If property buyer is cash-only with no chain ...

[lljkk]

Have you been a seller or buyer in this situation, what discount did you give the cash-only-no-chain buyer (CONCB), or discount did you get for being a CONCB?

Ideal to compare if people have answers as raw ££££ or % below the asking price of any other offers.

My experience as CONCB: we didn't get a discount or notice any favourable treatment from seller.

I might choose an offer from a cash buyer over a mortgage-reliant buyer, or a chain free buyer over a chain buyer if it was important for me to move quickly , but I wouldn't give them a discount unless I was prepared to accept a lower price for speed. Why would I?

Cash buyer no chain is no guarantee of a stress free transaction. Sort out a fair price to you whether you are buyer or seller. Do your best to find out if the other party can do what they say they will.

I’m not sure I’d even pick one over other buyers: when my parents sold their house their CONCB made a big thing about their good position meaning their offer was more reliable etc, only to then towards exchange start up with the trying to negotiate more money off. The agent said they’d seen it a lot with CONCBs - no mortgage to wrangle with or sale worrying them so easier to change their financial commitment.

I wouldn't give or expect a discount, but if I were choosing between different offers, I might go with the cash buyer even if it wasn't the highest offer. If I were buying, I'd offer what I was willing to pay, and wouldn't expect a discount - but I guess maybe my sense of what I needed to offer to get the property might be slightly lower?

"Discount" is an odd word to use, and this goes back a few years to a very hot market where prices were rising fast, but I know my 95% of asking price was accepted because I was a cash-only chain free buyer - the seller was chain free too.

It depends on circumstances. A friend of mine bought as a cash buyer from someone whose sale had fallen through but didn't want to lose the house they were buying. Her offer got accepted over offers for 20k more subject to rapid completion - they completed and exchanged in 8 days (sellers were able to provide a copy of a homebuyers survey they had had done). In general I would say people are more likely to accept an offer from someone who is either a cash buyer or not in a chain, or might accept a slightly lower offer on the grounds that it's less likely to fall through.

For me, no chain is a positive. But cash buyers not necessarily - depends on whether they plan to live in it. If they don't (e.g. property developers) I think there is a higher risk they try and lower the offer late on in the process.

Last two we sold (ours and my Dad's) we never contemplated a discount for any particular type of buyer. But if we had similar offers from FTB, buyer with own house sale in chain, and CONCB, we would always go for FTB offer.

I wouldn't give any discount, but i woulf accept your offer over other peoples

I was a cash buyer and in a rental with one month notice period so as flexible as can be really. I don’t think we got an absolute bargain as a result - we paid the floor price of a guide price range of £25k. However the property had only been on the market a couple of days and I think if we hadn’t been in such a strong position the sellers may have held out for more - who knows.
It makes a bigger difference if there’s lots of competition.

I would just expect a load of hassle. I'm not sure how happy I would be but would probably choose them over other buyers unless there was someone far along in a chain or possibly a ftb

I'd actually also rather sell to someone who's going to live in the house than a developer or second-home owner - there's a lot of second homes and holiday lets in my area and it's not great for families. So in those circumstances I might not actually choose the cash buyer at all (unless their offer was a lot better).

It depends on the exact circumstances and the market. Chain free is always an advantage. Cash buyer, maybe but could be a disadvantage if an investor.

In a rising market such as in 2021, the seller probably wouldn't need to accept a significant reduction as so many willing buyers. Now, in a falling market, they would be wise to accept a reduction from a chain free buyer and cash buyer if they need to sell as far more likely to get the deal completed.

I've sold twice to chain-free cash-buyers and both times they were PITAs.

I was a cash buyer and got the house at 9 grand cheaper

I was a cash buyer and got a 15% discount.

Yes this was our experience too. Cash buyer offered full asking price the day the house hit the market, then dropped his offer by £150K just before exchange. He eventually pulled out the night before exchange.

I've found out since that people are wary of cash buyers for exactly this reason.

We sold to a family the next time.

We were cash buyers living with parents for our first home together. We eventually got £10k / 7% off asking price but it wasn't a steal compared to other similar properties. We also faced very extensive quizzing repeatedly from estate agents and solicitors (including one who we suspect didn't put our offer forward as they assumed we were pissing about - never got a response from sellers) which was hard - money was from being orphaned as a teenager, and we were in our late teens / early 20s. Certainly toughened us up for future purchases though!

We've sold previously to chain free cash buyers (who were keeping their existing house) and whilst we certainly didn't offer them a discount (why would you?), things did proceed to exchange and completion very quickly with no issues whatsoever.

Similarly we have purchased as cash buyers several times, although only twice with no chain too.

Neither time did we receive a discount but most recently in 2018 (having already completed on the sale of our house) we again we're able to exchange extremely quickly (within two weeks) and completed shortly afterwards.

Personally I much prefer selling to cash buyers with no chain than to FTBs.

People talk like being a CONCB is supposed to mean an advantage in negotiating with sellers, but I wasn't really sure what the advantage (in trying to negotiate with sellers) might be... I suppose I was just guessing that CONCB status might result in lower price being accepted.

Well they're 2 different things. A first-rime buyer isn't in a chain. Lots of people on here don't enjoy dealing with them because they are more likely to react nervously after survey.
Cash buyers may be investors, some people prefer to sell to owners occupiers. As others have pointed out, a cash buyer may be more likely to try to negotiate last minute but also isn't at risk of losing their mortgage offer.

Also I've heard of "cash buyers" turning out not to be - they decide they need or want a mortgage.

I was a chain free cash buyer and house was advertised at offers over £650k and I paid £615K. Their estate agent was quite indiscreet and I knew they were in danger of losing the property they found (elderly owner going in to a care home) and they were considering a bridging loan so was pretty confident they would take a lower offer.

I was a cash only no chain buyer and offered asking price on the basis the property was immediately removed from the market and no-one else was allowed to view.

To give context though, the house was in a small village that I was desperate to stay in (2DC at the village school) and properties seldom came up. I’d been in rented for a while and had lost out on 2 previous properties by offering slightly under asking (less than 2%) - both properties ended up going at over asking in the end.

When this one came up I was first through the door and very firm about the terms of the asking price offer. I didn’t want to stay in rented any longer as the market was rising and the cash I had was devaluing so just wanted to get it sorted. My FIL was aghast I’d offered asking but the property is now worth almost double what I paid for it in 2013 so I’m happy it was a good decision.

I wouldn't give a discount but I'd probably be slightly more willing to go with a CONCB over someone with a chain, although FTB would be my pref. I think unless you're buying from a property investor/landlord people selling their homes have a price that they need to achieve to move unless they are desperate.

A family member is a CONCB who offered full asking price and has been messed around by the seller for MONTHS. Now finally realising it's time to start looking elsewhere as the seller (who's moved abroad so not looking to find somewhere) seems to have lost all interest in completing the sale. Drives me nuts on their behalf, when they have been so patient and polite and keen.