What is a 'cash buyer'? Angry at estate agent!

(41 Posts)
Chelvis Wed 14-Nov-12 09:40:37

Sorry that this is a bit long winded!

We accepted an offer on our house late last week - slightly lower than we were hoping for, but the estate agent explained they were cash buyers and keen to move, so we decided to accept as we would like to move quickly.

We decided on a house this weekend, not made an offer yet as it's a repossession, so I wanted to get everything straight with our buyers first as I've heard that they expect you to get on with everything quickly with a repo. So I called the estate agents on Mon to ask them to speak to our buyers, see when they had planned with a survey.

Estate agent called back - they're not ready to move yet as they have a problem with selling their property - a holiday home. The estate agent insists that they are cash buyers, because when they sell their property, they'll have the cash not a mortgage to buy the house. I thought a cash buyer was someone who literally had the cash in their bank account, ready to go, no need to sell anything or get a mortgage approved.

I am pretty annoyed as we accepted a lower offer based on our definition of 'cash buyer'. Am I right to be annoyed? Is my understanding of 'cash buyer' wrong? I don't want to get angry with the estate agent if my understanding is wrong!

Chelvis Wed 14-Nov-12 09:41:18

Sorry if i take a while to reply, need to get a grumpy toddler washed and dressed!

Beamur Wed 14-Nov-12 09:43:15

Mmm, they will be a cash buyer when they actually sell their house. I think your EA has been slightly disingenuous.
I would also assume a cash buyer is chain free and able to move immediately.

NotQuintAtAllOhNo Wed 14-Nov-12 09:44:00

I thought a cash buyer was somebody outside a chain who had the money to go ahead.

You need the exact definition. What does your solicitor say?

FruitSaladIsNotPudding Wed 14-Nov-12 09:45:20

That's really cheeky. The whole point of a cash buyer is that the sale can go through quickly.

Rosa Wed 14-Nov-12 09:46:09

I thought the same - cash buyer means they are ready to go there and then ( after surverys etc). If they have to sell something holiday home or otherwise then they are not a cash buyer IMO .

Gigondas Wed 14-Nov-12 09:47:45

I would agree that cash means ready to go. Tell ea that if they can't to survey and be ready to exchange by a date that suits you, house is going back on the market.

Hard though it is on buyers as It may very well be ea fault that were economical with the truth. But you are trying to sell your house and should be assertive esp as have taken lower offer based on facts that aren't The case.

pootlebug Wed 14-Nov-12 09:55:11

Cash buyer means ready to go. I have come across people who think it means no chain with mortgage approved (I disagree, I think it means literally cash in the bank), but never anyone who suggested it was someone who would have cash when they'd sold something else! Estate agent is being a cheeky sod.

NotQuintAtAllOhNo Wed 14-Nov-12 10:39:32

I think your buyer is not a cash buyer now, but WILL be once his house has sold.

So, I think you might have been misled.

BobbiFleckmann Wed 14-Nov-12 10:44:25

stick it straight back on the market with an agent who understands proper terminology. what a t*sser.

RyleDup Wed 14-Nov-12 10:46:09

No they are not a cash buyer. The estate agent is stretching the truth there. I'd ask to keep it on the market until the buyer sorts themselves out.

MrsBungleBear Wed 14-Nov-12 10:47:06

I think you've been misled. Cash buyer to me is not being in a chain and having the money ready to go.

I would put it back on the market with a different EA.

Chelvis Wed 14-Nov-12 10:55:26

Right, glad it's not just me - this is our first time selling, so it's all a bit new to me. I told the estate agent yesterday to put it back on the market and it's not off next time until a survey is booked, but I think I will investigate changing agent - this one isn't honest

Cantbelieveitsnotbutter Wed 14-Nov-12 11:19:55

Remember they work for you not the buyer. They are not cash buyers until they sell their property, wack it back on the market, if the others sell or getting a bridging mortgage - fab. If not then there's no harm in a back up

wigwam33 Wed 14-Nov-12 14:27:54

I agree with the above posts. They're not cash buyers. If I were you, I'd take my house off the market with them and move to a new estate agents. Remember, they only get paid when your house actually gets sold and if they're misleading you as the vendor, who knows what they're telling buyers?

