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Written by Ruban Selvanayagam
Ruban Selvanayagam
Ruban Selvanayagam is a professional cash homebuyer, private rented sector landlord, auction specialist, blogger and media commentator.
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Edited by James Durr
James Durr
James Durr is a passionate property entrepreneur with a strong foundation and background in business.
The truth is that selling to a professional cash buyer almost always means accepting a price below market value.
For some sellers – especially those under pressure from repossession, divorce, probate or rapid relocation – the speed and certainty of this route can outweigh the financial sacrifice.
For others, parting with a home for less than its full worth feels like giving away hard-earned equity.
How far below market value you’ll be offered depends on the property, your circumstances and the type of buyer you deal with.
The key is recognising that cash buyers trade price for convenience: fewer delays, no mortgage applications and completion often within weeks rather than months.
Typical “Below Market Value” Discount Range
Based on our direct experience and industry data, most genuine cash buyers currently operate within the 70–75% of market value range.
That means:
- A home worth £150,000 may sell for between £105,000 and £112,500.
- A property at £250,000 may generate cash offers in the region of £175,000 and £187,500.
- A higher-value house at £500,000 could see offers in the £350,000–£375,000 range.
In practice, this equates to a 25–30% discount against open market value. This value would typically be based on HM Land Registry sold house price data and/or a professional Royal Institute of Chartered Surveyors (RICS) valuation.
Note, whilst used as an indicator of market conditions, cash buyers would rarely rely on estate agency asking prices, nor properties that are Sold Subject to Contract or Under Offer.
The steeper cuts usually apply where properties need significant work, have legal complications or where sellers need completion in days rather than weeks.
One benefit when using Property Solvers’ own cash buying service is that there are no estate agency or conveyancing fees to pay – potentially saving many thousands compared with traditional (private treaty) and auction sales.
And remember – there’s no obligation to accept an offer or use a particular service. The right decision is the one that gives you clarity, confidence and control over your sale.
Understanding What “Market Value” Truly Means
Unlike a stock price, there is no single, universally accepted number for property value. Instead, value sits within a range, shaped by:
- Recent comparables: HM Land Registry sold prices for similar homes nearby.
- Local demand: Some postcodes quickly attract multiple offers for homes up for sale, others struggle for months and even longer.
- Property condition: Homes with structural issues, damp or short leases are effectively unmortgageable.
- Surveyor conservatism: RICS and mortgage valuations are often more cautious than estate agent estimates.
- Timeframe: The longer you can wait, the better chance you have of reaching the top of the range.
When estate agents quote “market value”, they usually mean the figure that might attract interest on Rightmove or Zoopla. But the true market value is the amount someone is actually willing and able to pay – and that’s often lower.
Cash buying companies cut through this. They don’t rely on lenders and can move quickly. But in exchange, they offer less…
Why Do Cash Buyers Pay Less?
Cash buyers won’t pay full market value – and there are clear reasons why.
The discount reflects the speed of the transaction, the risks involved, the extra costs they take on to make the sale happen and the enhanced security not available on the open market.
Speed as a Premium
Selling through an estate agent is slow. Transactions take 4 to 9 months on average, and around a third collapse before completion.
Auctions can be faster, but they’re not hassle-free – you’ll still deal with reserve-setting, legal packs, multiple viewings and buyer due diligence, with no guarantee of a sale. Even when bids come in, tyre-kickers and last-minute delays are fairly common, and fees can eat into your final proceeds.
Cash buyers cut through all of this. By removing mortgage applications, complex survey processes, chains and multiple viewings, they can exchange + complete in as little as seven days. That speed is valuable, but it comes at a cost.
Think of it like selling a car through a platform like We Buy Any Car or Motorway: you’ll get less than an open market sale, but you avoid the hassle and delay.
Risk Absorption
Professional buyers take on risks that normal buyers avoid, such as:
- Refurbishment: Thousands may be needed to make a property mortgageable or rentable.
- Legal issues: Short leases, negative easements, restrictive covenants or missing Land Registry documents to name a few of the issues we come across.
