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The Pros & Cons Of A Cash House Buyer

Property Saviour » Cash House Buyers » The Pros & Cons Of A Cash House Buyer

Have you heard of cash house buyers? If you’re on this page, chances are you have. But you may not know what they do, how the process differs, or the pros and cons of selling your house to one.

Don’t worry. This article will go through everything you need to know about cash buyers and, hopefully, help you decide if it’s the right option for you.

Table of Contents

What is a cash house buyer?

A cash buyer is someone who can purchase a property outright using their own money, without a mortgage or any other type of loan. It is not enough to sell a home for more than the one you are buying, as the cash must be available immediately, and you should not be part of a chain.

In other words, cash buyers need to have the funds available right away without needing to rely on any other form of financing. This makes the process of buying a property much simpler and straightforward.

We estimate that around 8 out of 10 companies that purchase homes for cash are heavily reliant on bridging loan facilities.  This results in valuation, surveys and lots of delays and is not ideal if you need to sell your home quickly.

This is where a true cash house buyer such as Property Saviour can help.  We provide you with a genuine bank statement and will never rely on bridging finance or mortgages to buy any property.

How quick can a cash house buyer buy my property?

There are two main types of cash buyers: investors and cash house-buying companies. Investors usually have plenty of experience buying property so they can move quickly through the process.

They may also have a favoured solicitor that helps speed things up. As a result, they can usually purchase your home within a few weeks.

Cash house-buying companies, such as ourselves, are a bit different. We buy hundreds of properties annually. We have our own in-house progressions team to help quicken the process. In addition, we have a priority relationship with the solicitor we recommend, who we know will act quickly.

All this considered, we can buy your home in as little as seven days – we’ve done it even faster before.

pros and cons of cash house buyers
Cash house-buying companies, such as ourselves, are a bit different. We buy hundreds of properties annually.

How is the process different when selling to a cash buyer?

Selling to a cash buyer is much simpler than a regular house sale. Without the need for a mortgage, the process is much quicker, and there are fewer obstacles to overcome.

It can be surprisingly speedy once the mortgage element is removed, which can add weeks or even months to the timeline.

Is a conveyancer still required?

If you’re selling to a cash buyer, do they still need to use a conveyancer? It’s a reasonable question because cash-buying companies like us usually advertise that they can purchase a property in as little as seven days, and even without the mortgage process, that seems like a quick turnaround.

The answer is yes. Both the buyer and the seller need to get independent legal advice.  If you sell to us, you can use your own solicitors.  We are aware that other home-buying companies insist that you use theirs, which is a clear conflict of interest.

How about the surveys?

A survey is essential when buying a house. It’s an inspection by an independent third party of the property and its condition and is usually done after an offer is accepted. A RICS (Royal Institution of Chartered Surveyors) qualified surveyor will typically carry out the survey.

There are different types of surveys, and although we wouldn’t usually advise, a cash buyer isn’t obliged to have any survey done on the property.

This is a common query as companies offering mortgages often require and state in the contract that at least a basic survey is carried out.

To expedite a sale, we don’t usually require a survey.  Even if we do, we’ll pay for it.

Pros and Cons with cash house buyers
Not all cash house buyers are the same, so check that you can use your own solicitor, ask for proof of funds and a Memorandum of Sale, and carefully look at their reviews.

Pros and Cons with cash house buyers?

Now that we understand what a cash buyer is and that the sales process remains mostly the same let’s explore the advantages and disadvantages of working with someone who has the money to buy your property already available in their account.

Sellers mistakenly think that selling to a cash buyer is nothing but good news, but not every cash buyer is the same.  Let’s take a closer look at the pros and cons:

Cash buyer pros

  • Having the cash in hand to buy your home means that selling to a cash buyer eliminates the need for a property chain. This decreases the chances of the sale falling through due to an unwilling lender.
  • There is also the benefit of not needing to secure a mortgage. This eliminates a large barrier from the beginning, giving the seller more assurance.
  • Cash buyers have experience in the property market and only make a purchase when they are certain it is the right move. Not requiring a mortgage means they don’t have to worry about any future financial troubles, such as repossession. If they make an offer, they will likely follow through with it.
  • Plus, even if the property has a short lease, this will not be an issue for the cash buyer, as they are still able to go ahead and purchase the property. This is not an option for those who need to obtain a mortgage first.
  • The convenience of not needing to wait for a lender is the primary reason why cash buyers are so attractive to those selling their homes, especially if they need a fast sale. Removing the lender from the equation significantly shortens the time it takes to complete the sale.

Cash buyer cons

  • Price is lower: Selling a home for cash may not fetch the same market value that it would have, but it is an option that some are willing to take if they need to move quickly.  Any cash house-buying company will be looking to make a profit.
  • Not all cash house buyers are the same, so check that you can use your own solicitor, ask for proof of funds and a Memorandum of Sale, and carefully look at their reviews.

Having Realistic Expectations

These are some of insider tips based on experience working with motivated sellers:

  • No cash house buyer will be able to offer you 90-100% of the value of the property.  You can expect around 70% of the value.  This is because they are in the business of making a profit.  If anyone offers you an unbelievable offer, this is probably too good to be true, as properties with estate agents fetch around 90% of the asking price.
  •  You should expect an offer within 48 hours or quicker and expect completion to take place between 7-10 days.

Look at Companies House

Look at Companies House to see their history of borrowing.

You can find their company by name, click on Filing History, select Charges and see registration of charges or charges satisfied.

If they borrow money to buy your property, what else they aren’t telling you?

Look at Companies House to see their history of borrowing.
You can find their company by name, click on Filing History, select Charges and see registration of charges or charges satisfied.

Look at reviews

If you are dealing with an individual, they won’t have reviews.  However, if you choose to go with a property-buying company, reviews provide an insight into how they operate.

Sellers are distressed and don’t wish to publicly acknowledge that by leaving a review.  We respect that. 

In our experience, less than 1% of sellers leave a review.  We are very grateful and humbled by our success stories.

Reviews can be bought online for a fee.  Anyone can leave a review with a fake name, and you can buy thousands of them.  But reviews with videos and photos can’t be faked. All of our reviews are left by sellers from all walks of life.

Why choose us?

We’ll always do what we promise to do.  We will buy any property any property fast.

Our unique values that make us different in a good way:

auction hammer

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.
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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

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.

Sell with certainty & speed

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