We buy any house companies, should I use them?
If you need to sell your house now, how can you sell your property quickly? The first thing that comes to mind is to sell the property to a “We Buy Any House” / “Quick House Sale” Company.
There are many companies out there promising to purchase properties quickly for cash. However, is this a safe way to sell your home? in this article we will explain all you’ll ever need to know about quick house buying companies? From insights into what they are to the advantages and disadvantages of using their service. Along with any other important aspects that you should be aware of when selling to a quick home buyer.
Page Contents
- What are quick house sale companies?
- Reasons you might consider using a quick house sale company
- Advantages and disadvantages of using a quick house sale company?
- How to choose the best quick house sale company
- Checklist for going ahead with a quick house sale company
- Questions to ask when using a quick house sale company
- What protection do homeowners get when selling to a quick house sale company?
- Is using a quick house sale company right for you?
- Quick Sale Cash Buyer Companies Vs Traditional Estate Agents
- Conclusion
- Have a problem with your quick house sale company?
What are quick house sale companies?
A quick house sale company (also known as We buy any House company) is a company that will offer to buy your property for cash, unlike the traditional route of selling through an estate agent, which involves finding a buyer.
Selling a property to a quick house sale company simplifies the process of selling a property because there are fewer external factors that can influence the sale process, making the timeline for selling property much faster.
There are two types of companies to look out for:
- None-direct purchase – These types of companies do not purchase a property directly; they sell the property on your behalf to a third party.
- Directly purchasing – This is a genuine quick house sale company that will purchase your home directly.
What value should I expect to receive when selling a property to a quick house sale company?
In both instances, you should expect to receive a discounted offer for your property, somewhere in the region of 20% to 25% below the current market value. However, an important aspect to consider is not only the potential sale value achieved for the property you need to consider what the Total Value will be. For example, when selling with a quick home sale company generally there will be no other costs to consider, such as legal fees or estate agent fees. So, the end value achieved might be a lot closer than you realise, take a look at this example below:
Comparison table – Quick House Sale Company vs Estate Agent
| Checklist | We Buy Any House Company | Selling via Estate Agents |
| Potential Timetable | Within days | 6 months, or longer |
| Advertised Price | N/A | £105,000 |
| Market Value | £102,000 | £102,000 |
| Average agreed purchase price | £76,500 | £94,500 |
| Final agreed price after survey | £76,500 | £91,500 |
| Agents fees (assuming 2.1%) | £0 | £1,922 |
| Plus VAT 20% | £0 | £384 |
| Legal Fees | £0 | £1,850 |
| Utility Bills | £0 | £1,350 |
| Other Bills | £0 | £390 |
| Council Tax | £0 | £875 |
| Clearance costs | £0 | £1,295 |
| Gas safety certificate | £0 | £150 |
| Cosmetic repairs needed | £0 | £1,350 |
| Mortgage repayments (Estimate) | £0 | £2,057 |
| £76,500 | £79,877 |
Estimated figures used above.
The process involved when selling a property to a “We Buy Any House Company”
The process when selling a property to a quick house sale company is far less complex than selling a property through an estate agent, we have broken the steps involved as followed:
- Initial Contact / Property Details – Get in contact with a quick house sale company and give them your property details.
- Cash Offer – Most quick house sale companies will give you a cash offer within 24 hours.
- Independent Valuations – Generally if you accept a cash offer then an independent valuation will take place to confirm the properties market value.
- Survey Conducted – A survey will usually be conducted by a RICS chartered surveyor.
- Solicitor Checks Undertaken – Checks are undertaken by the cash house buyer’s solicitor.
- Completion Date – The money is transferred to your bank account on this day.
Reasons you might consider using a quick house sale company
There are many reasons why someone would consider using a quick house sale company, below are some of the main ones:
- Relationship Breakdown
- Moving Aboard
- Equity Release
- Fix a Broken House Chain
- Stress-Free Quick House Sale
- Stop Repossession
- Financial Difficulty
- Inheritance
- Retirement
- Ill Health
- Offloading Rental Property
- Selling a house that’s in disrepair
What are the advantages and disadvantages of using a quick house sale company?
