Websites/Companies Buying Homes for Cash

RHemmings

IBigphil1474 said:

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.

I've looked up some of these companies on TrustPilot, and found such tales of offer price dropped close to exchange. For a number of such companies. 

MobileSaver

400ixl said:

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

You have to wonder how desperate they must have been to give away up to 25% of their main asset in life - that has to be literally tens of thousands of pounds thrown away.

theartfullodger

Avoid.  Defo, avoid

RHemmings

MobileSaver said:

400ixl said:

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

You have to wonder how desperate they must have been to give away up to 25% of their main asset in life - that has to be literally tens of thousands of pounds thrown away.

Being repossessed is probably worse. 

Also, being able to get on with your life when you may not have many years left may have value.

I'm not condoning these companies. But, I think there are situations where I can understand people using one. Just that the reviews I saw suggested that some people end up out of the frying pan into the fire. 

eddddy

When you understand how most of the companies work, you realise it's illogical to use them.

For example:

• You're struggling to sell your house with an asking price of £300k

• The house buying company might decide that the house would sell to a cash buyer within 10 days if it was priced at £250k

• So they'll offer you 80% of £250k - i.e. £200k

• Assuming they find a buyer who will pay them £250k, they'll go ahead and pay you £200k (in a back-to-back transaction)

• (If they can't find a buyer, they'll walk away without buying your house)

So why bother to use the house buying company? Why not reduce the asking price from £300k to £250k with a regular EA, and get a cash buyer within 10 days?


... and maybe pay the EA a 1% fee of £2.5k - instead of giving £50k to the house buying company.

Herzlos

You missed the final step - towards the end of the process, declare that the computer has re-assessed it and they can now only offer £175k, knowing the desperate seller probably won't be able to say no.

There'd be no harm in getting a quote for what they'd pay you for it and listing it for sale on the open market for slightly above that. That's how I price cars