Different types of normal buyers

First time buyers: -

This is exactly what the term means, people who have never brought a property and are looking to enter into the property market for the first time. You would generally associate younger people to be first time buyers.

Advantages of a first time buyer are there is no chain and due to their lack of experience they will generally pay the asking price or close to the asking price, however due to the credit crunch and the falling house prices FTB are negotiating harder.

The disadvantages to first time buyers is their lack of experience, meaning that they will ask more questions, look too closely at survey and search results. The first time buyers having a lack of knowledge can result in a longer sale process or even the buyer withdrawing from the sale.

Second time buyer/a buyer: -

This is going to be a buyer that is going to be selling a property and moving up or down in the property ladder. This type of buyer is going to be a person who is in a position of having previous knowledge and buying power to move quicker than a first time buyer.

The only disadvantage to this is you are forming what is known as a ‘chain’. Sales that are involved in a chain are at a higher risk of the sale falling through, which is known as a ‘chain break’. The reason that you are at a higher risk is, you have no control over what is happening throughout the chain and there are more properties which means that more problems can arise.

Cash buyer: -

It is very rare to come across someone who is going to be purchasing cash who isn’t an investor. If you are lucky enough to get a cash buyer on your property, be accommodating to them because this is probably the best type of normal buyer.

You need to make sure that they are a cash buyer, ask questions to your estate agent to confirm, how they are paying for the property i.e. cash in the bank, cash overseas, cash from a property sale.

Unlike a buyer who is arranging a mortgage, cash buyers decide on what they want to do during the purchase of a property. If they don’t want searches carried out on the property, they don’t have to. If they don’t want a survey on the property, they don’t have to.

Cash buyers can be a great thing to have, unless they are in a rush. This is where they generally they will try and dictate on dates for completion, irrelevant if you are ready on your purchase or not.

Key Home Buyer: -

A key home buyer is a normal purchaser who could be a FTB or a second time buyer, but the difference is they are getting their deposit from the government as a loan, and is know as the key worker scheme.

The only real disadvantage to this is, the key worker scheme requires more information and checks done during the purchase than a normal purchase i.e. electrical tests and a home buyers survey rather than a normal mortgage survey.

Another disadvantage is that the government loan has to be approved, sometimes after finding a property, this could take some time to do and also they have a set timescale to use this loan, which may mean that this does not fit in with your moving plan.

A major advantage is that most of the key workers are not allowed any sort of debt, making it easier for them to apply for a mortgage any where in the mortgage market.

Also see:

Cash property buyer
Investment property buyers
Quick sale

Contact us or apply online, Quick Purchase specialise in quick sale and stop repossession markets.