When you go to the estate agent’s website to look for a property to buy, you may have noticed that some of them are advertised as “cash buyers only” and others as “mortgage buyers only”. This means that the buyer must have all of their funds available at that point in time to make the purchase.
This can be a good thing for the seller, because it ensures that they are able to move forward with the sale quickly without having to worry about financing issues. However, it can also be a problem for potential buyers because it means that they won’t be able to submit an offer on the home unless they have the full funds available to them at the time.
The seller is then unable to get a mortgage on the property, which can then cause serious delays in the sales process. Thankfully, there is a way to avoid these problems and get the cash sale you want.
Listed as cash buyers only is typically done for a variety of reasons. Here are some of the main ones:
Unmortgageable properties – This may relate to the condition of the property, or it could be due to its construction. If the property has been built from unconventional materials, it is unlikely that a mortgage company will lend money against it. This makes it impossible for potential buyers who require a mortgage to obtain the money they need to purchase it, leaving them with no choice but to sell it to a cash buyer only. For more info https://www.bigtexbuyshouses.com/sell-my-house-fast-deer-park/
In such a situation, the owner of the property would want to prevent the possibility that their home might be repossessed by the lender, which could have serious consequences for them. This is where a cash buyer comes in, as they promise to complete the sale much faster than a standard buyer, and this allows them to get their hands on cash quickly to pay off any debt they have.
Short lease properties – This might relate to the fact that the property is on a short lease, which is less appealing to people who are looking for a property to live in. Many of the cash buyers we work with are prepared to take on a property that is on a short lease, as it is easier for them to find the money to pay for it.
They may even be willing to pay more than the asking price of the house, especially if they are able to use the funds to make other repairs and improvements to the property.
Faster sale – This is probably the biggest reason that houses are often listed as cash buyers only. This is because they tend to be able to complete the sale more quickly than those who are waiting for a mortgage approval, as they can release their funds to the buyer faster and have the proof of funds ready and loaded at the time of the offer being made.