What are Cash Property Buyers and How Can You Find One?

Written by Posted On Wednesday, 21 November 2018 14:12

If you’re looking to sell your home in the U.K., you may have heard the term “cash buyer” thrown around throughout the process. Especially if you’re having a difficult time sending your home to market and interest has been minimal, you may be intrigued by this option. Yet, as a relatively new concept, cash buying carries with it some confusion. You might not know what this means or how to find one for your property.

 

This defines a growing group of property buyers in the region, but clarity should be given around what cash buyers are and what they do. Today, let’s dive into the topic and learn more.

 

What is a Cash Buyer?

Put simply, a cash buyer is someone who has the money available to buy your property up-front, with cash. They are able to avoid the red tape associated with acquiring a mortgage, applying for a loan or selling another piece of property to afford yours.

 

In some cases, this is a specific individual with access to the required stores of cash. In others, an entire company can act as a cash buyer.

 

Why Should You Go with One for Your Property?

Maybe your home hasn’t been on the market that long. In this case, you may be willing to ride out the lengthy, challenging and costly process that’s before you. Or, perhaps yours has been available for a while. You may have even had a few offers that ultimately fell through. This may have occurred for myriad reasons, the most common of which include:

 

The buyer changed his or her mind. They might have found a different property they prefer over yours, they may have decided to stay put and not move after all, or an outside circumstance such as a job change might have affected their next step.

 

Funds cannot be secured. You may have an interested buyer, but unless a mortgage can be secured, pure interest alone is not enough to buy a house. It goes without saying that the steps required to obtain a traditional mortgage have become more involved and time-consuming in recent years. In addition, restrictions around who can receive a loan and under what terms have tightened.

 

The property has a major issue. In this case, the buyer is interested at first, but finds an issue with the property that cancels the deal. Was mold detected behind your basement walls? What about a rodent infestation in the attic? There are a slew of reasons someone could abandon a sale, but if it’s not an emotionally-charged decision, it’s likely attributed to a problem that’s deemed irreparable.

 

When this happens, the resulting aftermath is financially and emotionally draining. A cash buyer helps you avoid this kind of conflict and setback.

 

The Process of Using a Cash Buyer

Though individuals and companies will each have their own set of processes in place, the process for using a cash buyer typically follows the same general timeline. Once you contact one, they’ll get to work performing a valuation of your home as it currently sits. In return, they’ll offer you a guaranteed cash offer.

 

If it’s to your liking, the remainder of the steps can be completed in a timely manner. Most cash buying companies will also cover solicitor fees. These savings are compounded by the fact that you’re able to complete this transaction without the presence of a real estate agent, eliminating associated agency fees and closing costs. The best part? The process is guaranteed, meaning that it will fall through only if you decide it should.

 

How to Secure One for Your Property

The desirability of cash buyers means that they can be challenging to locate, though the pursuit is ultimately worth it. One way to direct more interest toward your property is to limit it to cash buyers only. This way, you’ll save yourself from fielding unnecessary phone calls from other interested buyers or traditional real estate agencies.

 

If you suspect that your home won’t qualify for a traditional mortgage or you simply want to speed the process along, this can be an ideal route to take. Yet, keep in mind that it’s important to do your due diligence before partnering with one. Some real estate companies, in an effort to gain your business, will inform you that they have a cash buyer on their team. This can be an attractive offer, until you find out that the sale is only viable if that “cash buyer” is able to sell another property first.

 

In this case, it’s wisest to partner with a company that does nothing but cash sales. This way, you’ll know both who and what you’re dealing with from the beginning. Look for signs around your local area advertising services such as “We Buy Any House.” These are usually posted by cash buyers looking to work directly with buyers. You can also search for this keyword phrase online to find similar companies near you.

 

The Takeaway: To Use a Cash Buyer or Not?

If you’re willing to undergo the taxing, costly and stressful process that can encompass selling a home, then you can proceed with that route. Yet, keep in mind that throughout the entire process, there is the potential for it to fall through, right up to the day that both parties sign the papers. Moreover, you may have a property that will never qualify for a mortgage, regardless of how much you want to see it go.

 

If this level of uncertainty isn’t appealing to you, a cash buyer can offer an ideal way out. By working one-on-one with one, you’ll expedite the home selling process, get focused support and earn access to your funds quicker than going a standard route. Take the time to lean more about the process and whether it’s right for your property. Then, begin your search and see where it takes you!

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