What is a 'cash buyer'? Angry at estate agent!(42 Posts)
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!
"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"
The advantage for the estate agent is that 2% (or whatever) of a slightly lower amount that gets them a quick sale is FAR FAR better for them than 2% of a higher amount that takes months and months and months. If the difference in price is 10,000 ish then the difference in their commission is around £200...they would MUCH rather shift a property quickly! Hence also the desire to get you to lower the prices.
Never be fooled by the "estate agent works for you" thing...the ONLY people they care about are themselves - and they will do whatever it takes! Including telling sellers that perfectly genuine, committed buyers (that was us) weren't serious because we wouldn't guarantee exchange in two weeks - because I was not prepared to commit to something like that where there are lawyers in the chain. I was prepared to committ to "as fast as our lawyers can do it"...so we were gazumped (by about 2%), and the seller then went on to not exchange in 2 months!
Of course you can sell at the lower price. Who doesn't want a cheaper house?! I would either give them one more chance and put it back on market or change EA now. Good luck.
I'd say they were not cash buyers as they don't have the cash to buy and are relying on the sale of a house. I'd feel misled by the estate agent.
OK, so he's suggesting you put the house on at a lower price. To me that says that he's trying to get you to think that you were lucky to get this supposed cash buyer, and that you'd be stupid not to wait for them to sell, because if you re-market it, you'd end up settling for less.
Sneaky all round. Tell him to shove it. You'll put it on with another agent, and if the original buyer's circumstances change, then you'll see how you feel.
Cash buyer in my view is one who takes the property as soon as you put on market with ready-cash.But here it seems to be quite different.There is difference between cash buyers and EA.You can have cash buyer if you wish to sell your property fast for quick cash offer and most of them demands below market value for your property.If it's some sort of urgency go with Cash buyers.
A cash buyer has the cash sat in the bank ready to go when they make the offer. Cash coming from the sale of a holiday home or suchlike is not a cash buyer.
How ridiculous, what if they end up getting less for their holiday home than they have offered for your house. Then they will need some sort of loan or mortgage to cover the difference so will not be cash buyers.
Think estate agents do this all the time to make people think offers sound more attractive than they are as, as someone has said, once you take the house of the market you are less likely to switch to another agent an owe then their commission of by some chance it does go through. I bet there is no holiday home either, it will be their prime residence, another trick to make it sound like their property will be easy to sell and make them look more attractive.
We bought a house last year. We were in rented with nothing to sell and had a 30% deposit and mortgage agreed in principle so we were chain free and reasonably attractive purchasers. I don't consider that we were cash buyers though but I heard the estate agent on the phone to the vendor several times describing as us such (while he was trying to persuade her to take our v low bordering on piss take offer).
They also told us that she was chain free as our purchase would pay off her mortgage and she wasn't buying anywhere. We later found out she was using out money to but a flat on the coast with a small mortgage .
All bullshit to try and get their commision. It all worke doubt in the end after many ups and downs and there is no reason why your sale couldn't either - they may get an offer on their house tommorow. But I think it would be very foolish to take it off the market and I think, tbh, if I come to sell, i will not be taking anything off the market until the day of exchange seeing how these people operate.
Look at the wording of the contract. If their lies / disingenuousness have broken the contract, you may not be obliged to pay the £300.
I would want to move EAs, but read carefully as you clearly don't want an unwanted bill. Also I would suggest you use this as a negotiating point...eg if they have asked for 2% as their fees, get them down to 1 or 1.5%.
Keep it on the market. The buyer is not in a position to proceed so you cannot sell it to them, simple.
I would go to the head of the company/ office manager and tell them what happened. Drop the little turd in it! And while you're at it, say you will give them £100 for their marketing 'effort' but you're off now thanks v much xxx
I would'nt give them a penny, their lies surely determine breach of contract. Change estate agents immediately.
Sorry forgot to add: cash buyers = cash available, as in sitting in the bank account. the people offering on your house are reliant on sale!
Sorry I agree with cunning! Cash buyer means does not need a mortgage to purchase it does not mean "chain free". I work in sols in conveyancing dept
as a fee earner. However your EA was not clear to you as they know that sellers usually do not realise the difference so take that up with them. They should have said "cash buyers but still in chain" although next time always ask more questions. Good luck though with it all.
I would still say that the offer OP has had is reliant on sale hope? If the sale of their house doesn't happen, then the purchase of OP's house cannot be made because the cash is not available until the sale is made.
I'd be interested to know.
ZOMBIE THREAD ALERT
OP is from last November. I would hope she's sorted it all by now
A cash buyer is someone who does not need to borrow (take out a mortgage) or to sell anything in order to buy. Some first time buyers sometimes believe they are 'cash buyers' but this is incorrect if they need someone else's funds, i.e. a mortgage.
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