Why would you sell for less to a cash buyer?
Cash Buyers usually offer less for properties. But why do they offer less and why would a seller be happy to accept less money?
Let’s compare the two:
A cash sale has a much greater chance of completing and on time, mortgage sales are much more likely to fall through.
A staggering 31% of sales in the UK fall through and the reason is usually mortgage related.
Cash sales are faster. This is because cash buyers already have the funds sitting in their bank account. They won’t need to wait until they have sold another property before they can pay for yours.
Cash buyers are also generally more willing to take greater risks than the average homebuyer.
For example properties could have physical or legal issues, such as structural problems or title issues that could make them un-mortgageable. A cash buyer could step in to make an offer.
You’ll often most buyers at auction are cash buyers and they provide greater seller security. But with this they often aim to pay less than the market value due to having ready funds and taking on a greater risk.
Once sellers know all the facts, they may opt to take a slight hit in price and sell to a cash buyer over a mortgage buyer.