When you are looking to sell your house, there are several different routes that you can go down. While most people choose to sell a property ‘on the market’, this is not necessarily the best option for you – and in many cases, selling to a cash house buyer may be preferable.
But what exactly is a cash house buyer? And does selling to a cash buyer mean that there is no mortgage involved? Our blog below has answered both of these questions.
Why Cash Buyers Only & What Exactly Does It Mean?
A cash buyer is someone that has all the money to buy a home immediately. This ability to buy has no strings attached and the potential buyer could have the money available tomorrow, if required.
In this respect, someone who will definitely have funds available but there is a barrier to it, is not a cash buyer. An example would be someone who owns their home outright and is waiting for a sale.
In terms of being a potential cash buyer, it doesn’t matter how much money you potentially have or how quickly you can get it. The bottom line is that you’re only seen as a cash buyer if you have all the money available right now.
Is There A Mortgage Involved When Selling to A Cash Buyer?
No, selling to a cash buyer means that there is no mortgage involved. If a seller states that they want cash buyers only and you tell them you’re guaranteed to get a mortgage, they won’t care. If you need any type of mortgage, they won’t be interested in your offer.
This can be highly frustrating if you think you’ve found your dream home, but what are the reasons for this?
There are many reasons, but we’ll start with the big red flag. It could be that the property is unmortgageable. This is usually as there is something fundamentally wrong with the property and the lender will deem the mortgage to be too much of a risk.
If this is the issue, then the seller should have outlined this already. They don’t legally have to as it’s your responsibility to get a survey but this is why it’s a potential red flag. They may be trying to sell a house that needs extensive repairs.
There are many reasons why a lender may decline a mortgage on this basis. It could be that they have found structural damage, signs of damp, or they may have found another issue such as subsidence.
Of course, the seller may be open and honest about this. Or the issue may be obvious. For example, they may want to sell a home that has been damaged by floods or a fire. A lender may be hesitant to offer a mortgage on such a property, even if the sale price took this damage into account.
But property issues are far from the only reason that someone would want a cash buyer only. The most common reason is that the seller wants to get rid of the property as soon as possible, and doesn’t want to wait for the mortgage process.
Why would someone be so desperate for a quick sale? Perhaps they have divorced and want to get settled immediately, their home may be in threat of repossession and they need the cash, or perhaps they inherited the property and won’t to move on due to the emotional burden.
It could be for other reasons such as they’ve been let down by failed mortgages before and have lost patience. If you’re truly interested in the property, then it could be a good idea to ask why they are listing it as cash buyers only.
For example, they inherited the property and want a quick sale. You could perhaps negotiate and see if they’ll accept a higher offer for a mortgage applicant. They may just say no but if you have your heart set on something, there’s no harm in asking.
Advantages of Selling to a Cash House Buyer
Let’s take a closer look at the reasons why someone may want a cash buyer.
Failure less likely – When you sell your house to a cash buyer, you don’t have to worry about your sale falling through due to mortgage approval issues or other financing problems that can occur in traditional home selling processes.
Less stressful – Selling your home can be a stressful process, but a cash house sale can alleviate some of that stress. Cash buyers typically require fewer inspections, appraisals, and paperwork, which can make the process less time-consuming and less of a hassle.
No chain – When you sell to a cash buyer, there’s no chain involved. This means that you don’t have to worry about your sale being held up by another transaction that’s dependent on your sale.
Quick process – A cash sale can often be completed much more quickly than a traditional home sale. Since there’s no need for mortgage approval or lengthy negotiations, the process can be completed in as little as a few days.
Sell your property with We Buy Any Home
Using our own funds, we will purchase your property at a set price, by a date of your choosing, fully managed from beginning to end.
Any location, any condition, we buy any house. We can provide you with an offer for your UK property – Cardiff to Clyde, Durham to Dover. Our specialist team have helped assist thousands of people to a quick and stress-free house sale. Fill in our enquiry form below if you are interested in getting a cash offer for your house