Moving is one of the most stressful things you can do. If you talk to people who have recently relocated, they will undoubtedly tell you that it is the uncertainty and possibility that the purchase may fall through that causes the greatest stress. Some people feel that selling to a cash buyer is the greatest way to prevent this burden.
This article examines the benefits and drawbacks of selling to a cash buyer and if there is another option to avoid the stress of relocating.
What exactly is a cash buyer?
A cash buyer is someone who can buy a home outright using the money they have on hand. To be deemed a cash buyer, they must have the monies on hand at the time of the offer. A buyer who must sell another property in order to purchase your house is not considered a cash buyer.
What sorts of sellers are looking for a cash buyer?
1. Vendors who must sell quickly
Before agreeing to lend money, mortgage lenders must be satisfied that the property is sound and that the borrower will be able to fulfill their repayment obligations. This is a deliberate and precise procedure that delays the selling of a home. A cash buyer, on the other hand, already has the funds to purchase. Sales normally go considerably faster when no mortgage agreement is necessary.
2. Vendors who have been harmed by prospective purchasers whose mortgage negotiations have fallen through
Mortgage lenders are not permitted by law to issue mortgages to borrowers who they believe are likely to fail on their payments. When a prospective buyer is turned down, the seller is forced to relist their property on the market. Many sellers who are dissatisfied and anxious to sell may look for a cash buyer.
3. Vendors whose property is in disrepair
Cash purchasers may be the vendor’s sole alternative since mortgage providers are hesitant to lend on an unstable property.
How does one go about selling a house to a cash buyer?
The procedure of sell your as-is house to a cash buyer is fairly similar to any other property transaction, with the exception that your buyer does not need to apply for a mortgage.
Request verification that the monies are in the bank
When you get an offer from a buyer who claims to have the funds to purchase your home, ask your estate agent to seek documentation of the buyer’s financial position. A legitimate cash buyer will not have to sell their home before purchasing yours.
If a prospective buyer cannot offer evidence of monies in the bank, they are not a cash buyer. Accept their offer knowing exactly what it is, or wait for another offer.
Their lawyer will do property searches
The searches that are generally performed by the mortgage lender will still be required. These will be carried out by the conveyancing solicitor for a cash buyer and will include a local area search, regulated drainage and water search, and land registry title plan. You must allow time for things to be completed.
They will very certainly continue to conduct a survey
Although a cash buyer will not need a mortgage value study, you should expect them to pay for a house inspection to identify any possible problems with your property. If difficulties are discovered, your cash buyer may attempt to decrease the purchase price or opt not to proceed with the transaction.
