Sellers are willing to cut their asking price by up to £150,000 to entice a cash buyer for a smoother sale in a frenetic property market, according to GetAgent.
The average asking price for homes listed in London is currently £486,931, but those looking for a cash buyer are signing up at an average asking price of £335,680, the estate agency comparison website says. This is a saving of £151,250 for those paying in cash.
Comparison site analysis looks at current property listings on major property portals, looking at the asking price shown for sellers only willing to deal with a cash buyer and how that asking price compares to the rest of the market.
He adds that the capital is the hot spot for cash shoppers, but there are deep discounts for cash across the country.
Nationally, those who only wanted a cash buyer had listed their home at an average asking price of £186,768 compared to an average asking price of £256,373 in the rest of the market. This represents a discount of nearly £70,000, or 27%, for those willing to buy cash compared to those financing their transaction with a mortgage.
The average time to close a sale last year jumped 23% to 153 days over the past three years, according to data from removals platform Smoove last month.
Data from GetAgent revealed that cash buyers are also able to secure substantial discounts in the South East, where the average home advertised for cash-only buyers is listed at £82,690 less than asking price wider medium.
This discount also amounts to £69,063 in the South West and £68,945 in the East of England.
The North East is home to the lowest cash discounts, although a cash buyer can still get a discount of £35,599 on average. At 32%, this is also the highest percentage reduction in asking price for a cash buyer in the UK.
GetAgent Co-Founder and Managing Director Colby Short said: “While the market has shown signs of cooling after what has been a manic pandemic property boom, the current landscape is still frenetic to say the least. say, and there remains a very high level of buyers wishing to transact.
“As a result, sellers are still accepting offers at an alarming rate, but there are still long delays when it comes to closing a sale.
“One way around this to some degree is with a cash buyer and it seems some sellers are willing to lower their asking price significantly in order to secure that easier path to completion.”