- Market downturns: If prices fall during the resale period, the buyer absorbs the loss.
- Holding costs: Council tax, insurance and utilities while the property sits empty.
The discount cushions the buyer against the expenses and uncertainties involved in completing quickly.
The Value of Certainty
Beyond the financials, certainty itself carries value. A cash sale removes the anxiety of waiting for mortgage approvals, survey results or other transactions in the chain. It brings immediate closure for sellers facing repossession, divorce, probate or mounting debts. What’s more, it provides a way to unlock equity for relocation, downsizing or new opportunities.
For many, that guaranteed outcome – the relief of knowing the sale will complete and the property is no longer a burden – is worth far more than the 25–30% difference between open-market value and a genuine cash offer.
Buying Fast, When Most Would Walk Away
Cash buyers move quickly in situations where traditional buyers hesitate – and would struggle to sell on the open market.
By completing in days rather than months, firms like Property Solvers give sellers a way out when time, condition, or circumstance would otherwise stop a sale altogether.
Cash Home Buyer Economics in Detail
Cash buyers are not philanthropists. They are investors and their financial models explain the discount. Here’s a breakdown:
- After Repair Value (ARV): Buyers calculate the likely resale price once the property is refurbished and mortgageable.
- Refurbishment Costs: These often range from £10,000 for cosmetic updates to £60,000+ for major works (often into 6 figures, especially with properties in London and the South East).
- Financing and Tied-Up Capital: Genuine cash buyers face a cost when all their money is locked into property. Capital that could earn returns elsewhere is tied up, and in a volatile market, its value is at risk.
- Stamp Duty Land Tax (SDLT): Buyers pay this upfront, often at higher rates if they own other properties.
- Net Profit Margin: A minimum of 10–15% is targeted to make the risk worthwhile. This would be the same for any business venture.
- Landlord Costs: Rising rules on EPC upgrades, Decent Homes Standards, and the Renters’ Rights Bill – along with Section 24 and higher finance costs – continue to squeeze landlord profits.
- Time is Money: In a slower market, every extra week a property sits empty or mid-refurbishment ties up capital and reduces returns.
For example:
 Cost Outline (Expense) |
 Value |
|---|---|
| Market Value After Works (Undertaken by the Cash Buyer) | £250,000 |
| Refurbishment Cost Estimate | £60,000 |
| Current Estimated Value | £190,000 |
| Offer Price (75% of Pre-Works Value) | £142,500 |
| SDLT (including Surcharge) | £7,475 |
| Buyer and Seller Legal Fees | £3,000 |
| Holding Costs | £5,000 |
| Resale / Refinance Fees (1.5% Minimum) | £3,750 |
| Total Money In | £221,725 |
| Net Profit Margin (Pre-Tax) | £28,275 (11.31%) |
This shows why offers sit where they do – not out of greed, but because the maths has to work. Remember also that taxes need to be paid on top.
How Property Solvers Calculate Cash Offers in Practice
At Property Solvers, our buying model is simple but disciplined. Every offer we make is backed by data, experience and a clear understanding of the work involved in taking a property from purchase to resale. We don’t guess or hide behind vague percentages – we show our workings and explain every step.
We start by analysing the current value and future potential of a property. Using Land Registry sales, Rightmove+ insights, and a deep knowledge of local markets, we determine what the home would likely achieve once fully mortgageable or refurbished.
From there, we calculate the costs of getting it to that stage – everything from repairs and compliance upgrades to Stamp Duty (SDLT), legal fees, and holding costs while works or resale take place.
Unlike many companies that apply a blanket discount, our pricing reflects the real figures on the table.
We also account for opportunity cost – every pound tied up in a project is capital we can’t use elsewhere, and in a volatile market, that matters. Once we’ve stress-tested the deal, the final offer we present is firm, transparent, and backed by proof of funds.
This disciplined model allows us to operate efficiently and profitably – while giving sellers the reassurance of a guaranteed sale, no fees, and a clear, data-led explanation of how their offer was calculated. It’s how we maintain trust and deliver results that work for both sides.