Selling a property to a quick house sale company does have its benefits here are a few of them
Advantages
- No complicated house chain
- Can be a hassle-free
- Sale less likely to fall through
- The process is much faster
- More security
- No legal fees
- No estate agent fees
- No need to do any work to the house, sell the house as-is
- No contingencies from survey reports.
- Avoid repossession
- Dispose of inherited property
- Move for age or health-related reasons
- Sell quickly as a result of divorce or relationship breakdown
- Relocate due to a change of job or to emigrate
- Try a different route if unable to sell through a traditional estate agent
- get around issues making a property hard to sell, for example, properties with a short lease or if a property has a high risk of flooding
- No Viewings
- No Sale boards / discrete sale
Disadvantages
- Cash offers are less than the market price
- Money may not be real
- Some companies reduce the price at the very last minute
- Fee structures are not always made clear to the customer
- Some contracts tie customers in, preventing them from selling to anyone else who might come along with a better offer.
Although there are many advantages in selling a property to a cash house buyer, there are few disadvantages too as seen above. How can you help to mitigate these disadvantages? We have come up with a few things to consider below.
How to choose the best quick house sale company
Although the majority of quick house buying companies are legitimate, unfortunately, there are a few companies out there that are not trustworthy or ethical businesses.
A previous study was undertaken on the industry
The Competition and Markets Authority formerly known as the Office of Fair Trading undertook a report on the quick house sale industry back in 2013. This report identified areas of concern when it comes to the practices utilised by some quick house sale companies. So if you’re thinking of using a quick house sale company, make sure you are aware of these unethical practices so you can choose a reputable company that will treat you fairly.
Reducing the price offered at the last minute after the seller is financially committed to the transaction
Please be aware that some unscrupulous companies will try to take advantage of people in vulnerable positions. This is done by suddenly reducing their offer for the property at the last minute, knowing that a customer is often forced to accept this offer due to their circumstances. A genuine company will not reduce the offer unless there is a valid reason for doing so. For example, an offer might be reduced if there is an adverse survey or report on title. However, a trustworthy company will always be able to provide copies of the surveys and reports on titles when requested, to substantiate any reduction in their offer.
Making misleading claims about the value of the property and the level of discount applied to the sale.
It has been identified that some companies will provide an artificially low market valuation on the property in the first instance, making the discounted offer seem closer to the market value than it is. This strategy intends to make the customer believe they are getting a good deal when, in fact, the company is taking a much larger discount than is appropriate.
Combat this by gaining some knowledge of the current market value of your home.
To obtain a good indication of the current market value of your property take a look at Zoopla on the following link: https://www.zoopla.co.uk/home-values/
Please be aware that this valuation tool may not always be accurate, although it can usually give you a good indication. Providing there have been some recent house sales in your area.
Falsely claiming to be a cash buyer.
There are a handful of quick house sale companies that are property brokers who will sell your property to a third-party private investor for a fee instead of purchasing the property directly. Check if they are genuine quick house sale companies by checking if they are members of the property ombudsman (TPOS) or the National association of property buyers (NAPB). It is not uncommon that these types of companies try to lock you in a contract meaning you are unable to sell your property to anyone else for some time.
Unclear fee structures.
Make sure you understand the companies fee structure, for example, some companies will add unexpected fees to the cost of selling your home such as legal fees, valuation costs and survey costs.
Encouraging customers to enter into agreements that prevent them from selling to other buyers.
Be very cautious to accept an offer from a company that insists on locking you into an agreement. Please ensure that you read the contract carefully as some companies will include severe penalties for anyone who breaches this type of contract after signing it. Any reputable company will always provide a no-obligation cash offer service.
Checklist for going ahead with a quick house sale company
If you decide you want to sell a property through a quick house sale company, take note of these key elements you need to consider when doing so.
- Don’t rely on the company’s valuation, make sure you undertake your valuation. You could also get a local estate agent to give you a valuation so you can establish if their appraisal is comparable to the quick house sale companies’ appraisal.
- Shop around for the best company dependant on your needs, not all companies operate in the same way, some will provide services that others do not. Ensure you research each company to determine which one would be right for you.
- Only Consider using a quick sale company that is a member of the National Association of Property Buyers or the Property Ombudsman or even both. If you have a dispute with a quick house sale company that is registered with the property ombudsman, you will have access to their independent redress process in the event of a dispute occurring.
