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Original poster

What is a cash buyer?

20 replies

Mooserp · 08/04/2022 10:54

Have to admit I'm not sure.

Does it just mean a buyer who doesn't need a mortgage? (which is my situation)

or is it someone who has the cash available now, i.e. isn't relying on the sale of their property to proceed? (which isn't me)

OP posts:
Edinvillian · 08/04/2022 10:55

It's someone who has the cash now.

stillavid · 08/04/2022 10:56

Generally it means you are proceedable so have the cash ready to go. The EA will check if you need to sell a property in order to buy new one,

nordica · 08/04/2022 10:58

Yes, has it available right now. For example someone who has already sold their previous home and moved into rented, or someone who has the cash from an inheritance.

From the seller's perspective, someone who will not unexpectedly find getting the money is delayed, as could happen when you are selling at the same time.

Original poster
Mooserp · 08/04/2022 11:18

Thank you for clarifying! I thought that was the case but had read something else which suggested it meant no mortgage required.

I guess not needing to get a mortgage still makes me a slightly more appealing buyer?

OP posts:
whoatealltheeggs · 08/04/2022 11:23

I used to think it meant has the full amount in cash but I think it means just ready.

Blurp · 08/04/2022 11:24

@whoatealltheeggs

I used to think it meant has the full amount in cash but I think it means just ready.
I used to think it meant they literally had enough money in bundles of cash sitting ready to be handed over! I was embarrassingly old when I realised that was ridiculous!
MySecretHistory · 08/04/2022 11:34

It is NOT someone who has a property to sell but some estate agent are sneaky and class that as a cash buyer.

Money accessible within 28 days (reasonable time for searches)
No property too sell

Lonelycrab · 08/04/2022 11:40

I used to think it meant they literally had enough money in bundles of cash sitting ready to be handed over! I was embarrassingly old when I realised that was ridiculous!

Hehe yes you drive round, have your viewing, decide you want the place and hand them a bin liner of fifties… they then hand you the keys, job done Grin

whoatealltheeggs · 08/04/2022 11:45

@Blurp 😆

PerseverancePays · 08/04/2022 12:14

@Lonelycrab

I used to think it meant they literally had enough money in bundles of cash sitting ready to be handed over! I was embarrassingly old when I realised that was ridiculous!

Hehe yes you drive round, have your viewing, decide you want the place and hand them a bin liner of fifties… they then hand you the keys, job done Grin

I wish !
Neverreturntoathread · 08/04/2022 12:20

A buyer who can buy straight away without needing to wait for anything else.

So if you need to sell first, you’re not a cash buyer.

CrotchetyQuaver · 08/04/2022 12:42

This is something that as a seller I would clarify with the estate agent.

To me it means someone who has the funds sat in a bank account ready to go, but it's a term often used when someone needs to sell their own property first to fund the purchase but won't be needing a mortgage

Daisydoesnt · 08/04/2022 15:54

This is something that as a seller I would clarify with the estate agent. To me it means someone who has the funds sat in a bank account ready to go, but it's a term often used when someone needs to sell their own property first to fund the purchase but won't be needing a mortgage

This. It's become a very woolly term. It used to mean that a) you were funding any future purchase from entirely your own means and b) those means were held in cash or near cash. In other words, you would not require a mortgage and your assets were not in something illiquid, like a house.

People often use it now to mean they won't need a mortgage, but neglect to mention that they are dependent on selling a house.

Daisydoesnt · 08/04/2022 15:57

So OP I would say currently you are not currently a cash buyer. You can say though that you won't be needing a mortgage.

Yes that makes you more appealing because without needing finance you've got one less thing to go wrong.

SenecaFallsRedux · 08/04/2022 16:09

Where I am in the US, it means someone who has cash to buy now; it means the transaction can close in a very short time, often 30 days, sometimes less.

abw94 · 08/04/2022 17:37

A cash buyer is exactly that, the money is sat in an account ready to be transferred to their solicitor.

A non dependent buyer is someone who doesn't need to sell a property but may require a mortgage. A lot of things have that reported to the mortgage lender which can impact the legalities, for example if you were buying a property with a ground rent which was over 0.2% of the selling price this would have to be reported to the lender and they could then decline the mortgage offer as they would say the property is not mortgageable.

Therefore a cash buyer is more desirable as they have no ties to a lender, like others have said the EA can twist things but also remember buyers can twist this too or change their mind. I work in the new build industry and we have had many buyers change from cash to mortgage because it was better for them.

LlamasintheFog · 08/04/2022 18:00

Clearly the only way to know for sure is to ask whoever is using the term to clarify.
I'm pretty sure I've seen it used in both senses - to mean cash immediately (or very soon) available or no mortgage needed, once a house has been sold. You sometimes see "cash buyer only" on property ads - I had always assumed this was because a property was unmortgageable for some reason rather than just the vendors preference but maybe that's wrong?

dubyalass · 08/04/2022 18:14

'Cash buyer only' down here means the property is unmortgageable due to the concrete classification (mundic class B or C) or an "adverse" mining report, ie mine shaft in the back garden or adit running under the house. There are also a lot of Woolaway bungalows and Cornish units which are non-trad construction and so some lenders won't touch them.

WoolyMammoth55 · 08/04/2022 18:22

When we bought our current home we had the money sitting in an account (from an inheritance).

EA asked to see our bank statements to verify our cash buyer status before the offer was accepted.

So we were classic cash buyers - but no actual rolls of notes, sadly! :)

GETTINGLIKEMYMOTHER · 08/04/2022 18:24

It means you have cash ready to go.

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