WHAT ARE THE COSTS INVOLVED IN USING A CASH BUYER?
Selling to a cash buyer through fasthomesaleonline is completely FREE. There are no costs involved that you would traditionally expect with a property sale such as Estate Agents fees or Solicitors costs and even the valuation of your home is paid for.
As you are likely to me selling your home at quite a discount to the Market Value, this is the cost that you will really be faced with when dealing with a cash buyer. (The Market Value can be defined as the likely price to be agreed between two willing participants in a property transaction).
Dropping your price by 15% to 20% does sound like a lot, however, when you consider all of the other costs then this is not that much of a drop. You will essentially be receiving 80% to 85% of your property value. Lets look at the example below to illustrate what the actual implications are for this kind of reduction in price:
Lets take a property (for simplicity) on the market for £100,000. Typically in the UK, sellers will strike up an agreement with a buyer at around 93% to 97% of the property value. See www.hometrack.co.uk for the current national average. If we use 95% then this would equate to an agreed sale at £95,000.
You would then need to pay Estate Agents fees or typically 1.5% + VAT, which would equate to £1674. Also solicitors fees including disbursement would be around £1000. Taking this into account this would reduce the value to £92,326.
What is then there is a post purchase reduction if something comes up in the survey. A figure of 5% is not uncommon. This would reduce the value by £4,750. Finally, if you property doesn't complete for say 6 months then you'd be liable to pay mortgage payments and council tax for this period, say £2,750 and £600 respectively.
The would all reduce the final amount due to you to £84,226. Suddenly the reduction to a cash buyer doesn't seem so drastic.
Let's recap:
Asking price: £100,000
Initial agreed price (95%): £ 95,000
Post survey reduction (5%): £ 4,750
Agent Fees: £1674
Legal fees: £1,000
6 month mortgage interest: £2,750
Council tax (6 months): £600
Total return after costs: £84,226
A cash buyer will take over all of the costs and risks associated with keeping the property and eventually selling it, taking this away from you. Considerably more costs are then liable to the cash buyer which is reflected in the final cash offer made. Cash buyers look for a win - win solution, designed to benefit the seller as well as being a prudent investment for the buyer.
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