Are cash buyers the way to go?

It’s, unfortunately, true that the economy has made it tough to sell a house. With high-interest rates and a weak pound, many people are faced with the dilemma of what to do about their property. As the future is uncertain and unpredictable, now may be your final chance to sell your home for a fair price. Don’t give up hope if you find yourself in this scenario! We’re here to assist you.

House Price Index: New Peak

House prices have increased dramatically in the last year. According to ONS statistics, UK average house values rose by 15.5% over the year to July 2022, up from 7.8% in June 2022. That is a significant shift. You are now expected to pay £39 000 more for a property than last year. If you have been thinking about selling a house for a while, whether it’s a problem property or you need to sell it due to personal reasons you need to be prepared that it will become more complicated and time-consuming now as we’re heading towards a recession. There was a huge decrease in value in 2008 losing around that same value so it can be a balance to maintain high values which can be lost in a recession as quickly as they were gained.

Have we been misled?

The new stamp duty reduction announced by the government recently has added to the confusion. Stamp duty is a tax that is assessed based on the property’s value. The higher the value – the higher the tax.

According to the new guidelines you will not pay tax on the first £250 000 (£425 000 if you are a first-time buyer) The next £675 000 is taxed at 5% and the following £575 000 and above is taxed accordingly at 10% and 12%. It’s a good thing that the change is permanent not just a temporary holiday like during lockdown, but does it help first-time buyers?

Despite 95% LTV mortgages still being on the market, the research shows that the average deposit in the UK has recently been over £53 000. The combination of a higher deposit, continually increasing mortgage interest rates, and new potential difficulties in securing mortgages make it difficult for many first-time buyers. In fact, many lenders have already stopped offering mortgages to new customers altogether. This means that if you’re looking to sell your house, you may have difficulty finding a buyer who can obtain a mortgage. With more chain breaks, imminent traditional house sales might take a lot longer.

So what’s the solution? Enter, cash buyers.

Cash buyers are individuals or companies who purchase properties outright, without the need for a mortgage. This means that they can complete the sale quickly and without any hassle. For sellers, this is an attractive proposition as it guarantees a quick and easy sale. If you decide to go through the traditional estate agent you need to expect that the selling process may take much longer than you think. One of the leading property portals says it takes around 25 weeks to sell a property in the UK.

A recent study has shown that 71% of people who sold their homes to cash buyers did so within four weeks. This is a significant difference and should be taken into consideration if you’re looking to sell your property quickly. In addition, as there are no mortgage lenders involved in the sale, you can be sure that the deal will go through.

We understand that this is a difficult time for many people and we want to help you in any way we can. If you’re considering selling your property, please get in touch. We would be happy to provide you with a free, no-obligation cash offer for your home.

In addition to the speed and certainty of the sale, there are other benefits of selling to a cash buyer. One of these is that you can avoid estate agent fees. These are typically charged as a percentage of the final sale price and can amount to thousands of pounds. When you sell your home to a cash buyer, you don’t have to pay any estate agent fees. This can be a significant saving, particularly if your property is on the higher end of the price range. We do not charge any fees for selling including legal!

Be sure to research before you commit. Check out our reviews of what to look out for when choosing a professional property buyer.

Conclusion

Overall, selling your property to a cash buyer is a quick and easy way to guarantee the sale of your home. There are no estate agent fees involved and you can be sure that the deal will go through. If you’re looking to sell your property quickly, we would recommend getting in touch with us today.