Buying a house in today’s economy is challenging for any average Joe. Wealthier-than-thou buyers competing for the same properties as you and pushing up the already high real estate prices is a big challenge now. As if one didn’t have enough to worry about with skyrocketing home loan interest rates? Even if you do cross all those obstacles, the final boss of this game, a.k.a. the seller, must be willing to take up your offer. This is where you might find yourself stumped with demands like “cash buyers only". Will they only seal the deal with you if you waddle over with a briefcase full of cash like some 80s movie? Not quite.
Taking to Tik Tok, one woman who goes by Finance Fran, revealed what it actually means. The supers on her video read, “When someone says they paid cash for their house or bought their car with cash, it doesn’t literally mean they paid with physical dollar bills (although it could). It just means they had enough money in their bank account to pay the full price upfront."
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This means that when sellers are looking for cash buyers only, they want someone with all the money immediately available. In other words, if you need to apply for a mortgage or obtain funding of any kind, the offer will not be considered. That is also applicable for funds– such as inheritance or employment bonus– that may take a while to come through. The case with money tied up in assets that are yet to sell, like a property or vehicle or card collection you are yet to sell, the offer will not be accepted.
What this demand often entails is for the buyer to present proof of funds to show that they have the money for the full value of the property with them. Usually, a recent bank statement will suffice.
Finance Fran’s video seemed to have cleared up a major misunderstanding for many people. Since being posted in February, it has accrued over 560,000 likes. The Sun quoted one user commenting, “I bought my first car in cash (took the cash out of the bank) because I thought this was what ‘in cash’ meant." Another said, “the way this took 29 years of my life to realise!"
Some, however, knew about the meaning of the term beforehand and were surprised others did not know.
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