Selling to a cash buyer can take a lot of the uncertainty out of moving. No chains collapsing at the last minute, no mortgage delays. In the best cases, it’s straightforward.
But “cash buyer” is a term that gets thrown around more than it should, and not all cash buyers are equally reputable. Some really do have the funds ready to go. Others, not quite. We spoke to the team at Property Sale Watchdog on what to be aware of.
Are they actually a cash buyer?
It sounds blunt, but the first thing to check is whether they actually have the money. A true cash buyer isn’t waiting on a mortgage offer or an investor, they have the funds now. Proof can be as simple as a bank statement or a letter from their lawyer.
If you’re just looking for a middleman who can put you in touch with genuine buyers, that’s fine. But make sure that whoever you’re dealing with is up front about how they operate.
Ask how the process works
A reputable buyer should be able to tell you, step-by-step, how they’ll get from offer to completion. That includes how quickly they can instruct solicitors, whether they’ll arrange any surveys (cash buyers often won’t) and what date they’re aiming for.
Ask them how long the process will take as well. Be cautious of buyers who promise to finish things off too quickly – you may need the cash quick, but there are some basic timelines that can’t be done any faster.
Look at the complete offer
Cash buyers almost always offer below market value, that’s the reason they’re able to take a gamble on your property. The key thing is transparency: can they explain how they reached the figure? Maybe they’re basing it on similar recent sales, maybe it’s the property’s condition, maybe both.
The more open they are, the less likely you are to be caught off-guard later. Watch for last-minute “price drops” just before exchange. A solid buyer will stick to their original offer – that’s the whole point of giving up some of what you could have gotten.
Check reviews
Background checks aren’t just for job interviews; look at independent reviews. If they’re a company, see if they’re signed up with The Property Ombudsman or the National Association of Property Buyers. It’s not a guarantee that they’ll be perfect, but it does mean there’s somewhere to go if a dispute crops up.
Keep your own legal team
Even with the most reputable cash buyer, have your own solicitor. If they offer to pay your legal costs, fine – but make sure the solicitor answers to you, not them. That’s your safety net if the terms in the contract don’t match the promises you were given.
The right cash buyer can save you weeks or even months of stress. But “right” means more than just someone who can move fast. Proof of funds, a clear process, transparency on price, a good reputation, and your own independent legal advice – tick those off early and you’ll have a much better chance of the sale going exactly as planned.