This is a really curious one, do you actually have a cash buyer?
Not something I have quite seen before, but its novel, and an interesting sales tactic by certain agents. Which certainly confirms how badly many must want to shift houses.
As people who know us here at M&G know, we talk greatly about position in the chain, and how this affects the structure of the day. And so, we ascertain position in the chain before working out a move format. It really is often that crucial.
Lately an unusually high number of people have said, and yes, this is a quote;
‘There is no chain, we have a cash buyer’
Nowt wrong with that you would not think. Various customers have gone on to say that this means that there will be no delays on the day, and all is well. The sun will be shining, birds singing, and all potential hiccups are avoided.
I however, faced with this sudden, random appearance of a newly minted and obviously exceptionally financially secure breed of housebuyer on the back of recession and with newly relaxed mortgage lending criteria was a little cynical.
And so, last week I innocently (or as innocently as I ever am..!) asked in response ‘So, they are not selling a house then?’.
The answer astonished me, and yes, I know ‘astonished’ is a strong word. Not only were these ‘cash buyers’ selling their house, but they were part of a longer chain!
Which is, shall we say, somewhat different to being in the situation painted by the insinuation of ‘cash buyer’. Of course the question then is why the house seller has been told this……I mean, why would somebody wish to do this…….
Sure, they had no mortgage, but this means diddly squat in terms of avoiding pitfalls, hiccups and how the day will run. The transfer and completion ‘system’ is still exactly the same.
No, the only thing to gain would be that the seller would accept the offer more readily, and, very often that offer might be lower due to the ‘no chain’ situation. But of course the words ‘no chain’ are specific, whilst the words ‘cash buyer’ are, at best a ‘mistake’ and at worst disingenuous.
And as other blog posts have explored, a £10000 drop on a selling price would quite possibly only cost an agent one hundred and fifty quid, and in a market where homes are flooding up for sale (as they are right now) a sale is desired, as fast as poss! Because, as also has been explored in other blog posts the faster the house sells, the more profitable that sale is for an agent.
I have to assume certain agents are being somewhat economical with the truth and misleading people who do not have the means to know better (hence why I publish this stuff).
For clarity, a ‘cash buyer’ has a bank account stuffed with money. By definition ‘cash’ is not ‘bricks’n’mortar’ requiring sale and to suggest otherwise, and by insinuation suggest there is no chain when there blatantly is, is unfair, unwise, and at worst massively underhand.
Please, if you are reading this and you have a ‘cash buyer’, just check that your understanding of the persons position actually and exactly matches that of your agent!
There is a HUGE, nay MAHOOSIVE difference between having a chain underneath your buyer and that buyer actually being the bottom of your chain.
And it is this that is important. Please, don’t be mislead by certain peoples sleight of hand in their choice of words.
Any questions, rants, or queries, feel free to comment or get in touch.
Please, if this blog post has pricked your interest check out the others.
Good Luck, and Happy Moving
I leave you with Vic’n’Bob
Matt – firstname.lastname@example.org
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