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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.

OP posts:

BubblesBuddy · 15/05/2019 22:27

Money laundering regs.

He can offer £10,000 above asking price but if he doesn’t complete on his sale, it’s irrelevant. Your agent really should know if he’s exchanged! This info is very important. Let’s hope he doesn’t want your white goods!

BlueSkiesLies · 15/05/2019 22:30

If take a cash buyer over FTB

FTB are usually total pains in the neck as they don’t know how the sales process works, they are usually super nervous about making such a large purchase and have zero pragmatism about houses and how most aren’t new build show homes and get spooked by the disclaimers and caveats ina homebuyer report.

ConferencePear · 15/05/2019 22:33

I'm intrigued. Lighten my ignorance please. What is a cash buyer - do they turn up with a suitcase of used tenners ?

WeCouldBeHerons · 15/05/2019 23:10

A cash buyer is someone who doesn't need a mortgage to buy a house, they can buy it outright.

MaggieFS · 15/05/2019 23:22

@ConferencePear Pretty much, yes, it's someone who has the funds ready to buy a property outright and isn't relying on either selling a property in order to buy (with potential chain pitfalls) nor relying on getting a mortgage approved (again, with potential pitfalls).

It's their money, they decide entirely how much they want to spend and can just get on with it, often very quick and easy sales, hence they are attractive purchasers.

Cash buyer should not be confused with 'chain free' who could be someone who has sold and moved into rented but may still require mortgage approval.

No idea why OP keeps calling their buyer a cash buyer when various pp have pointed out they have a property to sell, but it looks good so fingers crossed for the OP.

Lilacks · 15/05/2019 23:23

My cash buyer pulled out. So not necessarily the best bet. I lost thousands as I had to put my property back on the market and accept a lower offer to secure the sale to buy the property I’d offered on.

Neron · 16/05/2019 08:23

I feel sorry for your FTB.

Wondering if they cannot afford to offer more hence the best and final. Also could be why they wanted the white goods, they offered under and it would leave money to buy them but as they had to go to asking price maybe it doesn't leave them much hence why asking for them to be left perhaps?

Either way, it's a shitty outcome for them and all over 3k when you already had asking. Hopefully they weren't too long in the process

Neron · 16/05/2019 08:26

Completely ignore me, I thought you had accepted their offer. Sigh, more coffee needed for me. Sorry OP!

ConferencePear · 16/05/2019 08:34

Maggie
Thanks for your explanation - so they're not actually paying cash but by a bank transfer or something similar. I must stop being so prosaic.

Costacoffeeplease · 16/05/2019 09:14

Yes, we transferred the funds to our solicitor by bank transfer and she passed them onto the vendor’s solicitor

We had to prove where every penny came from and supply bank statements

DreamingofSunshine · 16/05/2019 10:46

Echoing others, you need your agent or solicitor to obtain proof of funds. We've had to do this before and normally a bank statement and payslip suffice.

UnderTheSeaWithMe · 16/05/2019 11:06

Ask for proof of funds to the amount of his bid and extra costs (conveyance, survey, taxes etc).
Our EA accepted a "cash buyer" over us and the "cash buyer" needed to get a mortgage when they tried to proceed.

BallyHockeySticks · 16/05/2019 11:26

He is not going to be able to show a bank statement until he completes on his current house.

I would be wanting to clarify whether he has exchanged yet. I know you've accepted the offer now but it would give you more information about the certainty of completing this month.

BookwormMe2 · 16/05/2019 13:35

He's not a cash buyer. He doesn't have cash sitting in the bank. Having the sums on paper is NOT the same as having it ready to spend.

Tread very carefully, OP. We got caught in a nightmare situation with someone who called themselves a cash buyer but in reality had their money tied up in investments. Our EA claimed to have checked the paperwork but we now think that was bollocks. What resulted was six months of health-depleting stress as we had to wait for the buyer to access their money. It was awful.

Like PP, at the very least I would want confirmation from the EA of the property he's selling or his solicitor that he has indeed exchanged and is about to complete. If he hasn't, be careful he doesn't end up tying you into a chain.