Hidden Costs (or “Overheads”) Sellers Often Forget
When comparing cash offers with estate agent prices, many homeowners overlook the costs of a drawn-out sale.
Property sales through estate agents often involve ongoing expenses and commission fees, while property auctions can add auctioneer fees and risk a lower final bid.
Selling privately may save on commissions, but requires more effort, time, and confidence in handling legal and financial matters, and can carry additional risks.
 Expense |
 Example Cost |
|---|---|
| Mortgage payments (6 months at £800 per month) | £4,800 |
| Council tax (6 months at £200 per month) | £1,200 |
| Insurance (6 months at £50 per month) | £300 |
| Utilities and maintenance (6 months at £150 per month) | £900 |
| Security for empty homes (boarding up, alarms, caretaker costs –6 months at £150 per month) | £900 |
Over nine months, this could easily exceed £7,000–£10,000, particularly as many sales (especially those in a chain) have been known to take over 9 months to complete. That’s often more than the “extra” you might make by holding out for a higher sale price.
Tax Implications
From the buyer’s perspective, property transactions come with several tax obligations that directly influence how much they can offer. Cash house buyers and cash house buying companies factor in all these tax obligations as part of their cash house buying process, which influences the offers they make.
At Property Solvers, these costs are factored in from the outset so every offer is realistic and transparent.
Stamp Duty Land Tax (SDLT)
Cash buyers still pay Stamp Duty, and in most cases this includes the 3% (extra) surcharge for second properties. On higher-value homes, in particular, this can amount to tens of thousands of pounds, which is built into our purchase calculations from the start.
Corporation Tax
When a property is bought through a limited company, any profit made from resale or rental income is subject to Corporation Tax. With rates having risen in recent years, this has a material impact on overall returns and must be accounted for before an offer is made.
Withdrawal and Director Income Taxes
When profits are paid out to company directors, Income Tax and National Insurance can apply on top of Corporation Tax. This means that even after a successful resale, not all of the profit flows directly to the business owners – another factor that affects how offers are structured.
Landlord Taxes
Those holding property for rental face ongoing costs from Section 24 mortgage interest relief restrictions, tighter rules under Making Tax Digital, and potential Capital Gains Tax when selling. Combined with higher borrowing rates, these pressures have narrowed margins for professional landlords and investors.
All of these obligations mean that a genuine cash buyer’s offer has to leave room for these unavoidable costs, while still ensuring the transaction remains viable and compliant.
Home Seller Tax Obligations
We often speak to sellers who are unaware of their tax obligations when selling a property (to a cash buyer, at auction or on the open market). Even if you’re accepting a below-market-value offer, Capital Gains Tax (CGT) may still apply if the property isn’t your main home. HMRC bases this on the difference between what you paid and what you sell for – not on how much you believe the property is worth.
If the sale involves an inherited property, Inheritance Tax (IHT) rules also come into play. Probate valuations must reflect real market conditions, and selling significantly below value can raise questions if HMRC suspects it was done to reduce tax liability.
We would strongly advise to seek advice from accountants or solicitors before proceeding, especially with probate or investment properties.
Does the Below Market Value Offer Vary by Region?
Regional differences do exist, though they’re often more about market dynamics than headline prices. In London and the South East, where demand is stronger and there’s potential to add value through planning or permitted development, cash buyers – including Property Solvers – may offer slightly more. That said, higher property costs and service charges in these areas can still reduce margins.
Across the Midlands and the North, offers are typically 25–30% below market value, reflecting slower resale markets and lower rental yields. In rural areas, where demand is thinner and comparables are limited, cash buyers usually build in a larger buffer to stay protected.
Knowing how local demand and resale conditions affect pricing will give you a clearer sense of whether an offer is genuinely fair.
How Market Cycles Affect Below Market Value Offers
It’s worthwhile taking a brief look at how wider market cycles influence the level of discount cash buyers offer. These shifts are often tied to lending conditions, confidence, and the general pace of sales.
