An instant cash property sale is when a property is sold to someone who has cash immediately available at the time they make the offer. Cash-buyers are often in a good position when it comes to making offers, and are attractive buyers to potential sellers. Read this guide to discover all you need to know about cash property sales, cash buyers and what the pros and cons to cash selling/buying are.
What Does Cash Buyer Mean?
A cash buyer is someone who is able to purchase a property outright without the need for financing. Cash buyers are usually associated with a quick property sale because they do not need to wait to be approved for a mortgage or loan in order to buy the property.
Anybody wanting to buy a property in cash will need to have the cash available at the time of making an offer. There are also cash buying companies who are able to buy properties very fast for cash.
Why Are Properties Sold As Cash Only?
If a property listing states that it is cash buyers only, it means that the seller is only willing to entertain offers from buyers who can purchase the property with cash. This means that those who are waiting for mortgage approval or waiting for their own sale to go through in order to have funds are not able to put in an offer. There are many reasons why a seller may choose to do this but it usually concerns speed or previous sales which have fallen through.
Is the Sales Process the Same for Cash Buying?
From the seller’s perspective, there is no real difference between selling to a cash buyer apart from the fact that it is usually a lot quicker. The main difference is that cash buyers do not need to wait for a mortgage which means there are far less hoops to jump and the process in general is much quicker.
However, cash buyers should treat the buying process the same way that a lender would. That means carrying out due diligence and conducting certain checks on the property before agreeing to purchase.
What Are the Pros of Cash Property Sales?
There are many positives to an instant cash property sale including:
- Quicker Sales – One of the main benefits of working with a cash buyer is that it is far faster so those who are looking to sell fast save a great deal of time.
- Chain Free – When you sell your home to a cash buyer, you remove the property chain. A property chain is when there are many different purchase transactions which are interlinked – if one falls through, the entire chain falls apart. If you work with a cash buyer, there is no property chain so less chance that the sale will fall through due to a third party.
- Greater Certainty – Cash buyers are usually those who have a lot of experience in the property sphere. Due to their background, they are likely to only make an offer is they are absolutely sure that it’s the right decision. Because of the greater certainty, it is unlikely that there will be any problems relating to a lack of financing or changing their mind at the last minute.
- Problem Properties – Cash buyers can buy any type of property including ones which are often deemed problematic such as ones in need of repair or properties with a short lease. For those who need to secure a mortgage, they are limited to what they are able to buy as it has to be approved by the lender.
What Are the Cons of Cash Property Sales?
There are, nevertheless, certain downsides that come from working with a cash buyer including:
- Lower Price – Often, cash sales can mean a lower selling price and the seller tends to have to sacrifice some of the market value for their property. It will depend on whether the seller is happy to wait a bit longer and get a better price or is keen to sell now and lose some of the profit.
- Vulnerable to Scams – Some cash buyer deals can seem too good to be true and it is a prime market for scammers. However, if you work with a reputable cash buying company and are careful to do your research and read the reviews, there is no reason why you shouldn’t be able to avoid these scams.
Should I Sell to a Cash-Buyer?
Ultimately, there are both pros and cons to selling a property for cash only. However, luckily, there are fewer downsides to selling a house for cash. If you’d like to sell your house for cash-only, then you can inform the estate agent who can then place specific advertisements. Likewise, there are cash-buying companies that will buy your property quickly, for cash. However, this may mean your house sells for slightly less than the market value. Yet, you’ll be able to sell your house fast, without any hassle, and get the money sent directly to you without any delays.