What are the pros and cons of selling your property to a cash buyer? This article lists five benefits of selling to a cash buyer.
Moving house is the third most stressful thing a person will experience in their lives. The other two, we are told, are divorce and the death of a spouse.
However, those who have moved house will probably tell you that the actual act of moving - the physical transportation of all your worldly possessions from the old house to the new home - is not the most stressful part of the procedure. A lot of the stress comes from the rigmarole of selling the house, the marketing, viewing and loan arranging that goes with selling a home.
Some believe the way to avoid most of this stress is to sell a home to a cash buyer. They believe this might eliminate many of the obstacles that cause much of this stress.
So, it is worth considering why selling to a cash buyer may benefit those who want a stress-free sale.
1) The buyer will not be looking to arrange a loan. This eliminates the worry that they will be unable to raise a loan and the deal falls through at the first hurdle.
2) The buyer will not be part of a chain so there is no danger of the deal collapsing at any time during the selling process.
3) A cash sale releases funds to the seller very quickly. This is a benefit for those who, for various reasons, need the money urgently.
4) Some cash buyers will not be too worried about the condition of the house, so the seller need not spend money in redecorating.
5) No gazundering. This is a form of blackmail carried out by some unscrupulous buyers. They wait until the last stage of the sale when the seller is ready to sign, then try to force the seller to drop the agreed price. The buyers rely on the hope the seller will capitulate rather than risk losing a sale at the last minute and have to begin the process all over again. Many people believe this will not happen with a cash buyer.
It would be foolish to deny that, in certain circumstances, selling a home to a cash buyer would be a good idea. However, like all things in life, there can be pitfalls in selling for cash.
It is true that a cash buyer will not require a loan and will not be part of a chain, and this may reduce the risk of the sale falling through. But there is always the possibility of the buyer having a change of heart at the last minute, and pulling out of the deal.
It is also true that a cash sale will release funds quickly. This is a huge benefit for those who are under pressure to sell. They may be in arrears and facing repossession, or need to relocate to another area for work purposes, or other personal reasons. Sometimes this need for quick cash can come at a cost. As for the gazundering, there is nothing to stop a cash buyer attempting to force the price down before committing the deal to paper.
There are plenty of companies who will offer cash for a house, offer to pay all the relevant fees, and arrange to finalise the sale and pay the money quickly. However, the price they are willing to pay for a property often falls well below the market price.
So, does selling to a cash buyer really alleviate the stress of selling a house?
If a seller is under pressure to sell the house quickly for the reasons mentioned above, the stress comes from the need to sell quickly and not the actual selling process. A quick cash sale, despite the possible financial disadvantages of selling below the original asking price, will relieve them of that stress.
But is there another way to avoid the stress of selling a house? Yes. Take expert advice. Professional guidance and support can relieve the stress of selling a property, even if it is a cash sale.
Although many cash buyers are genuine buyers looking to buy a new home for themselves and their families, quite a few are companies and investors looking for a quick sale and bargains. Cash is king, and many genuine cash buyers believe this gives them the power to demand a discount on the asking price - a discount which often exceeds what an estate agent will charge.
At Plaza Estates, we are able to act as a go-between for the seller and buyer, forging an agreement that suits both parties, negotiating with the cash buyer on the seller's behalf.
Having a cash buyer can alleviate some of the stress of moving house, but there are many situations which can arise where you may need our help and guidance. Contact us today
and find out how we can help you.