There is an increasing trend that sellers are looking for cash house buyers because they feel let down by a poor performing estate agent or had aborted sales. According to latest stats on Google UK, there are over 12,100 searches a month from sellers looking for genuine cash house buyers and trend is going upwards due to uncertainty with BREXIT and interest rates likely to go up.
Let’s review the 6 reasons why a cash house buyer is attractive to motivated sellers looking for a quick sale:
1. The estate agent has not sold the property!
They have tried the open market route and property has remained on market for a number of months or years and still has not sold. It could be several reasons why the property has not sold ranging from unrealistic asking price to condition of property – but needless to say that estate agent has not delivered. The seller may now have increased motivation or reasons for selling their property quickly and this has not been factored in by estate agent. Many of estate agents will over value properties to win instructions and this does not necessarily mean a quick sale.
2. Online estate agents vs cash house buyers
There are some estate agents that pretend to be cash house buyers offering sellers up to 87% of value of property. This is simply not possible or realistic. Unfortunately these estate agents are not true cash buyers and they will tell sellers that we have investors who will buy the property of “up to” 87% of value. The seller signs up to a 6 month contract and still has not achieved a sale after 6 months. Be careful as the online world can be confusing and it can be difficult to distinguish genuine cash property buyers from estate agents so always ask them for proof of funds, details of their solicitors and how quickly they are in a position to exchange contracts. If there is any hesitation or talk of a contract to be signed then our suggestion is not to sign up!
3. The property could be unmortgageable
There are many reasons why a property may be unmortgageable and difficult to sell. These range from a defective lease, missing freeholder, Japanese Knotweed in close proximity or neighbouring properties, poor condition of the property, property with sitting tenants, properties with squatters, properties of structural issues such as subsidence, dry rot or cracks within the structure of the property, also maybe non-standard construction.
This makes it nearly impossible to sell the property on the open market. Because 99% of the buyers rely on a mortgage to purchase the property, it is difficult to achieve a quick sale. This is why a cash buyer is in a position to move quickly. Sellers of course could move on with their plans. Key qualities of a cash buyer include their ability to exchange contracts quickly. This means that the sale of the property can be completed within two to three weeks with no delays.
4. Seller’s children may be going to a new school
If the sellers are looking to send their children to a better school then they are likely to look for a cash buyer because of the time constraints involved in in applying for the new school and being accepted having moved into the catchment area.
Increasingly more and more sellers are looking to send their children to the best performing schools in the league tables, therefore looking for certainty and speed of selling their property quickly.
5. Sellers may have been let down by aborted sales
It is a fact that one in three sales fall through because of buyer’s remorse or mortgage not being available. Just about every estate agent has an excited buyer and guarantee that the sale will go through only to call 6 weeks later to say the mortgage lender what land down the funds. And the process of selling your property starts again.
There are a number of hidden costs that can quickly mount up in thousands of pounds. These include mortgage payments whilst your property is up for sale, council tax, insurance, utility bills, repairs and keeping an eye on property if it is empty.
With the a cash buyer, sellers don’t need to worry about whether or not the sale is going to go through because any cash buyer is in a position to exchange contracts fast within days. This means that the seller can be certain that once contracts have been exchanged, they can relax knowing fully well that the sale will go ahead.
6. The property may be uninhabitable
If the condition of property is so bad that lenders don’t believe anybody can live in that property then, it is deemed as inhabitable property and therefore, any lender will not lend against this property. This can put a seller in a tricky position because the cash buyers are the only ones who are able to buy the property quickly. The property cannot be sold to a first time buyer who is likely to have paid a much higher price than an investor or developer would have paid. Worst still, a seller may not know the reason for abortive sales are property is inhabitable and therefore, is not aware that their only choice is a cash property buyer.
Sellers with inhabitable properties are often looking for certainty that their properties will sell. Because the longer the property remains for sale, the more bills associated with property will mount up. These can include council tax, insurance for an empty property, standing utility costs and increased council tax for an empty property. There are a number of risks to be considered such as squatters moving into the property or an opportunist thief breaking in to steal copper pipes.
The great news is that once you’ve exchanged contracts with a cash buyer, the property becomes the cash buyer’s responsibility to insure. The cash buyer is committed to buying the property whatever happens between exchange and completion. This means peace of mind for a motivated seller knowing fully well they’ve sold property to a cash buyer, and there won’t be any delays or uncertainty due to banks changing their mind about the property.
How to establish if you are dealing with genuine cash house buyers?
If you are a seller looking to achieve a quick sale of your property then you really do not need months of delays when it comes to selling your property. We have put together our tips on how to differentiate between an estate agent, a property sourcer or true cash buyer. These 6 questions will help you decide whether or not you are dealing with a genuine cash house buyer or not.
- Ask them who will buy your property? If it is investors, they are an estate agent or sourcer.
- What is name of their company? Read their reviews on Trust Pilot and Google Reviews.
- Who are the solicitors acting for them? Read the solicitors’ reviews. Can they complete a purchase in 20 days or quicker? Phone their office and speak to them.
- How long will it take? It should not more than 3 weeks maximum from start to finish.
- Do they have proof of funds? This will really wind up anyone who is not a true cash buyer.
- Can you speak to their previous clients who they have bought properties from?
It often pays to be dealing with a genuine cash house buyer that specialist in buying property quickly with cash, in any condition. Qualities that you should look for include proof of funds, giving you their solicitor’s details, and ability to exchange contract in 10 days or quicker!
If you are looking for a genuine property cash buyer then Property Saviour can help you. Just call us on 0113 320 6700.