What is a cash buyer – and are they right for me?

cash buyer with wooden house

For most people, buying a property is one of the most significant financial decisions they will ever make. From deciding where to live, to committing to that big mortgage, there are lots of reasons why it can be a tough, difficult choice. However, some people manage to buy properties without taking out a mortgage, and instead are known as a “cash buyer”. This article will explain what a cash buyer is and what they can do. 

What is a cash buyer?

Put simply, a cash buyer is somebody who will be settling the entire transaction with money that they already have access to, rather than money which they intend to borrow from a mortgage lender or which will come from the proceeds of an as yet unsold house. 

It’s a great position to be in for some, but it’s also unrealistic for most people – and maybe even undesirable. Cash buyers tend to see buying homes as a business: most owner-occupiers tend to take out at least a small, manageable mortgage so that they can avoid having to clear out large cash reserves. 

Selling to a cash buyer

In many cases, selling to a cash buyer is a dream option. This is because they’re automatically “chain-free”: they’re not waiting to sell a property in order to have the funds to buy somewhere else.

The cash buyer may well use their mortgage-free, chain-free status to their advantage by negotiating you down on price: by saying “You won’t need to wait for us to secure financing”, they’ll be able to ask for a discount in return. However, this makes the process all the more speedy, so if you are looking for a fast buyer who won’t keep you waiting for ages, a cash buyer is often a wise move. 

Companies like National Property Trade can also buy homes for cash and may well be able to speed up the process for you if you’re looking to sell quickly. Click here to find out more about this.