Cash buyers who needs them?

Cash buyers who needs them

If I had a fiver for every time, I had a buyer who said they were a cash buyer over the past 30-years, well I would have an awful of of extra cash myself.

The amount of times I have witnessed that triumphant smile when a prospective buyer looked me in the eye and said, ‘and I am a cash buyer’ prior to making their offer, is well into its thousands.

Did you know that in 2020, true cash buyers of property are likely to number over 380,000, that is a big slice of the typical 1.1M of properties that complete most pre-pandemic years, according to HMLR.

And just to balance that, as being an analyst I love figures, it is likely that over 280,000 first time buyers will be using a mortgage. Over 330,000 home movers will also be using a mortgage, with the BTL (Buy-to-Let) brigade forming a solid 60,000 of buyers utilising a mortgage to complete.

So, as a percentage cash buyer form 36% of the market, over one in three, a substantial component of the property marketplace. Using their cash for investment purchases, or even for the lucky ones as the payment for a first-time buyer home, or a cash from sale exit into that bungalow by the seaside, or jet setting apartment in Monaco.

What I would really like to explore, and feedback from anyone who has a view, is whether being a cash buyer in some ways makes ‘that buyer’ a God or Goddess capable of leveraging a better price when buying property.

Should vendors swoon, when told by their agent that they have a cash buyer? Are they more reliable, after all they may have a survey if sensible, but it will not be for mortgage purposes, so a few less hurdles if you are selling a gently rotting pile in the shires with lead flashings also missing from your roofline?

Or is it the case that cash buyers are – by their nature savvier, and more likely to cut up rough down the pre-exchange line. Feeling the wrench of lifting up the metaphorical floorboards to get their cash wealth out into the light of day, must in some way be traded off, are we back to power and influence where those with cash have the whip hand. Or feel they should have it.

My favourite memory around a cash buyer was in 1990, and a solicitor acting for buyer of a lovely terrace – for the princely sum of £32,000 in need of work. In days when solicitors took calls, I asked my local man had the buyer been in to pay his deposit.

Oh yes he came into reception with four Tesco bags, containing over £32,000 in used notes, we spent the day helping him count it before sending off to the bank, we even bought him a Marks & Sparks sandwich.’ Truly, even back then cash talks.

Andrew Stanton

CEO & Founder Proptech-PR. Proptech Real Estate Influencer, Executive Editor of Estate Agent Networking. Leading PR consultancy in Proptech & Real Estate. Want to contact me directly regarding one of my articles or maybe you'd like a chat about future articles? Email me via editor@stagingsite.estateagentnetworking.co.uk

You May Also Enjoy

for sale sign london
Overseas Property

Exploring Homes for Sale in Spain: A Guide for International Buyers

Spain has long been a top destination for international buyers looking to invest in real estate. Its combination of sunny beaches, rich culture, delicious cuisine, and vibrant cities makes it a favorite for those seeking both a holiday retreat and a valuable investment. With a growing market and diverse options, homes for sale in Spain…
Read More
Home and Living

10 Tips for Moving Home

Moving home is an exciting yet challenging experience, requiring careful planning and organization. The moving process can be stressful if not handled properly, from sorting belongings to managing time. These 10 tips aim to make your move smooth and stress-free, helping you easily settle into your new space. 1. Start Planning Early The earlier you…
Read More
Breaking News

A third of UK homes for sale are ‘chain-free’ reports Zoopla

Recent tax changes and incoming council tax premiums for second homes have unsettled property investors and second homeowners with some now looking to sell One week on from the Autumn budget, buyer enquiries for homes that are chain-free are 33 per cent higher compared to those not advertised as chain-free 41 per cent of two…
Read More
Love or Hate Rightmove
Breaking News

Rightmove’s weekly mortgage tracker 06/11/24

The average 5-year fixed mortgage rate is now 4.66%, down from 5.33% a year ago The average 2-year fixed mortgage rate is now 4.92%, down from 5.76% a year ago The average 85% LTV 5-year fixed mortgage rate is now 4.69%, down from 5.40% a year ago The average 60% LTV 5-year fixed mortgage rate is now 4.05%, down from 4.91% a year ago The average monthly mortgage payment on a…
Read More
Overseas Property

Top reasons to consider buying a luxury villa in Phuket Thailand

Those who have worked hard for many years are often looking for ways to invest their cash so that they can enjoy life to the max in their advancing years. Some might decide to dabble in the stock market or insurance policies to enhance their savings, while others might look to purchase something more physical…
Read More
How to add value to your home
Estate Agent Talk

5 Top Tips for Running a Business From Home

Have you ever wanted to start and run your own business from home? Although it’s an incredibly rewarding experience, it can be tough to set up and know where to start, especially if you have no business experience or background! Whether you want to run a small business, or have grand ambitions for eventual expansion,…
Read More