"Sometimes, achieving a speedy sale is of utmost importance, not least if you’re relocating for work or moving to a new town and need to be in situ in time to apply for school places. In such cases, cash buyers can be a godsend"
- Jason Harris-Cohen - Open Property Group
New analysis by Open Property Group suggests that sellers can benefit from the speed of a cash buyer without necessarily taking a financial hit, provided they work with the right buyer.
Selling to a cash buyer is often the fastest route to completing a property sale. Unlike mortgage-backed buyers, cash purchasers are not reliant on loan approvals or part of complex chains, which are common causes of delays and fall-throughs.
However, this convenience often comes at a cost. According to Open Property Group’s review of UK House Price Index data, cash buyers typically pay 8.1% less than mortgaged buyers. Based on current prices, that translates to a discount of around £22,711.
The challenge for many sellers is that they may need to move quickly but cannot afford such a steep reduction in price.
One potential solution is to sell to a professional company that specialises in direct cash purchases. Open Property Group’s own data shows that its customers are able to sell their homes far more quickly than with traditional agents, and often for a comparable net return.
Selling with an estate agent can take five to six months or longer in a slow market. With a professional cash buyer, the sale is typically completed in one to four weeks.
For a £100,000 property, estate agents usually achieve 95% of the asking price, or £95,000. Once survey deductions are factored in, this may fall to around £90,000.
Open Property Group reports that it typically offers around 20% below valuation, which would amount to £80,000 in this example.
While the cash offer is £10,000 lower, traditional sales come with extra costs:
£400 in VAT on estate agent fees
£1,500 in solicitor and transaction costs
£1,800 in mortgage interest during the wait
£1,200 in council tax and utilities
£1,000 for minor repairs to attract a buyer
In total, these costs reduce the seller’s final return to around £81,100, even though they achieve a higher headline sale price. By contrast, the cash buyer’s £80,000 offer is net, with none of these expenses incurred.
In practice, this means the seller pays just £1,100 for a much faster timeline — from up to half a year to less than a month.
The process of working with a professional cash buyer is straightforward:
Identify a company that is a member of the National Association of Property Buyers (NAPB), which ensures they are registered with The Property Ombudsman and follow its code of conduct.
Request a valuation and agree on a formal offer, typically at 80% of market value.
From there, the company handles the process, including paperwork and conveyancing.
Completion usually takes place within a month, with funds transferred directly to the seller.
“Sometimes, achieving a speedy sale is of utmost importance, not least if you’re relocating for work or moving to a new town and need to be in situ in time to apply for school places. In such cases, cash buyers can be a godsend," explained Open Property Group CEO Jason Harris-Cohen.
However, he added, "Cash buyers have a strong hand, they know the value they offer by being prepared to make a quick purchase and, as such, often demand significant discounts on the asking price. Often, buyers are not prepared to or simply cannot afford to accept this discounted offer. Professional cash-buying companies such as Open Property Group exist to help solve exactly this sort of situation.
"Cash-buying companies have long been looked at with a sceptical eye. Sometimes, they are considered untrustworthy, unreliable, and dishonest. That’s because there are certain companies out there who do indeed act in underhand ways.
He concluded, "Thankfully, the good ones are easy to spot because they are signed up to specialist organisations who enforce strict practice guidelines and offer oversight to ensure that all transactions are handled honestly, openly, and professionally.”
