We reveal everything you need to know...
When it comes to selling your house, you may have come across buyers who describe themselves as a cash house buyer and wondered what they actually are and whether or not selling to a cash buyer is a good idea.
Selling to a cash buyer is different to selling on the open market, so there’s no doubt you will have questions about the process, including whether or not a cash house buyer will get a survey on your property.
Well, we’re going to answer that for you, as well as writing a guide on what a cash buyer actually is, if they’re better than a ‘traditional’ buyer on the open market and so much more.
A cash house buyer is someone who can buy a property solely in cash, without the need to acquire any kind of loan or mortgage.
They also don’t need to sell a property in order to fund the purchase of yours, meaning they’re your best chance at the quickest possible sale.
To be considered a cash house buyer, the funds must be available immediately.
This is something that is often misunderstood, as some buyers believe because they’re selling another property, meaning they will have money to buy your property, that they’re a cash house buyer, but as a cash buyer you shouldn’t be reliant on any sale to be able to fund a purchase.
Cash buyers tend to be the most desirable buyer for a seller due to the faster nature of selling to them, with there being a reduction in paperwork, as they don’t require a mortgage, and the fact they’re a chain free buyer, meaning there’s a reduced chance of the sale falling through.
We’re a specialist cash house buyer with our own cash reserves, allowing us to buy any property in any condition, no matter the price.
We act fast and will purchase your property in a timescale of your choice.
We’re also members of The Property Ombudsman and the National Association of Property Buyers, which allows you to feel in safe hands, as we’re a cash buyer you can trust.
Whether or not a cash house buyer is better for you will depend upon your selling situation and how quickly you’re wanting to sell.
If you’re looking to try to sell as fast as possible, then a cash house buyer will be the best option for you.
Due to their funds being readily available and the fact they come with no chain, they’re the quickest type of buyer, with some cash house buying companies, like ourselves, being able to complete in as little as 7 days.
As we mentioned cash house buyers come without a chain, which is another aspect which makes them an ideal buyer, as you don’t have the stress of your sale relying on other sales and the potential of your sale falling through because your buyer’s buyer has pulled out of their sale.
If the idea of a load of paperwork stresses you out, then a cash house buyer will also be an ideal option, as the amount of paperwork is reduced, with the buyer not needing to apply for a mortgage.
If you sell to a cash house buying company, like ourselves, we will handle all the paperwork for you to make the sale hassle-free for you.
We will only require a signature from you, and then we will handle the rest of the work for you!
When you sell your house to a ‘traditional’ buyer through the open market, they will always get a survey and searches, as the buyer will have a mortgage lender who won’t lend without.
However, as we’ve mentioned, a cash buyer is someone who doesn’t need a mortgage in order to buy your property and therefore it does pose an interesting question as to whether or not a cash buyer will get a survey on your property, with there not being a lender to force one.
In a lot of circumstances, cash buyers choose not to have a survey as they want to ensure the speediest conveyancing process possible and they tend to be purchasing a property as a ‘project’, which will mean they will be spending a lot of money to change the property anyway, so won’t need a survey.
However, having said this, just because a cash buyer doesn’t have a mortgage lender to force a survey and searches, doesn’t mean that they won’t want to have a survey done.
As the purpose of a survey is to allow the buyer to discover all potential issues with the property, whether they’re paying a fair price for the property and to make an informed decision about whether they should go ahead with buying the property, a cash house buyer may still want to get a survey on your property, despite them not being told to get one.
There are different levels of survey, so a cash buyer may just get the most basic level to give them a better idea of the property’s condition, but without adding a large amount of time, and money, onto the selling process.
We would recommend that any buyer, cash or otherwise, always looks to get some level of survey on a property they’re buying, as without this you can never be completely sure on whether or not the property has any issues or the standard the property has been built to.
Selling to a cash house buying company, like ourselves, cuts down the amount of time spent on conducting a survey, with us having good relationships with surveyors, allowing us to get priority surveys conducted, with fast turnaround times for the results.
As a result of these good relationships, we’re able to get a survey and still be able to buy in a fast timescale of your choosing – an ideal scenario for both you and us!
If you’re trying to decide whether or not a cash buyer is for you, then there are a few things you need to consider first, with the process of selling to a cash buyer being quite different to selling to a mortgage buyer on the open market.
Whether you’re thinking of selling to an individual cash buyer or a cash house buying company, here are some things you need to keep an eye on:
Ensure they’re not requesting a large discount off the market value (25% or more)
Have all paperwork checked by an independent solicitor
Ask for proof of funds
Ask to be made aware of the consequences should either party pull out
Check for any tie-in clauses
Check if they’re wanting to conduct a survey and searches
Ask how quickly they’re able to complete and whether there will be any potential delays
If you choose to sell to a cash house buying company, ask them to tell you about their valuation process. If they don’t want to reveal this, then you should proceed with caution, as they may be significantly undervaluing your property
Also with a cash house buying company, if they’re offering to cover your legal fees, check to see if they will cover the fees if you choose your own legal firm
With a cash house buying company, you should always check whether they’re buying your property directly or if they’re just passing your details onto a third-party buyer. A lot of companies will tell you they’re buying your property themselves but are just acting as ‘lead generation’ and are simply passing your details on
Finally, with a cash house buying company, ensure they’re members of The Property Ombudsman and the National Association of Property Buyers. This will mean there are certain rules and procedures that they must stick to and will also provide you as a seller with a level of protection
When it comes to selling a house for cash, there are many different reasons as to why some sellers believe it to be the best option – it’s quicker, less paperwork and a less complex transaction are just a few of the most popular reasons why some will sell for cash.
