Websites/Companies Buying Homes for Cash

Chubba

Hello

I'm considering moving house in the next 6-12 months (my current home is a first-time buy so this will be the first time I will be selling and buying a house) so naturally have been doing some research - e.g. market values, average selling times, typical fees etc. A few google results popped up with websites and companies willing to buy any house for up to 100% market value, hassle free. Some have even claimed to cover all associated fees.

I've never really known or heard of these schemes before so am reaching out to this forum to see if anyone has ever used this method of selling their house? Or if anyone's thought about doing so but backed out because of any bad experience?

To be honest, if I was to use these I wouldn't expect 100% market value because at the end of the day, the company needs to make a profit when they sell it on (I assume that's what they do) and you're paying for the convenience right? But assuming someone would like a quick sale and don't mind getting below market value are there any disadvantages to think about versus simply just going the traditional route?

It's just piqued my curiosty really - is it popular, are there many sellers that do it this way, how much sellers potentially lose out by getting below market values etc.?

Thanks

user1977

Only for the desperate really - their modus operandi is that they're seeking to immediately resell the property, with enough of an uplift in the price to take a profit. So why wouldn't you just want to seek their onward buyers rather than the middle man?

They are technically correct in saying that they will pay "up to" the market price, because that covers everything below!

born_again

Chubba said:

Hello

I'm considering moving house in the next 6-12 months (my current home is a first-time buy so this will be the first time I will be selling and buying a house) so naturally have been doing some research - e.g. market values, average selling times, typical fees etc. A few google results popped up with websites and companies willing to buy any house for up to 100% market value, hassle free. Some have even claimed to cover all associated fees.

I've never really known or heard of these schemes before so am reaching out to this forum to see if anyone has ever used this method of selling their house? Or if anyone's thought about doing so but backed out because of any bad experience?

To be honest, if I was to use these I wouldn't expect 100% market value because at the end of the day, the company needs to make a profit when they sell it on (I assume that's what they do) and you're paying for the convenience right? But assuming someone would like a quick sale and don't mind getting below market value are there any disadvantages to think about versus simply just going the traditional route?

It's just piqued my curiosty really - is it popular, are there many sellers that do it this way, how much sellers potentially lose out by getting below market values etc.?

Thanks

Most people that use them are desperate to shift the house on, be that debt or other reasons.
It is certainly not very MSE given the loss you are going to be taking.

born_again

Chubba said:

Hello

I'm considering moving house in the next 6-12 months (my current home is a first-time buy so this will be the first time I will be selling and buying a house) so naturally have been doing some research - e.g. market values, average selling times, typical fees etc. A few google results popped up with websites and companies willing to buy any house for up to 100% market value, hassle free. Some have even claimed to cover all associated fees.

I've never really known or heard of these schemes before so am reaching out to this forum to see if anyone has ever used this method of selling their house? Or if anyone's thought about doing so but backed out because of any bad experience?

To be honest, if I was to use these I wouldn't expect 100% market value because at the end of the day, the company needs to make a profit when they sell it on (I assume that's what they do) and you're paying for the convenience right? But assuming someone would like a quick sale and don't mind getting below market value are there any disadvantages to think about versus simply just going the traditional route?

It's just piqued my curiosty really - is it popular, are there many sellers that do it this way, how much sellers potentially lose out by getting below market values etc.?

Thanks

Most people that use them are desperate to shift the house on, be that debt or other reasons.
It is certainly not very MSE given the loss you are going to be taking.

BarelySentientAI

Chubba said:

how much sellers potentially lose out by getting below market values etc.?

30-50%      

FreeBear

Chubba said: A few google results popped up with websites and companies willing to buy any house for up to 100% market value, hassle free.

More likely 50-75% of the market value.

Unless you are really, really desperate, one of these companies might be an option. But going to a traditional auction is more likely to get a better price.

RHemmings

Shouldn't the title of this thread be: 'Websites/Companies Buying Homes for Not Very Much Cash'?

400ixl

Are these guesses as to the amount, or based on knowledge? Just curious really. I know of a couple of people who have done this over the years, so not a big sample size and probably 10+ years ago.

They both got between 75 and 80% of the market value for theirs.

We thought about buying a new build a couple of years ago and asked about the trade in value (out of curiosity) and it was 78% of the market value. We would be very unlikely to go down that route (and didn't decide to look to move) and that was at above the top end of what is being stated here.

Its also not only the price, but it is things like long stop completion dates that they control and may not line up with your next purchase that would also be a concern.

user1977

We thought about buying a new build a couple of years ago and asked about the trade in value (out of curiosity) and it was 78% of the market value. 

That sounds atypical. In my experience part-exchange is generally for a fair market value - the builders are making their profit on the price for the new house, not aiming to make a similar margin by reselling your old place.

Herzlos

These companies usually try and find a buyer first, which is usually a cash buyer who is wanting to pay less than the market rate. So you may find it'll still take a while.

Then both will want a cut and try to drive the price down later. It's really only for the desperate.


You're better contacting a proper local estate agent and selling with them, where you can always drop the price if you need to speed up the sale.

Bigphil1474

To add to the above, I've also seen tales about them dropping the offer price close to exchange which puts you in a difficult position. Lots on Facebook about how they operate, and very little is good. Definitely a call of last resort.