"We Buy Your House" - dodgy or not?! Help please..

dollynatrix

Hi,
We're trying to sell our flat in the Lake District, been on the market since Jan and already dropped the price by £10k - but still no joy.
It's in really good condition with no problems but the market up there is just flat.
We've been looking at these companies that "guarentee to buy your home". I know we'd probably get a low offer but we really need to shift is as the morgage repayments will cripple us.
Anybody got any experience with these companies? Are they reputable or are they all dodgy as anything?
Any advice greatly appreciated!
Sam

PasturesNew

They don't have the best of reputations.
It is an unregulated field and people who turn to them often do so in desperation, but it might not be what's best for you.

What have other flats in the area sold for in 2008?
Have you looked into auctioning it?
What sort of figures are we talking about here?

dollynatrix

Hi PasturesNew!

Thanks for the reply. Basically, the flat was valued at £129,500 in Jan. Put it on the market and have since dropped the price to £119,500.
Trouble is, nothing in the area has sold recently...buyers just don't seem to be there. We've checked with several EA's to check the price and all of them have said we're asking the right amount.

Hadn't though of auctioning it off...any ideas were i'd start!?! I'll do a bit of searching.
Really need to sell as we're currently living in Leicester with our 3 month old daughter and my parents!! Not ideal!

Thanks again for the advice!

Captain_Mainwaring_2

dollynatrix wrote: »

Hi PasturesNew!

Thanks for the reply. Basically, the flat was valued at £129,500 in Jan. Put it on the market and have since dropped the price to £119,500.
Trouble is, nothing in the area has sold recently...buyers just don't seem to be there. We've checked with several EA's to check the price and all of them have said we're asking the right amount.

Hadn't though of auctioning it off...any ideas were i'd start!?! I'll do a bit of searching.
Really need to sell as we're currently living in Leicester with our 3 month old daughter and my parents!! Not ideal!

Thanks again for the advice!

The EA's will tell you that, they can hardly say anything else.

If the price was "right" it would sell.

What does it "owe" you?

neas

I'd reduce it by 20k first because the buy your house people will try and pay this anyways.

Reducing so much might attract a buyer.. rather reduce now than follow the drag curve.

brightonman123

I'm thinking these firms have buyers already lined up, so will offer way below market value in order to make a klling on resell, and maybe even the obligatory (overpriced?) suvery, or some needless insurance..

not that my LL would approve of me seeling my rented flat!

Bermuda_John

the house buying companies are falling by the way side now for aa few reasons:

1. falling prices
2. regulation of sale a rent back
3. no instant remortgaging
4. 25% deposits required

This has left jsut a few house buying companies.

I run a house buying company and i have stoppped doing Sale and Rent back due to the legislation but i do still buy houses if the deals are right.

northerner79

These companies are in the main cowboys who take advantage of the vulnerable. The vulnerable need to be aware that if they put their property on the market at say a 15% discount from market value they would likely find a buyer quickly. I would try and auction after an estate agent. Don't use the we buy any house brigade, they will wnat it for probably 40% below MV.

poppysarah

What's the minimum you can afford to sell it for?
How long do you want to take?

Mickyfinn

Hi Sam,

I run my own property business and no I'm not a cowboy and have saved many people from repossession, often these people have no money so cannot pay you for your time or attending court with them etc. I have been doing this for over five years, two full time and all of the people I know who go into this, do so to help people. Obviously we need to make money - but who doesn't. This is the whole reason we're on the forum.

I don't need to offer people substantially lower prices because the techniques I use to buy them. The issues are that it costs 10% of the purchase price to buy and sell a house and most people I know work on a 5% profit. (so usually 15% below market value)

Rant over! If I were in your shoes I would:

1. Get an accurate valuation of the property, the only way to do this properly is to pay someone able to do this i.e. a RICS surveyor. Estate agents only give you an opinion surveyors give you a valuation. Mortgage companies only trust surveyors. Cost £200-£300. This can then be used in negotiations. Also print off a Hometrack report. I can do one for you free usually costs £40.

2. Be realistic about the price, with people in your area selling properties substantially below market value why would they buy yours when they can buy a repossession for £40k less? Also work the numbers - What is the yield? How much surplus is there on the rent after the mortgage, insurance, service charges, gas certs, energy performance certificates etc are paid. What is a realistic achievable rent?

3. Watch House Doctor or similar programmes and stage the property so it is shown in its best light. Fix anything that is broken, view some other houses to see what's available for the same money.

