WeBuyAnyHome 'Alternative Route'

warwick2001

Morning All,

Just wondering if anyone has any experience of using the WBAH Alternative Route? This is where WBAH don't actually buy the house, but it is offered to one of their investor company 'partners', and they buy your property with the intention of renting it out for a few years, and then selling on.

My parents have looked at this route, and they have been offered 90% of the guide price of when the house was on the open market.

I know people say that the MO of these types of companies are to lower the offer dramatically just before completion, but given that this 'deal' is through the investor route (and they have said they guarantee the offer price) does anyone have any actual experience of using this route. Not just hearsay that this is a terrible idea.

Many thanks

housebuyer143

I read bad things, namely the people dramatically lowering the offer at exchange when they are committed. 

MovingForwards

If your parents can afford to take 90% of the market value, why don't they sell it on the open market cheaper and forget using these types of companies.

Doozergirl

MovingForwards said:

If your parents can afford to take 90% of the market value, why don't they sell it on the open market cheaper and forget using these types of companies.

This.  At least give normal buyers a chance.  Investors might be investors, but they're not invested like someone who wants a house as their home. 

There's no guarantee that anyone will follow through, so why put yourself out there to people who only want cheap property?  

If you set an asking price low enough and prepare to achieve it if necessary, you'll almost certainly do better than that.  The market has a habit of finding its level. 

Better for everyone, always.  

Noneforit999

The fact they can pull out or lower the offer right up to exchange makes me uneasy about them.

Unlike webuyancar, they don’t take the house there and then and pay the money quickly. There are several weeks/months between them offering and exchanging contracts so I would be rather worried if it were me. 

Mahsroh

It's a sellers market. If they're happy with 90% of the "guide price" then in this market it should sell easily enough on the open market, but with a smaller risk (though the risk will always exist) of the buyer trying to gazunder at the 11th hour. 

warwick2001

Thanks everyone. This idea was mooted as they had accepted an offer, and fallen through twice, and they were pretty sick of the whole experience.

However, they have decided that they are going to rent the property out for a minimum of 12 months, and see what happens next year in regards inflation, cost of living etc etc.

Doozergirl

warwick2001 said:

Thanks everyone. This idea was mooted as they had accepted an offer, and fallen through twice, and they were pretty sick of the whole experience.

However, they have decided that they are going to rent the property out for a minimum of 12 months, and see what happens next year in regards inflation, cost of living etc etc.

Cost of living and inflation is a worry.  It's not going to turn itself around overnight. 

Surely the threat of that affecting consumer confidence and interest rates is a good reason NOT to rent it out? 

Trying to sell when you have a tenant is a different kind of nightmare altogether.  You've still not got any guarantees of your buyers completing, but then you've got the additional stress of whether a tenant will
actually leave without being forced by the courts. 

Nothing about that is a good idea, imho.  

badger09

Noneforit999 said:

The fact they can pull out or lower the offer right up to exchange makes me uneasy about them.

Unlike webuyancar, they don’t take the house there and then and pay the money quickly. There are several weeks/months between them offering and exchanging contracts so I would be rather worried if it were me. 

Any, and every purchaser can do that. However, I agree its perhaps less likely to happen when a purchaser is emotionally, as well as financially invested in the transaction.

warwick2001

The main issue is that they have bought another house, and have moved into that one, so they are currently paying for 2 houses that is stretching their finances (hence why the quick sale WHAH idea seemed workable). It was one those horrible situations where the buyers were sent the contracts, but then unexpectedly pulled out. No-one to blame per-sa, but it meant my folks were given the dilemma of using savings etc to complete their move, or have it fall through (their vendor was very in-flexible, but that's another story for another thread). So, fast-forward 5 months, they still have 2 houses (and the costs associated with one sat empty) with no savings to draw on.

I suspect once they realise that renting a house isn't the nightmare most people think it is (we let out a house for 7 years, never had a problem) it will become a long-term plan, and they will let it for many years. But we'll see.

Thanks for the advice 

Mahsroh

Doozergirl said:

warwick2001 said:

Thanks everyone. This idea was mooted as they had accepted an offer, and fallen through twice, and they were pretty sick of the whole experience.

However, they have decided that they are going to rent the property out for a minimum of 12 months, and see what happens next year in regards inflation, cost of living etc etc.

Cost of living and inflation is a worry.  It's not going to turn itself around overnight. 

Surely the threat of that affecting consumer confidence and interest rates is a good reason NOT to rent it out? 

Trying to sell when you have a tenant is a different kind of nightmare altogether.  You've still not got any guarantees of your buyers completing, but then you've got the additional stress of whether a tenant will
actually leave without being forced by the courts. 

Nothing about that is a good idea, imho.  

Agree with this and I will add that I recently sold my house with a tenant in situ to an investor. The biggest problem I found (to quote your earlier comment on this thread) is that investors aren't invested. I had two pull out for seemingly no reason other than a change a mind, then my eventual buyer was slow to say the least. There is a reason why you don't see any BTL landlords on the "waiting to exchange" thread on here!

As a "residential" buyer I wouldn't even entertain a house that has a sitting tenant, irrespective of how many promises from the EA/Vendor that they'll leave in good time. 

OP, if the rental thing is genuinely going to be a long term thing and you / your parents are experienced landlords then fine, but if is going to be short term solution I have to agree that this is a bad idea. 

Also, not sure when the previous let that lasted 7 years ago was? But the legislation is changing all the time with more responsibilities on landlords. It's not as attractive now as it perhaps was a few years ago.