House Buying Companies

bigredmonkey

Hi all

First post here so appreciate any help in advance. My mother has gone into care so I need to sell her house. Last year it would have sold in days but adjacent properties have been on the market for ages so I’m wondering if anyone has used a house buying company? I’m aware there will be a hit on the price but bear in mind most will go on care home fees anyway and she’s in good health other than Alzheimer’s so without sounding too clinical I’m not expecting her to go anywhere soon! 

Views/advice please?

silvercar

You will get a low price, that will drop just before exchange. Better to price reasonably and sell in the normal way.

Simonon77

There will be a big hit on the price, and really you owe it to her to get her the best price you can just in case she needs all the money from it.

Their usual tactic is to offer what seems like a reasonable price to hook you in, then lower it by a LOT a few days before exchange when the seller feels it is too late to pull out 

eddddy

In simple terms, house buying companies don't have any money to buy houses for themselves.

What they actually aim to do is...

• Advertise the property so cheaply that they expect a cash buyer to come forward within days

• Assuming they get a cash buyer, they buy from you and sell to the buyer on the same day

• The house buying company keep 20% of the selling price for themselves

• (If they can't find a buyer, the house buying company won't buy your house)

So instead, you can...

• Use a standard estate agent to advertise the property so cheaply that you expect a cash buyer to come forward within days

• You sell direct to the cash buyer - and pay the estate agent 1% or 1.5% instead of 20%

Mutton_Geoff

bigredmonkey said:

Hi all

First post here so appreciate any help in advance. My mother has gone into care so I need to sell her house. Last year it would have sold in days but adjacent properties have been on the market for ages so I’m wondering if anyone has used a house buying company? I’m aware there will be a hit on the price but bear in mind most will go on care home fees anyway and she’s in good health other than Alzheimer’s so without sounding too clinical I’m not expecting her to go anywhere soon! 

Views/advice please?

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FreeBear

silvercar said: You will get a low price, that will drop just before exchange. Better to price reasonably and sell in the normal way.

Alternatively, put it in a traditional auction (not a Modern Method of Auction). Once the hammer drops, you should get a quick sale and there won't be any attempts to renegotiate the price. If there is a minimum price below which you are not prepared to accept, you can place a reserve - An auction house will be able to advise and guide you through the process.