Why do sellers prefer cash buyers

Carry on browsing if you're happy with this, or find out how to manage cookies. Cash Buyers Only: What does this mean and is it safe? Sellers see cash buyers as something of a holy grail in property terms. 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. 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.

One of the biggest advantages of selling to a cash buyer is that it tends to be a much faster process. 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. Another advantage of a cash buyer for sellers is that it can be a more secure way to sell.

Finally, if you pay cash, you're sacrificing the potential of a significant tax deduction for home mortgage interest. However, the Tax Cuts and Job Acts, which nearly doubled the standard deduction, has nullified this benefit for many homeowners. Unless your loan is fairly large, you may not even need to itemize your deductions. If you have the means to make an all-cash offer, it's definitely something worth considering. With real estate markets favoring sellers for much of the past decade, anything buyers can do to stand out is a smart move.

However, your decision ultimately depends on your broader financial plans and comfort with risk. Federal Deposit Insurance Corporation. Angie's List. Tax Policy Center.

Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. If a leasehold property has less than 80 years remaining, it becomes very difficult to sell on the open market.

This is because the lease extension cost starts to dramatically increase and the power to make decisions falls in the favour of the freeholder. Cash buyers can often step in a buy the property with a short lease. A cash purchase may be more suitable if a property has split commercial and residential uses.

What often happens is that the cash buyer will move forward with the sale. They then seek a boutique lender that specialises in financing these types of building. Alongside Zoopla, Rightmove is a good place to look for properties for sale to cash buyers exclusively. The listing itself should highlight that the property is for sale in this manner. Indeed, most agents would want to clarify the situation from the start to minimise disappointment and complaints not to mention wasted resources.

There is no point pursuing the purchase of the property if you do not fit the correct criteria. However, if your property sale is between exchange and completion you may have better luck with your offers. The transaction is more secure here and very unlikely to fall through. Note that you can also change the criteria to see sales trends within up to 15 miles, of different property types and tenures.

As mentioned above, cash buyers would typically wish to pay less. This value would be proportionate to the particular issue facing the property. Here at Property Solvers, for example, we occasionally list them on our properties for sale on behalf of sellers using our property auction service.

We also offer a modern method of auction option, but most sellers looking for cash buyers prefer the more traditional approach. As mentioned above, in any marketing material stress that the property is for cash buyers alongside the reason why.

You may also come across developers disposing of part-exchange properties to cash buyers only. This is often because they may need to release capital quickly. In other circumstances, sellers simply want to avoid estate agency fees and the hassles that come with putting their cash sale properties up on the open market. Here are some of the sites where they can list without charge and, therefore well worth checking out:.

Some sellers are also approached by cash buyers who see that the property is in severe disrepair. Others buyers hear on the grapevine that a house is up for sale.

Local pubs, community centres and places of worship are also possibilities. One of the main reasons would be to sell your house fast. Cash buyers are often in a strong position to move much quicker compared to most buyers that you would find through an estate agency.

They do not need to rely on mortgage or other third-party finance sources which frequently delay sales by months. In many cases, these kinds of properties are unmortgageable making a cash sale the only real option. The estate agency listing will explicitly state that the property is for cash buyers only. This means that on all the portals like Rightmove and Zoopla, buyers will come forward and book a viewing only if they are in a cash position.