Experience of Property Buying Companies?

saffie

We are in the process of relocating due to job move. House to sell with no upward chain. We have priced competitively and have had 5 viewing in first week that house has been on the market but house is near main road and that is putting people off. I came across a couple of companies (QCFP and MPG Investments) that offer to buy property and in the case of QCFP the facility to rent back until ready to move.

Has anyone got experience of these type of companies, or perhaps Martin has a view on whether they do offer a sensible/realistic alternative in these difficult times.

Many thanks. We appreciate anyone who can help with this!:T

poppysarah

They will charge you a few for a valuation and then offer you a tiny amount. maybe 50% of the current market value. but if houses aren't selling ...

spuds_2

I would be very wary. As poppysarah says they charge a fee for a 'survey' or valuation - in reality often just driving past - and will offer at least 20% below market value, less I would think at the moment.

As for the ability to rent it back - again, these schemes are something to be cautious about. I am sure I have read of this happening and then the company going bust - you are then out on the street anyway.

If you are desparate to sell, an auction may be a better bet. You would need to look into the fees first, but you can set a minimum reserve of what you need to get beforehand.

zone

Depends how desperate you are to sell and the lowest offer you will accept. But they will offer quite low. As mentioned above probably 50-60% of market value, maybe lower, especially in the current climate. Auction route is probably better but there are costs up front.

The valuation from these types of companies is usually free. So if they want to charge you just to come round and make an offer dont bother with that company.

Would it not be better to market your property through an EA with a reduced asking price?

besonders1

It might be wise to inquire as to how much they would pay for the house just to see what the lowest rate it would sell for (as log as its free though) and then price it between this and the average asking prices in your area. As other have said these companies are like middles men and obviously wont give full market prices as they won't make a profit when the sell on, so you would be much better selling it at a discount with an EA.