Cash buying companies

Bigphil1474

As above, go to an auction if you want to sell quick (not modern method auction). It is probably gonna be quicker than one of these house buying companies anyway, and you'll probably get more money for your property. 

kb1956

Thanks everyone your comments I have now decided to go down the conventional estate agent route 

ReadySteadyPop

eddddy said:

MeteredOut said:

Have you asked for a copy of the contract you would have to sign, to ensure that assurance is in writing?

With many / most house buying companies, it's more complicated than that.

For example, the house owner will often be required to sign a 6 month option agreement stating the fixed price.

So if you really want to go down that route, it's more important to negotiate the option period down from 6 months, to maybe 14 days.




The backround is often like this:

Typically, the house buying company don't have any money to buy houses with.

When they say "We will buy your house", they mean (using some example numbers)...

• "You sign a contract giving us exclusive rights for 6 months to buy your house from you for £240k" 
• "Then we will start to look for a buyer who is prepared to pay £300k"
• "If we find a buyer, we will do a same day 'back-to-back' transaction"
• i.e. On a specific day (e.g. 15th April) the buyer will pay us £300k for the house, and we will pay you £240k

So the problems include...

If they can't find a buyer, you're stuck for 6 months unable to sell to anybody else

That's when the pressure to reduce your price kicks-in. In simple terms, they might say something like...

"You can either volunteer to accept a reduced offer of £200k instead of £240k, otherwise you'll have to wait 6 months to sell"

How do these companies stay in business if the traditional agent route or auction route is so much better?

eddddy

ReadySteadyPop said:

How do these companies stay in business if the traditional agent route or auction route is so much better?

Obviously, I'm not referring to any companies mentioned in this thread - because I don't know them. So these are general comments.

But essentially some house buying companies stay in business in the same way that some of these types of companies stayed in business...

• Companies selling timeshares
• Companies selling PPI
• Companies selling Student Pod Investments
• Companies selling hotel room investments
• Companies selling car park space investments

They have very good 'sales patter'.

And often the people who contact house buying companies are in a dire financial situation, under stress, and perhaps not especially financially sophisticated. So very easily persuaded.

Sometimes it's a bit like 'grooming'. The sales people spend time 'getting inside the head' of their victims, until the victims trust them implicitly. 

And when friends and family tell the victims they're being ripped off, they don't believe that their 'wonderful new friend' (the sales person) would do that.



And setting up a house buying company is fairly simple. You hardly need any money - you just need a website and a mobile phone - and a persuasive sales manner. And perhaps spend a bit of money on lawyers to draw up agreements etc.


 

jimbog

ReadySteadyPop said:

eddddy said:

MeteredOut said:

Have you asked for a copy of the contract you would have to sign, to ensure that assurance is in writing?

With many / most house buying companies, it's more complicated than that.

For example, the house owner will often be required to sign a 6 month option agreement stating the fixed price.

So if you really want to go down that route, it's more important to negotiate the option period down from 6 months, to maybe 14 days.




The backround is often like this:

Typically, the house buying company don't have any money to buy houses with.

When they say "We will buy your house", they mean (using some example numbers)...

• "You sign a contract giving us exclusive rights for 6 months to buy your house from you for £240k" 
• "Then we will start to look for a buyer who is prepared to pay £300k"
• "If we find a buyer, we will do a same day 'back-to-back' transaction"
• i.e. On a specific day (e.g. 15th April) the buyer will pay us £300k for the house, and we will pay you £240k

So the problems include...

If they can't find a buyer, you're stuck for 6 months unable to sell to anybody else

That's when the pressure to reduce your price kicks-in. In simple terms, they might say something like...

"You can either volunteer to accept a reduced offer of £200k instead of £240k, otherwise you'll have to wait 6 months to sell"

How do these companies stay in business if the traditional agent route or auction route is so much better?

slick marketing. They are telling desperate sellers what they want to hear

FreeBear

eddddy said:

ReadySteadyPop said:

How do these companies stay in business if the traditional agent route or auction route is so much better?

They have very good 'sales patter'.

And one or two have an aggressive legal department that try to stamp out negative reviews and use bully-boy tactics to dissuade any legitimate comment of their contracts.

ReadySteadyPop

I don`t like the sound of any of that to be honest.

YoungBlueEyes

ReadySteadyPop said:

I don`t like the sound of any of that to be honest.

Seems to me it's not a position you'll ever find yourself in Crashy, so don't worry. 

Herzlos

ReadySteadyPop said:

I don`t like the sound of any of that to be honest.

What makes you think that? Do you really think they provide a valuable service rather than scamming the desperate?

ReadySteadyPop

Herzlos said:

ReadySteadyPop said:

I don`t like the sound of any of that to be honest.

What makes you think that? Do you really think they provide a valuable service rather than scamming the desperate?

Think what?