Cash buyers can speed up the house buying process significantly. You don’t have to wait for a mortgage to be approved. And there’s one less party involved, which simplifies the transaction considerably.
Depending on your specific circumstances, buying a property with cash could be a very good idea. But it’s not without its drawbacks.
If you’re considering such a purchase, it’s important to weigh up the pros and cons before proceeding.
What’s the definition of a cash buyer?
There is a common misconception about the term “cash buyer.” It is not a term used to describe someone who can buy their next home without a mortgage after selling their current property. The term describes a buyer who has the cash needed for the purchase readily available. In other words, the cash is already in the bank when the offer is made.
The pros of buying houses with cash
A successful sale is more likely with a cash buyer
A cash purchase doesn’t involve a lender. This cuts out a lot of the administration and uncertainty from the process. If you can cut out the middle man, you can almost guarantee that your house purchase will complete on time and without any hitches.
According to the HomeOwners Alliance, around a third of house sales collapse because of the buyer’s inability to secure finance. Take this issue away, and there’s not a lot left that can go wrong.
Whether you’re the cash buyer or you’re selling your property to one, a great deal of stress and worry is removed from the process.
The property chain is less complicated
If you’re fortunate enough to be selling your home to a cash buyer, you don’t have to worry about the sale of the buyer’s own home falling through. This is one of the main reasons why so many transactions fail. If the buyer can’t raise purchasing funds through the sale of their current home, the whole chain can collapse.
If you’re in a hurry to sell, finding a cash buyer could speed up the house selling process considerably. We buy homes for cash. We offer prices based on current market conditions. And in many cases, we can complete the entire transaction — and get the money in your account — within 28 days.
You can sell your house faster
When a home buyer doesn’t have to apply for a mortgage, the time it takes for a sale to go through can be cut by a month. The approval process put in place by many lenders is more stringent than ever. And this delay could hold up your plans for the future.
Cash buyers don’t have to worry about providing proof of income and passing credit checks. Once the various legal checks are complete, the sale can go through. And without the added requirements of a lender involved, those checks are fewer in number and quicker to complete.
Property is a great long-term investment. If you have cash available, sinking it into your home also gives you and your family security and certainty for the future. Not having mortgage payments to worry about when you lose your job or hit financial difficulties gives you peace of mind during some of life’s most stressful periods.
The cons of using a cash buyer
Money you sink into the purchase of a home is money you can’t spend on other things. If this loss of liquidity stretches your finances, securing finance is probably a better option. But if you’re certain you’ll have enough cash left to live your life the way you want to, buying houses for cash is a good move.
Cash buyers expect a reduction in price
If you’re in a hurry to sell a house, you may have to accept a slightly lower offer than would otherwise be the case. This is because cash buyers know they are providing a significant benefit to sellers. Cash buyers complete the process much faster than those with a mortgage. And they expect something in return — a reduced sale price.
Asking for cash buyers can put people off
If you’re asking for cash buyers only on the open property market, you might be putting people off. Buyers might think you want the property off your hands because there’s something wrong with it. After all, the absence of a bank usually involves fewer legal and structural checks.
If you need a cash buyer in a hurry, we can help. We buy UK homes for cash, and we take care of everything on your behalf. If you accept our competitive offer, you could have the money in your account within 28 days.