All genuine direct cash buyers offer below the full open-market value of a property. That is not becasue they are trying to rip you off — it reflects the risk, cost, and capital they take on by purchasing quickly and in any condition. But knowing the realistic range matters before you accept any figure or sign anything.
This article explains the benchmark Compare Cash House Buyers uses, what causes offers to be higher or lower, and how to compare a cash offer against the realistic proceeds you would receive from an estate agent or auction.
Our current analysis indicates that genuine direct cash buyers typically offer around 80%–83% of full open-market value in the majority of cases. This benchmark applies mainly to freehold properties with minimal issues in an average market.
This is not an industry-wide guarantee. It is our independent assessment based on bought-price and sold-price data from genuine cash purchases — not a figure taken from operator marketing. It should be used as a starting reference point, not a fixed rule.
Important
The often-quoted '80–85% of market value' figure circulates widely in the cash buying sector, but it is frequently used loosely and without qualification. CCHB's 80%–83% benchmark applies specifically to standard freehold properties. Some properties attract lower offers. Some situations may support stronger offers. The range is a useful guide not a guarantee.
What Can Bring an Offer Below 80%?
A number of factors can push a cash offer below the 80%–83% range. The more of these that apply to a property, the larger the discount can potentially be;
Short lease — leasehold properties with fewer than 80 years remaining attract a significantly larger discount because the resale pool shrinks sharply. Fewer than 70 years can make it very difficult to sell on to mortgaged buyers at all. A cash offer will reflect the cost required to extend the lease.
Leasehold flats in general — service charges, freeholder restrictions, and resale complexity all increase buyer risk and typically reduce offers.
Retirement properties — these have restricted resale markets, often to buyers over a certain age, and have high service charges and other fees. Only specialist companies will consider purchasing a retirement flat becasue of this.
High service charges — any property with annual service charges above typical thresholds will increase holding costs significantly which will be reflected in the offer.
Unmortgageable properties — non-standard construction, serious structural defects, fire or flood damage, very short leases, Japanese knotweed, or properties with title defects may make mortgage lending impossible. A cash offer will take the costs of fixing any issue into account.
Legal complications — unresolved title issues, missing deeds, easement disputes, or properties caught in complex probate can increase the buyer's risk and legal costs
Tenanted properties — these add conveyancing complexity and restrict resale options. The nature of the tenancy and the compliance record of the landlord both affect the offer.
Lower-demand locations — in areas where property sales are considerable slower, such as some rural areas, the holding costs will be higher, this will be reflected in the offer.
What Can Take an Offer Above 80%?
Some situations may support higher offers — occasionally approaching the upper end of the benchmark or beyond it. These situations are mainly ones that qualify for stamp duty relief. Stamp duty is a significant cost that cash buying companies need to consider so if that is reduced they can offer more competitively. Such as in these cases;
Inherited property — where the property is clear of occupants, in reasonable condition, and has no legal complications.
Chain-repair cases — repairing a broken property chain qualifies for stamp duty relief.
New-build-purchases — If you are purchasing a new build property as part of a part exchange scheme.
What Drives the Offer Level? A Practical Summary
Factor
Effect on Offer
Standard freehold, good condition, clean title
Best chance of 80–83% benchmark range
Property requires moderate refurbishment
Offer reflects estimated work cost — may be 75–80%
Property requires significant refurbishment
Offer may drop well below 75%
Leasehold flat, short lease (under 80 years)
Materially below benchmark — 70% or lower possible
Unmortgageable / non-standard construction
Significant discount — depends on buyer appetite
Tenanted property with complications
Reflects added legal complexity and resale risk
Inherited property / chain-repair / purchasing new build
May support stronger offer — assess individually
Slow rural market
Often materially below benchmark
Headline Price vs Net Proceeds: The Comparison That Actually Matters
The percentage discount is only half the picture. What matters for most sellers is what they actually receive — their net proceeds — after all costs are accounted for.
