When a property is listed as being cash only, this means that no mortgages can be approved in order for the sale to be completed. This is a popular option for sellers who want to sell their home fast and also for buyers who do not want to be tied down by mortgages.
Why is a property cash only?
Typically, a seller will list their property as a cash only sale when they have a large amount of cash on hand or if the house is in a problematic location that would be difficult to get a mortgage for. Alternatively, a buyer may be buying the property for a cash gift, such as a large inheritance or settlement.
What is a cash only property?
A cash only property is a home that has been purchased by someone who does not require financing for the purchase. Often, this is an individual who has been saving for a long time, received a large inheritance or settlement, or has recently sold a business. More info https://www.investorhomebuyers.com/sell-my-house-fast-ennis-tx/
How often does a property sell to cash buyers?
In 2019, around 28% of property sales in the UK were to cash buyers. This is a significant number, and shows that the market for homes that are cash only is very strong.
What are the advantages of a cash only property?
Aside from the fact that it’s less likely for a property to be bought and then sold again, there are other benefits of a cash only sale. These include a speedier process and no risk of a sale falling through due to a property chain breaking.
The process is usually a lot faster than when you apply for a mortgage as the cash buyer already has all the funds they need to buy the home. This can mean that they are able to get the conveyancing process done much faster as well, which is important for buyers who need to move quickly after they’ve found their ideal home.
There is also less of a chance that the sale will fall through because of a property chain breaking, which can be incredibly stressful for a seller. Government statistics suggest that around 1 in 3 property chains collapse.
It’s also a good idea to have a full legal check on the property before you agree to a cash only sale, as this is the same as what a mortgage lender would do. This includes checks such as a Local Authority Search, Regulated Drainage and Water Search, Land Registry Title Plan, and more.
Selling a property to cash buyers is a great way to ensure that you get the best price possible. The only downside is that you will need to be prepared for a slower sale and possibly a lower price than you might expect if you were to sell your home through the traditional route. However, if you have a property that is in need of some repairs and needs a large sum of money, then it could be worth considering a cash only sale.