Companies that 'Cash Buy' your property

kellyl2

Hi

Has anyone ever used one of these companies? We want to sell quickly as only seen one house and dont want to miss out, but aware there are lots of companies offering buying service and have no idea how regulated/who good etc.

Any help much appreciated

somethingcorporate

They will offer you 20-30% below market value, and just before you exchange they will drop the price again once you are too far in to withdraw.

Avoid.

It will sell quickly at the right price, have you got it for sale at the moment?

BitterAndTwisted

They are not regulated and they are all shysters. Go ahead if you can afford to accept about 50% to 60% of the market value. If they actually come up with that. Beware any company that asks you to cough up money in advance of a sale for their "valuer" or anything else.

nomoneytoday

They want to sell the house for market value, and make a profit.
Guess where that margin comes from

phoebe1989seb

Don't touch those companies - even with a very long barge pole!

It is possible to price realistically, sell quickly via the normal method and buy a new place within a relatively short time-frame......speaking from experience

Good luck!

kellyl2

Thanks all - property is up for sale with EA but we've only seen one house to move to and it has had interest in it. Don't want to miss out as not sure we'll find anything else we like.
We're in a semi rural village (north wales) - the location is fantastic and great value for money but not everyone wants to / can live a semi rural lifestyle
Difficulty is even in the towns nearby a lot of properties older or bungalows. Also commuting makes our available area quite specific - me & OH travel 20 miles in opposite directions for work!

MobileSaver

kellyl2 wrote: »

we've only seen one house to move to and it has had interest in it.

Can you afford to buy the new one if you only get 70% of your current asking price and would you be prepared to accept such a reduction even if you could afford it?

Because that is what will happen if you use a We Buy Your Home For Cash type company.

GDB2222

kellyl2 wrote: »

Thanks all - property is up for sale with EA but we've only seen one house to move to and it has had interest in it. Don't want to miss out as not sure we'll find anything else we like.
We're in a semi rural village (north wales) - the location is fantastic and great value for money but not everyone wants to / can live a semi rural lifestyle
Difficulty is even in the towns nearby a lot of properties older or bungalows. Also commuting makes our available area quite specific - me & OH travel 20 miles in opposite directions for work!

If you have a house that is difficult to sell, these companies will also have difficulty selling it. As others have said, they will normally offer around 60% to 70% of market value. This is so that they can then put the house back on the market and sell it quickly, and still make a good profit after all their expenses. If your house is difficult to sell because of its location, they will have to to put it back on the market at a significant discount to market value, so they can sell it quickly. They are bound to reflect that by offering you an even lower percentage than normal.

Quite frankly, if you are prepared to accept well under the market price, you should put it on the market at a discounted price, and you will get a buyer quickly. At least that way, you will save the substantial profit margin these companies want to take out of the transaction.

hazyjo

You could always consider auction...

Did the EA tell you that there was 'interest'? They often say this so I'd take it with a pinch of salt. No offers on it though... if somewhere has such 'interest', you would think there would be an offer, no? They might not lie as such, but 'interest' could be so many hits on RM, a few telephone enquiries, or a viewing. Let's just say they have been known to 'stretch the truth'.

Price yours realistically with an EA and it will sell...

Jx

GDB2222

Since you are in the business, business_man, I assume that you agree with the percentage figures I've been talking about?

How does this work, exactly? You commit yourself to purchasing, whilst leaving it open to the vendor to back out? Otherwise, I don't really see how what you offer benefits the OP. She wants to exchange to sell her home at the same time as she exchanges to buy the new one. What is to stop you gazundering on the day of exchange (other than your excellent reputation, of course)?

MobileSaver

business_man wrote: »

I think it would be being "naive" if you honestly think you can get away with achieving 70% of your property value.

Er, assuming a rough average house price of £200k you think it naive to assume you'd only have to take a £60,000 hit to sell quickly?!?!

business_man wrote: »

Ever seen half price deals? Bunch of vultures out there and vulnerable home owners who don't have much cash or much internet knowledge to find many things out.

That is shocking that you are suggesting the norm is more like 50%! So the average loss would be £100,000. One hundred thousand pounds.

However I have to ask how many houses have you bought for cash in the last 12 months? I find it hard to believe there are that many people who would be allowed (due to outstanding mortgage) to sell at 50% even before you factor in whether anyone would ever want to.