Cash buyers may no longer be king in the property market.
The level of demand and lack of supply in the current market appears to have created a situation where there are now even too many cash buyers in competition with each other.
The situation means agents can be faced with cash buyers entering into bidding wars for a property.
That may be good for sellers and agents getting properties sold, but it means potential buyers who have lost out despite thinking they are in good positions are being left frustrated.
One anonymous buyer told The Times: “I sold my place a few months ago. I’m a cash buyer but that doesn’t seem to hold much clout with the agents. In the meantime I don’t have anywhere to live — I’m staying with friends and in Airbnbs — and I’m left wondering, will prices go up, down or what?
“There are too many cash buyers out there apparently — they’ve just flooded the market and it’s problematic.”
The article said he has viewed 25 properties in three months and put offers on about five but has yet to secure a new home.
He said: “Buying a house should be a happy, exciting experience but it’s not — it is awkward. The estate agents tell you someone else is interested or has made an offer and some refuse to put offers through if they are below the asking price.”
The article concludes that a buying agent could be a solution in this situation.
Laura Conduit, a residential property lawyer at Farrer & Co, said: “Having a buying agent means you are taken more seriously as a contender. You also need to commit to a fast exchange and completion.
“You need to have your lawyers ready to go, to have pencilled a slot in the diary with your surveyor and have your cash ready.
“Some transfer the money, either a reservation deposit of £50,000 to £100,000 or the whole 10 per cent deposit, to their lawyer to show commitment before putting in their offer.”
Money isn’t everything for some sellers, Conduit claims, adding: “Buyers could win a deal with a personal letter and tugging at the heartstrings.
“Some buyers like to sell to families with children, prefer local buyers or bond over shared hobbies or a love of pets. You need cash and emotional intelligence to buy a home today.”
Read the full article (subscription may be required): https://www.thetimes.co.uk/article/im-a-cash-buyer-and-i-still-cant-get-a-viewing-vx00wdfkz