Do Cash Buyers Offer Less? 2023 Update
Estimated reading time 5 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.
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.
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.
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.
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.
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.
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.
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.