- Check if the company is a genuine quick house buyer, do they have a company number, do they have any reviews or testimonials available.
- It’s always worth negotiating on the terms and/or the price if possible.
- Make sure you have a record of everything, try to get everything in writing. If you had a conversation over the phone, you can ask the company to send you an email containing any details that you would like to record.
- Some companies offer the use of their preferred solicitors, this could be because of their ability to complete the transaction quickly, however, this is not compulsory. You are entitled to use your chosen solicitor, however, please consider if using your solicitor you might incur additional costs or prolong the proposed completion timescales.
- Please ensure you read any documentation carefully and if you don’t understand anything ask your legal advisor to explain anything you don’t fully understand.
Other things to consider when selling to a “We Buy Any House” Company
- Stay clear of any quick house sale companies that try to lock you into an agreement that ties you into a contract which means you are unable to sell your home to another party for some time.
- When communicating with any company ensure you are open and honest at all times, make sure you are not providing any incorrect information or failing to mention anything important that might cause issues further down the line such as any structural defects with a property potentially. This could delay matters and impact the price offered at the later stages of the process.
- Any genuine company will always give you access to any survey or report undertaken on your property, if this is not forthcoming perhaps, they are trying to hide something.
Questions to ask when using a quick house sale company
When selling a property you must take time to read any information a quick house sale company sends to you. If you are unsure about any aspect or need anything explaining in more detail don’t hesitate to ask questions. Here are some examples of questions that you could ask if the information has not been made clear already:
Good Questions to ask
- What percentage of the market value am I going to achieve?
- How is the market value determined?
- Who is valuing the property and how?
- What are the timescales for the sale?
- What are the processes involved and when will they occur?
- What might cause these proposed timescales to change?
- Am I being tied into any contracts?
- Am I under any obligation at any point to complete the sale?
- Is the company buying your property themselves or is someone else buying it?
- If they are buying it, how will they pay for it?
- If the company says it has funds available immediately, you could ask for proof. A genuine cash buyer will be able to provide this proof.
- If someone else is buying the property, who are they? Can they afford to buy the property? And can they guarantee the sale will be complete within the timescale indicated?
- What costs are involved in selling the property? Are there any fees you have to pay (for example legal fees and surveys costs)?
- Are there any fees if you do not complete the sale?
- What might cause the offer price to change and when would this happen? Is the offer conditional, is it ‘subject to survey and contract’ or anything else?
- Are they members of the National Association of Property Buyers (NAPB) or The Property Ombudsman (TPOS)?
What protection do homeowners get when selling a property to a quick house sale company?
One important thing to mention is that currently the quick house sale market is not regulated. However, the industry is governed by the likes of the property ombudsman (TPOS) and the National Association of Property Buyers (NAPB). Please be cautious of any company stating that they are regulated because they are misguiding you, you aren’t protected when selling a property to one of these companies.
Independent redress process
When a company are a member of the property ombudsman (TPOS). As stated earlier if a dispute arises you will have access to their independent redress process. This does offer some recompense if a company has not acted within the TOPS’s code of conduct.
Here’s a quick video all about the Property Ombudsman
Is the Company Registered
Would you like to find out if a company is registered with either the property ombudsman (TPOS) and the National Association of Property Buyers (NAPB)? if so, please click on the following links
The National Association of Property Buyers (NAPB)
Is using a quick house sale company right for you?
Popular reasons why to use a quick house sale company
Everyone’s situation is different, for some people they might want the security of a guaranteed sale so they do not lose out on their dream home because of a broken house chain. Unfortunately, a broken house chain is very likely when selling a property with an estate agent as a third of all house sales fall through.
Other popular reasons for using a quick house sale company could be the convenience of a quick sale also there is a benefit of not having to repair the property or to undertake countless property viewings.
Also, some quick house buyers will minimise the stress levels involved in selling a property by simplifying the house sale process, making its appeal more attractive.
The main reason why not to use a quick house sale company
If you’re not in a hurry to sell your property and you would like to achieve the best sale price possible then this option is probably not the one for you. Make sure you take into account all the other related costs when selling through an estate agent as shown in the comparison table at the start of this blog.
