Who are all these cash buyers???

[sweetpaws]

Trying to move house but can’t get a look in because we constantly seem to be up against cash buyers?? Who are all these people with so much cash?

If we moved we would be cash buyers, recently retired and have lump sums from pensions and mortgage paid off on house

Selling and going into rented doesnt automatically = cash but would be no chain which is also attractive.

I was a cash buyer, I bought a house with a huge deposit that skyrocketed in value, only had a tiny mortgage to redeem when it sold so had a good amount in cash to buy on with.

Our house is currently on the market and we’ve had two cash offers. One for 6k over the the asking price, and another from a Chinese investor offering 10k over. Has me me realise just what we’re up against as we search for our next home.

We’ll be cash buyers when we next move as we have 7 figures of equity in our house. We are not wealthy people, we just got really lucky with where and when we bought our home. I suspect many London-based families moving away from the city are in a similar position.

We're cash buyers, no chain and we've been looking for 6 months. Sometimes we couldn't even get a viewing, never mind make an offer. One estate agent told me people are making offers £5-£8k over asking price to secure a property.

Thankfully we've just bought a new build that had fallen through, developer wanted it sold quickly, and went with the people in best position which was us 😁

Good luck though, you'll find something I'm sure.

We bought for £233,000 in 2000 ( a kings ransom at the time, damn near broke us ) but at the weekend a friend who is also an estate agent reckons we could market at £728,00, and then settle on an agreed sum of around £720,000, we are mortgage free and if we did sell it would be to a smaller property ,probably down the road in Hampshire which is cheaper in places, but still lovely.

I am 58 and DH is 65.

So yes cash in hand buyers.

@talkingtoclarry which offer do you think you’ll go with?

I really think the state of the housing market in this country right now, the government surely need to step in and say that only private individuals (not companies) resident in the U.K. already can purchase residential properties. If we’re up against cash buyers like all the people on this thread, as well as overseas investors offering way over asking, I can’t see how we’re ever going to be able to move back home close to family with all the added implications of no one being there to care for my elderly parents. Feeling thoroughly deflated about it all.

I wonder if cash buyers is actually short hand for ‘they have said there is no chain and we hope that’s true’. Lots of people here sell and go into rented so they are in a strong position to proceed, but they still need to get a mortgage.

We complete on a house next week which we are cash buyers.
But we have a bridging loan. We had a 60% deposit and took the rest as a bridging loan which we will have to pay back within 12 months and the Interest is quite high.
We have about 90% equity in our home so will more than have to clear the loan.
We took this option as the house we found was perfect for us location and size wise. And they were selling so quickly.
It needs practically gutting so gives us a few months to get the maim work done before we move in as we've just accepted an offer on ours.
Hope that makes sense!

We bought cash. Had 2/5 savings. Borrowed 3/5. Off a family member,
Paid the money back when the sale of the current house was done..
Only downside was paying extra stamp duty out. But reclaimed it after the sale of currant house.

It was a very simple way of doing things no stress of moving day, no removal company, just moved in a bit at a time

We would use our savings and pension lump sums to buy the new house and then replace this money with the sale of the present house so we could have some overlap when moving. Retired people like us are probably looking at different houses to young families though as we are not bothered about good schools.

Same in my area.

Every house we've enquired about we've been told are only taking viewings from cash buyers or "proceedable offers" but how the hell do you get proceedable offers in a chain?!

A few weeks ago the Economists covered a growing number of institutional investors, Lloyds, were rushing into the property market. So currently the cash buyers are not only composed of retailers but also smart whales. www.dailyrecord.co.uk/lifestyle/money/lloyds-bank-home-buying-plans-24886442

Lots on here describe themselves as cash buyers….but they aren’t.

Cash buyers are those with the ready cash available to buy with and. It dependent on a sale.

Those with huge equity which means they won’t need a mortgage, but they need to sell their existing property to free the equity are NOT cash buyers. They might be in a. Stronger position (or not) than those needing to sell but they aren’t ash buyers.

In my mind, buyers’ attractiveness usually ranks in this order;

1. True cash buyer - no need to sell anything and no need for mortgage
2. First time buyer - needs a mortgage but no need to sell - therefore end of chain.
3. Owner buyer who needs to sell current property and get a mortgage.

I’m amazed how many describe themselves as cash buyers in life and on this thread who absolutely aren’t. The Q is, can they hand over the cash today, or perhaps in a week or so, without needing to sell property to access it. I’d describe a cash buyer who might need to access some savings in notice accounts of up to a month, but beyond that, any illiquidity which means the money isn’t available, or is dependent on a sale (worse still in my mind.llsubject to so many things that can go wrong) then they are not a true cash buyer.

