If you’re thinking ‘I’d like to sell my house for cash’, but you don’t know where to start, then this is the guide for you. In this brief overview, I’ll explain exactly what is a cash buyer for a house, what are the benefits of selling to a cash buyer and what I should look for if I want to sell my house for cash.
Like many people, I want to sell my house for cash, but I want to make sure I get a good deal and I want to avoid getting ripped off in the process. So how does it work and how can I make it work for me?
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Cash buyers explained
What is a cash buyer? Just like it sounds, a cash house buyer is an individual or company that will buy your house for cash, without needing to sell another property or secure a mortgage.
It might sound obvious, but you still need to be careful. If I want to sell my house for cash, I need to make sure that I am dealing with a genuine cash buyer, who has the cash to actually buy my house. Some shady dealers will say they are buying your house, but will just be trying to arrange a secondary sale in the background. This is not only dishonest, it can also seriously slow down your sale, wiping out all the benefits you are paying so much for.
A genuine cash house buyer will be able to show you proof of funds and demonstrate that they actually buy properties and buy them fast, usually in around 14 days. You can double check their credentials by looking at their details on the Companies House website, or by reading the independent reviews here on the PSW website.
When does it make sense to sell your house to a cash buyer?
There are lots of reasons why I might want to sell my house for cash, and lots of benefits of selling to a cash buyer. For example:
Financial difficulties
If I sell my house for cash, I can sell in as little as 14 days. This can help avoid repossession and can sort out lots of other financial problems, giving me a fresh start with money in the bank.
Relocation
If I have to move quickly, to take up a new job or be near new grandchildren, then I can sell my house for cash fast and get moving sooner.
Divorce
No one wants a divorce settlement to drag on any longer than absolutely necessary. If I sell my house for cash, fast, I can divide the proceeds, walk away, and get on with my life.
Inheritance
An inheritance is usually unexpected, so getting a little less, but getting it a lot sooner is usually worth considering. If I were to inherit a property, I could sell my house for cash to get my hands on that legacy sooner.
Problems with the property
If I had a problem with my property, for example if it needed extensive modernisation, I could sell my house for cash without having to spend money in advance to get work done. Cash buyers will buy a house ‘as-is’ whatever the condition. This is especially useful if the property is un-mortgageable.
Dream move
The last thing you want is to find your dream home and watch it sell while you are still trying to sell your current home. If the figures add up, I can sell my house for cash and move fast on that property of a lifetime before anyone beats me to it.
How does the process of selling a house to a cash buyer work?
The steps needed to sell my house for cash are much easier than selling a house on the open market. There is no need to prepare for the sale with repairs and redecorating, there are no viewers and no haggling, and there is no waiting around to find a buyer.
Most important of all, if I sell my house for cash, the sale will be guaranteed, with no post-survey price drops, and the sale will complete on the day I choose.
The process couldn’t be simpler:
Find a cash house buyer you can trust
Use the independent guides here on the PSW website to find a fully vetted and recommended cash buyer, or provide your details and get connected with the cash buyer that is right for you.
Ask for an estimated price
Click on the cash offer calculator button below to see the kind of price you could get from your home if you sell to a cash buyer. Generally, this will be around 80-85% of the market value.
Get a confirmed offer
If you can work with the estimated price, either get in touch with your chosen cash buyer, or ask PSW to connect you, to get a formal cash offer. This price should be final and not change unless there is something seriously wrong that you haven’t told them about. Beware of cash buyers who drop the price at the last minute. You’ll often see this spoken about in their reviews.
Have the property surveyed
Naturally, if I’m selling my house to a cash buyer, they will want a survey done so they know what they are buying. But don’t worry, this will not affect the price like it can with a traditional sale and there will be no nit-picking.
Agree a completion date
You are paying a premium for a fast cash sale, so you get to call the shots, including choosing your completion date. If you need things to move fast, or you need a brief delay to match your plans, they will accommodate this.
Appoint a conveyancer
Like all house sales, you will need a legal representative to handle the paperwork. Your cash buyer may offer to pay your legal fees, especially if you use one of their panel of solicitors, but you should avoid firms that make this compulsory (what are they trying to hide?). You should always have the option to use your own solicitors.
Complete the sale
Once you have agreed the price and set the completion date, you can just sit back and get ready to move on the day of your choosing. There will be no holdups from further down the chain and no last minute haggling on the price. Your sale is guaranteed at a guaranteed price.
Get the cash in your bank
If I choose to sell my house for cash, I will have that cash in my bank on the same day the sale is completed. If there is an outstanding mortgage or other secured debt, this will be settled by your solicitor and you will get whatever is left over.
What should you look for in a cash buying company?
You can sort the wheat from the chaff when it comes to cash house buyers with just a few simple checks, to ensure you enjoy all the benefits of selling to a cash buyer and avoid the scams used by dodgy companies.
If I want to sell my house for cash I want:
- A buyer who can prove they have cash to buy
- A buyer with an established track record of satisfied customers
- A buyer who will guarantee their offer and their completion date
- A fair and reasonable offer in line with the industry average
- A high rating on independent review sites
I also want to avoid cash buyers with red flags like:
- Asking me to sign a contract
- Insisting that I use their lawyers
- A reluctance to let me speak to previous customers
- An unrealistically high offer (which is certain to drop at the eleventh hour)
- A low rating in independent review sites
The independent cash buyer reviews here on the PSW website check all of these and more to help you to find a cash buyer you can trust.
Conclusion
We hope this overview has given you a basic idea about selling your house to a cash buyer.
You can find more details on every aspect of selling your house to a cash buyer in our expert guides section, including:
- How do cash house buyers work?
- A step by step guide to finding a buyer you can trust
- The best ways to sell your house fast for cash
- How fast can a cash buyer buy your home?
- How much do cash buyers pay?
Just click on our expert guides section for a full list of all the guides available. Alternatively, if you’d like to know more about how much you could get for your home, click the button below for a no obligation estimate, without revealing any of your personal details.
Expert Insight from Kelvin Elliott
Kelvin Elliott, founder and buying director of myhomebuyers.co.uk explains the benefits of selling a property to a cash house buyer.
“Selling a house to a cash buyer can make sense in a lot of circumstances, but it isn’t right for everyone. It is important to understand how much it will cost you, and what level of service you are getting in return.
You will normally pay around 20% of the market value of your home to get a fast cash sale, so you need to make sure you are getting value for money from a genuine company that has your best interests at heart.”
Is it more complicated to sell to a fast cash buyer?
No, in fact it can be much simpler and quicker, with no prep, no viewers and no haggling. A third of all open market sales fall through, but a cash sale is guaranteed.
Should I always go for the highest offer if I want to sell my house for cash?
Absolutely not. Any cash offer over 80% – or 85% under very specific circumstances – is unlikely to be genuine and will probably get cut at the last minute.
How long will it take to sell my house for cash?
You can sell a house for cash in as little as 14 days, and some companies can even move quicker than that, but this comes at an extra cost.
How much can I expect to lose on a cash house sale?
You will lose around 20% of the market value of your home, but you could gain in many other areas. For example, you will not have any estate agent fees and most cash buyers will also pay your legal fees. If a fast cash sale avoids repossession, you could save a great deal more than it costs you.
Is it worth selling to a cash house buyer?
It depends on your circumstances, but if it is right for you it can be well worth it.
The cash house buying industry has a poor reputation. Can any of the companies be trusted?
Unfortunately, there are many shady companies out there, but there are also many genuine cash house buying companies who have your best interests at heart. With the right checks and research, you can find a legitimate cash house buyer and enjoy a fast and fuss free sale.