Quick Sale Cash Buyer Companies Vs Traditional Estate Agents
| Item | Estate Agent | Quick House Sale Company |
| Time | Can take up to 6 months plus | This process can be as quick as 7 to 14 days, with an average turnaround time being in the region of 25 days. |
| Sale Price | Likely to receive close to full market value | 75% to 85% of the market value |
| Service Cost | Between 1% and 3% however don’t forget to add VAT at 20% | Typically, no fees are charged by reputable companies. |
| End Value Received | after paying 6 months of bills such as mortgage payments, council tax, legal fees and estate agent fees you will probably end up paying a further £10k in costs. | same as the sale price |
| Effort Required | house viewings, property repairs, haggling and negotiating offers | minimal effort is needed. |
| Regulation | Estate agents are regulated under the Estate Agents Act 1979, which also sets out the duties owed to buyer and seller clients. It stipulates that estate agents dealing with residential property must belong to an approved estate agents redress scheme and sets out the details of the approved schemes. | No regulation in place currently, however, the industry Is governed by the property ombudsman (TPOS) and the National Association of Property Buyers (NAPB) |
Conclusion
From the information above, I think it’s clear that if you undertake thorough due diligence and choose a reputable company then a quick house sale company could be a good option. Especially if you need a guaranteed sale, a quick timeframe or even if you like the appeal of minimising the stress levels usually involved when selling a property.
Have a problem with your quick house sale company?
Are you not satisfied with the service provided by a quick house sale company, make sure you inform them and give them a chance to look into it the situation and deal with your complaint.
Member of The Property Ombudsman (TPOS)?
If they are a member, they will need to provide you with a copy of their complaint’s procedure, read these documents carefully and make sure you understand the process.
Also if you’re not happy with the way your complaint is dealt with, you should refer the matter to the TPO.
By using a company that is a member of The Property Ombudsman (TPOS), homeowners can complain to the ombudsman and get compensation if a company has not acted within the TPOS Code of Practice.
However, if the company is not a member then unfortunately you can’t take your complaint any further other than in a civil court.
Would you like to know more?
Would you like to know more about quick house sale companies or you would like some guidance concerning the matter, please don’t hesitate to get in touch with Sell My Home Now our contact details can be seen on the page footer.
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We buy any house companies, should I use them?
If you need to sell your house now, how can you sell your property quickly? The first thing that comes to mind is to sell the property to a “We Buy Any House” / “Quick House Sale” Company.
There are many companies out there promising to purchase properties quickly for cash. However, is this a safe way to sell your home? in this article we will explain all you’ll ever need to know about quick house buying companies? From insights into what they are to the advantages and disadvantages of using their service. Along with any other important aspects that you should be aware of when selling to a quick home buyer.
Page Contents
- What are quick house sale companies?
- Reasons you might consider using a quick house sale company
- Advantages and disadvantages of using a quick house sale company?
- How to choose the best quick house sale company
- Checklist for going ahead with a quick house sale company
- Questions to ask when using a quick house sale company
- What protection do homeowners get when selling to a quick house sale company?
- Is using a quick house sale company right for you?
- Quick Sale Cash Buyer Companies Vs Traditional Estate Agents
- Conclusion
- Have a problem with your quick house sale company?
What are quick house sale companies?
A quick house sale company (also known as We buy any House company) is a company that will offer to buy your property for cash, unlike the traditional route of selling through an estate agent, which involves finding a buyer.
Selling a property to a quick house sale company simplifies the process of selling a property because there are fewer external factors that can influence the sale process, making the timeline for selling property much faster.
There are two types of companies to look out for:
- None-direct purchase – These types of companies do not purchase a property directly; they sell the property on your behalf to a third party.
- Directly purchasing – This is a genuine quick house sale company that will purchase your home directly.
What value should I expect to receive when selling a property to a quick house sale company?
