Proeprty blog on cash buyers - are they more effective than joining a chain?

Cash Buyers – Are They More Effective Than Joining A Property Chain?

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When you’re buying or selling a house, joining the property chain can sometimes seem like the only option you have. This certainly was the case 10 years ago as Estate Agents previously held a monopoly over the market. Nowadays, there are many quicker and more effective ways for you to sell or even buy your dream home. In this post, I am going to evaluate whether using a cash buyer or entering a property chain is the most effective choice for your average homeowner.

Property chain:

Even though the housing market is constantly evolving, a property chain is still considered one of the most common ways to buy or sell a property. Many homeowners wrongly feel that a chain is necessary to free up the money needed for the deposit of their next home. In reality, a chain can cause more stress and excess fees.

The chain itself refers to a long line of buyers and sellers that are dependent on each other completing to ensure that their own property exchanges can be made. The length of a chain does make a difference to its success rate but a further issue arrises when Estate Agents are not entirely transparent with their customers. Most of the time, you are only in a good position within a property chain if you are the very first buyer as you are not reliant on others.

Unfortunately, even if you are in 1st place, there are many obstacles you have to overcome before a sale. Estate agents, surveyors and mortgage lenders are all intrinsically involved in the process. As a result, there is plenty of opportunity for an error or even a lost document to entirely halt the process, causing delays and disillusionment for the homeowner. A property chain can only move as quickly as its weakest link and any delay could ultimately lead to its breakdown. With more time to think and research, sellers begin to look for someone else who can adhere to their own deadlines.

Cash Buyer:

While the property chain forces buyers and sellers to be reliant on others, selling to a cash buyer removes the homeowner from the fickle property chain altogether. The speed and ease of sale are the biggest positives for a cash purchaser and its generally only associated with one drawback; a slightly lower asking price. Nevertheless, it must be mentioned that the more conventional route of an Estate Agent comes hand in hand with higher fees meaning that the difference between asking prices may be negligible anyway.

Another benefit of using this method is that the buyer will usually organise everything needed to progress. For instance, cash buyers tend to sort conveyancing services themselves. Many cash buyers will be regular investors and tend to already have a good relationship with a particular conveyancer or solicitor. This again allows cash buyers to navigate the sale process quicker and get the results that the homeowner is seeking.

In short, property chains tend to result in frustration as mortgages get declined, buyers refuse to commit and weeks turn into months of waiting. A cash buyer is usually faster and more reliable, but will often mean you have to slightly lower your asking price. If you’re looking to sell your house quickly and are considering a cash buyer, contact us.  As a cash buyer you are in a much stronger position when it comes to securing your new home.  At Olivia Rose Estates we are here to help you sell your house fast.  We can offer a guaranteed cash purchase for your property in a timescale that suits you.  It could be a couple of weeks, or even just a few days.  You no longer have to pay estate agents fees and deal with the potential long delays of a traditional sale process.  It is not uncommon for house sales and purchases to fall through due to broken chains or mortgages not being approved at the last minute.

We will help guide you through the process of selling your home, whatever your reason for selling.  From the initial valuation to the final completion date, rest assured you are being guided by trusted property professionals who are here to help you get the most out of your house sale and ensure you have a hassle-free experience.

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