There are several different methods of selling your house today.
Using a cash buyer is becoming increasingly popular.
Let’s look at how much cash buyers pay for a house.
What is a cash buyer?
A cash buyer is a person or organisation with the funds to purchase your property without a mortgage. This means that they have 100% of your selling price ready to spend.
Ccash buyers can complete transactions quicker than other buyers. This is because they aren’t reliant on a bank lending them a mortgage.
They can also buy a house that banks would not be willing to lend on, for example houses with:
- Structural issues (including even derelict properties)
- Short leases
- Squatting tenants
Not all cash buyers who contact you will be trustworthy. There are plenty of dishonest organisations are out there.
So, you should research anyone you work with. And avoid signing restrictive contracts.
To find legitimate cash buyers, search for them online and check their reviews as you go along.
How much do cash buyers pay for houses?
A cash buyer will offer a lower figure for your property than using an estate agent.
HomeSellingExpert.co.uk says the offer will be around 80% to 85% of your property’s value.
Meanwhile, Sold.co.uk indicates that the lower side of offers will be around 78% of the value. This figure can vary based on the property’s condition.
Why do cash buyers offer less for houses?
Cash buyers offer less for houses because they intend to ‘flip’ the property for a profit. They do this by renovating it after completing the sale.
That said, there are advantages to using a cash buyer, which enables them to justify the reduced price.
Can I ask a cash buyer for proof of funds?
You have every right to ask your cash buyer for proof of funds.
If they refuse to provide this evidence, you should be wary and walk away from the deal.
Do cash buying companies pay more than solo cash buyers?
It depends. Each cash buyer will visit your property, conduct a survey, and estimate the house’s value.
The price you receive can vary for each property and each cash buyer you use.
Just because cash-buying companies have more funds available does not necessarily mean you will get a better offer.
Any legitimate cash buyer should refrain from giving you proof of funds.
Do funds arrive quicker when you sell to a cash buyer?
Cash buyers can complete a house purchase quicker because they already have 100% of the funds in-house. So, they aren’t reliant on the lengthy mortgage qualifying process.
Contract exchange can occur within seven days with the most efficient cash buyers. The funds should then be in your account in a maximum of 48 hours after that, and typically faster.
By contrast, using an estate agent can, on average, cause a house sale to drag on for over six months.
Therefore, you can get the sale price money in just a couple of weeks, which is extremely useful if you need the deal sorted in a short timeframe.
Do cash buyers pay more than auction houses?
The answer to this question varies based on the circumstances.
Although cash buyers can complete the transaction faster, it’s only sometimes guaranteed that you’ll get a higher sale price.
Sometimes, auction houses can return a reasonable offer, but you may be disappointed on other occasions.
Selling through an auction house is always a risk. Many prefer cash buyers because they know exactly how much they’ll receive in advance. This enables them to budget accordingly.
Can I negotiate with a cash buyer on price?
While you can always try to negotiate with a cash buyer on price, they are not guaranteed to be receptive.
The largest cash-buying companies usually make only one offer, which you can turn down or reject. Negotiation is uncommon with these organisations.
Solo cash buyers may be more receptive to negotiation. However, offering the entire sum up front may mean they have budget restraints.
Should I sell my house to a cash buyer?
If you want the maximum selling price for your property and are not on a tight schedule, it may be worth using an estate agent.
However, there are many instances when a cash buyer might be preferable.
Firstly, a cash buyer could be ideal if you face repossession and need to sell in days or weeks.
If a lender will not offer a mortgage on your house, a cash buyer is also ideal. This might be because:
- The lease is below 80 years
- There are squatters in the house
- The method of construction is outdated
- There is a long history of flooding in the area
- It is a freehold flat
- Structural issues exist with the property
Cash buyers can be useful if you need to relocate for work within a short timeframe. Or if you have inherited a probate property that you want to sell as quickly as possible.
By contrast, in other situations you may prefer a seller on the open market (via an estate agent). For example, if you do not have a second house to move into yet and need house sale proceeds to fund your immediate move.
Advantages of selling to a cash buyer
Receive funds quickly
Cash buyers do not require mortgages or financing to pay you. Therefore, you should be paid immediately once a property changes hands.
Cash buyers can justify reduced prices, too. This is because they can complete the sale in a much shorter time frame – such as within seven days.
Avoid costs associated with selling a house
With traditional home sales, you may have to pay commissions to estate agents marketing your property. Solicitors also charge fees to handle conveyancing and transfers of ownership.
Other costs range from cleaning or staging your home for viewings to paying property taxes until completion day.
However, established cash-buying companies handle everything about valuing, purchasing, and registering your home themselves. You may only pay nominal fees of a few hundred pounds rather than thousands.
Some of the largest cash buyers even cover your legal fees, often several thousand.
Buy houses in any condition
Cash home buyers specialise in purchasing properties in bad condition, including those needing:
- Repairs
- Updates
- General improvements.
Suppose your home has significant damage, deferred maintenance, or outdated finishes. In that case, you may struggle to attract interest from buyers planning to live in the house themselves.
High certainty of sale going through
One dilemma facing homeowners planning to purchase another home occurs when you must coordinate the sale of your existing house with buying your next one.
Cash buyers can buy your house without operating in a property chain. This means your sale is guaranteed – unless on the open market.
How many cash buying companies are there?
Many cash buying companies operate throughout the UK, but not all are trustworthy.
Check the reviews of any company you work with. Ask for proof of funding, and speak to past customers who can testify that the cash buyer is legitimate.
We Buy Any Home: The UK’s largest cash house buyers
We Buy Any Home are genuine cash house buyers that operate without a chain. We are based in London and work across the whole of England, Wales, and Scotland.
Our experienced team of house-selling experts can guide you through the cash-selling process. And they can ensure a quick and smooth up-front purchase of your property.
Fill in our enquiry form below if you want a cash offer for your house.
