devslim Report post Posted April 12, 2006 I've noticed with a lot of houses that I've enquired about the vendor is looking for a cash buyer. What constitutes a cash buyer? Obviously one definition is someone that is paying for their house with the cash up front, but does the definition extend any further than this? For example if I had 120k of equity in a house that I already owned and I was going to use that to fund the purchase by MEWing would this be termed as a cash buyer? Probably a dumb question butI just need a bit of clarification. Quote Share this post Link to post Share on other sites
erd Report post Posted April 12, 2006 I've noticed with a lot of houses that I've enquired about the vendor is looking for a cash buyer. What constitutes a cash buyer? Obviously one definition is someone that is paying for their house with the cash up front, but does the definition extend any further than this? For example if I had 120k of equity in a house that I already owned and I was going to use that to fund the purchase by MEWing would this be termed as a cash buyer? Probably a dumb question butI just need a bit of clarification. You normally get this if there is no chance of getting a mortgage on a property, usually because it is not of normal construction, high rise ex council flat, waaaaaaaaay overpriced or a limited lifespan house (eg 50's concrete job with a 25 year lifespan but still in use!). It is not up to the vender to decide how you fund your house purchase, ask the agent the reason! Quote Share this post Link to post Share on other sites
devslim Report post Posted April 12, 2006 You normally get this if there is no chance of getting a mortgage on a property, usually because it is not of normal construction, high rise ex council flat, waaaaaaaaay overpriced or a limited lifespan house (eg 50's concrete job with a 25 year lifespan but still in use!). It is not up to the vender to decide how you fund your house purchase, ask the agent the reason! Cheers Erd I'll, be sure to ask next time. So if you've mewed on one property to the full ammount of the one your buying, is that a cash buy? Quote Share this post Link to post Share on other sites
MarkG Report post Posted April 12, 2006 What constitutes a cash buyer? Someone who doesn't have a chain that will collapse before the sale completes? Quote Share this post Link to post Share on other sites
Once in a lifetime Report post Posted April 12, 2006 Beware: Vendor’s often ask for cash buyer’s because other buyer’s have been refused a mortgage on the property, for various reasons? (not worth the money/ structural defects... etc) I believe you don't have to have 100% of the cash to be considered a cash buyer - just most of it. Quote Share this post Link to post Share on other sites
devslim Report post Posted April 12, 2006 Thanks for the warnings. I hadn't even considered that it may be the case that there could be major problems with the property. I just thought the vendor wanted a quick sale. I'll be sure to ask a lot more questions next time, now that I've been armed with this knowledge. Quote Share this post Link to post Share on other sites
Rachman Report post Posted April 12, 2006 Someone who doesn't have a chain that will collapse before the sale completes? this is what it means to most EA today - someone who is not stuck in a chain - indication to me that chains are breaking up as the number of buyers willing to pay and being able to get the mortgage offer is falling.... Quote Share this post Link to post Share on other sites