A standard estate agent sale does not come free. The typical costs include:
Estate agent fees: generally 1–3% of the sale price plus VAT
Legal fees
Mortgage payments during the sale period — typically four to six months, sometimes longer
Council tax, utilities, and building insurance throughout the selling period
Repair, decoration, or presentation costs before listing
Price reductions following a buyer's survey — these happen more often than sellers expect
The risk and cost of chain collapse, which may require the process to restart entirely
A cash sale typically involves:
A lower headline price
Fewer or no estate agent fees
A much shorter timeline — meaning fewer months of holding costs
Legal fees sometimes covered by the buyer — check this before assuming
No chain dependency
Greater control over the completion date
The risk and cost of chain collapse, which may require the process to restart entirely
Key point:
In many cases the financial gap between a cash sale and an estate agent sale is narrower than the headline percentage suggests — once you factor in real holding costs, agent fees, and the risk of delays. Use a net proceeds calculator to see the comparison in concrete figures for your situation.
Worked Illustration
This is a simplified illustration only. Real figures depend on your property, market, and timeline.
Cash buyer sale
Estate agent sale
Assumed open-market value
£250,000
£250,000
Sale price
£205,000 (82%)
£242,000 (after 3.2% reduction)
Estate agent fee (1.5% + VAT)
£0
–£4,356
Legal fees
Often covered
–£1,800
Mortgage payments (5 months at £900/month)
–£900 (1 month)
–£4,500
Holding costs (council tax, insurance, etc.)
~£300
~£1,500
Approximate net proceeds
~£203,800
~£229,844
Approximate difference
-
~£26,000
In this illustration the estate agent route still produces more. But the difference is roughly £26,000, not £45,000 as the headline prices alone might suggest. For a seller facing five months of mortgage, holding costs, and uncertainty — or dealing with a property that may not achieve full open-market value — that gap may look different.
This is not an argument for cash buyers in every case. It is an argument for comparing net proceeds, not just headline percentages.
How Do I Know If an Offer Is Reasonable?
There is no single definitive test, but several reference points help:
Get an independent RICS valuation — this gives you a reliable market-value benchmark against which to assess any cash offer
Fewer or no estate agent fees
Check recent sold prices for comparable properties nearby at gov.uk/search-house-prices
Get offers from more than one buyer — comparing offers is the most practical way to identify an outlier
Check the buyer's model — a broker or hybrid operator may build in an additional margin on top of the direct buyer's discount. Ask directly whether they are buying with their own funds
Be cautious of an initial offer that seems notably higher than you expected — this may be an inflated figure designed to secure your commitment before the real offer arrives
Use our cash offer calculator tool to get an idea of what a cash offer from a house buying company might look like.
When a Cash Offer May Be the Right Decision
cash offer at 80%–83% may represent a sensible financial outcome if:
You face holding costs that would significantly erode the open-market proceeds over a five- to six-month sale
The property is difficult to mortgage and the open-market buyer pool is very limited
Chain collapse risk is high and a failed sale would mean restarting the clock
Time pressure — repossession risk, a fixed relocation date, or another deadline — makes a lower-but-certain outcome more valuable than a higher-but-uncertain one
When a Cash Offer May Not Be the Right Financial Decision
A cash offer is likely to cost you materially if:
Your property is in good condition, mortgageable, and in a strong local market — an estate agent sale is likely to produce significantly better net proceeds
You have no time pressure and can comfortably sustain the holding costs of a longer sale
The cash offer you have received is notably below 80% with no clear justification in the property's condition or legal position
Frequently Asked Questions
CCHB's benchmark for genuine direct cash buyers is approximately 80%–83% in standard freehold cases. This is not a universal rule — leasehold flats, short leases, problem properties, and high-service-charge stock can attract significantly lower offers. Some situations may support stronger pricing.
No. Offer levels vary by buyer type, property type, location, legal position, and urgency. A broker or hybrid operator may build in an additional margin. Compare offers from more than one genuine direct buyer before deciding.
Yes, and you should. Get a second opinion — either an independent valuation or a competing offer — and use it as a reference point. Be cautious of any company that creates pressure to accept quickly without proper due diligence.
Not necessarily. Cash buyers price risk and cost into their offers. A lower offer may reflect the property's condition, legal position, or resale profile rather than bad faith. However, an offer that is significantly below the expected range without explanation — or an initial high offer followed by a late reduction — warrants more scrutiny. See our article on red flags and scam avoidance for more detail.
Yes. An independent RICS valuation gives you a reliable reference point for assessing whether a cash offer is reasonable. If you don't want to pay for a RICS valuation you can aways get the opinion of a couple of local estate agents and take the average to use as a benchmark.
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