House buying companies

Yorkshiretea

My ex rented out flat has been on the market with an estate agent for 2 months. It is presented well , has a new 99 year lease and is vacant. As I have a mortgage and council tax to pay on it and with no offers to date I am considering other options to sell it. Looking at quick house buying companies I can only find warnings of shady offers and tricks. Are there any straight house buying companies?
Any experience of this?

harrys_dad

There are loads of threads on "house buying companies" on here, all with the same advice: AVOID.

There are also many threads on "why has my property not sold yet?" all with the same advice; LOWER THE PRICE

G_M

Why are you trying to sell the flat for above market value?

How do I know this? Because you say: "on the market with an estate agent for 2 months. ..... with no offers to date"

Price it realistically.

ScorpiondeRooftrouser

I can't see why anyone would consider a quick house buying company because they have had no offers. A quick house buying company will offer you 60% of market value, if you are lucky. It's not because they are crooked. it's what they do...buy houses very cheaply off people who need to sell them quickly and cheaply. If they paid more than that they wouldn't have a business. They need to be able to sell your house on, fairly soon after buying it, for enough of a profit to cover all their fees and overheads and make it worthwhile.

If you are not in a tearing hurry just drop the price to 10% under market value and sell it quickly yourself.

michael1234

G_M wrote: »

Why are you trying to sell the flat for above market value?

How do I know this? Because you say: "on the market with an estate agent for 2 months. ..... with no offers to date"

Price it realistically.

I think the case is you just don't appreciate what an illiquid market means. Compared to many other assets, there are not many buyers or sellers of houses in a given area and typically each buyer's requirements are individual. That creates a scenario whereby to obtain the best price one must wait for the "right" buyer. That means there is no "correct" price - it depends on how long you can wait to sell.

If you don't believe me, look at any RICS valuation report that most mortgage providers use. Most of them provide multiple valuations based on how long the seller can wait. Typical numbers are given for 30,60,90 or 180 day sale values.

If you want to sell your house "tomorrow" be prepared to sell for a lot less than if you can wait for 90 days.

Davesnave

michael1234 wrote: »

If you want to sell your house "tomorrow" be prepared to sell for a lot less than if you can wait for 90 days.

I think GM's 'realistically' means at the price that will sell it quickly, but not to a company which will take actions like dropping the offer price at the last minute.

And who mentioned tomorrow? Only you, I believe.

csgohan4

for starters flat and leasehold makes me think Bargepole, esp with only 99 years on lease and potentially expensive ground rent and service charges.


Price it to the current market, not what you think it's worth and you will sell.

mrginge

michael1234 wrote: »

I think the case is you just don't appreciate what an illiquid market means. Compared to many other assets, there are not many buyers or sellers of houses in a given area and typically each buyer's requirements are individual. That creates a scenario whereby to obtain the best price one must wait for the "right" buyer. That means there is no "correct" price - it depends on how long you can wait to sell.

If you don't believe me, look at any RICS valuation report that most mortgage providers use. Most of them provide multiple valuations based on how long the seller can wait. Typical numbers are given for 30,60,90 or 180 day sale values.

If you want to sell your house "tomorrow" be prepared to sell for a lot less than if you can wait for 90 days.

I'm loving the idea that the longer the property is on the market, the higher the price is.

Great work.

Yorkshiretea

Thank you for your responses but I asked if anyone had any experience of a house buying company. I should have said that actually I have had two parties interested , one at full asking price . Neither unfortunately in a position yet to proceed. As I said, I am exploring my options as the property is costing me in mortgage and council tax currently.

ScorpiondeRooftrouser

My same comment stands. If you have two people interested, drop the price 10-20% and you will get many more interested, some ready to proceed. A house buying company will not offer nearly as much as they will.

eddddy

Barbara_Malki wrote: »

Thank you for your responses but I asked if anyone had any experience of a house buying company.

I know somebody who phoned one, just to see what they said.

Whilst on the phone they looked at the Rightmove listing and instantly 'offered' £20k less - subject to survey. (on a property listed at £250k).

The phoned back one day later to reduce their offer by another £20k - subject to survey.

Their goal seemed to be to try to judge how desperate, naive and/or gullible the seller was.

i.e. If the seller seems desperate, naive and/or gullible they would keep going. If not, they'll give up and look for another seller to target.


I guess there's no harm in contacting these companies, so that you can judge for yourself. But you'll probably find that they'll give you a very 'hard sell' and offer you a very bad deal.