Sellers are willing to cut their asking price expectations by as much as £150,000 to attract a cash buyer for a smoother sale, research suggests.
Agency comparison website GetAgent analysed current property listings across the major property portals, looking at the listed asking price for sellers only willing to deal with a cash buyer and how this asking price compares with the rest of the market.
The research shows that those wanting a cash buyer only had listed for an average asking price of £186,768 versus an average asking price of £256,373 across the rest of the market.
That’s a discount of almost £70,000 or 27% for those ready to purchase with cash versus those funding their transaction with a mortgage.
The biggest cash buyer discounts on the market are currently in London.
The average asking price for homes listed in the capital is currently £486,931 but those looking for a cash buyer are typically listing at £335,680 - a saving of £151,250.
Cash buyers are also able to secure substantial discounts in the South East, where the average home advertised for cash buyers only is listed for £82,690 less than the wider average asking price.
This discount also sits at almost £70,000 in the South West and £68,945 in the East of England.
The North East is home to the lowest pounds and pence reduction, although a cash buyer can still bag a discount of £35,599.
At 32%, this is also the highest percentage reduction in asking price for a cash buyer of all regions of Britain.
Colby Short, chief executive of GetAgent, said: “Although the market has showed signs of cooling after what has been a manic pandemic property boom, the current landscape is still frantic, to say the least, and there remains a very high level of buyers looking to transact.
“As a result, sellers are still accepting offers at an alarming speed, but there remains some lengthy delays when it comes to getting a sale through to completion.
“One way of bypassing this to an extent is with a cash buyer and it seems as though some sellers are willing to dramatically lower their asking price in order to secure this easier path to completion.”
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Or alternatively the ones advertised for cash buyers only are unmortgageable as they're a wreck and thus cheaper.
Completely agree. I’m sure the figures are accurate but the interpretation of the data is miles wide of the mark. Any property that has no mortgage suitability will always sell for much less.
Anything advertised as cash buyers only is an auction property, expect to achieve much less than open market and shout out loud there is something wrong with the property (which some agents are actually not stating on the details either, tut tut).
Cash does not mean a quicker sale AT ALL. Still at the wrath of 3rd parties to get it through.
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