Accepting A Lower Price For Your Property When Cash Is Offered

Cash is king! It’s common fact that money makes the world go round, and every man has his price, however, when it comes to selling our homes few of us are prepared to accept less than the top price even if it means sacrificing our chain breaking down or losing out on our dream property.

But is it always a bad decision to accept a below market value offer for our homes? Or is there a situation where by accepting a cash price from a ‘quick sale’ agency is a good idea. We have weighed up the pros and cons and highlighted below the fact that home-owners need to consider when they have been offered a quick cash price for their property.

  • 1.Estate agents take on average 6 months.

    Estate agencies can take anywhere up to 6 months to find a buyer for the average home. That means if you are in a chain, desperate to buy your next property, the chances are you are going to end up breaking that chain. The property you set out to initially buy may not be the property you end up buying if your sale takes too long.
  • 2.Six months of payments.

    Another point to consider is that if your home does take 6 months to sell on the open market via an estate agent, you will have 6 months of mortgage payments, 6 months of council tax and 6 months of household bills on a property that you no longer wish to be in! On top of this when you do come to selling you will need to pay for all of the necessary spends like estate agents fees, solicitors and legals.
  • 3. Speed and guarantee vs reduced offer.

    The two major benefits of dealing with a cash buyer, or a cash buying agency are that you are guaranteed a sale; and that the sale will go through quickly. A cash buying firm should be able to complete on a sale within 7 – 10 days, however here comes the snag. If you are selling for cash, and want to accept a cash sale you will need to substantially discount your home in order to achieve a quick house sale.

If you weigh it up selling to a cash buyer isn’t for everyone, and the chances are that 90% of people will not want to accept a below market value offer. However, if you are in the position whereby you need to move quickly, want to release yourself from your current property and complete on your chain, cash buying firms could be the answer that you need.

Why do cash buyers offer lower amounts?

A common misconception that all cash buying firms are set to manipulate desperate individuals has been branded across the industry following an investigation from the Office of Fair Trading, now the Competition and Markets Authority into a small number of companies that were practicing unscrupulous activities.

This is not the case for all companies, as some cash buying firms genuinely offer a good service, and something that a lot of homeowners can use without fear of a scam.

Anyone offering to buy property for cash is most likely going to offer a below market value price. The same applies to any resale industry, whether the customer sells a car, mobile phone or whatever it may be – the chances are they are going to receive an offer below market value for their goods.

Cash buying companies are operating a business, have overheads and have staffing costs. On top of this they are relying on the property they are buying for cash reselling, so the risk is firmly on their part.

As mentioned above cash buying firms are not for everyone – and the choice is with the vendor whether or not they accept a lower offer for their home.

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