Advice, tips and pointers when it comes to cash buyers

LuckyB · 2023-08-17T12:00:17+00:00

I've received an offer from a cash buyer and am new to this. Can anyone advise me on what to look out for, what to ask and what to ensure I have in place to strengthen the probability of the sale going through? Had the offer come from someone requiring a loan I would, for example, only take the property off the market after they had an MIP or they had instructed a solicitor to make enquiries. In my current situation, I am slightly concerned about not having any other current offers and feel that even though I have a cash buyer, they could still mess me around and I don't have any other interested parties to fall back on. What should a seller ask for or require from a cash buyer? Thanks in advance.

bilbodog · 17/08/2023 13:32

Your estate agent should make sure they provide evidence of cash. Otherwise you should proceed as normal - show the house as under offer.

Coronationstation · 17/08/2023 13:35

yes, what @bilbodog said! My friends went with cash buyer over a first time buyer who put in the same offer thinking they would be a quicker and easier buyer, and then the sale got held up while they waited for mortgage approval!

CutesyUserName · 17/08/2023 13:37

We have cash buyers for our house. They were being loaned the money by a family member. Our EA confirmed the money was in the account and had communication from the person lending that they were happy to do so. We took the house off the market.

The problem started when our buyers solicitor couldn't confirm the origins of the money for money laundering purposes as the family member now lived in a different country. They had to outsource the AML checks to a different solicitor. Checks took several weeks (and cost our buyers thousands of pounds in solicitors fees!)

TLDR; solicitors will want to see proof of origin of funds.

listsandbudgets · 17/08/2023 13:38

Usually a cash buyer is good news as there's no chain so leas riskof it falling through. They are no more likely to gazunder you than any other buyer. However, they often want to proceed faster especially if they've already sold their property and are in temporary accommodation awaiting the right buy.

Good luck

Bobsicles · 17/08/2023 13:38

We are going through a cash purchase now.

We had to show proof of funds to the EA before we could make an offer.

listsandbudgets · 17/08/2023 13:42

Cross posted with others.. so maybe not such good news.

A mortgage is definitely not a cash buy and that's on the estate agent who should have checked proof of funds at time of offer. We've done 2 cash buys and sold to 1 cash buyer. The agent wouldn't pass on our offer without seeing evidence it was cash. Each time.we completed process in about 6 weeks

Bobsicles · 17/08/2023 13:47

listsandbudgets · 17/08/2023 13:42

Cross posted with others.. so maybe not such good news.

A mortgage is definitely not a cash buy and that's on the estate agent who should have checked proof of funds at time of offer. We've done 2 cash buys and sold to 1 cash buyer. The agent wouldn't pass on our offer without seeing evidence it was cash. Each time.we completed process in about 6 weeks

6 weeks you lucky duck!!
We're 12 weeks in grr, everything slow as treacle.

OnToTheNextOneOntoTheNextOne · 17/08/2023 13:53

What evidence is usually required of a cash buyer? Bank statements? Most people don't keep several 100k in one bank account - it would be spread across multiple accounts surely?

GasPanic · 17/08/2023 14:07

OnToTheNextOneOntoTheNextOne · 17/08/2023 13:53

What evidence is usually required of a cash buyer? Bank statements? Most people don't keep several 100k in one bank account - it would be spread across multiple accounts surely?

Yes. So you have to show proof of funds across several different accounts.

I did this by providing statements/other evidence, but deleted the AC numbers and sort codes.

Original poster

LuckyB · 17/08/2023 14:09

The buyers have emigrated from Hong Kong so I imagine they have sold up to move here. Property in Hong Kong is valued at 15-20k per sq. m. so they should be able to afford it. I will definitely ask the EA for proof of funds.

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Bobsicles · 17/08/2023 14:11

OnToTheNextOneOntoTheNextOne · 17/08/2023 13:53

What evidence is usually required of a cash buyer? Bank statements? Most people don't keep several 100k in one bank account - it would be spread across multiple accounts surely?

You have to show it all (all of the offer money accounted for s you could decant it into one account if you wanted) with your name and address on, some people also get a solicitor to view the funds and write a letter stating client has funds to purchase.

WithIcePlease · 17/08/2023 14:26

I've taken In statements from various accounts to the value needed for EA to check along with my passport

daytriptovulcan · 17/08/2023 14:28

Be prepared to get gazundered. Are they buying to move into it themselves, or just adding it to a rental portfolio. The agent should be able to guide you as to how firm their offer is.
Just hold the line on what your minimum fair selling price is, as after all, its better to have a speculative cash buyer's offer than no offers at all.

mondaycando1 · 17/08/2023 19:12

I'd be fearing for your neighbours with a HK buyer - we're in a high demand school area, next door but one sold last May, no one moved in til Sept, the daughter sat 11+, then conveniently she and the one parent left the house again after high school application deadlines in October, lo and behold they've just moved in readiness for school. In the meantime, the front garden has massively overgrown and became a gathering point for local idiots sitting and drinking at all hours.

Original poster

LuckyB · 18/08/2023 11:57

mondaycando1 · 17/08/2023 19:12

I'd be fearing for your neighbours with a HK buyer - we're in a high demand school area, next door but one sold last May, no one moved in til Sept, the daughter sat 11+, then conveniently she and the one parent left the house again after high school application deadlines in October, lo and behold they've just moved in readiness for school. In the meantime, the front garden has massively overgrown and became a gathering point for local idiots sitting and drinking at all hours.

That's a bit of a generalisation, isn't it?

This family has an adult son who has emigrated with them, so there's none of what you have implied.

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Original poster

LuckyB · 18/08/2023 12:04

daytriptovulcan · 17/08/2023 14:28

Be prepared to get gazundered. Are they buying to move into it themselves, or just adding it to a rental portfolio. The agent should be able to guide you as to how firm their offer is.
Just hold the line on what your minimum fair selling price is, as after all, its better to have a speculative cash buyer's offer than no offers at all.

To move in themselves. They've lived in the UK for a couple of years now, renting. I suspect they're taking advantage of the current economic climate.
I am preparing to be gazundered in this current market.

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Twiglets1 · 18/08/2023 13:18

@LuckyB your EA will need to do the necessary checks to confirm that they have the funding in place.

A reassuring thing is when the Buyer starts spending money so I would relax a bit more when they instruct a solicitor and when they order the survey. I would try not to spend much money until they have started spending money.