When you choose to sell your house quickly and you begin to test the water you realise that there are countless companies out there offering you the same thing - We buy your property quickly! There is advert after advert each one vying for your attention and you have to decide which one catches your eye the most, or which one sounds the most professional.
A Quick insight into the different types of Cash Buyers that are available in the property market will help you to understand how things run and after reading the following information you will be better suited to face the prospect of selling your property to the best buyer.
Nationals -These companies employ large call centers and run national advertising campaigns. They also directly employ their own valuers. Due to the fact that they have such high overheads from the advertising they then build this in to their purchase price. Their initial approach may be that they will buy at 15% below market value but you then realise that you are being charged for the valuation - typically 1% of property valuations, so if your property is valued at £125,000 then you would be expected to pay £1250 + VAT. Ultimately they buy at 25-35% below market value. There have been a number of TV Panorama programmes citing the activities of such buyers. In one case a company charged for a house valuation, but they didn’t even visit the property, claiming that a ‘drive-by’ valuation would suffice.
Brokers - These are a bit like Estate Agents. They typically buy your property on behalf of an investor at 15% below market value and sell it on at 10%. The downside to their approach is that you are tied into an agreement with them and it can be anything from 12-21 weeks. The agreement they ask you to sign is known as an ‘Options Agreement’. These have to be legally registered at land registry. During this time you cannot sell your property to anyone else and you may feel that there is not as much push to sell your property simply because they are not dealing with their own money. Therefore you could still be in the same predicament at the end of those few weeks as you were at the beginning. Not the best option if you are hoping for a quick sale!
CAUTION - Inexperienced Buyer Alert! - These are small companies, in fact they usually consist of no more than 2 people, usually a husband and wife team. They have no real knowledge of the property market and have more than likely watched a television programme and decided “we can do that!” They do not understand how to professionally value a property and they may give you a figure but then change their offer at the end.
CAUTION - The Experienced Buyer Alert! - Please also be extremely cautious of those who provide you with a value over the phone without having been to see your property. These will draw you into a web of deceit; inclusive of missed appointments, telephone after telephone call arranging appointments, the bank surveyor who never turns up and when they do they change their offer at the final hurdle leaving you out of pocket and uncertain of their intentions. Often a ‘tag team’ approach is used where the first buyer pulls out stating that the bank valuation hasn’t stacked up and then their partner turns up out of the ‘blue’ to save the day. This tactic is deployed to ‘tire you out’, so that you sell the property at the lowest value
TIPS on dealing with Cash Buyer
When an offer is made by a Cash Buyer -
- Ensure that a Valuation fee is NOT payable
- Do not enter into an Options Agreement unless you understand the terms and conditions
- Make sure an Independent Valuer is instructed - see www.risc.org
- Do they pay legal costs or do you?
- Find out whether they operate Sell and Rent back Options as this may help you whilst you look for your next home.
- Make sure you have an offer which can be enforced - ask for a non refundable deposit to be lodged with your solicitor. This will ensure that if the Buyer pulls out you don’t lose out.
- Ensure that the buyer has the funds to buy your property - after all if you are selling your home you need to make sure that they have the ‘cash’ to do so. Ask them for bank statements!
- In some cases a Cash Buyer will pay mortgage arrears whilst buying your home so as to ensure you don’t pay out for more debt.
- Make sure you are dealing with a reputable buyer - ask for back testimonials and previous clients who have used them.
Going to Cash Buyers for a Quick Sale should be an experience which provides an equal and fair exchange - you want your home sold quickly and the Cash Property Buyer is looking for a fair ‘deal’. Determining a fair price is dependent upon your personal circumstances - someone moving a broad in a week, is very different from someone being repossessed in three days from now. Cash Buyers can be your best option if you are looking for a quick sale, but you must be prepared to deal at a price which is not only suitable to you but also that is suitable for the buyer, if this is not the case then a cash buyer and a quick sale is not the option for you.
For further information contact mailto:info@thepropertybuyers.co.uk on 0800 0122334