ChicCroissant · 16/05/2019 13:42

Agree with PP about asking for proof of exchange. The money won't be in his account until the sale goes through at completion, but he'd be a cash buyer in my eyes (mortgage-free).

FTB can be (understandably) nervous, it is such a big investment and when you haven't been through the whole stress procedure of buying and selling property it is daunting. The request for the white goods would make me step back too!

Good luck OP, hope it all works out and races to completion for you and that you find the right property for you ASAP!

BallyHockeySticks · 16/05/2019 14:00

Do you need to find somewhere to buy? A lot of kitchens have fitted white goods these days so OP may have replacements included in her purchase anyway. I'm surprised at the depth of feeling on the white goods request.

LookingOptimistic · 16/05/2019 14:18

I get your point about 'being more able to walk away' being a cash buyer, we had that problem with the first buyers we went with (offered after 5 days of us being on the market). They strung us along after we found an onward purchase and then just walked away from the deal a month later with little to no excuse.

We later found out they had decided to not go for the sale about a month earlier than they told us, and had used the excuse that they didn't have the local searches back yet and the local authority said there was an 8 week delay but at the same time stating they would put the money in a readily available cash account for exchange.

When we went to sell the searches onto our new buyers, they were too old! because the previous buyers had lied as to when they received them.

BlueSkiesLies · 16/05/2019 15:16

I'm surprised at the depth of feeling on the white goods request

Me too. I wouldn’t throw a sale away over some white goods.

MsMightyTitanAndHerTroubadours · 16/05/2019 15:27

unless any " Cash Buyer" turned up at my door with the aforementioned suitcase of used tenners I would not favour them over any other.

there are lots of people who think they are cash buyers and your bloke sounds like one of them, they oddly believe all sorts of nonsense about financials/mortgages and when it boils down to it they are still in need of a mortgage and have no deposit.

BookwormMe2 · 16/05/2019 16:02

That was our 'cash buyer' to a tee, MsMightyTitanAndHerTroubadours. Argued until they were blue in the face that they definitely were a cash buyer because they didn't need a mortgage. But they didn't have the cash in their bank to proceed, it was tied up in investments, FFS!

Mildura · 16/05/2019 16:04

I'm surprised at the depth of feeling on the white goods request

Me three.

Moomin12345 · 16/05/2019 16:52

You'd think agent check if the cash buyer has actual cash or needs to sell all their possessions first you'd be wrong. I need to top up my purchase with a mortgage. Lost one bid to a 'cash buyer'. A few weeks later the agent called to ask if I still wanted the property because the cash existed only in the guy's imagination. Apparently he needed to wait for something to get the cash. Presumably for the death of a wealthy relative. So don't assume cash buyers will get you a smooth and pleasant sale process.

Original poster

Cornishqween · 16/05/2019 21:20

Omg moomin

We had an official offer in writing today, stating that his agent has shown proof that he's exchanged and due to complete. Confirming he's happy to wait for us to find somewhere as he's moving into another property.

Just keeping fingers and toes crossed it doesn't take us ages to find somewhere and he changes his mind.

Sorry to all complaining I'm calling him a cash buyer, it's just what the agent keep referring to him as. I guess he's not a cash buyer until he's completed.

No beef with the ftb's about them not coming up any further. The agent said that the asking price was top end of their budget and they wouldn't go over, it just aggravated dh that they went from asking for the fridge and dishwasher, to asking for fridge, dishwasher, tumble drier, washing machine and the wardrobes in all 3 bedrooms (one of which we've just put in and cost us a grand). I didn't really see it as cheeky but others have said they might be the type that would try and pinch every penny out of us and potentially threaten to' walk away' unless we drop the price.

Anyway I felt a bit mean not taking their offer but equally the other offer was too good to turn down I think.

OP posts:

seaorrell · 17/05/2019 21:50

We had a first time buyer whose mortgage in principal was revoked when he lost his job. We now have a cash buyer who showed funds to EA and now 6 weeks in has applied for a BTL mortgage! I could spit! Don't trust anyone!!! All buyers can be good or bad the trouble is you waste months of your life finding out which you have got {hmm}

FiveShelties · 18/05/2019 06:22

I would go for an early exchange with a long completion date, to ensure he cannot walk away without losing his deposit.

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