What are quick house purchase companies?
In simple terms a quick house buying company is a business with the financial means and funds to make an immediate cash offer for your property.
Selling your home to a cash buyer simplifies the process, as there are fewer external factors that can cause issues, and it is likely to make for a quicker sale too.
Using a quick house buying company has the added benefit of helping you avoid property transaction chains, and will result in you selling your house a lot faster compared to selling on the open market through an estate agent.
Cash house buyers do not charge any survey or estate agency fees, legal costs, or commissions.
Many will not require a survey, or searches, and will not raise lots of enquiries as part of the Conveyancing process.
However, it is worth noting that they usually only pay between 80% and 85% of the market value of your house.
The fast house sale process is less complex than relying on a buyer with cash funds or from a mortgage lender.
But, how do you know which buyers are reputable, which buy in your area, or purchase your type of property, and more importantly which buyers have cash available for an immediate purchase from you?
MPSE will compare the market and ensure they only introduce you to the cash buyer best placed to proceed.
When to use a house buying company
There are many reasons why people choose to use quick house buyers for their property. Several of them are listed below:
If you need to sell your house fast. Whether you sell to an individual or a company choosing a cash buyer is the fastest, and safest way to complete the sale of your property. An ideal solution if you want to stop repossession of your home by your mortgage lender, or are selling a property that you have inherited, or are selling a house as part of a divorce or separation, or the house is in a poor state of repair, has structural issues or is not mortgageable.
If you do not want to waste money on fees. By selling your property to a cash buyer you will pay no Solicitors’ fees, survey costs, valuations, or estate agents.
If your house is in disrepair. Companies that buy houses for cash will make you an offer regardless of the state of your property ensuring that you don’t need to find the money for remedial works, repairs or modernisation.
What are the benefits of a cash house Buyer?
There are many benefits to using a cash buyer:
When a buyer has sufficient funds for an immediate cash offer, the sale is less likely to fall through, as you are not depending on a mortgage lender to finance your buyer.
Choosing a quick house buying company also means that you will not have to deal with a property chain, so there is no need to worry about your buyer’s house sale falling through and hindering you from selling your house.
The whole sale process is simpler when there are no mortgage lenders involved
It is just you, your buyer, and the respective solicitor.
According to research carried out by Hometrack, selling a home in the UK takes around six to eight weeks from agreeing a price through to legal completion, but with a quick house buyer, this process is much quicker. It can be done within a matter of days in extreme circumstances, although 2 weeks is more realistic. Ultimately you can control and dictate how and when completion takes place.
9 Top tips for dealing with cash buying companies
1. Make sure they are a genuine cash buyer.
You should get confirmation of this multiple times, and then check again with their solicitor during the sale process. For extra security, make sure they are members of the NAPB and the Property Ombudsman.
2. Check the small print
Not all Buyers are the same. Some will tie you in with lengthy, convoluted, and confusing contracts. Make sure you do your research first.
3. Double check the valuation figure
Get independent assessments from reputable local estate agents to see whether the figure offered is too low or too good to be true.
4. Confirm an agreed offer price
Dishonest firms will make high valuations to get you to commit to them before reducing them just before completion.
5. Make sure all fees are transparent
Even reputable companies may charge extra for various services. It is important to ensure there are no fees or hidden costs.
6. Agree a sale timeline
Reputable cash buying companies will commit to a timeline for the transaction.
7. Ensure there is no third-party involvement
Scan the contract for phrases like ‘option agreement’ which give cash buyers the right to sell via someone else. Also look for phrasing like ‘have the right to assign to a third party.’ This will not be a quick sale as the “cash” buyer is NOT the actual buyer at all.
8. Make sure there is a ‘No Obligation’ policy
If, at any point, you change your mind, a reputable company will let you walk away from the house sale.
9. Check there is a complaints procedure
A reputable and established quick house buying company will have a good complaints process and will be regulated so you are able to take any dispute or unresolved complaint to The Property Ombudsman (TPO).
Alternatives to cash house buyers
A fast house sale will not be for everyone, and it is important you spend time doing your research to ensure it is the best option for you.
Everybody’s personal circumstances are different, and what works for one house owner might not work for you.
While there are many advantages to choosing a cash buyer, if you’re looking to sell your house fast to manage financial problems, you may wish to seek help from the Citizens Advice Bureau, Money Advice Service and National Debtline.
Similarly, if you are struggling to keep up with your mortgage payments, selling your home might not be the only option.
You may be able to renegotiate with your mortgage lender to make your payments more manageable, take a payment holiday, or convert your mortgage to an interest only product.
If you decide you do want to sell your property quickly and safely, contact one of the property experts at MyPropertySellingExpert, who will be happy to help and discuss the options available to you.
The MPSE pledge: Save my sale
You may well have found MPSE because your current cash buyer is delaying the transaction, or hinting that the “independent” valuations or RICS survey figures provided are lower than expected. They may be proving elusive, not returning your calls or emails, or suggesting there are unexpected delays in the legal or Conveyancing process without giving specific reasons or details.
These are all signs that they are about to reduce their original offer, or worse still pull out of the purchase altogether!
Do not despair, we can get to the bottom of those issues, and look to resolve them as quickly as possible, or if they are just a stalling or renegotiation tactic, find you an alternative, but reputable cash buyer to step in and save your sale.
And we will not stop there.
We will continue to look after your sale via our dedicated and knowledgeable progression team, who will guide you through the transaction every step of the way until the sale completion has taken place and funds have been transferred into your bank account.