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Original poster

Can cash buyers be trusted?

50 replies

Cornishqween · 15/05/2019 16:10

Have had several offers on our house. First was from a couple living nearby, first time buyers, bidded several times until they finally offered asking price but they want our fridge, dishwasher, washing machine, tumble drier and wardrobes thrown in with the price. They have got their mortgage in principle.

The other offers have come from a guy who came by our house 2 weeks ago and spoke to my husband. He then contacted our agent and had viewed twice since. He waited around after his last viewing so he could again talk to us and explain his position. He says he is a cash buyer, selling a larger home as he is going through a divorce and already has a flat hell move into once it completes at the end of this month.

My question is can you trust a cash buyer? What proof should our agent seek? Our agent has contacted his agent and they have advised that he will complete as he said at the end of this month?

If we accept this offer we will almost will lose the other couple, and I'm worried that he could just pull out at some point. Have never sold a house before so don't know who to accept for the best. The cash buyers offer was higher than the couple.

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scaryteacher · 15/05/2019 16:17

I can't say that I would have thrown in my white goods to clinch a sale. If the cash buyer is a better offer take that. If the FTBs want things already to clinch the deal, what else might they want later?

Mildura · 15/05/2019 16:19

He’s not really a cash buyer until he’s completed, is he?
Doesn’t sound like he has exchanged yet.
Having said that, no particular reason to doubt a cash buyer more than any other.

Costacoffeeplease · 15/05/2019 16:19

A cash buyer is an ideal buyer, we’ve been cash buyers twice recently - no delays, no worries about being turned down for a mortgage, or the bank valuing it lower than the sale price. What do you think will happen?

Original poster
Cornishqween · 15/05/2019 16:19

Scary that's exactly what our friends and family have said. It seems like they're being tricky already.

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Mosaic123 · 15/05/2019 16:20

The agent should check that he owns all our half of his current home on the Land Registry.

Original poster
Cornishqween · 15/05/2019 16:21

Costa I don't know, I'm just worried he may be more able to walk away than the others. Don't really have anything to say that would be the case, he's been very very interested and has now upped his offer by 3k. I've just never sold a house so no idea how they check someone who won't need a mortgage.

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Original poster
Cornishqween · 15/05/2019 16:22

Mosiac would you not accept until they'd checked that?

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VictoriaBun · 15/05/2019 16:22

We had a cash buyer and they didn't even want a survey. And it went ahead with no problems.
We've also been a cash buyer on our last property.

chickenfeathers · 15/05/2019 16:23

I see your dilemma. When we purchased a house, the estate agent asked for proof of funds (bank accounts, etc). To be honest, any buyer could pull out at any time for various reasons.

I'm sorry I can't offer any other suggestions- but I'm sure someone else will be along soon with something more constructive to add!

Good luck! Flowers

mateysmum · 15/05/2019 16:27

Cash buyers should be as much if not more reliable as they are not dependent on a mortgage valuation
Your agent/solicitor should check for proof of funds. No more reason to doubt this buyer's integrity just because he is a cash buyer. Sales fall through all the time for all sorts of reasons.

RomanyQueen1 · 15/05/2019 16:29

Anyone could pull out though, not just a cash buyer. We have done this quite a few times now (buying as cash customers) Your agent should ask for confirmation that the funds are there the same as they do for mortgages.
I think we usually show a bank statement, which they photo copy and then shred.

Pipandmum · 15/05/2019 16:36

I’m a cash buyer and have to show proof of funds. He’s not a cash buyer unless he’s already sold his house and money is in the bank!
However asking for white goods is not unusual. It’s a bargaining chip. They’ve come up to full asking so want to still feel they’ve got a bit of a deal. Frankly my white goods are always included when I sell due to the hassle of moving and fitting them.

scaryteacher · 15/05/2019 16:58

Moving white goods isn't a hassle Pipnadmum. I've done it twice with international moves, and will be doing it again in October. I've also done it 3 times when just moving normally.

isseywithcats · 15/05/2019 16:58

we are cash buyers and the estate agent wouldnt take the house off the market till my OH went down there with proof of finances in place and his passport ,

BogglesGoggles · 15/05/2019 17:01

Cash buyers are the most trustworthy and then chain free mortgage buyers but not first time buyers (sometimes there are last minute issues with mortgages due to surveys and the like). And then mortgage first time buyers (first time buyers tend to be really unreasonable especially if they have only just started looking). You estate agent will want to see proof of id and proof of funds (with a mortgage buyer they ask for proof of mortgage in principle plus proof of deposit usually).

