How Long Does a Cash Buyer House Sale Take? 

Estimated reading time 6 minutes

First things first, let me explain what a cash buyer is.  A cash buyer is a person or company that has enough money in the bank to buy a property outright without the need to borrow money i.e. a cash buyer does not need to get a mortgage or loan to buy a property.

Some estate agents may tell you they have a cash buyer ready to buy your home but in actual fact their buyer needs to sell their own home before they will have the money to buy yours. Which is not exactly the same as having the money in bank and being ready to buy a property immediately.

The advantages of a true cash buyer are that they can act very quickly as they are not reliant on securing funding and they do not need to wait until they have sold their property before buying another property. 

So, let’s compare the average time for a property to be sold by a traditional estate agent with that of the average time it takes for a sale with a cash buyer. The average time it takes to complete the sale via an estate agent is 150 days according to Rightmove and 185 days according to Zoopla. Compare this with the time a cash buyer takes to complete which according to Ideal Home averages around 30 days, remember that this is an average of all cash buyers.

Finally note professional cash buyers move much faster than the average cash buyer and it is not unheard of for a cash buyer house sale to take as little as 48 hours.

Why might you seek a “cash buyer only”?

The reasons a seller may advertise or seek “cash buyers only” can be because the seller wants a quick sale and/or perhaps the property is un-mortgageable.

Below are a few of those reasons, the links will take you to a page to learn more on the particular subject.

  • A cash buyer maybe sought if the property owner has re-evaluated their budget and needs to sell their property quickly to avoid going into mortgage arrears or are concerned about repossession.
  • If a property has been recently inherited a quick sell can avoid further costs spiralling out of control thereby limiting the costs which may have built up during probate.
  • If the property is old, has subsidence and does not meet building regulations it will be difficult to secure lending against it. A cash buyer has the ability to buy a property in any condition as they do not need a mortgage.
  • If the property has a short lease then lenders are unlikely to extend a mortgage and unless you have the funds to extend the lease yourself you will need to find a cash buyer.
  • If the property has Japanese Knotweed mortgage lenders are reluctant to extend mortgages unless the knotweed is dealt with.  Again, this is problematic to both the seller and the non-cash buyer but a cash buyer can take a few and factor this in the offer.
  • If the property has been damaged by fire, flood and or vandalism or is uninhabitable the mortgage companies may not lend on it. A cash buyer will not be concerned about the condition of the property and hence it is to your advantage to seek a cash buyer out.
  • Most lenders will need an insurance backed guarantee before lending on a severely damp affected property, if you don’t have this and cannot afford the work it could be advantageous to search out a cash buyer.
  • If the sellers buyer has fallen through but the seller needs to keep their link in the property chain to secure their next purchase and therefore needs to sell their home quickly a cash buyer could step in and re-link the chain.

Why do home sellers accept lower offers from cash buyers?

The primary reason is a cash sale is fast and a lot less likely to fall through than a mortgage sale. In fact, according to the FT adviser one in three UK borrowers have had their mortgage applications declined and according to Which? the number of declined mortgages increases to 41% for those applicants aged between 18-24 years old. 

The average time for a property to sell from the first day it is advertised by an estate agent to the legal completion is 150 days. These is advertising time, viewing time, mortgage application time, legal completion. If you need to sell your property quickly you can see why a cash buyer is the more attractive option.

As a cash buyer does not need to secure a mortgage, they are not reliant on conditions put forward by lenders, they are also therefore able to move ahead at a faster pace, that does not mean they will blindly buy a property for any price. The cash buyer will still want to do their due diligence and carry out some checks but these are far faster than those carried out by a lender.  In short that means the seller will save on ongoing mortgage payments, bills and regular upkeep costs but completing their sale sooner.

However, that does not mean a cash buyer will blindly buy a property for any price. The cash buyer will still want to do their due diligence and carry out some checks but these are far faster than those carried out by a lender.

Remember if the property is not mortgageable and you are not in a position to make it so then the number of people able to buy the property falls considerably and the money any buyer will have to spend on the property has to be taken into consideration when making an offer so compared to the mortgageable properties in the street the offer from a cash buyer will be lower.

Why should a seller looking for a cash buyer contact Gaffsy?

  • Gaffsy will never ask for an upfront payment of any kind.
  • Gaffsy will never ask for any cancellation or withdraw fee within the paperwork.
  • Gaffsy will never charge for valuation fees.
  • Gaffsy are able to purchase freehold property in as little as 48 hours (if needed).
  • Gaffsy is able to offer quick exchange with a delayed completion or license to occupy (if needed).
  • Gaffsy is able to buy un-mortgageable property.
  • Gaffsy is a member of the National Association of Property Buyers and are registered with the Property Ombudsman.
  • Gaffsy is a genuine cash buyer, able to provide “proof of cash funds” upon request. 

Final words from Gaffsy

We work harder to sell your house fast. We buy any house for cash, meaning that there is no waiting around for chains to complete and no bumps in the road causing unnecessary delays. Reach out to us today for a free cash offer. You could be selling faster than you thought possible

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