It’s why EAs tend to ask to see proof I’d funds now. So many buyers made offers as cash buyers, but further down the line it turned out they needed a mortgage or actually needed to sell property to free up cash. The EA wants to see bank statements or other financial statements to show ready cash that’s available,

I must admit I thought a cash buyer was someone that had the money without having to sell their house first to get the cash.

MistyElla, what you describe is not a cash buyer. All your money for buying is tied up in your property. If you need to sell to access the cash, you’re not a cash buyer.

If you sell first to free up the cash and move into rented, then at that point you would be a cash buyer.

I also don’t class as cash buyers anyone who needs loans from any source. It doesn’t have to just to be a mortgage. If you’re borrowing a bridging loan etc, then you are reliant on a loan coming through and don’t have the full amount upfront a available.

Regarding being oroceedable…it’s not the same thing. Being proceedable, for someone who needs to sell property means the following;

• having accepted an offer in your own property and that buyer has shown they have the funding and/or their own buyer who is proceeds left
• any necessary mortgage finance is in place in principle and in writing
• solicitors can be named
• EA has checked proof of funds - that is deposit, mortgage offer in principle and also any buyer.

Lots of people don’t get themselves proceedable before offering. They haven’t got a buyer, or a mortgage offer. Many people could do tHemselves a favour and sort tHise things out and have all the paperwork evidence ready tO handover to EAs oR even to show them at the point if making an offer….this would make them so much more attractive than some other buyers immediately. Yes, they still won’t trump a true cash buyer in most cases, but they can trump someone else who needs to sell and get a mortgage.

Our current house if for sale and we want to move out of London, rent first to get a feel for the area we think we will move to then buy with cash.
Hoping this will bean we can buy/sell a little easier without issues of lining up the selling and buying and chains falling through etc.

To me a true cash buyer is one with money sitting in an account and can produce proof of funds straight away, it doesn’t matter where or how they got it, but it’s there ready to go.

@sweetpaws
I hope we go with the first time buyer, if they’re able to increase their offer a bit. I don’t necessarily expect them to meet the offer which is £10k above asking, maybe £5k but we’re already upping our budget by £25-30k so if we want to find anywhere in the area we need we may have to swallow our principles.

I don't think cash buyer means having the entire amount in cash anymore.

Balonz…what do you think it means then?

Look it up. Look at how Estate Agents define it or solicitors.

Anyone needing to sell or needing access to a mortgage is not a cash buyer. It doesn’t mean they can’t be a good buyer or a sale can’t complete….or course not, but they are not a cash buyer.

A cash buyer can see a property they want. They have the money for it and can buy it, without needing to sell other property to free up cash or to rely on a mortgage lender for the cash.

When a sale of property is involved, it can fall through and there’s no sale. A mortgage can be declined and there’s no sale.

The person who has all the cash in the bank isn’t subject to those potential problems. They don’t have to get a survey ir searches if they don’t want to, and they can often complete in less than a month is they don’t want to go through the normal processes and checks.

Part of the collapse of lots of housing chains is because people say they are cash buyers but aren’t. The usual thing, is they need to sell. So they aren’t free to complete at any point….only when their property actually sells. It’s a huge difference.

Most of the time, most sales won’t go to cash buyers as most buyers aren’t cash buyers. Even those who say they are and later turn out not to be, may we’ll be continued with as people have got so far in a process and don’t want to start again or a genuine cash buyer isn’t there anyway….or lots of people in normal circumstances don’t mind if it all takes a while, as their own process is going to take a while.

Ask an EA what a cash buyer is. And ask them to tell you some funny stories about people who thought they were cash buyers or said they were…but weren’t!

@balonsz we bought cash and we had to have proof of ALL funds before we could proceed.

A cash buyer can see a property they want. They have the money for it and can buy it, without needing to sell other property to free up cash or to rely on a mortgage lender for the cash.

I don’t think this is correct. From the vendor’s POV an agreed bridging loan = cash, an agreed equity release = cash.

@WombatChocolate I know what it is supposed to mean however the amount of "cash buyers" who were interested in buying my house who weren't my definition of cash buyers lead me to believe the definition had been diluted. I was also described as a cash buyer by an EA when I had sold my property & was staying with family despite still needing a small mortgage.

As your post illustrates people are confused about what it means hence why they say they are when they aren't.

[quote gavinc0328]A few weeks ago the Economists covered a growing number of institutional investors, Lloyds, were rushing into the property market. So currently the cash buyers are not only composed of retailers but also smart whales. www.dailyrecord.co.uk/lifestyle/money/lloyds-bank-home-buying-plans-24886442[/quote]
How terrifying. As if we didn't have enough competition.