Selling to a cash buyer often appeals as the process moves a lot quicker due to the non-reliance on mortgage finance.

There are also fewer chain-related complications and – when using We Buy Any Home companies like Property Solvers – no legal or estate agency fees to pay.

For this reason, while cash offers are likely to be on the low side, sellers often choose to proceed as long as the price is reasonably fair and things are done quickly.

However, a cash offer on a property is by no means 100% secure. Particularly if you’re selling via an estate agent, there is still the chance that the buyers will drop out prior to the exchange of contracts – putting you back to square one.

In this article, the team at Property Solvers explores this question…

Why Might a Cash Offer Fall Through?

Key reasons why a buyer may withdraw a cash offer on a property include:

  • A change of heart
  • Money problems
  • Problematic survey results
  • Legal issues
  • A second opinion
  • Changes in personal or family circumstances

A Change of Heart

Cold feet are common in the property world.

Whether your buyers can’t bring themselves to leave their existing home, or suddenly fall in love with a totally different property, you have to be prepared for them to quit the process out of the blue.

Money Problems

Working in this industry for 2 decades, we’ve seen our fair share of self-described “cash buyers” who are not what they say they are.  Many, for instance, may have the capital locked in their home or a business asset – but this capital may not be immediately accessible.

Some cash buyers, for example, need to sell an existing property to access the funds required to buy yours.

For this reason, before proceeding with a cash buyer, we always recommend requesting to see proof of funds.

Problematic Survey Results

Things may seem to be going swimmingly, but if your buyer raises concerning information about your property, the sale may be at risk.

Their worries can often stem from a professional Home Survey report and can include the presence of asbestos or Japanese knotweed, structural issues or other problems that make the property unmortgageable. If this is the case, they may decide that they can’t afford to expend the additional cash or effort in putting the issue right.

Alternatively, you may wish to negotiate on the price or agree to resolve the issue yourself as a condition of sale.

Legal Issues

If the conveyancing solicitor flags up legal disputes on the property such as restrictive covenants or negative easements on the surrounding land, it’s enough to scupper the sale from proceeding.

Other times, if the property has a tenant in-situ, the cash buyer may see difficulties in vacating the property choose not to go ahead.

Much here will depend on the extent of the problem and how easy things are to resolve.

A Second Opinion

In some cases, a discussion with an acquaintance or family member may be enough to put your cash buyer off the sale. They may have been advised that they could find a better deal elsewhere. Alternatively, they may have been made aware of potential in their current property that they hadn’t realised before.

Whatever the case, it isn’t all too rare for someone else to talk your buyer out of making a purchase. It’s frustrating, but oftentimes, all you can do is relist your property and try again.

Changes in Personal or Family Circumstances

A divorce may leave your buyer floundering financially, while a death in the family may leave them unable to deal with the stress of a sale and a move. Alternatively, a job change may see them looking to live elsewhere.

Life is often totally unpredictable, and certain situations are out of our control.

Avoiding the Risk of Losing Your Buyer

There are a couple of ways to prevent buyers from dropping out of your sale: auctions and quick cash sales.

Selling at Auction

Anyone placing a winning bid in an auction sale – either live or online – immediately enters into a legally binding contract with the seller as soon as bidding closes.

This means that your buyer will face legal action if they attempt to pull out once their bid has been accepted. What’s more, cash buyers are far more common at auction than via estate agency sales, as many auction lots are unsuitable for mortgaging.

We Buy Any House Companies Like Property Solvers

These organisations, of which Property Solvers is one, can provide you with a no obligation cash offer up front. In the case of Property Solvers, that amount can reach up to 75% of your property’s market value.

The benefit of this approach is we will purchase your property direct.  This means you won’t need to wait for offers, there will be no chain and we’ll guarantee to buy subject to survey. You’ll also be able to avoid paying solicitor or estate agency fees.

For further information about the auction and fast home buying services available through Property Solvers, contact us today. Our team of friendly experts will be happy to advise you.