There are a lot of properties being advertised as cash buyer only. You might be wondering what that means and whether or not it is a good thing. In this blog, we will discuss ‘cash buyers’ and why some sellers prefer them. We will also explore the pros and cons of a cash buyer versus other methods of purchasing a property.

What does it mean when a property is advertised with cash buyer only?

Sometimes you’ll see for sale boards or properties on protals like rightmove and zoopla asking for a cash buyer only.

When a property is advertised as cash buyer only, it means that only cash buyers are being considered. This means the buyer wont need to consult with a mortgage lender and it can be one less thing that might result in the sale falling through.

As the expectation is a cash sale it will also normally result in a cuick sale of the property which can be beneficial for the seller if they are in a hurry, you might also find that sellers will accept a lower offer.

What does it mean when a property is advertised with cash buyer only?

Sometimes you’ll see for sale boards or properties on protals like rightmove and zoopla asking for a cash buyer only.

When a property is advertised as cash buyer only, it means that only cash buyers are being considered. This means the buyer wont need to consult with a mortgage lender and it can be one less thing that might result in the sale falling through.

As the expectation is a cash sale it will also normally result in a cuick sale of the property which can be beneficial for the seller if they are in a hurry, you might also find that sellers will accept a lower offer.

On the downside, cash buyers usually may not be as qualified as buyers who are obtaining a mortgage. They may not have the money or less money which can hold up sales as they try to find more or liquidate assets to get money etc.

For this reason, it is important to make sure that all the finances are in order before progressing too far with any prospective buyers and ensuring that your own funds are in order before looking into properties listed as cash buyers only.

What kind of people need a cash buyer?

The most common kind of people who need to use cash buyers are investors.

This is because cash buyers can move much quicker than people who need to get a mortgage and they are also less likely to back out of a sale.

Another group of people who might need to use cash buyers are people who have had their mortgage application rejected or those who are self-employed and therefore cannot provide the required proof of income to a mortgage lender, they might be looking to exit the property market or get a lump sum.

Finally, there are problem with properties like properties with a very short lease or subsidence etc. that make getting a mortgage hard and also make the property hard to sell to other people.

Some people also choose to use cash buyers because they do not want to go through the hassle of getting a mortgage, or they might be looking for a cheaper way to buy a property. This is because you can negotiate the price of the property but it’s limited to how much money you have in the bank.

There are many reasons why someone would need to use cash buyers, but ultimately it comes down to personal preference and the situation that they are in.

Are cash buyers always better?

There is no easy answer to this question. Ultimately, it depends on your individual circumstances.

If you are looking for a quick sale with minimal hassle, then cash buyers might be the best option for you. However, if you are looking for the best possible price for your property, then cash buyers might not be the best option.

It is also worth noting that cash buyers are not always as qualified as buyers who are obtaining a mortgage, so there is a risk that they may back out of the sale or be unable to finance the purchase.

Pros & cons

There can be pros and cons to use of a seller who is looking for a cash offer, we’ve listed these below:

Pros of cash buying:

– cash buyers are often more serious about purchasing the property

When a property is advertised as cash buyer only, it means that the only people who can buy it are people who have money in the bank. This might be good for the seller because it means they don’t have to wait for someone to get a wait for the mortgage process. It can also be a sign that the seller wants a quick sale and might be willing to take a lower offer.

On the downside, cash buyers usually don’t care as much about details like inspections. This means things like a structural survey may not happen. They may also not be as qualified as buyers who are getting mortgages. It can be a good idea to get a recent bank statement showing enough money for the house purchase.

– cash buyers are usually qualified and have their finances in order

This means that they are more likely (and motivated) to be able to buy the property, which can be good for the seller. Additionally, cash buyers don’t have to go through the process of getting a mortgage, which can save them time. They might also be willing to overlook problems with a property.

– cash buyers can close quickly, which can be beneficial for the seller

Sellers may ask for cash buyers only because they can close quickly, which can be beneficial for the seller. A prospective buyer who is willing to go forward with a cash buyer would also generally be chain-free. A property chain is the biggest failing point of the whole process when selling/buying properties.

It’s fast for the seller as buyers do not need to consult with a bank to get a mortgage application and can buy the property and exchange contracts extremely quickly.

Cons of cash buying:

– cash buyers may be less willing to negotiate on price

Cash buyers may be less willing to negotiate on price. often, cash buyers are investors who are looking to buy a property quickly (to expand a portfolio) and at a discount, so they may not be as willing to negotiate on the sale price.

Cash buyers might not have the money to complete a cash purchase

The UK property market has exploded in recent years and essentially buying a property outright involves a huge amount of cash. Some might be waiting for a cash gift or to sell their own home in order to generate the funds. It can be a good idea to find out before you accept cash buyers the funds are in the buyer’s account.

Summary & short version

When a property is advertised as cash buyer only, it means that the only people who can buy it are people who have money in the bank. This might be good for the seller because it means they don’t have to wait for someone to get a mortgage, but on the downside, cash buyers can try to leverage the price. Short cuts might be made to reduce legal fees or missing things like a structural survey. They may also not be as qualified as buyers who are getting mortgages. It can be a good idea to get a recent bank statement showing enough money for the house purchase.

HouseBuyFast is a cash buyer only meaning we can purchase any property in England and Wales. We can give a no-obligation cash offer completely free, if you want the best price we recommend the open market to get the best price. Using cash buyer is not suitable for everyone (especially if trying to get the best market value) and most people will need the use of mortgage lenders. If you are not sure what your options are why not talk to us today for a chat to see what your options are.

If you need a cash buyer we can help, talk to use today!