Using a property buying company

dllive

Hi,

Has anyone used one of these property buying companies? They offer to buy the house for cash at below market value.

Theres an ongoing neighbour dispute, hence why I want to use explore this avenue.

Thanks

eddddy

.

Property buying companies buy houses to re-sell them for a profit - usually on the same day.

So let's say that the best offer an estate agent could get for you is £200k from a cash buyer - because of the neighbour dispute.

So the property buying company might aim to pay you something like £160k - so that they could re-sell it for £200k on the same day. So they make £40k profit in one day.

(If they couldn't find a cash buyer who would buy for £200k on the same day, they'd either ask you to lower your price further, or they would walk away.)

So there's no real benefit to using a property buying company.

sammyjammy

What kind of neighbour dispute?

FlorayG

You would do better to simply declare the neighbour dispute and sell it cheap to a person prepared to deal with it

user1977

Or just put it into (traditional method) auction. All the property buying companies are going to do is flip it on to somebody who doesn't care about potential neighbour disputes. So what you want to do is just sell directly to the ultimate buyer.

Brie

There have been reports of some companies making an offer and then pulling out at the last moment as they haven't found a likely buyer. And then someone else comes and offers even less hoping that you are really desperate.