4. Invest in marketing - get it listed on Rightmove, Findaproperty, Consider a webpage, print leaflets and drop them in doors of local houses. Gumtree too. Get really good photos taken and consider video/ virtual tours. Get a sign outside the property.

5. Auctions are a good suggestion for a fast sale but remember repossessions are your competing lots and only cash buyers can buy at auctions so you are limiting your target market. Still, it may be worth a try with a reserve in place.

6. I do rent to buy or rent to own - The future of the UK Property Market. Allowing someone to pay a small deposti, then rent your property (for the mortgage amount or slightly more) then when they have a big enough deposit for the bank or the mortgage market recovers so they qualify for one, they buy you out at a fixed price in the future agreed at the start. Usually 3 years - a bit like leasing a TV or a car. This means more people can buy the house as you already have the mortgage in place.(one hurdle out the way!)

I have spent tens of thousands of pounds on my education to get to where I am and I always act with integrity. Unfortunately there are a massive surplus of overpriced flats in the UK and mortgage lenders are not lending on new builds - I think this is one reason you notice this trend. Also with house prices rising to the levels they have it is difficult to make deals 'stack' and properties cashflow positively. An investor will only make offers where the deal works.

There are crooks out there, I hear the stories and this damages our business. Every industry has rouge elements. But remember the newspapers only print bad news. Businesses with integrity are the only ones that survive long term. Get testimonials, speak with satisfied customers, and see what your gut feel is about the person you're dealing with.

Best of luck,

Mickyfinn

neil9313

Mickyfinn wrote: »

Hi Sam,

I run my own property business and no I'm not a cowboy and have saved many people from repossession, often these people have no money so cannot pay you for your time or attending court with them etc. I have been doing this for over five years, two full time and all of the people I know who go into this, do so to help people. Obviously we need to make money - but who doesn't. This is the whole reason we're on the forum.

I don't need to offer people substantially lower prices because the techniques I use to buy them. The issues are that it costs 10% of the purchase price to buy and sell a house and most people I know work on a 5% profit. (so usually 15% below market value)

Rant over! If I were in your shoes I would:

1. Get an accurrate valuation of the property, the only way to do this properly is to pay someone able to do this i.e. a RICS surveyor. Estate agents only give you an opinion surveyors give you a valuation. Mortgage companies only trust surveyors. Cost £200-£300. This can then be used in negotiations. Also print off a Hometrack report. I can do one for you free usually costs £40.

2. Be realistic about the price, with people in your area selling properties substanially below market value why would they buy yours when they can buy a repossession for £40k less? Also work the numbers - What is the yield? How much surplus is there on the rent after the mortgage, insurance, service charges, gas certs, energy performance certificates etc are paid. What is a realistic achievable rent?

3. Watch House Doctor or similar programmes and stage the property so it is shown in its best light. Fix anything that is broken, view some other houses to see what's available for the same money.

4. Invest in marketing - get it listed on Rightmove, Findaproperty, Consider a webpage, print leaflets and drop them in doors of local houses. Gumtree too. Get really good photos taken and consider video/ virtual tours. Get a sign outside the property.

5. Auctions are a good suggestion for a fast sale but remember repossessions are your competing lots and only cash buyers can buy at auctions so you are limiting your target market. Still, it may be worth a try with a reserve in place.

6. I do rent to buy or rent to own - The future of the UK Property Market. Allowing someone to pay a small deposti, then rent your property (for the mortgage amount or slightly more) then when they have a big enough deposit for the bank or the mortgage market recovers so they qualify for one, they buy you out at a fixed price in the future agreed at the start. Usually 3 years - a bit like leasing a TV or a car. This means more people can buy the house as you already have the mortgage in place.(one hurdle out the way!)

I have spent tens of thousands of pounds on my education to get to where I am and I always act with integrity. Unfortunately there are a massive surplus of overpriced flats in the UK and mortgage lenders are not lending on new builds - I think this is one reason you notice this trend. Also with house prices rising to the levels they have it is difficult to make deals 'stack' and properties cashflow positively. An investor will only make offers where the deal works.

There are crooks out there, I hear the stories and this damages our business. Every industry has rouge elements. But remember the newspapers only print bad news. Businesses with integrity are the only ones that survive long term. Get testimonials, speak with satisfied customers, and see what your gut feel is about the person you're dealing with.

Best of luck,

Mickyfinn

What a load of old rubbish this reply is! :mad: