How much less do cash buyers pay for a house?

A genuine property buying company typically offers 75 to 85% of open-market value, a discount of 15 to 25%. Our own offers are 75 to 80%. Private cash buyers, such as a downsizer or an investor with savings, often pay close to full market value but do not complete any faster than a normal chain-free buyer.

Why do house buying companies offer below market value?

The discount covers the company's costs and risk: stamp duty at the higher rates for companies, legal and survey fees they pay on your behalf, refurbishment, months of holding costs, the fees to resell, and a margin. It also pays for taking on a property as seen, without the conditions a mortgage lender would impose.

Is an offer of 90 to 100% of market value a good sign?

Usually not. The Office of Fair Trading found firms that quoted a high figure to win the instruction, then reduced it close to exchange once the seller was committed. A firm offering near full value for a quick sale is often a broker looking for another buyer, not the buyer itself.

Can I negotiate a cash offer?

Yes. Get two or three written offers, share any recent survey or sold-price evidence, and ask the buyer to show how they reached their figure. A genuine buyer will explain the valuation and the percentage they applied.

Is a cash sale ever worth the discount?

When time pressure or the property's condition would cost you more on the open market. Months of mortgage payments, a sale that falls through, repeated price cuts, or a lender refusing to fund the property can each close most of the gap.

How much less do cash buyers pay?

Name: The Quick House Buyers — London
Address: Level 6, Design Centre East, Chelsea Harbour, London, England, SW10 0XF, GB
Telephone: 020 3884 1561

Written and reviewed by Kris McClory, Head of PurchasesLast reviewed 6 August 2026

A property buying company that purchases with its own money typically pays 75 to 85% of open-market value, so 15 to 25% less than an agent sale might achieve. We offer 75 to 80%. After agent fees, legal costs and months of holding costs, the real gap is smaller than the headline number. Private cash buyers, such as downsizers, usually pay close to full value but are not much faster than any other chain-free buyer.

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What does "cash buyer" actually mean?

The term covers very different buyers, and the discount depends on which one you are dealing with.

Types of cash buyer and what they usually pay

Types of cash buyer and what they usually pay
Buyer	Typical price	Typical speed	Watch out for
Private buyer with savings (downsizer, first-time buyer with family help)	Close to market value	Similar to any chain-free buyer, 8 to 12 weeks	Can still pull out before exchange
Property buying company using its own funds	75 to 85% of market value	7 to 28 days	Check proof of funds and Ombudsman membership
Quick sale broker or lead generator	Often quoted at 85 to 100%, then reduced	Uncertain, depends on finding an end buyer	Price cuts close to exchange, upfront fees
Investor at auction	Often below market value	28 days after the hammer	No-sale risk if the reserve is not met

What does the discount cover?

A company that buys a house and resells it has costs a normal buyer does not. The discount is how those are paid for:

Stamp duty at the higher rates. Companies pay the additional 5% surcharge for residential property on top of the standard rates.
Your costs, paid by them. Legal fees, the survey and sometimes removals.
Repairs and refurbishment. The property is bought as seen, so any work needed to resell it is the buyer's cost.
Holding costs. Council tax, insurance, utilities and finance while the property is being worked on and resold.
Resale costs. Agent fees and legal fees when the company sells the property on.
Risk and margin. The chance the resale price is lower than expected, and the company's profit.

Worked example: a £250,000 house

Illustrative figures based on typical UK costs. Your own numbers will differ by property, area and how long an open-market sale would take.

Illustrative net proceeds, not a quote for a specific property

Illustrative net proceeds, not a quote for a specific property
	Estate agent sale	Cash sale at 78%
Agreed price	£245,000 (after a small negotiation)	£195,000
Agent fee (1.5% + VAT)	−£4,410	£0
Your legal fees	−£1,400	£0, paid by buyer
Mortgage, council tax, bills over 5 extra months	−£5,000	£0
Net to you	About £234,000	£195,000
Time to completion	4 to 6 months, if it does not fall through	7 to 28 days

In this example the gap is about £39,000, not the £55,000 the headline percentages suggest. It grows if the house would sell smoothly, and shrinks if the sale falls through and you relist at a lower price. Around one in four agreed sales fell through before completion in 2025, so that second scenario is not unusual.

What are the red flags on a cash offer?

The Office of Fair Trading looked at the quick sale sector and found practices that cost sellers heavily. Watch out for:

An initial offer well above everyone else's, with a lower "revised" figure after the survey or close to exchange.
Any fee payable by you, including valuation or admin fees.
Agreements that tie you in exclusively for months or stop you selling elsewhere.
No proof of funds, or a company that is really looking for a third-party buyer.
Pressure to decide on the spot, or to use their solicitor rather than your own.

Genuine buyers can be checked. Look for membership of The Property Ombudsman, whose Code of Practice for property buying companies bans last-minute price cuts without good reason, and ask for the offer in writing. Our cash buyer checklist goes through each step.

How do we set our figure?

We start from an independent valuation, then apply 75 to 80% depending on condition and how straightforward the sale is. Once the survey is done we confirm the offer in writing and do not reduce it unless something material was hidden or unknown. The full method, with a worked £300,000 example, is on our what we pay page.

When is the discount worth it?

When the alternative costs you more than the gap. That is usually true if you are paying a mortgage on an empty house, facing arrears, settling a divorce or an estate on a deadline, or selling a property lenders will not fund. If none of those apply and you can wait, the open market will normally leave you with more money. Our guide on how to sell your house fast covers the open-market route in detail.

Common questions

How much less do cash buyers pay for a house?: A genuine property buying company typically offers 75 to 85% of open-market value, a discount of 15 to 25%. Our own offers are 75 to 80%. Private cash buyers, such as a downsizer or an investor with savings, often pay close to full market value but do not complete any faster than a normal chain-free buyer.
Why do house buying companies offer below market value?: The discount covers the company's costs and risk: stamp duty at the higher rates for companies, legal and survey fees they pay on your behalf, refurbishment, months of holding costs, the fees to resell, and a margin. It also pays for taking on a property as seen, without the conditions a mortgage lender would impose.
Is an offer of 90 to 100% of market value a good sign?: Usually not. The Office of Fair Trading found firms that quoted a high figure to win the instruction, then reduced it close to exchange once the seller was committed. A firm offering near full value for a quick sale is often a broker looking for another buyer, not the buyer itself.
Can I negotiate a cash offer?: Yes. Get two or three written offers, share any recent survey or sold-price evidence, and ask the buyer to show how they reached their figure. A genuine buyer will explain the valuation and the percentage they applied.
Is a cash sale ever worth the discount?: When time pressure or the property's condition would cost you more on the open market. Months of mortgage payments, a sale that falls through, repeated price cuts, or a lender refusing to fund the property can each close most of the gap.