What is cash buyer only?
When a property is listed as ‘cash buyers only’ it means that the seller is looking for an offer from someone who can buy the house in full with cash. Normally this is done because they want a fast sale or because the property has problems that would make getting a mortgage difficult.
This could include a property that needs work to be modernised, a property with some structural issues or even a property that is on a short lease. The sellers may be able to list the property on the open market, but they can specify that it is ‘cash buyers only’ and so will only accept viewings from those that are serious about buying it.
Specifying that a home is ‘cash buyers only’ will speed up the sale, because a cash buyer will not need to get their mortgage approved and will be able to move in when you are ready. They should be able to exchange contracts within a month, so the whole process will be much faster than it would be if you were selling to a buyer who needed a mortgage application. More info https://www.prestigehomebuyers.co/sell-a-house-in-probate-new-york/
Another reason for limiting the offers on a property to cash buyers only is that the owner may be concerned about it being repossessed. Typically, if a home is sold to cash buyers only they will be able to pay off any debts that the owner has and avoid this issue, as they do not have to wait until the property is repossessed.
It is also worth remembering that cash buyers will have to show proof of funds, which can be shown through a recent bank statement or by providing a cash gift. This should be verified to ensure that the money has not been sourced through illegal means.
There are various ways that a seller can list their property as ‘cash buyers only’, but these should be clearly stated in any marketing material, so the buyer understands this before they view the property. This could be done through an advert on Rightmove, or via an estate agent or auctioneer.
In some cases, a property can be bought by a developer who is disposing of a partexchange property and will do so for cash only, as they need the capital quickly to sell on. These are often properties that are unmodernised, or have some major structural flaws, such as a leaky roof.
The main thing to remember when a property is sold to a cash buyer is that they must be able to pay off the mortgage within the specified timescale, otherwise it will be repossessed and the seller will lose their deposit. Similarly, the person must be able to meet any legal checks and surveys that a mortgage lender will require.
This can be a frustrating and time-consuming process for the seller, so limiting the offers to cash buyers only can be an ideal solution. It will speed up the sale, remove a lot of the red tape and save you time and hassle.