2008–2012 Downturn
Discounts were steep – typically 25 to 30% or more – as banks pulled back on lending, repossessions surged and only cash investors were active.
2013–2019 Boom
As prices rose steadily and buyer confidence returned, discounts narrowed to around 10 to 15%. Investors could work on slimmer margins because resale risks were reasonably low.
2020–2021 Pandemic Surge
Temporary stamp duty holidays and ultra-low interest rates pushed demand to record highs. Many homes sold at or above asking, forcing cash buyers to compete harder and accept smaller margins.
Post-2022 Climate
With mortgage affordability stretched, arrears rising and prices flattening, cash once again carries a premium. Ongoing inflation and the cost-of-living crisis have tightened household budgets and reduced buyer confidence, further slowing the market. In this environment, buyers typically seek 25 to 30% margins to protect against uncertainty in a more volatile economy.
Separating Fair Cash Offers from Sharp Practice
Unfortunately, not every company in the quick-sale sector operates transparently. Some use inflated promises to win instructions and only reveal the real terms once sellers are committed.
To help you spot the difference, here are some quick pointers on how genuine cash buyers compare with less-reputable operators.
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Fair Cash Sale Companies
 |
Unfair Cash Buyer Operators
 |
|---|---|
| Admit openly that offers are below market value. | Advertise “95–100% of market value” to lure enquiries. |
| Provide valuations backed by sold (Land Registry) price data. | Rely on vague or inflated estimates with no evidence. |
| Show proof of funds through solicitors or bank statements. | Offer verbal assurances but no documentary proof of funds. |
| Have readily available (and demonstrable) cash funds. | Do not rely on 3rd party finance such as bridging |
| Cover the seller’s legal fees in full. | Deduct hidden “admin” or “legal” charges at completion. |
| No middlemen – the buyer purchases directly. | Act as a broker, passing deals to other investors. |
| Honour the agreed price without last-minute reductions. | Reduce the offer just before exchange (“gazundering”). |
Consumer Protection: What Sellers to Cash Buyers Need to Know
The quick-sale sector isn’t tightly regulated. So as a sellers, it’s crucial to check who you’re dealing with. Membership of recognised professional bodies is one of the best indicators of credibility and accountability. Property Solvers is a proud member of all the major schemes listed below.
TPOS (The Property Ombudsman)
The Property Ombudsman provides an independent route for resolving complaints between sellers and property firms. Membership means sellers have access to a fair, impartial dispute resolution process if things go wrong.
NAPB (National Association of Property Buyers)
The NAPB promotes ethical standards among quick-sale firms. Members must follow a strict code of practice aligned with TPOS, including clear communication, proof of funds and no last-minute price drops.
NAEA Propertymark
As part of the UK’s leading professional body for estate agents, NAEA Propertymark membership demonstrates that a company follows recognised industry standards, holds valid client money protection and commits to ongoing professional conduct.
Anti-Money Laundering (AML) Regulations
All legitimate cash-buying firms must comply with HMRC’s Anti-Money Laundering Regulations. This includes verifying sellers’ identities, checking proof of ownership, and reporting any suspicious activity – protecting both parties from fraud or misuse of funds.
Trading Standards
Reputable companies are registered with local Trading Standards, which enforces fair practice and requires transparency over fees, timescales, and how offers are presented. This ensures sellers receive clear information before making any commitment.
ASA (Advertising Standards Authority)
The ASA monitors misleading marketing claims. It has repeatedly ruled against firms advertising “full market value” sales when discounts actually apply. This oversight helps protect sellers from inflated or deceptive promises.
Information Commissioner’s Office (ICO)
The ICO regulates data protection and privacy. Registered firms, including Property Solvers, must handle client data securely and transparently, in line with the UK GDPR.
Before proceeding with any company, always confirm these memberships, ask for written proof of funds, and instruct your own independent solicitor. Avoid signing exclusivity agreements that lock you in for long periods without a guaranteed sale.
