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Cash house buyers: how they work and how to check one

Cash house buyers explained: how house buying companies work, the usual price discount, fees, red flags, and the questions to ask before you sell.

  • 4 min read
  • Last reviewed 29 October 2026
  • By Your Property Check team

Key answer

Cash house buyers are companies or investors that buy a home without a mortgage, often without a chain. The sale can be simpler and quicker, but offers are usually below open-market value. Our rough guide is 70% to 85% of it. Check who the buyer is, get every fee in writing, and use your own solicitor.

Part 1 of 7

What cash house buyers are

A cash house buyer is a business or investor that pays for a home without needing a mortgage. They go by many names, such as house buying companies or quick sale firms. Some are individuals and some are large companies. Ask exactly who is buying. This page covers England and Wales.

Part 2 of 7

How a cash sale works

  1. You contact the buyer or they contact you.
  2. They ask about the property, its condition and your timescale.
  3. They make an offer.
  4. If you accept, both sides' solicitors do the legal work.
  5. Contracts are exchanged, then the sale completes.

Step 5 matters. GOV.UK says that once both sides have signed and exchanged contracts the agreement is legally binding, and neither side can usually withdraw without paying compensation. Before that, nothing is final, including an offer you have accepted.

Because there is no mortgage lender and often no chain, there are fewer parties who can cause delay. That can make a sale simpler. No one can honestly promise a completion date, though.

Part 3 of 7

The price trade-off

Cash offers are usually below what the same home might fetch on the open market. Our rough guide, not a quote, is around 70% to 85% of open-market value. The HomeOwners Alliance describes the same pattern: it says an offer is often around 75% to 80% of market value, in some cases up to 85%.

An illustration of the arithmetic, with a round number: on a home worth £300,000 on the open market, 70% is £210,000 and 85% is £255,000. That is a gap of £45,000 to £90,000 in exchange for simplicity. Offers vary, and some will be outside this range.

Weigh that against the costs of selling the usual way, such as agent commission and the months of mortgage and bills while you wait. Our cost of selling guide and estate agent fees article help you compare.

Part 4 of 7

Fees to ask about

Some buyers say they charge you nothing. Others do not. The HomeOwners Alliance quotes The Property Ombudsman's Code of Practice: any fees, charges, restrictions and liabilities should be confirmed in writing alongside the offer. Ask:

  • Do I pay anything at all, and when?
  • Do I pay anything if the sale does not go ahead?
  • Who pays the legal costs?
  • Can the price change after I accept, and on what grounds?

Part 5 of 7

Warning signs

Not every buyer behaves badly, but slow down if you see any of these, all described by the HomeOwners Alliance or Citizens Advice:

  • Fees up front, or hidden fees. The HomeOwners Alliance warns that dishonest companies can impose hidden fees and block the sale until you have paid them.
  • A lock-in agreement. It says some contracts tie customers in so they cannot sell to anyone else who might offer more, and advises against signing any agreement that ties you to a company for a long time.
  • A price that drops at the last minute. The same page says some companies agree a price and then reduce it, leaving you to accept or pay fees to pull out.
  • Pressure. The advice is to take your time and not be rushed or pressured into a decision.
  • Unusual contracts. Citizens Advice warns about lease options and delayed completion contracts, where you may still be responsible for your home and mortgage, and where fees may not be clear or reasonable. Its advice is to get independent legal advice on any such contract.

Part 6 of 7

A checklist of questions before you agree

  1. Who is buying? Ask for the company name and look it up on the free GOV.UK company information service, which shows the registered address, directors and insolvency information.
  2. Which scheme are they registered with? The Property Ombudsman says it handles complaints about property businesses registered with it, and will not accept one where the business is not registered with it. Ask which redress scheme they use and check the scheme's own register.
  3. Can they show proof of funds? Ask what evidence they will provide, and when.
  4. What will I pay? Get the fees and the legal costs in writing.
  5. Can the offer change? Ask what would reduce it, and when.
  6. How long is any agreement? Do not sign anything that stops you selling elsewhere until your own solicitor has read it.
  7. Have I compared it? Get a valuation from at least one agent. The HomeOwners Alliance advises three local agents.
  8. Is my solicitor independent of the buyer? You can choose your own.

Our guide to comparing your options sets out cash buyer, auction and agent side by side.

Part 7 of 7

How our free cash offer check works

We are not a buyer. We do not buy property, make offers or negotiate sales. If you choose to use the cash offer check, this is what happens, exactly:

  • Tell us about your home. You add your postcode and a few quick details: type, condition, your situation and timeline.
  • We send your details to one buyer. With your consent, we send the details you entered to one independent property-buying business. We never broadcast them.
  • The buyer contacts you. The buyer contacts you directly. Any offer comes from them, not us. You don't have to accept it, and you can walk away.

It is free to you. How is this free? We may receive a fee from the buyer if a purchase completes. You don't pay us anything. We explain this on our disclosure page. The same checklist above applies to our buyer too: ask who they are, get fees in writing and use your own solicitor.

This page is general information, not legal advice.

Our take

Compare the route before you pick the buyer

Our view: a cash sale trades price for simplicity, and the gap is real. On the page's round example, a £300,000 home at 70% to 85% is a gap of £45,000 to £90,000. The common mistake is comparing a cash offer with nothing, rather than with the net result of selling the usual way, after agent fees and months of bills.

Our sale method comparison sets auction, estate agent and cash buyer side by side on net proceeds and timescale. Our free house valuation gives a value range from real HM Land Registry sold prices for your postcode, so you have a number to hold any offer against.

Compare sale routes

Our opinion, drawn from the facts on this page: not advice and not a forecast. We earn from OfferCheck reports and from introducing sellers to cash buyers, so weigh it with that in mind (see our disclosure). We are not authorised or regulated by the FCA.

Questions, answered

Frequently asked questions

Are cash house buyers legit?
Cash buyers range from established businesses to individual investors, so check each one. Look the company up on GOV.UK, ask which redress scheme it belongs to and check that scheme's register, ask for proof of funds, and use your own solicitor.
How much below market value do cash house buyers offer?
Our rough guide, not a quote, is around 70% to 85% of open-market value. The HomeOwners Alliance says offers are often around 75% to 80%, in some cases up to 85%. Compare any offer with a valuation first.
Do house buying companies charge fees?
Some say you pay nothing and some charge. Ask in writing whether you pay anything, when, and whether you pay if the sale does not go ahead. The Property Ombudsman's code says fees should be confirmed in writing with the offer.
How fast can a cash sale complete?
It can be quicker than an open-market sale because there is no mortgage lender and often no chain, but no one can promise a date. Nothing is binding until contracts are exchanged, as GOV.UK explains.
Can I back out after accepting a cash offer?
Before exchange of contracts, GOV.UK says the agreement is not legally binding. But check what any agreement you sign says about fees or exclusivity, and have your solicitor read it before you sign.
Do I have to use the buyer's solicitor?
No. You can choose a conveyancing solicitor who is independent of the buyer, and it is sensible to show them any agreement before you sign. Ask who pays the legal costs before you agree.

Where this comes from

Sources

Last reviewed 29 October 2026 by the Your Property Check team. This page is general information, not legal, tax or financial advice. For your own situation, speak to a conveyancing solicitor or another qualified professional.

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