When a seller needs a quick sale, they prefer a cash offer, so what is a fair cash offer on a house?
One negative aspect of selling your house for cash is that you may not get the same offer as you would from a mortgage buyer.
Nonetheless, many sellers are still content to accept a cash offer in exchange for a fast and straightforward transaction.
But how do you know what constitutes a fair offer? In this article, we’ll answer these questions.
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How to Define a Fair Cash Offer for a Property as a Seller?
What defines a fair cash price is often subjective and depends on your goals as a seller. If you want to get the property off your hands and avoid the hassle of a mortgage buyer,
Property Saviour can help you with an accelerated sale and guaranteed cash at the end of the process.
You will save thousands on estate agency and solicitor fees and avoid ongoing holding costs like mortgage payments, insurance, and other household bills. The chances of a cash sale falling through with us are zero.
An owner-occupier will pay most for any property, as they are not looking to make a profit. If you don’t need to sell now, it is best to sell your home via an estate agent.
Some sellers prefer the certainty & speed that a trusted cash house buyer such as Property Saviour.
When making an offer on a house what is fair?
The cash offer depends on several factors including:
The Market
If the property market is a seller’s market, cash buyers may be willing to increase their offers due to the low availability of properties.
Conversely, in a buyer’s market – when supply is high and demand low – sellers may have to accept a lower offer than the asking price. In this situation, a cash buyer may be able to offer 20 to 25% less than the initial asking price.
This could be even lower if there is a risk of property prices dropping.
The Property’s Condition
If your home needs plenty of work or updating, a cash buyer may offer significantly less than what you are asking for. They will need to consider the cost of renovations and the time and effort needed to return the property to its former glory.
Cash house buyers would want to make a profit. It is worth asking how they have calculated their offer to see if their numbers stack up?
The Prices of Surrounding Properties
Homes of a similar size and layout in the vicinity have been recently sold for far lower than your asking price. Consequently, it can be contended that you have overvalued your property. As a result, you may receive offers closer to the sum achieved by the other sales.
You must carry out your own research about the local property market prices. Nowadays, with the help of the internet, it is simple to obtain free HM Land Registry “sold house prices”.
The Length of Time the Property Has Been on the Market
If your property has been listed for sale for a long time, a buyer may think you are eager to sell, even if it means settling for a lower price. If you have already reduced the asking price once, this will likely strengthen their opinion.
Physical or Legal Issues with the Property
During the conveyancing and survey process, certain issues may arise that could affect how much a cash buyer is willing to pay.
It all depends on how severe the problem appears and whether you’re willing to tackle the issue yourself or accept a lower price to cover the cost of repairs.
Property Saviour don’t carry out a survey. We stand by our offer even if we discover minor issues that weren’t disclosed during our conversation. The price agreed is the price you will receive.
How Do You Get a “Fair Cash Offer” From a Buyer?
Cash buyers may have the means to purchase your property outright, but that doesn’t mean they will be less discerning about what they are willing to pay.
Other options, such as investing in stocks, index funds, corporate or public bonds, or simply a savings account, may be more attractive to some buyers.
Owning property is not cheap and the buyer will also be responsible for Stamp Duty costs, which will be higher if this is a second or investment property.
Your Options…
These are some of options available to you:
Cash Offers Through Estate Agents
Cash offers that come through from estate agents are usually higher. Before accepting a cash offer, it is best to check the buyer’s credentials. Ask for the following:
- Can they prove they have the funds?
- Has the estate agent done the necessary checks?
- Who is the solicitor and are they registered with the Law Society and/or Solicitors Regulation Authority?
- When can the buyer complete the sale and are they willing to pay a holding deposit?
- How can they demonstrate they won’t reduce the price at the last minute (gazundering)?
Cash Offers Through Auctions
You won’t get a cash offer in the auction, but you will have to go through the process of auctioning your property.
If the property doesn’t sell in the auction, you’ll have to start again.
To maximise your chances, you will need to put in a very low guide price.
In a traditional auction, buyer exchanges contracts at the fall of the hammer. However, in a Modern Method of Auction, the buyer doesn’t exchange contracts.
One of the biggest cons with auctions is that they are not a fast method of sale. If you need to sell now, you don’t have the luxury of waiting for up to 3 months and hope that property sells.
Cash Offers Through A Property Buying Company
The quickest and most effective way to get a real cash offer is to sell directly to a property company like Property Saviour. We will offer you a no-obligation cash offer with no strings attached.
Sell to us! We can offer you up to 75% of the market value of your property, and often even more. You won’t have to pay any estate agent or solicitor fees; the sale can be completed in just ten days.
Sell with certainty & speed
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.