In both instances, you should expect to receive a discounted offer for your property, somewhere in the region of 20% to 25% below the current market value. However, an important aspect to consider is not only the potential sale value achieved for the property you need to consider what the Total Value will be. For example, when selling with a quick home sale company generally there will be no other costs to consider, such as legal fees or estate agent fees. So, the end value achieved might be a lot closer than you realise, take a look at this example below:
Comparison table – Quick House Sale Company vs Estate Agent
Checklist | We Buy Any House Company | Selling via Estate Agents |
Potential Timetable | Within days | 6 months, or longer |
Advertised Price | N/A | £105,000 |
Market Value | £102,000 | £102,000 |
Average agreed purchase price | £76,500 | £94,500 |
Final agreed price after survey | £76,500 | £91,500 |
Agents fees (assuming 2.1%) | £0 | £1,922 |
Plus VAT 20% | £0 | £384 |
Legal Fees | £0 | £1,850 |
Utility Bills | £0 | £1,350 |
Other Bills | £0 | £390 |
Council Tax | £0 | £875 |
Clearance costs | £0 | £1,295 |
Gas safety certificate | £0 | £150 |
Cosmetic repairs needed | £0 | £1,350 |
Mortgage repayments (Estimate) | £0 | £2,057 |
£76,500 | £79,877 |
Estimated figures used above.
The process involved when selling a property to a “We Buy Any House Company”
The process when selling a property to a quick house sale company is far less complex than selling a property through an estate agent, we have broken the steps involved as followed:
- Initial Contact / Property Details – Get in contact with a quick house sale company and give them your property details.
- Cash Offer – Most quick house sale companies will give you a cash offer within 24 hours.
- Independent Valuations – Generally if you accept a cash offer then an independent valuation will take place to confirm the properties market value.
- Survey Conducted – A survey will usually be conducted by a RICS chartered surveyor.
- Solicitor Checks Undertaken – Checks are undertaken by the cash house buyer’s solicitor.
- Completion Date – The money is transferred to your bank account on this day.
Reasons you might consider using a quick house sale company
There are many reasons why someone would consider using a quick house sale company, below are some of the main ones:
- Relationship Breakdown
- Moving Aboard
- Equity Release
- Fix a Broken House Chain
- Stress-Free Quick House Sale
- Stop Repossession
- Financial Difficulty
- Inheritance
- Retirement
- Ill Health
- Offloading Rental Property
- Selling a house that’s in disrepair
What are the advantages and disadvantages of using a quick house sale company?
Selling a property to a quick house sale company does have its benefits here are a few of them
Advantages
- No complicated house chain
- Can be a hassle-free
- Sale less likely to fall through
- The process is much faster
- More security
- No legal fees
- No estate agent fees
- No need to do any work to the house, sell the house as-is
- No contingencies from survey reports.
- Avoid repossession
- Dispose of inherited property
- Move for age or health-related reasons
- Sell quickly as a result of divorce or relationship breakdown
- Relocate due to a change of job or to emigrate
- Try a different route if unable to sell through a traditional estate agent
- get around issues making a property hard to sell, for example, properties with a short lease or if a property has a high risk of flooding
- No Viewings
- No Sale boards / discrete sale
Disadvantages
- Cash offers are less than the market price
- Money may not be real
- Some companies reduce the price at the very last minute
- Fee structures are not always made clear to the customer
- Some contracts tie customers in, preventing them from selling to anyone else who might come along with a better offer.
Although there are many advantages in selling a property to a cash house buyer, there are few disadvantages too as seen above. How can you help to mitigate these disadvantages? We have come up with a few things to consider below.
How to choose the best quick house sale company
Although the majority of quick house buying companies are legitimate, unfortunately, there are a few companies out there that are not trustworthy or ethical businesses.
A previous study was undertaken on the industry
The Competition and Markets Authority formerly known as the Office of Fair Trading undertook a report on the quick house sale industry back in 2013. This report identified areas of concern when it comes to the practices utilised by some quick house sale companies. So if you’re thinking of using a quick house sale company, make sure you are aware of these unethical practices so you can choose a reputable company that will treat you fairly.
Reducing the price offered at the last minute after the seller is financially committed to the transaction
Please be aware that some unscrupulous companies will try to take advantage of people in vulnerable positions. This is done by suddenly reducing their offer for the property at the last minute, knowing that a customer is often forced to accept this offer due to their circumstances. A genuine company will not reduce the offer unless there is a valid reason for doing so. For example, an offer might be reduced if there is an adverse survey or report on title. However, a trustworthy company will always be able to provide copies of the surveys and reports on titles when requested, to substantiate any reduction in their offer.
Making misleading claims about the value of the property and the level of discount applied to the sale.
