Another one of those letters.

Bzzzz

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clive0510

https://forums.moneysavingexpert.com/discussion/6669154/another-one-of-those-letters

I don't know the answer to your questions, one thing I do know is that I would not get involved with national homebuyers. I've never heard of them and have no interest in them.

If I was looking to sell this place which I'm not, I would get in touch with the solicitor and also the estate agent who between them dealt with my late mothers estate. they took care of everything and took their fee at the end of it. sometimes it just better the devil you know.

Martin_the_Unjust

Generally I believe it is usually between 75 and 80%, If they offer more than 80% of the proper value be very wary, it is not unknown for the more disreputable companies to reduce their offer at the last minute.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/82005977#Comment_82005977

Exactly this. These companies make their money by flipping properties quickly that have been on the market for some time, the price they pay has to be low because they will sell at not much more than this.

FreeBear

Look at the reviews on Trustpilot and other places. Ignore the 5* reviews as many appear to be questionable and from people that haven't actually sold their property. The 1* and 2* reviews give a more balanced picture of the process. I'll leave it up to you to draw conclusions.

Jemma01

https://forums.moneysavingexpert.com/discussion/comment/82006101#Comment_82006101

also know that trustpilot removes genuine reviews as well if reviewers mention names of ppl theyve dealt with, and often reviewers don't check their emails to realise what happened. So don't even trust the overall score there for anything.

pinkshoes

https://forums.moneysavingexpert.com/discussion/6669154/another-one-of-those-letters

Think about it logically…

They're a business and therefore need to make money. So if it's not selling for £460k, they'll offer you what THEY think they can get for it, less say 10% profit.

So perhaps they think it will get £420k. So they'll offer you perhaps £380k for it.

In which case you might as well lower the price to £420k.

Another tactic is offering a higher amount, then just before exchange drop the price so you are in a really difficult position.

Albermarle

In some cases they do not actually fully commit to buy your property, until they find a buyer.

RelievedSheff

Rather then taking a low offer from one of these "we buy any house" type outfits why not just lower the asking price yourself?

You will still end up with more money in the bank then selling to these outfits!

eddddy

Bzzzz said How much under £460,000 would they be likely to offer in reality?

You need to think through the business model of House Buying companies.

Most house buying companies will set up a back-to-back purchase and sale.

• i.e. They aim to buy your house for £x, and sell it to an "investor" for £y - with both transactions happening on the same day.

• That's because house buying companies don't tend to have any money of their own. They just take the investor's money and pass it on to the seller…

• …but the company aims to keep about 20% of the money for themselves. (i.e. The difference between £y and £x)

So they need to price your house at a level that would attract a cash investor to buy within maybe 7 days.

• Your asking price is currently £460k…

• So maybe if they set the price at £400k, that would tempt an investor (with £400k cash 'lying around') to buy it.

• Then the house buying company aims to keep 20% of the price and give the remaining 80% to you - so you'd get £320k

But TBH, even that sounds ambitious - because very few "investors" would have £400k lying around in cash in their bank account, waiting for a cheap house to come along.

House buying companies tend to target the lower end of the market - maybe £75k to £200k properties - because investors are more likely to have that amount of cash available.

GDB2222

We've had our house on the market for a month, and we've had 5 letters from estate agents saying how much better they can do than the leading agents in the area. They all apparently have a whole string of potential buyers.

Plus, we've had a letter from some people looking in the area, but with a budget 3 times what we're asking for our house.

Cynical? Nah!