How "safe" are the cash-buyer businesses?

CARBr6

My wife and I are separating and because of our financial situations neither of us can afford to buy the other out of the house so it is going to be sold.
However it has a half finished extension so the chances of selling to a private buyer with a mortgage is very slim, I have seen Google ads for companies who say they're cash buyers and can give you a valuation and offer and complete the whole process within two weeks (some even claim 7 days)

I am immediately suspicious, but we have a lot of equity in the property so even if they offer only 80-90% of market value we will stoll both come out of it with a large sum.

I haven't been able to find any honest and believable reviews. Does anyone have experience in selling a house in this manner?

TIA

housebuyer143

They don't offer that much, the tend to offer you 50-60% of market value.. It's really only for desperate people and you would have better luck at an auction. .I have also heard once they get a desperate seller, (maybe in a chain) they will lower the price they will pay a few days before exchange as then the sellers are stuck and forced to accept the lower offer 

user1977

Just market in the normal way but make clear it's for cash buyers. All the "we buy any house" people do is flip it on to someone else anyway, so you may as well find the ultimate buyer yourself. 

TBG01

Only experienced it once through work.

In that matter they vastly dropped the purchase price the day before exchanging and completion.

From what I've heard that seems to be the norm as they know the seller is somewhat desperate to sell so will accept the lower offer than start the process all over again with a new buyer.

That's how they sucker you in with the quick timescale. Not saying 7 days isn't possible, but it's highly unlikely.

CARBr6

I did suspect something along those lines. 
One problem is it needs to sell quickly. 

Imagine sharing a house with your ex-partner 

ProDave

Can you not come to some arrangement between you to finish the extension, get it signed off by building control and market it normally?  That will give the better return. so has to be worth trying for?

Loza2016

Building work can be very stressful and put a strain on any relationship. Our last renovation nearly ended in divorce. 

I agree with Pro Dave about working together and trying to get the extension finished before selling. 

Good luck hope you work something out. 

Postik

I know someone who owns this type of business and actually in their instance they are honest and straight-forward, but I suspect they would be looking to pay waaaay below market value.  Like 30-40% below.

eddddy

As others say, by far the best bet would be to get the extension finished, one way or another. Selling with an incomplete extension might reduce the selling price by tens of thousands of pounds. 

Are you and your ex both agreed that you'd effectively 'pay' tens of thousands of pounds to get away from each other a couple of months quicker?


But if you really do want to sell quickly, consider a conventional auction. They attract builders who are cash buyers. (but like I say, you'd take a huge hit on price.)

Maybe ask a few estate agents how much they think the house would sell for with a finished extension. And ask an auctioneer what reserve they'd want to put on it for an auction.

ReadingTim

Just auction it.  The lots offered by this outfit seem to have a 6 week completion period, which sounds reasonable.  

mi-key

You would probably end up better of financially moving out, renting somewhere for 6 months ( or moving in with a relative or friend if possible ) get the extension finished, then sell for a reasonable amount rather than try and auction it.

It may cost you you a few thousand to rent, but it will solve the immediate problem of having to live together ( often not seeing each other all the time can make people more reasonable as well and help on that side ) 

The other thing to consider is how much equity you have in the property. If it sells very cheap at auction, you may not get enough to clear the mortgage which will cause loads more problems.