PlanBea · 15/05/2019 17:04

Until his house sale had completed, he's not a cash buyer. Is his house selling with the same EA as yours is selling? That could give some more reassurance that is going ahead. Do you have a timeline for when you need to move?

Assuming he'd completed, I'd go with his offer. The white goods are not much of an incentive to reject the other offer, but his is higher, he seems keen, and cash buyer is the "ideal"!

MsSquiz · 15/05/2019 17:05

We were cash buyers the last 2 times we bought, we were also in the position that we could purchase even if ours hadn't sold (which did end up being the situation when buying our current home)

I don't remember what we had to provide, I presume it was a bank statement showing we had cleared funds, ready to go.

Your solicitor and agent should be able to advise you on what checks will be carried out

longearedbat · 15/05/2019 17:10

But he's not a cash buyer, is he, if he has to sell his existing house to purchase yours? He may not need a mortgage because the funds he hopes to receive are in excess of your purchase price, but his purchase of your house can only be funded by the sale of his house.
A cash buyer is someone who has, say, 250k sitting in a bank account ready and waiting to purchase a house of that cost. Any agent would also want to check that these funds exist via a bank statement.
What happens if HIS sale falls through?
I'm afraid if potential buyers demanded all those extras (white goods etc), I would charge them for the items. What a cheek. So you will have to replace them all when you move? I would have told them to jog on.

Megan2018 · 15/05/2019 17:12

We had a a cash buyer at the bottom of the chain when we moved last year (we were top).

The buggered the whole thing up (turned out they didn't have all the money they claimed to have) and pulled out at the last minute. We were all very fortunate that a new buyer was found in time, but in my experience they are no more reliable than anyone else!

BallyHockeySticks · 15/05/2019 20:25

One of the supposed advantages of cash buyers is that they are free to move. He presumably brings a chain with him that could be several links long already - he can't buy your house until the whole chain that ends in his big house completes. You have absolutely zero control over that chain and until it goes through, you don't know that it will. I don't think he's a particularly strong contender as a buyer, especially before he's sold.

If there's not much in it financially I'd rather sell to the FTBs, just because I'd rather sell to an owner-occupier than a landlord.

flirtygirl · 15/05/2019 21:01

I was a cash buyer last year and I had planned to be a cash buyer thinking it would give me more power to negotiate and find a bargain.

My solicitor would email the estate agents when I put a offer in to confirm this. However no houses I viewed did it give me more power. I offered on around 15 houses in the end even upping offers to the levels. I was not going in to low often asking and a few times a couple of grand over asking as the house was nicer than expected. They went with other offers sometimes the same but from people with mortgages. I could not understand it.

When I move again when I get over moving here, I will buy and sell at the same time

Original poster
Cornishqween · 15/05/2019 21:36

Thanks for all your lovely replies, it's good to hear from people who have been through the process.

We accepted his offer this evening. He has a date for completion in a couple of weeks so I think they've exchanged contracts already. Hopefully we'll be lucky and this will be one of those sales that are straightforward Grin

He isn't in a rush as he's moving back into his old flat while we find somewhere.

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Original poster
Cornishqween · 15/05/2019 21:38

Flirtygirl our cash buyer ended up offering 3k over asking, not loads but it proved to us he was keen.

Whereas the other couple point blank refused, despite us saying we wanted a best and final (rather than to start a bidding war). I'm hoping we made the right choice

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BallyHockeySticks · 15/05/2019 22:02

Fingers crossed he has exchanged and all will go smoothly.

"Point blank refusing" may just mean they can't afford more. Don't personalise by trying to read into it how keen they are.

Time40 · 15/05/2019 22:09

Any agent would also want to check that these funds exist via a bank statement

I was a cash buyer, and I did have the money sitting in my bank. No one asked for proof (that was 2010, so perhaps things have changed).