It has been identified that some companies will provide an artificially low market valuation on the property in the first instance, making the discounted offer seem closer to the market value than it is. This strategy intends to make the customer believe they are getting a good deal when, in fact, the company is taking a much larger discount than is appropriate.
Combat this by gaining some knowledge of the current market value of your home.
To obtain a good indication of the current market value of your property take a look at Zoopla on the following link: https://www.zoopla.co.uk/home-values/
Please be aware that this valuation tool may not always be accurate, although it can usually give you a good indication. Providing there have been some recent house sales in your area.
Falsely claiming to be a cash buyer.
There are a handful of quick house sale companies that are property brokers who will sell your property to a third-party private investor for a fee instead of purchasing the property directly. Check if they are genuine quick house sale companies by checking if they are members of the property ombudsman (TPOS) or the National association of property buyers (NAPB). It is not uncommon that these types of companies try to lock you in a contract meaning you are unable to sell your property to anyone else for some time.
Unclear fee structures.
Make sure you understand the companies fee structure, for example, some companies will add unexpected fees to the cost of selling your home such as legal fees, valuation costs and survey costs.
Encouraging customers to enter into agreements that prevent them from selling to other buyers.
Be very cautious to accept an offer from a company that insists on locking you into an agreement. Please ensure that you read the contract carefully as some companies will include severe penalties for anyone who breaches this type of contract after signing it. Any reputable company will always provide a no-obligation cash offer service.
Checklist for going ahead with a quick house sale company
If you decide you want to sell a property through a quick house sale company, take note of these key elements you need to consider when doing so.
- Don’t rely on the company’s valuation, make sure you undertake your valuation. You could also get a local estate agent to give you a valuation so you can establish if their appraisal is comparable to the quick house sale companies’ appraisal.
- Shop around for the best company dependant on your needs, not all companies operate in the same way, some will provide services that others do not. Ensure you research each company to determine which one would be right for you.
- Only Consider using a quick sale company that is a member of the National Association of Property Buyers or the Property Ombudsman or even both. If you have a dispute with a quick house sale company that is registered with the property ombudsman, you will have access to their independent redress process in the event of a dispute occurring.
- Check if the company is a genuine quick house buyer, do they have a company number, do they have any reviews or testimonials available.
- It’s always worth negotiating on the terms and/or the price if possible.
- Make sure you have a record of everything, try to get everything in writing. If you had a conversation over the phone, you can ask the company to send you an email containing any details that you would like to record.
- Some companies offer the use of their preferred solicitors, this could be because of their ability to complete the transaction quickly, however, this is not compulsory. You are entitled to use your chosen solicitor, however, please consider if using your solicitor you might incur additional costs or prolong the proposed completion timescales.
- Please ensure you read any documentation carefully and if you don’t understand anything ask your legal advisor to explain anything you don’t fully understand.
Other things to consider when selling to a “We Buy Any House” Company
- Stay clear of any quick house sale companies that try to lock you into an agreement that ties you into a contract which means you are unable to sell your home to another party for some time.
- When communicating with any company ensure you are open and honest at all times, make sure you are not providing any incorrect information or failing to mention anything important that might cause issues further down the line such as any structural defects with a property potentially. This could delay matters and impact the price offered at the later stages of the process.
- Any genuine company will always give you access to any survey or report undertaken on your property, if this is not forthcoming perhaps, they are trying to hide something.
Questions to ask when using a quick house sale company
When selling a property you must take time to read any information a quick house sale company sends to you. If you are unsure about any aspect or need anything explaining in more detail don’t hesitate to ask questions. Here are some examples of questions that you could ask if the information has not been made clear already:
Good Questions to ask
- What percentage of the market value am I going to achieve?
- How is the market value determined?
- Who is valuing the property and how?
- What are the timescales for the sale?
- What are the processes involved and when will they occur?
- What might cause these proposed timescales to change?
- Am I being tied into any contracts?
- Am I under any obligation at any point to complete the sale?
- Is the company buying your property themselves or is someone else buying it?
- If they are buying it, how will they pay for it?
- If the company says it has funds available immediately, you could ask for proof. A genuine cash buyer will be able to provide this proof.
- If someone else is buying the property, who are they? Can they afford to buy the property? And can they guarantee the sale will be complete within the timescale indicated?
