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.
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.
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:
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 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:
There are many reasons why someone would consider using a quick house sale company, below are some of the main ones:
Selling a property to a quick house sale company does have its benefits here are a few of them
Advantages
Disadvantages
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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:
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.
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
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)
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.
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.
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) |
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.
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.
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 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.
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.
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.
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:
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 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:
There are many reasons why someone would consider using a quick house sale company, below are some of the main ones:
Selling a property to a quick house sale company does have its benefits here are a few of them
Advantages
Disadvantages
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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:
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.
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
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)
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.
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.
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) |
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.
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.
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 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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