Cash buyer's guide: questions, offers and scam checks

Before you accept a cash offer

This guide is for homeowners selling to a cash buyer, not buyers purchasing a home. A cash offer is not automatically a safe offer or the best financial outcome. Compare independent valuations, the money you will actually receive and the conditions attached to completion.

The legal-process guidance here primarily covers England and Wales. Scotland and Northern Ireland have different procedures; ask a local conveyancer before signing or accepting terms.

Sources: [1] MoneyHelper[2] GOV.UK

What to ask the cash buyer

• Who will actually buy my property? Ask for the legal buyer's name, registered company number and address. Are you buying directly or introducing me to another investor?
• Can you provide proof of available funds for my solicitor to check? Does the purchase depend on finance, another sale or finding another buyer?
• Is this an indicative offer or an offer following an inspection? What checks remain, who values the property and what could change the price?
• What is the complete fee schedule? Ask about valuation, administration and legal costs, VAT where applicable, and any costs if you withdraw.
• Can I choose my own independent solicitor? If legal costs are paid for me, what is covered and what conditions apply?
• What must happen before exchange and completion? Ask for proposed dates and what happens if those dates are missed.
• Is there an exclusivity or lock-in agreement, a cancellation charge or a right to assign the purchase to somebody else? Have your solicitor explain the terms before you sign.
• What is your complaints process, and which redress scheme or trade body do you belong to? Verify membership independently; membership is not a guarantee.

Sources: [1] MoneyHelper[2] GOV.UK

How to compare offers fairly

Ask each buyer to put their price, deductions, conditions and proposed dates in writing. Compare offers at the same stage: an attractive initial estimate is not equivalent to a price confirmed after inspection. Obtain independent valuations rather than relying only on a quick-sale company's estimate.

Use a separate column for each buyer and record these details. The highest headline price can leave you with less money if its deductions are larger.

Sources: [1] MoneyHelper[2] GOV.UK

Compare the money left, not just the price

Start with the written sale price. Subtract seller-paid fees, legal costs, mortgage redemption, secured loans and any early repayment charges. Ask your lender for a redemption statement and your solicitor for a costs breakdown; tax may also affect what you retain.

For example only: a £200,000 offer with £3,000 of seller costs leaves £197,000 before mortgage repayment and tax. A £198,000 offer with £500 of seller costs leaves £197,500 on the same basis. These are invented examples, not market prices or typical fees.

Our Net Proceeds Calculator can help organise those figures; the Selling Route Comparison tool uses illustrative scenarios rather than actual offers. Do not treat either tool as a valuation.

Sources: [2] GOV.UK

Warning signs: pause and check

A warning sign is a reason to investigate, not proof of fraud. Ask for the reason and evidence behind any changed offer, take independent advice and reconsider your alternatives before agreeing.

• A very high initial offer followed by an unexplained reduction close to completion.
• Pressure to sign immediately, keep the arrangement secret or skip independent advice.
• Unexpected upfront fees or charges that were not disclosed in the written terms.
• A long lock-in agreement with unclear exit costs, or an insistence that you use a particular solicitor.
• Refusal to identify the actual buyer, explain funding or provide written terms.
• Claims that registration, reviews or a membership badge alone prove the sale is safe.

Sources: [1] MoneyHelper[3] GOV.UK[5] CMA / OFT

Protect yourself from payment and identity scams

Check company details on the official Companies House service, but remember that a registered company is not necessarily trustworthy. Verify any claimed professional or redress membership through the organisation's own directory rather than a badge or link sent by the buyer.

Criminals can impersonate solicitors or intercept email. If bank details change, or you receive an unexpected payment request, stop and telephone your solicitor using a number you have independently checked or already know. Do not use the number in the suspicious message. Confirm details before sending money; apply the same care when arranging where your sale proceeds will be paid.

Do not send bank login details, passwords or one-time security codes to a buyer. Your conveyancer may legitimately need identity documents for legal checks; confirm who is requesting them and how they should be supplied securely.

Sources: [3] GOV.UK[4] The Law Society

If something goes wrong

If you suspect a fraudulent payment, contact your bank immediately and tell your solicitor through a trusted channel. Keep messages, agreements and payment records. Do not send more money because someone promises to recover a previous payment.

For an offer dispute, complain to the company in writing and check the relevant redress scheme's eligibility and process. Have your solicitor review any agreement before withdrawing or accepting a revised price; contractual consequences depend on your terms and jurisdiction.

Sources: [1] MoneyHelper[4] The Law Society

Your final pre-signing check

• The actual buyer and funding have been checked.
• You have independent valuations and comparable written offers.
• You understand all deductions, restrictions and outstanding conditions.
• Your own adviser has explained the agreement and local legal position.
• The proposed timetable suits your circumstances without relying on an unverified promise.
• Payment instructions have been verified independently.

Sources: [1] MoneyHelper[2] GOV.UK[4] The Law Society