A lot of people that are selling their property dream of finding a cash buyer. What could be better? No chains to worry about and a speedy sale. Sounds great right but unfortunately not everyone claiming to be a cash buyer is genuine so you need to be on your guard.
The Different Types of Cash Buyer
There are certainly genuine cash buyers out there. There are some people that have inherited money or property and have the cash to buy your home. There are others that are self made and do not want to be beholden to a mortgage loan.
Then there are property investors who are looking for a property like yours to rent out to tenants or flip for a profit. But there are also people that claim to be cash buyers when they are not. Their aim is to pass on your details to dubious third parties for a price. You need to do your homework when people claim to be cash buyers.
What can you do to Verify a Cash Buyer?
There is no reason why you shouldn’t ask a cash buyer to prove that they have the finances to purchase your property. In fact we highly recommend that you do this. If the person is reluctant to prove that they have the funds then be very suspicious of them.
Sometimes, homeowners can be approached by companies to purchase their properties. If this happens to you then ask the representative if the company is a member of the Property Ombudsman Scheme or the National Association of Property Buyers. Both of these organisations have a search feature on their website so that you can verify membership.
Companies that are members of these organisations will have to abide by a specific code of practice. If you are dealing with a cash buying company that is a member then they cannot try to reduce the sale price at the last minute unless there is a genuine reason for example.
Property Cash Buyers are reducing in Numbers
If you are lucky enough to find a genuine cash buyer then treat them like gold. The numbers of cash buyers are falling fast according to Hamptons International. In the first part of 2018 the number of cash deals for properties in the UK has dropped by 25%.
Not every cash buyer is part of the elite “super rich” set. A lot of them are normal people that just happen to be in that position. A lot of cash buyers are property investors who see potential in your property for future profits. With government taxation changes the number of property investors with cash has fallen.
Some cash buyers are in this position because they have chosen to downsize. They have sold their expensive home in one part of the country and decided to live in another area where the property prices are lower. If your buyer is downsizing they should be happy to tell you that. Retired people often downsize to get out of the suburbs and live in the country.