- What costs are involved in selling the property? Are there any fees you have to pay (for example legal fees and surveys costs)?
- Are there any fees if you do not complete the sale?
- What might cause the offer price to change and when would this happen? Is the offer conditional, is it ‘subject to survey and contract’ or anything else?
- Are they members of the National Association of Property Buyers (NAPB) or The Property Ombudsman (TPOS)?
What protection do homeowners get when selling a property to a quick house sale company?
One important thing to mention is that currently the quick house sale market is not regulated. However, the industry is governed by the likes of the property ombudsman (TPOS) and the National Association of Property Buyers (NAPB). Please be cautious of any company stating that they are regulated because they are misguiding you, you aren’t protected when selling a property to one of these companies.
Independent redress process
When a company are a member of the property ombudsman (TPOS). As stated earlier if a dispute arises you will have access to their independent redress process. This does offer some recompense if a company has not acted within the TOPS’s code of conduct.
Here’s a quick video all about the Property Ombudsman
Is the Company Registered
Would you like to find out if a company is registered with either the property ombudsman (TPOS) and the National Association of Property Buyers (NAPB)? if so, please click on the following links
The National Association of Property Buyers (NAPB)
Is using a quick house sale company right for you?
Popular reasons why to use a quick house sale company
Everyone’s situation is different, for some people they might want the security of a guaranteed sale so they do not lose out on their dream home because of a broken house chain. Unfortunately, a broken house chain is very likely when selling a property with an estate agent as a third of all house sales fall through.
Other popular reasons for using a quick house sale company could be the convenience of a quick sale also there is a benefit of not having to repair the property or to undertake countless property viewings.
Also, some quick house buyers will minimise the stress levels involved in selling a property by simplifying the house sale process, making its appeal more attractive.
The main reason why not to use a quick house sale company
If you’re not in a hurry to sell your property and you would like to achieve the best sale price possible then this option is probably not the one for you. Make sure you take into account all the other related costs when selling through an estate agent as shown in the comparison table at the start of this blog.
Quick Sale Cash Buyer Companies Vs Traditional Estate Agents
Item | Estate Agent | Quick House Sale Company |
Time | Can take up to 6 months plus | This process can be as quick as 7 to 14 days, with an average turnaround time being in the region of 25 days. |
Sale Price | Likely to receive close to full market value | 75% to 85% of the market value |
Service Cost | Between 1% and 3% however don’t forget to add VAT at 20% | Typically, no fees are charged by reputable companies. |
End Value Received | after paying 6 months of bills such as mortgage payments, council tax, legal fees and estate agent fees you will probably end up paying a further £10k in costs. | same as the sale price |
Effort Required | house viewings, property repairs, haggling and negotiating offers | minimal effort is needed. |
Regulation | Estate agents are regulated under the Estate Agents Act 1979, which also sets out the duties owed to buyer and seller clients. It stipulates that estate agents dealing with residential property must belong to an approved estate agents redress scheme and sets out the details of the approved schemes. | No regulation in place currently, however, the industry Is governed by the property ombudsman (TPOS) and the National Association of Property Buyers (NAPB) |
Conclusion
From the information above, I think it’s clear that if you undertake thorough due diligence and choose a reputable company then a quick house sale company could be a good option. Especially if you need a guaranteed sale, a quick timeframe or even if you like the appeal of minimising the stress levels usually involved when selling a property.
Have a problem with your quick house sale company?
Are you not satisfied with the service provided by a quick house sale company, make sure you inform them and give them a chance to look into it the situation and deal with your complaint.
Member of The Property Ombudsman (TPOS)?
If they are a member, they will need to provide you with a copy of their complaint’s procedure, read these documents carefully and make sure you understand the process.
Also if you’re not happy with the way your complaint is dealt with, you should refer the matter to the TPO.
By using a company that is a member of The Property Ombudsman (TPOS), homeowners can complain to the ombudsman and get compensation if a company has not acted within the TPOS Code of Practice.
However, if the company is not a member then unfortunately you can’t take your complaint any further other than in a civil court.
Would you like to know more?
Would you like to know more about quick house sale companies or you would like some guidance concerning the matter, please don’t hesitate to get in touch with Sell My Home Now our contact details can be seen on the page footer.
