There are several different ways to sell your house.
Most people use the open market, i.e., an estate agent.
However, this isn’t the best route for everyone. For some, using a cash buyer is ideal.
But what exactly is a cash house buyer? And does selling to a cash buyer mean no mortgage is involved?
Read on to find out.
Why cash buyers only & what exactly does it mean?
A cash buyer is an individual or company with all the money needed to buy a home immediately.
This ability to buy has no strings attached. They have the funds available and accessible.
Cash buyers usually pay between 80% – 85% of a property’s value in exchange for buying it immediately with a straightforward and efficient process.
Genuine cash buyers vs. non-genuine cash buyers
Some buyers declare (and perhaps even consider) themselves cash-buyers incorrectly.
Non-genuine cash buyer example 1: The individual
Someone who owns their home outright and is waiting for a sale might consider themselves a cash buyer.
However, they still need to wait for a sale. And that sale might yet fall through.
Non-genuine cash buyer example 1: The company
Some so-called property companies also misleadingly title themselves as cash buyers.
They might use deceptive tactics such as stalling the sale of a house whilst they search for the funds to buy it outright.
Is there a mortgage involved when selling to a cash buyer?
No, selling to a cash buyer means no mortgage is involved.
If a seller states that they want cash buyers only and you tell them you’re guaranteed to get a mortgage, they won’t care.
If you need a mortgage, they won’t be interested in your offer.
This can be highly frustrating if you think you’ve found your dream home, but what are the reasons for this?
Reasons for sellers turning down non-cash buyers
1. Mortgage concerns
There are many reasons, but we’ll start with the big red flag: the property may be unmortgageable.
This is usually because there is something fundamentally wrong with the property, and the lender deems the mortgage too much of a risk.
If this is the issue, the seller should have already outlined it.
They don’t legally have to, as it’s your responsibility to get a survey, which is why it’s a potential red flag. They may be trying to sell a house that needs extensive repairs.
2. Risk of property defects
They could have found structural damage or signs of dampness, or they may have found another issue, such as subsidence.
Of course, the seller may be open and honest about this, or the issue may be apparent.
For example, they may want to sell a home that floods or a fire has damaged. A lender may be hesitant to offer a mortgage on such a property, even if the sale price considers this damage.
3. Timing
The most common cause is that the seller wants to sell the property as soon as possible and doesn’t want to wait for the mortgage process to complete.
Why would someone be so desperate for a quick sale? There are several potential reasons:
- Perhaps they have divorced and want to get settled immediately
- Their home may be threatened with repossession
- They need the cash
- They inherited the property
- Failed mortgage applications.
If you’re genuinely interested in the property, it could be a good idea to ask why they are listing it as cash buyers only.
For example, they may have inherited the property and wanted a quick sale.
You could negotiate and see if they’ll accept a higher offer for a mortgage applicant.
They may say no, but if you have your heart set on something, there’s no harm in asking.
Advantages of selling to a Cash House Buyer
Let’s take a closer look at why someone may want a cash buyer.
Failure less likely
When you sell your house to a cash buyer, you don’t have to worry about your sale falling through.
This is because there is little to no chance of problems that occur in traditional home-selling processes, such as mortgage approval issues or other financing problems.
Less stressful
Selling your home can be stressful, but a cash house sale can alleviate some of that stress. Cash buyers typically require fewer inspections, appraisals, and paperwork, which can make the process less time-consuming and less of a hassle.
No chain
There is no chain involved when you sell to a cash buyer.
This means you don’t have to worry about your sale being held up by another transaction dependent on your sale.
Quick process
A cash sale can often be completed much quicker than a traditional home sale. The process can be completed in as little as 7 working days since there’s no need for mortgage approval or lengthy negotiations.
Sell your property with We Buy Any Home
Finding a genuine cash buyer can be difficult. However, you are in luck.
We Buy Any Home are genuine cash house buyers who can purchase your property up-front and quickly, without hassle or stress.
You are in the perfect place to sell your house fast.
Using our funds, we will purchase your property at a set price by your chosen date and fully manage it from beginning to end.
We buy any house in any location, in any condition. We can offer you an offer for your UK property – Cardiff to Clyde, Durham to Dover.
Our specialist team helped thousands of people to a quick, stress-free house sale. Fill in our enquiry form below if you want a cash offer for your house.
