Ads for ‘We Buy Any House’ can be found everywhere online. But is it a good idea to sell your property to a house buying company for a quick sale? And how can you tell the difference between a legitimate cash buyer and a disreputable one?
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What is a cash buyer for a house UK?
A cash buyer is someone who can purchase a property without needing to take out a mortgage or sell their own home. To be classified as a cash buyer, you must have enough money available to buy the property when you make the offer.
The different types of cash sale
- Home buying companies that offer cash deals are becoming more popular on the internet. These companies promise to purchase your property in a much shorter period than usual, though they will likely offer lower than market value for it. Generally, the process is completed within 7 to 28 days and does not involve an estate agent.
- Traditional cash buyers are also an option, such as individuals who do not need to sell a property or obtain a mortgage to buy. These could include people with large equity from a more expensive property, those with a lump sum from inheritance, or first-time buyers who do not need a loan. A cash buyer can still be found through an estate agent.
The pros and cons of a cash sale
Advantages of a cash sale
The main advantage of selling a house for cash is time. People who want to get rid of their property quickly will often look for cash buyers.
Cash house-buying companies can often skip surveys and searches, as well as mortgage applications. This means less time and money spent on legal fees and estate agents fees, which can either be avoided or covered by the house-buying company.
Disadvantages of a cash sale
The main downside when selling to a cash buyer is that the offer will typically be lower than if you were selling traditionally. Cash buyers know that you want to sell the property quickly, so they will make an offer that is discounted, potentially by as much as 20-25% below market value.
It is important to be careful when dealing with cash-buying companies, as they are not regulated and therefore don’t have a code of practice or a watchdog to investigate their actions.
There is, however, a voluntary redress scheme run by the Property Ombudsman – any reliable company will be a member of this scheme.
“Gazundering” is a common occurrence in the cash-buying world, where a buyer lowers their agreed price just before contracts are exchanged.
This puts the seller in a difficult position, as it can be hard to back out of the deal at this stage, and the buyer knows they have all the power.
Selling a house for cash FAQs
Is it safe to sell a home for cash?
Be wary of disreputable house-buying companies. Do your research before committing to a cash sale. Avoid any ‘option agreements’ which prevent you from selling the property to another individual or company for some time (6-12 months).
Request proof of funds from buyers. Make sure you have the necessary evidence before proceeding.
Should I accept a cash buyer for my house?
If you’ve done your due diligence on a company and you’re sure they’re on the up-and-up, selling to a cash buyer may be a good option. For instance, a reputable cash buyer will appraise the property and not expect you to foot the bill. If they do, you should be wary.
What happens when you sell your house to a cash buyer?
A cash sale has many of the same elements as a conventional house sale, including valuations, surveys, legal work, exchange of contracts and completion dates.
When dealing with a cash buyer, bear these points in mind: ensure that their offer is guaranteed; ask for proof of funds; don’t take them at their word when they say they will pay the market price; be aware of any tie-in agreements; and don’t pay for valuations or any other unnecessary fees.
How quickly can you buy a house with cash UK?
Purchasing a home with cash doesn’t have to be a lengthy process! Cash buyers for houses can usually expect to wrap up the process within a few weeks, depending on the seller’s situation. Sometimes, the timeline can even be shortened to just 30 days.
Get a free, no obligation valuation of your property
If you’re looking for a quick sale, it’s important to understand the market value of your property. Contact us for a free property valuation and we’ll be happy to help.
Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.
We'll Pay £1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.
Sell With Certainty & Speed
- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.
