Search for "sell my house fast" and you'll find dozens of cash house buying companies promising quick, certain sales. Some are excellent. Some are not. This guide explains how cash sales really work, so you can decide with your eyes open.
What is a cash house buyer?
A cash house buyer is any buyer who can complete without a mortgage. In the quick-sale market, that usually means:
- Property investors and landlords buying to let or to refurbish and resell
- Property-trading companies that buy homes as a business
- "We buy any house" style firms, some of which buy with their own money while others pass your home on to investors and take a fee
Because there's no mortgage, there's no lender valuation, no mortgage offer to wait for and usually no chain. That's why cash sales can complete in weeks rather than months.
How much will a cash buyer offer?
Expect below full market value. Industry guidance commonly puts quick-sale offers at around 75% to 85% of market value, depending on the property, its condition and how fast you need to move.
Be cautious of anyone who promises close to 100% of market value for a guaranteed fast sale. A sky-high headline offer is sometimes cut just before exchange, when you're least able to say no.
The real cost: compare like with like
A cash offer below market value doesn't automatically mean you lose money compared with an open-market sale. Factor in:
- What a collapse would cost you: wasted legal, survey and mortgage fees, plus the risk of losing the home you're buying
- Months of extra mortgage, bills and council tax on a home you're trying to leave
- Estate agent fees you may pay on an open-market sale anyway
- Price reductions you might need to make to attract an open-market buyer quickly
For some sellers, especially those whose onward purchase depends on a quick sale, the certainty is worth the discount. For others, waiting for a full-price buyer makes more sense.
Red flags to watch out for
- No proof of funds. A genuine cash buyer can show it.
- Pressure to decide today. You should always have time to compare.
- Vague or hidden fees. Get every fee in writing before you agree.
- Price cuts after the survey. Ask, in writing, whether the price can change after a survey, and on what grounds.
- Claims to be "regulated". The quick-sale sector isn't regulated as a whole. Look for real accountability instead: a redress scheme such as The Property Ombudsman and membership of trade bodies such as the National Association of Property Buyers.
- Upfront fees from you to "secure" a buyer. Be very careful about paying anything before a sale completes.
Questions to ask any cash buyer or quick-sale company
- Are you buying with your own money, or passing my home to someone else?
- Can you show proof of funds?
- Who pays the legal fees?
- Can the price change after your survey? Put the answer in writing.
- What's your target exchange date, and what happens if you miss it?
- Are you a member of a redress scheme?
- Do I pay you anything, and when?
When a cash sale makes sense
- Your buyer has pulled out and your onward purchase has a firm deadline
- You need to move quickly for a job, family or health reason
- The property needs work that would put off mortgage lenders
- You've tried the open market and it isn't moving
When it probably doesn't
- You have time to wait for an open-market buyer
- Getting the highest possible price matters more than speed
- You're not in a chain and there's no deadline
How Ready Set Sold is different
Most quick-sale firms act for themselves or for investors. Ready Set Sold acts for you, the seller.
- We're your estate agent, with a signed agency agreement, so our legal duty is to you.
- We bring in vetted cash buyers. Every one shows proof of funds and passes ID and anti-money laundering checks before seeing your home.
- We pass every offer to you in writing, including any from outside our panel, and help you compare it with an open-market valuation.
- Panel buyers can't cut the price late unless their survey finds something genuinely new.
- It's free for you. The buyer pays us a sourcing fee on completion, and we tell you how much before you accept. We still act for you, not them.
We'll always tell you that cash buyers pay below market value. Our job is to help you decide whether that's worth it for your move.
Frequently asked questions
How quickly can a cash buyer complete?
Often within a few weeks, depending on how quickly both solicitors work and whether the property has any legal complications.
Do I need a solicitor if I sell to a cash buyer?
Yes. You should always have your own independent solicitor or conveyancer acting for you.
Will a cash buyer pay my legal fees?
Some do as part of their offer. Check exactly what's included and compare the net amount you'll receive.
Can I keep my home on the market while getting a cash offer?
Usually yes, but check your current estate agent contract first so you don't end up paying two fees.
Sources: Whitegates: avoiding "we buy any house" scams; National Association of Property Buyers; The Property Ombudsman.