"Quick Buy" Property Companies - any recommended?

titusbungle

Are there any of these companies that are reputable and don't rip you off? We have an apartment that we bought for £85k, owe £73k but only expect to get £60k for - we have been stuck here for 7 years and due to a number of factors can now afford to get out. We'd prefer to not have to go through the usual estate agents, waiting for viewings and buyers dropping out. Any recommendations?

kingstreet

Will you have the funds to make up any shortfall? Your mortgage lender won't let you sell for less than the outstanding mortgage amount without a plan in place to clear the negative equity.

They may also not permit a sale to a third party company as this would not represent your best efforts to achieve the best possible price.

Speak to lender, first.

titusbungle

kingstreet wrote: »

Will you have the funds to make up any shortfall? Your mortgage lender won't let you sell for less than the outstanding mortgage amount without a plan in place to clear the negative equity.

They may also not permit a sale to a third party company as this would not represent your best efforts to achieve the best possible price.

Speak to lender, first.

We can afford to make up £13k if it sells for £60k - we bought it for £85k..... Surely it can't have lost more than 30% of its original value?

kingstreet

No idea. Sorry.

seven-day-weekend

Also bear in mind that many, if not most, of these companies will offer substantially less than market value.

Why not put it into auction with a reserve price of £60k?

GDB2222

titusbungle wrote: »

We can afford to make up £13k if it sells for £60k - we bought it for £85k..... Surely it can't have lost more than 30% of its original value?

Unfortunately, some properties have lost 30% and more. City-centre flats in Leeds, for example.

The way the quick buy companies work is they pay around 70% of market value. If they are reputable, they say this up-front. The less reputable ones bang the price down just at the point of exchange.

I have no idea what your flat is worth, but if it has a market value of £65k, just as an example figure, they will buy it for £45k. That way, they can sell it on again and make a profit after meeting all their expenses.

What I can absolutely guarantee is that they won't pay you £60k (again based on an example market value of £65k). £5k profit is simply not enough for them. Sorry.

So, just put it on the market at a good price and sell it the usual way, or give an absolutely huge discount to the buy-it-quick merchants for the convenience of dealing with them. Your choice.

googler

Since the OFT has just launched an investigation into these companies and their tactics, perhaps it might be wise to hang fire and see which are still standing after the OFT has reported back and/or regulated them.

http://www.bbc.co.uk/news/business-22185163

http://www.oft.gov.uk/news-and-updates/press/2013/35-13#.UXOwQqL_nTo

titusbungle

seven-day-weekend wrote: »

Also bear in mind that many, if not most, of these companies will offer substantially less than market value.

Why not put it into auction with a reserve price of £60k?

Can you advise any further on how this works - costs etc?

G_M

titusbungle wrote: »

Can you advise any further on how this works - costs etc?

* Nice chap from company comes and tells you your troublesare over.
* offer to buy fast at (say) 80% market value and help you get on with your life
* You agree, and sign contract without reading it cos he's so nice
* 'Valuer' rings to say he's coming round from company to value your property, and requests his fee before he comes
* You pay the Valuation fee of (say) £500
* Nice man from company rings to say he's putting the paperwork together and yoiu need to pay the admin fee as outlined in the contract you signed
* you pay £ (say) £500 admin fee
* Valuer comes round, stays 5 minutes, leaves
* You receive Valuation. This is about 70% of the amount you expected
* you receive offer to buy at 80% of the Valuation (which is already 70% below what you thought it should be
* You realise you are going to be way out of pocket
* You also realise you are
a) now desoperate to sell as more time has passed and
b) you are already £1000 out of pocket
* You ring nice man
* Nice man points out the contract specifies a 5% 'withdrawal fee' if you withdraw from contract after Valuation
* You climb large building and jump off in despair.

They are all much like this, with variations.

Sell via a traditional EA but price it very attractively - someone will jump at a bargain.

Or use an auction.

Kynthia

G_M wrote: »

* Nice chap from company comes and tells you your troublesare over.
* offer to buy fast at (say) 80% market value and help you get on with your life
* You agree, and sign contract without reading it cos he's so nice
* 'Valuer' rings to say he's coming round from company to value your property, and requests his fee before he comes
* You pay the Valuation fee of (say) £500
* Nice man from company rings to say he's putting the paperwork together and yoiu need to pay the admin fee as outlined in the contract you signed
* you pay £ (say) £500 admin fee
* Valuer comes round, stays 5 minutes, leaves
* You receive Valuation. This is about 70% of the amount you expected
* you receive offer to buy at 80% of the Valuation (which is already 70% below what you thought it should be
* You realise you are going to be way out of pocket
* You also realise you are
a) now desoperate to sell as more time has passed and
b) you are already £1000 out of pocket
* You ring nice man
* Nice man points out the contract specifies a 5% 'withdrawal fee' if you withdraw from contract after Valuation
* You climb large building and jump off in despair.

They are all much like this, with variations.

Sell via a traditional EA but price it very attractively - someone will jump at a bargain.

Or use an auction.

I thought the OP was asking how putting it into an auction works. Love your analysis though. :T

HAMISH_MCTAVISH

titusbungle wrote: »

Are there any of these companies that are reputable and don't rip you off?

No.

Simple as that.

Their entire business model revolves around paying very significantly less for the property than you could get on the open market. And the boards are full of horror stories about endless rip-offs along the way, as per GM's post above.

Stay well clear.

Put it on the open market at a discount, or better yet, put it in an auction with a lower reserve.

If you are genuinely able to sell it fast at a price that is 10% to 20% below what other local comparable properties have recently sold for, someone will bite your arm off to snap it up.