Why would a house be sold for cash only?
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Why would a house be sold for cash only?
Some buyers will see houses advertised as cash buyers only and think that this means the property is in a poor condition. However, there are other reasons that a house may be selling as cash buyers only, for example, if the seller is in need of a fast sale that a traditional buyer who is waiting for their own sale cannot do.
More and more properties are being marketed as cash only when they’re being sold, which has resulted in homeowners asking questions about what this means and why cash only is a common request for houses on the market. We Buy Any House look into why some houses are being sold as cash only and clearing up some concerns about what this can mean regarding the quality of the property.
What does cash buyers only really mean?
If a property is listed as cash buyers only, this means that the seller is not interested in potential buyers that are either waiting for a mortgage approval to be able to buy or that are waiting for a sale of their own to then have the funds to complete on the property. They are looking for a seller who has the cash liquidated and is able to buy the house outright. This can be for a number of reasons, but often, it’s assumed that a seller does this because the property is in an unmortgageable state. Sometimes, this can be true, but it isn’t always the case, and as a potential buyer it is important for you to know more about the different reasons a property is marketed as cash buyers only.
Is a property advertised as cash buyers only in a poor state?
The immediate assumption for these properties is that they are in such a poor condition that a potential buyer will not be able to get a mortgage to complete the sale. This can be the case for some properties, especially if they have fire damage, severe subsidence, or is in such a poor state of repair that a full renovation is needed to render the property habitable. What’s important to know is that while this can be the case for some properties, it isn’t the only reason.
Some selling homeowners will market their house as cash buyers only if they’re in need of a quick sale and don’t have the time available to wait for their buyer to sell another property or seek a mortgage approval. Cash buyers are known for being able to complete a sale much more quickly than the traditional sale route. The seller could be looking for a quick sale for several reasons, from having lost a previous buyer and needing someone to step in quickly to avoid a chain break, or because they’re at risk of repossession and want to sell in a faster timeframe to be able to deal with this head-on.
I’m not a cash buyer, but am interested in a cash only property. Can I still view?
If the property that you’re looking at looks to be in good condition, you may be able to contact the seller and see if they would consider you as a buyer. If you already have a mortgage outline agreement in place, this will be beneficial, as it will speed things up compared to if you haven’t applied yet. You should be aware though, that there is no guarantee that the seller is only advertising the house as cash only because time is a factor, and so you are at a high risk of being turned away as soon as you enquire.
There may be information in the listing that outlines why the property is being advertised as cash buyers only, which can often let you know straight away if the buyer might be open to selling to someone else. Generally, though, if a property is advertised as cash buyers only, if you’re not a cash buyer you will be turned away as you won’t be able to work to the timeframe that the seller needs.
Should I be put off properties advertised as cash buyers only?
As a cash buyer, you likely have experience in property and understand the reasons that properties are sold as cash only. To new cash buyers, these houses can be intimidating, but if you have the expertise and opportunity to convert these properties, they can become incredible rental incomes or even be sold on to give you a profit. Houses that have extensive damage and that are being sold as cash only hold huge appeal to cash buyers, as they can be bought for a low cost and transformed.
Can I sell my house for cash only?
As a property owner, you can choose to sell your house in any way you please. Cash buyers can be a huge advantage to selling homeowners as you can sell at a faster pace, and they also carry less risk as they aren’t relying on a mortgage approval or their own sale. This reassurance is very important to homeowners, as selling on the open market is full of risks. Being able to buy faster is also another benefit to sellers, as the shorter the time frame of your sale, the lesser the chance of something going wrong and it falling through. With this in mind, you should be aware that, like any method of selling, there are negatives to selling to a cash buyer.
Because of the security and speed that cash buyers can provide to your sale, they will likely put in a lower offer for your house. Depending on your circumstances, this may not be too much of a problem- if you’re not in a position where you’re relying on the full market value when you sell, like some homeowners that still have a mortgage or large amounts of debt that they need to pay off when they sell, you may decide that the slightly lower offer is worth the fast, more secure sale that a cash buyer can offer you.
As is the case with any decision regarding property, you will want to do your research before moving forward. Whether you’re a cash buyer or you’re a homeowner looking to sell for cash only, knowing the positives and benefits will help you make the best decision for your situation.
If you’re a homeowner wanting a quick and easy sale, we can help. We Buy Any House can provide you with a free cash offer, and buy your property in as little as 7 days. Contact us today to find out how!
How do I sell my house fast?
No matter what reason you’re looking to sell your house, if you can do it in a faster and easier way than the traditional house sale, why wouldn’t you? We Buy Any House can offer you exactly that – a quick, hassle-free sale that relieves you from the stresses of the property market and lets you focus on the other things that are important in your life. Get in touch with us today for your free cash offer and see how quickly you can sell!Back to all articles
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