Below are examples of more reasons why a cash house sale may be the right option:
Leasehold properties with a short amount of time remaining on the lease (80 years or less) become increasingly difficult to sell on the open market, with a short lease bringing high fees and many complications.
On top of this, lenders tend not to want to lend on this type of property, making this type of property only suitable for cash buyers.
Properties with structural issues require a large amount of money spent on them to make them a habitable standard, making a cash buyer a suitable method of sale, as they tend to look at properties as a ‘project’ and look to pick up properties at a sizeable discount.
Properties with serious damp issues don’t only require large amounts of money spent on them, but they also tend to discourage a mortgage lender from wanting to lend, with most requesting an insurance backed guarantee.
As a result of this, selling to a cash buyer is the best method of sale.
As we’ve touched on a few times, selling to a cash buyer will be the fastest method of sale and this is why most sellers tend to want to sell to one.
As a cash buyer doesn’t have a property to sell, doesn’t need a mortgage and doesn’t tend to get a survey or searches, then the whole selling process is significantly faster.
Avoiding the dreaded property chain is another main reason a seller may look for a cash house buyer.
In a property chain, each sale relies on another sale to complete in order to enable their sale to complete. If one sale is to fall through, the whole chain breaks down.
As a cash buyer doesn’t have a property to sell, they’re a chain free buyer, making them highly appealing to sellers.
Japanese Knotweed is a rapidly spreading, dangerous weed that has the ability to grow through solid ground, meaning it can cause huge disruptions to a property’s foundations.
As a result of this, lenders are often not willing to lend on a property affected by the weed, meaning the only suitable buyer would be a cash buyer.
As a property gets older it tends to develop multiple issues – mainly with the standard of the building and the materials used not being up to scratch with modern standards.
On top of this, a property’s interior will be outdated, requiring a large amount of money spent on it to get it up to date.
As a result of this, some lenders are reluctant to lend on an old property that isn’t up to date with current standards, therefore meaning these types of properties are only appropriate for cash buyers.
A property that has been severely damaged, for example by fire, flooding or vandalism, will be very difficult to find a lender who is willing to lend, leaving a cash buyer as the only selling option.
A property in an undesirable and unsafe location often leads to a lender refusing to lend. These types of locations include:
Areas with high crime rates
Areas with high flood risk
Areas close to old or unsecured coal mines, meaning an increased risk of subsidence
Former petrol stations
Areas previously used for industrial purposes or toxic waste disposal sites
Areas with a high risk of landslip
If you’ve decided a cash buyer is the option for you, let us explain how our ‘cash for house’ buying process works.
Our process is much simpler and quicker than the open market, with our main selling point being the speed of our cash sales.
We’re worked hard to streamline our process into just five simple steps to make sure our customers can enjoy the fastest, most hassle-free cash sale possible.
Enter your postcode into our get an offer and answer a few simple questions about your property – how many bedrooms you’ve got, your house type, nothing too difficult!
After that, we will let you know if your property has been approved
Once we’ve got your information, one of our experienced property consultants will give you a call after doing some research on your property.
They will discuss your property with you in more detail, talking mainly about its condition, which will allow them to provide you with a conditional initial offer.
If you’re happy with the initial offer, we’ll then arrange for one of our regional managers to come and visit the property in person.
Our regional managers have expert local knowledge and are able to inspect the condition in more detail in order to finalise an offer.
If you accept the finalised offer, our progressions team will get in touch with you to talk about instructing one of our recommended solicitors, and we will remind you that we cover all the legal fees, leaving you not needing to pay a penny.
Once the RICS report is back, providing everything lines up, we will finalise all the legal work, allowing us to exchange contracts and complete on a day that suits you!
Well, this is a question only you can answer, as it will depend on your personal situation and circumstances.
A person, or company, who is buying in cash will be looking to get a good deal on your property and therefore will be offering you below the market value.
But, on the plus side, you will be getting a super-speedy sale, with little to no hassle, especially if you choose to sell to a cash house buying company, like ourselves!
The answer will depend on the urgency of your sale, and how much you feel your time is worth – in our opinion time is very valuable!
Also, selling to a cash house company that are members of The Property Ombudsman and the National Association of Property Buyers, like ourselves, will provide you as a seller with more protection than you would get on the open market.
We also cover all the fees for you, which is another thing the open market can’t promise!
If you decide you want to explore your cash house selling options, we can provide you with an offer for your property at no cost and no obligation.
It will only take you a few minutes on the phone or online to fill in our form – got to be worth a try, right?