Alternatives to Cash Buyers
A discounted cash sale isn’t the only way to achieve a quick or certain result. Depending on your situation, there may be other routes worth considering – each with its own trade-offs in terms of speed, price, and control.
Auction (28-Day or 56-Day)
Auctions can be ideal when you need a fixed completion date. Once the hammer falls, the sale becomes legally binding and competition between bidders can sometimes push prices above expectations.
However, there’s no guarantee your property will sell the various fees involved can eat into proceeds. The marketing period is also public, which may not suit sellers who prefer privacy.
Estate Agent Sale
Selling through a traditional estate agent offers the best chance of achieving full market value, particularly in buoyant markets.
Yet the process is often slow, with chains, surveys and buyer mortgage delays adding months to the timeline. It can also be intrusive, with repeated viewings and ongoing uncertainty until contracts are exchanged.
Investor Sales
Some professional buying companies – including here at Property Solvers – work with large databases of vetted private investors. These buyers typically have fewer overheads than corporate funds and can sometimes offer more than a direct cash-buying firm. The advantage is that sales can be arranged quickly and discreetly, without the exposure of an open-market listing.
Bridging Finance
For sellers under time pressure, short-term bridging loans can buy breathing space. They’re often used to clear arrears or fund a purchase before a sale completes.
The downside is cost: interest rates are high and if the exit plan fails, repossession becomes a real risk. Bridging is best viewed as a temporary solution rather than a long-term fix.
Part-Exchange with Developers
This can be a straightforward option for those moving into a new-build home. The developer effectively buys your existing property to keep the transaction simple. While convenient, part-exchange usually comes at a discount similar to a cash sale, and you’re tied to one developer’s terms and timeline.
Assisted Sales
Under this model, an investor funds the refurbishment, and you agree to share the uplift once the property sells. It can work well if the home needs work but you lack the capital to do it yourself. However, contracts are complex, and control over timing and pricing often shifts to the investor.
Should You Try Negotiating with a Cash Buyer?
In most cases, there’s limited room to negotiate with a genuine cash buyer. Their offer is based on clear numbers – refurb costs, resale value, taxes and holding expenses – rather than guesswork. Still, if you have evidence they may not have seen, such as recent nearby sales or improvements that increase value, there’s no harm in sharing it.
Most professional buyers, including Property Solvers, will take a fair and data-led approach. If your information changes the maths, they’ll explain how it affects their figures. A respectful conversation often builds mutual trust, even if the offer itself doesn’t move much.
Before entering discussions, it’s worth gathering multiple estate agent valuations, checking Land Registry sold prices, and confirming that legal fees are covered. Always insist on written proof of funds and use your own solicitor to stay fully independent.
Negotiation or not, transparency is key. The better cash buyers out there will walk you through how their offer is calculated, so you can make an informed decision without pressure or hidden terms.
Conclusion: A Lower Price Versus Speed (and Peace of Mind)
Selling below market value is rarely anyone’s first choice, but for many homeowners it can be the most practical route. When speed, certainty or relief from financial pressure are the priorities, a fair cash offer provides a guaranteed outcome that traditional sales often can’t match.
The key is to approach the process with clear expectations. Genuine buyers typically offer 70–75% of market value, and will not drop their prices at the last minute.
Always ask for proof of funds, ensure there are no hidden fees, and explore alternatives like auctions or assisted sales if you have more time on your side.
Here’s a quick video recorded by myself (Ruban Selvanayagam) which weighs up the relative pros and cons.
At Property Solvers, we’ve built our model around transparency and reliability. We never reduce our offer at the last minute, cover all legal fees and provide a clear explanation of how each offer is calculated. For sellers who want to aim closer to full value but still move quickly, our 28-day and 56-day auction routes offer a balanced middle ground.
If you’re unsure what your home is worth, take the next step by requesting a free, no-obligation House Valuation Report. We combine Land Registry data with Rightmove+ insights and local knowledge to give you an honest, evidence-based figure – helping you make the right decision with confidence.
