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What Constitutes a Cash Buyer?



A cash buyer is anyone who has the cash funds required to buy a home and close on it without the use of a mortgage loan. They can either be an individual or a business. These buyers are generally referred to as iBuyers or direct buyers. They usually aim to purchase a property without financing and close on it quickly so they can rehab or flip it for a profit.

When purchasing a property, cash buyers are typically more attractive to sellers because of the speed and simplicity that such a sale offers them. However, they do need to be careful.

The buyer should have sufficient funds available in a single account to pay for the property and closing costs, plus other fees. This should be in addition to the funds from the sale of their previous property. This is especially important if they are working with a solicitor, as their conveyancer will need to ensure that the cash funds coming from the buyer have been obtained in a legitimate manner.

Cash-only purchases are also commonly accompanied by Anti-Money Laundering

(AML) checks, which is a legal requirement for any person buying a property in England or Wales. This helps to prevent the risk of fraudulent transactions, as well as the risks relating to cash from unregulated sources. For more info


A cash sale is also less likely to collapse at a later point in the chain, as there is no need for the purchaser to sell their current property in order to purchase the new one, and the transaction is not dependent on related or linked transactions that may cause problems further up the chain.

Another advantage of a cash purchase is that it means there is no debt burden to worry about. This is a big advantage for people who are self-employed, as they often don’t have the time to deal with a mortgage application or underwriting process.

It’s also an advantage for the seller, as it eliminates any potential fall-through risk and ensures a quicker closing time. This can be particularly helpful if the sale is for a fixer-upper or in a market where foreclosures are common.

Whether you are a seller or a potential buyer, it’s important to understand what a cash buyer is and how to find one. This will help you to understand the pros and cons of a cash sale, and decide whether it is the right route for you.

Finding a cash buyer is not difficult. The best place to start is with the public records of your local area. These will give you access to a list of homes sold without mortgages.


You can also use an online site to search for properties that have been bought using cash, such as OfferMarket. These sites are an easy way to find qualified cash buyers looking to buy a house fast.

The final factor to consider is the property itself. If the home is old and not in a good condition, lenders may not agree to lend money to cover it, or they may decline the offer entirely.

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