We're trying to buy a house. We ARE cash buyers because we sold our house and are now in temporary rented. We were told that the house we're buying has no chain because the vendors are moving into an empty, new build property. Turns out that they are buying from another couple who are the ones moving into a new build property, i.e. there is another link in the chain that they told us wasn't there. Estate agents are a law unto themselves.

fussychica Wed 14-Nov-12 14:44:28

I think you've been misled. We were cash buyers but only up to a certain figure - above that we would have needed to sell our house in Spain so we stuck to our lower cash only limit. We were renting when we first arrived back. The estate agents we dealt with asked us whether we actually had that money in the bank and were ready to go. Due to our position they showed us a few properties above our price range but where they thought we might be able to strike a good deal because of our position.

CunningPlan Wed 14-Nov-12 14:51:21

Well I am clearly in the minority but I think "cash buyer" is different to "not in a chain". However, I would also have expected the EA to tell me about the chain position - to refer to one without the other IS misleading IMO.

Trouble is with an EA that they are reliant on your sale or their commission and they know that once you have accepted an offer many people feel wry reluctant to withdraw, even if the position changes. I would certainly be "expressing my disappointment" to his manager.

Ronby Wed 14-Nov-12 14:54:21

I would personally put your house back on the market with a different agent. I think they have acted badly and misled you. When we bought our current property the agent made out that another person was interested and ready to go just to make us speed up. In fact there was no other person and we only found this out when we decided to pull out thinking that we couldn't complete fast enough. Unfortunately estate agents use tactics like this all of the time.

MousyMouse Wed 14-Nov-12 15:49:50

no, no cash buyer. hope you find a buyer soon.

and if they are not able to sell for a good price they might still need a mortgage...

KazzaRazza Wed 14-Nov-12 16:01:26

I agree with cunning.

They are cash buyers (but in a chain) - I'm not an EA honest!

You've already put the property back on the market and advising him that you won't take it off the market until a survey has been booked is a good idea.

Before deciding to go with another agent I would suggest you check your contract. You may be tied in for a number of weeks and if you ignore the tie in, go with another agent, and sell the property via the other agent your current agent could still pursue you for his fee!!!

digerd Wed 14-Nov-12 16:03:45

Your estate agent is playing with words and deceiving you, but do not why or what advantage it is to them. That he reccommened you to accept a low offer - very odd. He should have said they will be cash buyers when they have sold their holiday home.
I was a cash buyer as had sold, got the cash and was living temporarily with my daughter. Estate agent refused a lower offer as said there were lots of others willing to pay the full price waiting in the queue. !!

Chelvis Wed 14-Nov-12 17:08:08

I have been mulling over what to do about this - we can pull out, but we would have to pay for the 'stand out from the crowd' marketing pack we agreed to (£300 ish), which is a lot of money to us at the moment.

However, the estate agent has just phoned, suggesting we reduce the house price and saying he is 'sure' we could sell quickly at the suggested lower price. He was sure that we would sell quickly at the original asking price too, so I have even less confidence in him. I pointed out that we felt misled by the 'cash buyer, quick to move' state,emt and he was blustering away - we 'shouldn't have been told that' (by his colleague) he said, and 'all I can do is apologise'. Not impressed or sure where I stand really!

RyleDup Wed 14-Nov-12 18:05:13

I don't see why you should have to pay that, after all they haven't kept their side of the deal as they have lied to you.

wigwam33 Wed 14-Nov-12 19:16:39

I agree with RyleDup that in theory you shouldn't have to pay the EA but I don't know where you would stand legally on that one. Potentially, you could argue it but it might be more trouble than it's worth - at what is already a very stressful time. Do you have a solicitor yet? Could you ask them informally where you would stand if you just refused to pay because the EA haven't kept their side of the deal?

My only other piece of advice - having sold our house a few months ago and now looking to buy - is to do the viewings yourself if it's at all possible. It is much, much better in my opinion. We've been looking round houses for the past 26 months and I can say as a potential buyer it is so much better when the owners are the ones that do the viewings because we can ask relevant questions about the house and the area and it somehow humanises the whole experience.

In my experience over the past year, EA often don't really know that much about either the house or the immediate local area although they try to blag it - which is usually patently obvious at the time! Sorry to any EA's out there but this is my experience!

financialwizard Wed 14-Nov-12 19:21:04

Cash Buyer = Cash in bank ready to transfer to solicitor to buy house.

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