Why do sellers prefer cash buyers?
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Why do sellers prefer cash buyers?
When selling a house, there are all sorts of risks that a homeowner faces that means they could lose their sale. Cash buyers come with a reduced risk, which makes them more attractive to sellers as there is less chance of the sale falling through.
When a homeowner is selling their house, they want to be able to sell in the most convenient way possible to them. One of the most popular ways to sell quickly and smoothly is to have a cash buyer – but why do homeowners want a cash buyer when they sell? We Buy Any House look into how cash buyers are preferable to sellers, and why more sellers are looking for a cash buyer to complete on the sale of their house.
Who is a cash buyer?
A cash buyer is someone who is able to buy your house outright and isn’t relying on the sale of another house or a mortgage approval to complete on your house sale. Generally, cash buyers are investors or quick sale companies like We Buy Any House and can be seen as more reliable than the traditional route of selling.
What are the advantages of cash buyers?
One of the biggest advantages of selling to a cash buyer is that it tends to be a much faster process. Often, some of the longest delays involved in selling is waiting for your buyer to be ready, whether it be because they’re struggling to sell their own house or that they’ve had issues with their mortgage application and can’t get approval for it. With it being faster, it’s a big advantage for homeowners who don’t want to have to wait for months on end to achieve their sale. Cash buyers are able to move much more quickly, and one of the biggest problems that homeowners face when selling their house is the timeframe in which it can take to complete the sale. A faster sale is always going to appeal to sellers, especially if they’re waiting to sell so they can buy another house in a chain, so cash buyers will be preferable to get things moving and avoid any further delays.
Another advantage of a cash buyer for sellers is that it can be a more secure way to sell. There are all sorts of risks involved in selling a house, and a break in the chain can be catastrophic for everyone involved in that chain. As a seller, if you have an option that will lessen the risk of your sale falling through, you will absolutely want to take it, which is why cash buyers are seen as such a great option for homeowners who are selling their house. Cash buyers are chain-free so that massively reduces the risk that homeowners face when selling, and as they aren’t relying on selling another house or awaiting approval of a mortgage, there’s less chance of them dropping out and leaving you with no buyer.
As cash buyers carry less risk and can work to a faster timeframe, they appeal to homeowners as there is more peace of mind. Selling a house is an incredibly stressful time, so if there is a way to reduce the worry, homeowners will always take that option. Cash buyers have all sorts of advantages, but are there reasons that homeowners may not prefer a cash buyer?
What are the negatives of cash buyers?
Generally, because there are several positives to cash buyers, the negatives get somewhat overlooked. One of the biggest negatives that homeowners experience when selling to a cash buyer is that they will tend to put in a lower offer than a standard buyer. Homeowners will often overlook this negative, as it’s generally worth it to take a lower price for a more convenient sale. This will depend on the seller and their reasons for selling; if they want to sell quickly, a lower price might not be that much of an issue, but if they are relying on the full amount from the sale to pay off debt, a cash buyer may not be the best option.
As a seller, what should I ask a cash buyer before going forward with them?
When you choose to sell your house, you want to make sure that you’ve got all of the information that you need and that you’re happy with every aspect of the sale. There are a few questions that you can ask so you can know exactly what you’re agreeing to and make sure that your buyer is reliable.
Firstly, you will want to ask your buyer if they can access the cash they’re promising straight away. You can request proof of the funds, so you know that your buyer is able to make the payment in full that they’re offering and that they aren’t being dishonest about the amount that they’ve got available to buy your house. This is a perfectly reasonable request for you to make, and your buyer should be able to provide you with either a letter from their solicitor or a bank statement that proves to you that they have the appropriate funds.
You can also ask them what their intentions are with your property once they own it. Some cash buyers will buy your property under market value and sell it on, or investors may buy it to then rent the property out and make an income that way. Generally, what your buyer wants to do with your property afterwards shouldn’t really affect your sale, but it can be a good sign of their reliability if they’re honest with you. It can also give you a good idea of whether they have the funds available if they’re delaying giving you the proof that you’ve asked for. If you’re selling to a third party who is dealing with an investor that holds the funding, it’s likely that they don’t have the full amount themselves.
As a homeowner, you can sell your house in the best way that suits you. If you’re looking for a faster sale than the traditional route of selling on the open market can offer, then get in contact with us today at We Buy Any House. We can provide you with a free cash offer and show you how we can buy your house in as little as 7 days.Back to all articles
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