Quick cash buys

alfiemama

Hi

Does anyone know of a company that buys your house for a quick sale?

I have a house for sale in the North west and I am basically just wanting rid, I would say there is about 40k profit in it.
as was valued 3 times all just under 239k and I just want to pay up the mortgage so need about £180k ish
My mortgage is up in March and we are wanting to rent for a while, we have had offers so we know it is a saleable property just at the time couldnt go through with it due to mortgage company not accepting more than 5% new build.

If I went through one where you went it back can I move out when I want, how does this work?

silvercar

Most quick sale companies offer 80% of market value, you would be better off marketing it through an agent with 5% knocked off the price and be open to offers.

alfiemama

But the market is flat at the mo thought this would be a better option, really need to sell before March as dont want to renew the mortgage.

PasturesNew

Have you thought of sticking it in an auction?
While sales at the moment are low, that doesn't mean that your house won't sell.

With an auction the norm is completion within 28 days, although you can specify other dates.

Also, if it is sold prior to auction you can withdraw it.
If you're nervous you can set a reserve on it

alfiemama

Yes thanks I have thought of Auctions and have been trying to find out a bit more info on them, I know Farell Heyworth now do them and will be giving them a call tommorow. Do you have any idea of the fees, as been on a few websites and cant seem to find the costings, also do you pay the fee whether it sells or not (I assume you would)
any help would be appreciated, we really do want to get out of this house and the high mortgage due to financial reasons, like I said were not bothered as long as the mortgage paid off, so for someone out there they would be getting a bargain.

KITCHEN1_2

Alfie,
You pay a fee for inclusion in the catalogue and this is non refundable. Expect circa £300 ,or was last time I went that route.
You also pay a commission based on the value realised at auction ,but as it sounds it is only paid if the property sells. Expect circa 2% commission ,perhaps 1.5% min depending on your auctioneer.
Conveyancing costs on top of course.
Hammer falls and it is sold with completion in a month which is why buyers must have funding arranged pre auction. Buyer exceeds that period he is liable to pay interest.

I realise you don't wish to renew your mortgage ,but really it is just numbers.
Costs involved in refi mortgage may be less than the costs incurred through either auction ,or cash sale. Auctions bring a high probability to a sale ,BUT at a steep price cut in flat to negative market conditions.

alfiemama

Sorry Kitchen1 thanks for the costings now I maybe being a bit dim here but what did the last bit mean? I dont want to keep a mortgage I want to sell up and rent

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mrwibble

alfiemama wrote: »

Sorry Kitchen1 thanks for the costings now I maybe being a bit dim here but what did the last bit mean? I dont want to keep a mortgage I want to sell up and rent

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I think Kitchen1 is assuming you are on a fixed rate mortgage that expires in March and that you are moving out due to huge mortgage rise when it does. What he is assuming is that you want to rent because of this and not for any other reason.

If it is due to the rise then he is saying you might be better off (assuming you can / want to stay) just doing a remortgage at a low rate for 2 yrs. That way you keep a low rate and could increase the mortgage (take care its still borrowing) for repayments etc. At least you wouldn't have to move - if you want to stay that it !

On the other hand if prices tumble 20-25% over the next year to 18 months then selling now might be a good idea as long as you don't spend the surplus from the sale - you could buy it (or similar) back for less in 2 yrs ! Not guaranteed obviously - prices might still rise in your area !

Property buying companies are good as long as you compare offers and ability to complete quickly (min of a month despite what they say !) - go with a sole trader - they will typically look up recent sale prices (which will probably be 7% less than your estate agents marketing price (everyone asks for a discount !) and take off at least 15% (so they can get a mortgage with no money down) and then take off money for repairs / general state of repair etc (so mow the lawn and plaster over that crack !!) - typically this will end up with between 20-30% below your estate agent price - so for you that will be around £167k and £191k - may not work for you if your mortgage is £180k - remember any secured loans (if you have any) will also need to be deducted (and anyone can check via Land Registry for these details so don't be tempted to not declare them). Despite this a unexperienced trader might offer you more - perhaps £200k.

Just noticed you were thinking of renting back - in your situation the price will be lower to give you the rent you want - could be much lower than the mortgage - you can of course move out when you want (minimum 6 months usually) but discuss your needs with the trader - they may tailor something for you - obviously having a tenant from day 1 is great for them but remember they will want you to sign a 6 month assured tenancy and will hold you to it - otherwise its just like evicting squatters.

Auction is probably a good idea - some property goes for mad money but set a reserve and you might be lucky.

At the end of the day the slowest method is obviously to stick with the estate agent - reduce the price slightly for a quick sale and think about changing agents if they are useless. What is that extra cash worth to you for a little more effort ? Might not be worth it or might well be when you see other offers .... good luck anyway

alfiemama

MrWibble, thanks so much for the advice, very interesting and lots to think about.
I just worry with the timescale that I have that if I put it up with a high street agent its just going to stick there, they just dont seem to have any motivation at the moment to sell (I mean be wrong here but they all seem down about the slump, instead of guns blazing) (will prob get shot down in flames for that one)
If I go with the quick sale buyers they tell you the house is no good on the market as the surveyor will go off this price (when we had up for sale last time we went down this route and reduced the price to sell)
Auction maybe best bet but scary as new ground for us, however the ones that buy of you to rent it back may also be an option as we could then just leave.

Hope that makes sense

vickib128

Hi Alfie,

We are selling via that route at the minute, we searched on the internet for property buyers, if everything is straight forward the sale can go through in a couple of weeks.

Vicki

alfiemama

Hi ya Vicki
Sorry do you mean the one where you rent back, would you mind me asking have they offered you a good price?