Home price discounts desperate sellers offer cash buyers

Home price discounts desperate sellers offer cash buyers
Home price discounts desperate sellers offer cash buyers

The average cash shopper spent £381,324 in the area, compared to £414,156 among those with mortgages.

This was followed by the North West, where cash buyers paid £31,962 less on average. Mortgage buyers paid £229,974 for their home, while cash buyers spent £198,012.

Another area where cash buyers had a big advantage was in the East, where cash buyers got a discount of £29,910.

The average price paid by cash buyers was £342,014, compared to £371,924 for mortgage buyers.

Mr Leeming said a large portion of cash buyers are baby boomers who have paid off their mortgages and decide the time is right to downsize and live out their retirement with fewer bills.

Due to the time it takes to complete the sale of a property, they have a significant advantage in not needing a lender, which slows down the process. The time it takes to complete a property sale hit an all-time high of 135 days in 2022, according to Landmark Information Group, a real estate data company.

Cash buyers had the smallest advantage in the South West, where they paid just £10,440 less than those with mortgages, or 3%.

Intense competition for properties in the South West last year left little room for buyers to realize significant savings by paying cash.

Brian Bishop, manager of Jackson-Stops in Taunton, said: ‘A large part of our buyer group is mortgage-free after building up equity in more saturated markets, making their appeal less differentiating. when submitting an offer.

“They would have been competing against three or four other cash buyers in the same boat, where the winning, highest bid is the only real differential.”

London was excluded from the analysis because it has a high proportion of cash buyers, which would skew the data, according to Jackson-Stops.

. discounts on price homes desperate sellers offer to buyers cash

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