UK Property
by theWatchdog.co.uk

 

Cash Property Buyer

The term cash property buyer is often used but what does it really mean? Does it really mean that someone has the cash sat in a bank waiting to pay you for your property? The reality is often quite different.

The term cash property buyer is most often used to describe a buyer who does not have to sell another property in order to buy yours. Typically they will also have in place the financing to make a property purchase, often within in days of agreeing terms. Because they can transact so quickly it is as if they actually have the cash sat in the bank waiting.

People often look for cash property buyers when they need to sell very quickly, this may be to break a property chain, or to free up equity in a property for another more urgent need. However it is seldom that things in life are free, typically the cash property buyer will be buying at a discount to the open market value, this could be 20% to 25% below the property valuation. This might sound a lot but if it is a cost shared out amongst those in a property chain then it could reduce to 5% or less of the property price - and considering that private buyers often put in offers at more than 5% below the asking price it may not be such a bad deal.