House Buying companies

eddddy

laurenpurdy123 wrote: »

Not all offer such low prices. I am one of those company owners and we offer 75% if in a good let-able condition as well as pay legal fees. We also offer other options. I personally wouldn’t write them off completely if you’re still struggling to get it sold, call around and see what they say.

So you admit that you pay 75% of market value - that's shocking.

By definition, EAs sell properties at market value.

So..

• if my property has an asking price of £425k, an EA might sell it at £400k. (i.e. the market value is £400k)

• Whereas you would offer me 75% of market value - so that's £300k

Why is it a good idea for me to lose £100k by selling to your company?

Crashy_Time

Exodi wrote: »

From a purely financial standpoint: madness. I've heard they typically pay 60% of market value. The Estate Agent fees you're trying to offset are typically 1-3%. It would make more sense to sell your house at 80% of market value on the provision that you will only accept cash buyers with funds in place.

I'll let someone that's used one of these services comment on the speed (though I think you'll be hard pressed to find one, this is a money saving forum after all!).

Still might not sell, as "market value" isn`t set in stone?

Crashy_Time

Davesnave wrote: »

" I realise you get much less than the market value but will this offset the Estate Agents fees."

OP, an agent might cost you, say, £2 - 3k on an average sort of house.

A quick sale company would want to offer you tens of thousands less for your house.

If you are really lucky they'll be up-front about it. If not, they'll string you along for a while till you are committed to something else.


Just go with an agent who sells lots of houses where you live and ask them to price for a quick sale. Because you're willing to sell at an attractive price, they should also offer you a good deal on fees, as your house won't be stuck on their books for a long time.

Probably easier said than done in many cases?

System

eddddy wrote: »

So you admit that you pay 75% of market value - that's shocking.

By definition, EAs sell properties at market value.

So..

• if my property has an asking price of £425k, an EA might sell it at £400k. (i.e. the market value is £400k)

• Whereas you would offer me 75% of market value - so that's £300k

Why is it a good idea for me to lose £100k by selling to your company?

Usually £200k+ is out of range for that offer due to what you just said, it’s too much of a loss for the home owner. Therefore in those cases we look at other options. There are many different options for people depending on their situation. Some companies will just offer to buy the house really cheaply, others don’t. It’s worth doing as much research as possible before signing in to any agreement but my point is to not completely write them off if you need an easy option as they aren’t all bad.

eddddy

laurenpurdy123 wrote: »

I am one of those company owners and we offer 75% if in a good let-able condition as well as pay legal fees.

laurenpurdy123 wrote: »

Usually £200k+ is out of range for that offer due to what you just said, it’s too much of a loss for the home owner. Therefore in those cases we look at other options.

I'm intrigued. You own a company that buys houses at prices up to £200k, at very short notice.

So how much funds do you have 'standing by' to make these purchases? I guess you must have £1m plus?


I see from your posting history that you've been asking for help in running your other company - a cleaning company that employs 3 ladies (who don't earn enough to pay tax).


How are the two companies doing? Which generates the better income and ROI - your property investment company or your company with 3 part-time cleaners?


(I'm interested to know because the "quick house buying" industry seems to be full of 'dreamers', 'bluffers' and 'aspiring scammers' who talk nonsense, so I'm keen to understand the real picture.)

Comms69

laurenpurdy123 wrote: »

Usually £200k+ is out of range for that offer due to what you just said, it’s too much of a loss for the home owner. Therefore in those cases we look at other options. There are many different options for people depending on their situation. Some companies will just offer to buy the house really cheaply, others don’t. It’s worth doing as much research as possible before signing in to any agreement but my point is to not completely write them off if you need an easy option as they aren’t all bad.

£200k is out of your price range??


I mean £200k for a £270k asset would surely allow you access to even high interest lenders?

Davesnave

Crashy_Time wrote: »

Probably easier said than done in many cases?

I expected the reader to infer the word 'historically,' if necessary.

Most of us are grown-ups here, so well beyond the literal translation stage, so I thought I was on safe ground. I guess it takes all sorts....