outside companies offering to buy houses.

cwrtcoed

Hi
at present I have two semi detached properties on their own piece of land, which require some modernisation. They have been up for 12 months and I have had quite a few viewings. however, I'm getting peed because they have not been sold.
At the moment the prices for the 2 is up for £189,995, and I have been contacting two companies that offer to cash buy them, I am aware that they probably wont give the full price but I don't mind losing a bit on the sale.
one company has offered a sale of £175,000, but they would have a valuer to come up and value both properties and if feasible they would guarantee to sell it within 28 days using investors. Or the company would buy it cash but with a 20% reduction in what they offered me, I wont have to pay any fees for anything on either offer I decide. Has anyone had any experience in the above, if they are any good etc.
the other company I will attach an email they sent me to see what peoples views are on it.


In summary, here is how it works....

• We agree on a purchase price and exchange contracts today.
• We start paying your monthly mortgage and secured loans (or agree on a different monthly payment) on your behalf.
• At an agreed point in the future we complete on the purchase and the property ownership is fully transferred to us then.

If you are thinking of selling and
you don't want to drop the price,
this is something that can be a solution to your problem. We can pay full market value and purchase in the near future when the market has recovered.

• This is an
  IDEAL SOLUTION for someone who needs to get rid of their monthly mortgage and secured
  loan payments and is happy to wait for equity to be released from the property when the sale completes.
• Our property sale solution is based on agreeing a price now and completing at an agreed point in the future.
  Throughout this period your mortgage payments will be met by us, until you receive your completion money at the agreed time.
• Once we take the property off your hands, we will either rent it or find a buyer who is happy to consider buying
  it in the future at the price agreed.
• This sale arrangement is all handled by
  fully qualified conveyancing solicitors just like in any other property sale. You
  will be represented by a solicitor who acts on your behalf. We have a panel of solicitors that are specialists in this area.Some of the solicitors we use are
  MS-LAW
  & Redbird conveyancing.

Process Involved:
We will put forward a proposal outlining the monthly payments, the timescale (term) which we will pay over and the final purchase price.
A solicitor will draft the lease which means Full Repairing and Insuring. This will mean there are no maintenance or insurance payments to be made by you.
We usually look to complete within 7 years
STEP 2: We commit to purchasing your property
at a fixed price

This can be done by Exchanging Contracts. Completion will take place on, or before, an agreed future date.
We will need to be able to have a full Power of Attorney over the property so that we can fully
manage, maintain, and let the property and to also complete on a sale even if you have left the country.

This gives you peace of mind, because you know that the property is not your responsibility anymore, it becomes ours when the solicitor draws up the contracts at the beginning




STEP 3: When we complete the purchase


When the property market has improved sufficiently to allow us to purchase the property. At
this stage solicitors are notified and all debts on the property are paid within the contracted timescale. (Usually 5-7 years).

Title will then transfer to the new owner and you are released from the property.

This is giving us the right to buy the property at the agreed price within the term. We make our profit when we sell the property on, either on the open market or to a
tenant buyer. As long as you don't have any objection with us making money in the long term, this can work for both parties.

Annisele

That sounds an exceptionally bad idea to me. I'm sure other people will think of other problems, but off the top of my head:

* You'll be exchanging now, but giving the other party an option to complete at any time in the next seven years. So you might get your equity tomorrow, or in seven years. And £100k in seven years will be worth less than £100k now.

* You'll still be responsible for your property. They can't let unless you give them a power of attorney - because you're the one who'll be becoming a landlord. You'll be legally responsible for what they do in your name. There are many many ways that could go wrong.

* If you've got a mortgage, you'll be in breach of your mortgage conditions. If the lender decides to repossess as a result of that breach, you won't have the house any more - so you won't be able to deliver it up in seven years.

Actually, I can think of some more problems. But I think those might do to start with.

rosie383

I haven't even read through all of your post, but let me try to predict the answers you are going to get.

If your properties are priced correctly they will sell regardless of the work needing done. If you drop the price to even a bit more than what these other companies are offering, they will sell without all of the risks associated with the quick-buy companies.

Nobbie1967

The offer is basically heads they win tails you lose. Why not just put the properties into an auction? They'll find their value and you'll be shot of them with cash in your pocket.

eddddy

Hi cwrtcoed

You need to take a bit of a step back.

Like all businesses, these companies want to make a profit. So in this case, where do you think the profit will come from? The answer is almost certainly 'out of your pocket'.

I suspect company 1's plan is something like this:

1. Your houses wont sell at £190k - probably because they are over priced.

2. After lots of negotiation, they want to talk you into accepting, say, £140k

3. The will find 'an investor' (or anyone) willing to pay them £160k

4. They will keep the £20k as profit


So, over all, you would be better off just reducing the price yourself to £160k

mrginge

OP, you are aware that this company will have disappeared long before their proposed 'completion date' aren't you?

BarleyGB

Sounds like a very very bad idea.

Just look at the sales pitch in the email, it's clearly written to draw in the unsuspecting.

These types of deals often end up in horror story. Unecessary complicated and fraught with risk, hidden charges or attempts to devalue your property and pay you less than you are led to believe you would get.

As others have said, I you want to sell and are prepared to accept a lower price put it in an auction or drop the price £5k every two weeks. The market will find the value.

xHannahx

Your mortgage company is unlikely to approve this happening for a number of reasons.

Also there are a number of scams like this out there. You sign rights to the property, the mortgage doesn't get paid, they make all the money out of letting the property, and you lose your property for the mortgage not being paid.

Just drop your asking price, it's clearly too high for the current market. If this company are going to give you say £150k, they will sell it for £170k, easy £20k profit for them and loss for you, that had you dropped your selling price would be in your pocket.

cwrtcoed

Have anyone heard of Smart Move property group, they again have offered me £175,000 for my house, but they advertise this to investors who will guarantee to sell it within 28days. Obviously they add more on the price for themselves, but I don't have to pay any fees I get the 175,000 and no extra cost, but I have to contact my local estate agent whom have my house up for sale with and take it off the market with them because of the conflict of what I have it advertised for and what smart move would sell it for
they have sent me a document to look at and sign but I want some feedback first to see if this company is ok or am I doing the right thing

BarleyGB

Thee companies pray on the desperate, today they might offer £175k, just wait for them to use every trick in the book to reduce their offer once they've tied you in.

These companies aren't here to help you, they're here to help themselves to a chunk of your asset.

cwrtcoed

I get the price I agree on 175,000, and they have their fees of £2995+vat, but they add this into the sale so they must sell it for 177,995, if it gets sold for more I get that profit. I'm tied in for 90 days only. I don't have to sell it to anyone in that time if I'm not happy with the price, no sale no fee.
Have you heard of this company Smart Move??