What Is a Property Cash Buyer?
For younger generations at least, the mere thought of owning a home at some point in their lives feels like an unattainable dream thanks to the constantly widening gulf behind house prices and wages – especially when it comes to raising enough money for a deposit.
It’s somewhat shocking, then, for young people to learn that there are a growing number of cash house buyers in the market, but what is a property cash buyer?
In simple terms, a property cash buyer is someone who does not need to rely on a lender, such as a bank, to loan them money in order to purchase a house.
As one would imagine, these types of buyer are rare due to the amount of capital required to buy a property outright. If you are one of the lucky ones to be in such a position, then there are quite a few benefits to the approach.
What are the advantages of being a property cash buyer?
In 2019 alone, a quarter of all sales fell through for a variety of reasons, and being a property cash buyer can help you avoid these issues:
- If you need to loan money to purchase a home, you need to be approved by a lender. Unfortunately, a mortgage application can be turned down for a number of reasons, such as not being able to find savings for the required deposit, having a bad credit score, or failing to provide enough proof of earnings for the lender consider the loan worthwhile.
A chain is when there are multiple properties in the process of being sold, and the buyers are waiting for the house they are planning to buy to become vacant. Sadly, chains can often break down when one buyer changes their mind about purchasing, or are no longer able to purchase the home they wanted.
- If you are a cash buyer, then you do not need to worry about being gazumped as much as a person who has borrowed money to buy their home. Gazumping is when the seller chooses to sell the home to a new buyer who, late in the process, provides a higher offer than the original buyer.
- When you are purchasing a home, a cash purchase is likely to be completed much faster than a purchase completed with a mortgage. This is a blessing for both vendors and buyers as 15% of failed purchases were due to a vendor pulling out of the deal as it was taking too long.
- Once the house is purchases for cash, you no longer have to worry about dealing with a bank, nor do you have to worry about your home being repossessed, as you own it outright.
It is, of course a good idea to remain wary if you see a <strong> home on sale for ‘cash only’, </strong> as this can sometimes be a sign that they are trying to offload the property as soon as possible due to an issue that they would rather avoid fixing themselves. That’s why its imperative that you get a chartered surveyor to check the home inside and out for structural issues, subsidence and other potentially expensive problems.
Are you interested in selling your house for cash? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property before it’s too late.