What Percentage of Buyers are Cash Buyers?
Anecdotal evidence these days will tell you that buying a house with cash is more popular than ever. After all, just look around online or in other adverts these days. You’ll see lots of cash buyers for the property advertised. It may lead you to wonder, though, how many houses bought for cash are there in the UK? Is buying houses for cash that popular?
Cash Buyers for Homes – A Hard Look at the Numbers
According to UK finance professionals, over the last few years, approximately 34% of property purchases were made with cash, indicating a sizable share of cash buyers. That’s not a hard and fast figure of cash buyers for homes, though, because cash buyers are often more prevalent in certain segments of the market, such as buy-to-let investors, property developers, or individuals downsizing their homes. Additionally, some areas or property types may attract a higher proportion of cash buyers, while others may have a higher reliance on mortgage financing.
Cash Buyer vs. Mortgage Buyer: What’s the Difference?
Wondering exactly what a property cash buyer is? After all, aren’t all properties paid for in cash? Property buyers in the UK either buy a home with cash or buy a home with a mortgage. A cash buyer of a property is someone who purchases a property using their funds, without relying on a mortgage or external financing. They have the necessary cash available to complete the purchase outright, eliminating the need for a mortgage application or approval process. Cash buyers can provide sellers with a quick and guaranteed transaction since they do not need to secure financing.
On the other hand, a buyer who uses a mortgage requires a loan from a bank or lender to finance the purchase of a property. The buyer typically pays a deposit upfront (usually a percentage of the property’s purchase price) and borrows the remaining amount from the lender. The mortgage is then repaid over a set period, usually with interest. The buyer’s ability to obtain a mortgage depends on factors such as creditworthiness, income, employment stability, and the lender’s criteria.
The seller gets the money from the home sale either way, but in a situation where they’re dealing with a house sale for cash, they get it much faster. The purchase process is both quick and clean. In a situation where a buyer needs a lending company for the money, the buyer may get rejected by the lender, and that can mean additional time is necessary to complete the sale of the home.
What Are the Benefits of Working with Cash Buyers for Houses?
The biggest benefit for sellers who work with house buyers for cash is the speed of the transaction. It’s quick, it’s easy, and in most cases, there are no delays or complications. More than that, though, properties for cash buyers tend to need repairs or renovations. This is because cash buyers are often investors or developers with expertise in purchasing properties at a reduced price and restoring them for subsequent sale or rental purposes. This can be beneficial for sellers who prefer not to allocate resources and effort towards property enhancements before putting it on the market.
While houses for sale for cash often go for below market value, the sheer convenience of the transaction often outweighs the fact that the seller doesn’t make as much as he or she might on the open market.
How to Sell Your House for Cash
If you’re in the process of selling your house and specifically looking to receive offers from cash buyers only, you’re not alone. However, figuring out where to start can be a challenge. Here are some steps to consider:
- Maximise Advertising: Utilise various online platforms, real estate websites, and social media channels to promote your property extensively. Emphasise in your listing descriptions and captions that you’re exclusively seeking cash buyers for your house. A phrase like “Cash Buyers Only Property for Sale” should attract some attention.
- Engage Local Investors and Developers: Reach out to investors, property developers, and real estate investment groups in your local area who specialise in working with cash buyers.
- Set a Competitive Asking Price: Determine a reasonable and competitive asking price for your property. Keep in mind that cash house sales may mean slightly more money in the end, as cash buyers typically expect favourable deals.
Consider Professional Property Cash Buyers: Explore the option of working directly with a reputable property cash buyer to expedite the sale process. Initiate contact with the company through their website, phone, or social media channels. The company will evaluate your property based on the information you provide, then they may make an offer based on their assessment. While the offer may be lower than the market value, it accounts for the convenience and speed of the transaction. If you’re satisfied with the offer, you can accept it, and the cash-buying company will handle the remaining steps to finalise the sale.