rather than a crash.

Chain-free sale

Cash buyers are often chain-free. This means they won’t be dependent on their own property sale going through to be able to buy another. They will already have the funds ready to purchase another home. A chain-free sale removes the risk of the house sale being delayed or falling through completely due to a third party’s sale. The average buyer often faces huge delays and problems that are caused by the many variables that come with being part of a property chain.

Sale security

Generally, cash house buyers are knowledgeable in property and the market. This means that they will only make offers on a property that they are certain they want to buy. They will be much less likely to have a change of heart once an offer has been made.

They also won’t have to worry about making mortgage repayments, which can sometimes cause people to have second thoughts if they’re concerned about a change in their future financial circumstances.

Cash house buyers also remove the risk of mortgage lenders not approving a mortgage, which could otherwise cause a sale to fall through, sometimes at the last minute. Overall, cash house buyers result in a much more secure and certain sale.

Zero cost conveyancing

Another significant benefit selling to a cash house buying company is the avoidance of the complex and often stressful conveyancing process. Cash transactions can be simpler, with fewer legal hurdles, as there’s no lender to appease. This simplicity can be especially appealing for sellers who have had past experiences with protracted or failed sales due to mortgage-related complications and delays with paperwork. Another important point to note, is that when selling your property to a cash house buyer like Gaffsy they pay for your legal fees.

Should I accept a lower offer from a property cash buyer?

Homeowners looking to sell may see a lower offer as an unappealing prospect. However, for many the benefits of taking less for their property is worth it.

If getting the most for your property is your main goal, perhaps a cash buyer is not for you. However, if you want to mitigate property pitfalls such as chain breaks, mortgage quibbles, and length time delays, accepting a cash offer may be a viable option.

The debate of selling fast vs selling for maximum price is nothing new and it is as prevalent in the alternative property market as it is in more traditional avenues. It all depends on your objectives when selling.

For sellers, the decision to accept a lower offer from a cash buyer often hinges on their circumstances. For instance, if a seller is relocating for a job or dealing with financial difficulties, the certainty and speed of a cash sale can outweigh the benefit of a higher offer that comes with more uncertainties. It’s a calculated decision where the immediacy and assuredness of the transaction are often deemed more valuable.

Can I request a property cash buyer?

A seller has the option to advertise their property as ‘cash buyers only’. This means that they will be unlikely or completely unwilling to consider offers put forward by buyers that require a mortgage.

A seller might advertise their property as ‘cash buyers only’ because they want to sell their house quickly. It might also be because the house is unmortgageable, perhaps because it has structural issues or it’s in an area that has a high risk of flood or fire. A cash house buyer negates this problem as they won’t need a mortgage to buy the property.

Requesting cash buyers only is a strategy often used in situations where the property has attributes that make it less attractive to traditional buyers, such as needing significant refurbishment. This approach can also be advantageous in avoiding the complexities and delays of the UK mortgage approval process, which can be quite lengthy and uncertain.

Use a trusted cash property buyer

We’re a trusted cash house buyer that can ensure a quick sale for your property. We buy any house, regardless of its history and condition, even offering a sell flat fast option for those with flats and apartments. We can offer a fast sale even for homes that have subsidence, fire damage, or other issues. Whatever your property is like, we’ll make sure you have a smooth and hassle-free property sale, working to a timeframe that suits you.

We have the funds available now to buy your home. Start the process with a free cash offer – we can give you a number within an hour and all our offers are no-obligation, meaning you’re always free to walk away if you don’t want to continue with the sale.

Selling your property for cash offers numerous benefits from speed and simplicity to certainty and flexibility. With a deep understanding of the residential property market as well as the ability to sell commercial property fast, the team at Gaffsy is waiting to make you a no obligation cash free offer today.

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