Selling your property using a quick sale company
What is a Quick House Sale Company?
On average, it takes between 3 and 12 months to sell a house. Quick sale companies promise to sell your house in just one week!
Quick sale companies buy your house from you directly and then quickly find a third-party buyer to take it off their hands.
Many companies will negotiate a discounted sale price because they pay cash for homes and avoid the seller paying an estate agents fee
Reasons Homeowners Use Quick Sale Companies
The biggest appeal of quick house sale companies is their ability to pay in cash. If you’re a homeowner looking for cash now or want to sell your home immediately, you may consider using one of these companies.
Quick sale companies also pay all related fees including solicitors.
Here are a few more reasons why you may want to sell your house quickly:
- Get rid of unwanted inherited property
- Relocate due to a recent career change
- Relocate for health reasons
- Financial issues including repossession or excess debt
- Divorce
- Unable to sell using a traditional estate agent
- Pre-existing issues with the property (high risk of flooding, short lease, etc.)
- Your need to move is greater than your need to sell for the best price
While using a quick house sale company may benefit you in the above-mentioned situations, there are a few downsides to going this route.
These include:
- Incorrect property valuations
- Unclear fee structures
- Contracts that restrict you from selling to someone offering a better price
Protection for Homeowners Using Quick House Sale Companies
If you decide to use a quick sale company, you’re entitled to some protection.
Unfortunately, the quick sale market isn’t regulated, which means you’re not protected when entering into an agreement with one of these companies.
Some quick house sale companies join the NABP (The National Association of Property Buyers) to put seller’s minds at ease. The NAPB ensures that all members are registered with TPOS (The Property Ombudsman) and follow their strict Code of Conduct.
This protection allows homeowners to contact the NAPB or TPOS if the quick house sale company breaks the Code of Conduct or takes other unethical or immoral actions. In some cases, homeowners will receive compensation.
How Fast Can Reputable Quick House Sale Companies Close a Deal?
Realistically, professional quick house sale companies can provide cash for your property within 7 to 28 days, even though most claim they can do it within 24 hours.
There are only a few specialists who have the resources to close a deal this quickly. If you use an unreliable company, this “quick sale” process could take months as they try to find a buyer and secure financing.
How Much Can You Make Off a Quick House Sale?
There’s no set cost, but most quick house sales close at between 75% and 82% of market value. Be wary of any company that promises to get you up to 90% or even 100% of your home’s value.
Many companies will use the words “up to” when describing percentages to mislead homeowners.
These offers aren’t a guarantee to buy your home for cash but instead, an offer to sell your home for you — no matter how long that takes.
How Do I Know How Much My Property Is Worth?
Knowing the fair market value of your property is the first step in preventing yourself from being taken advantage of. So, how can you determine just what your house is worth?
The easiest way is to elicit the help of a few local estate agents. Ask their professional opinion on how much they could sell your house for in a specific timeframe (i.e. 4, 6, or 8 weeks).
By asking specific questions, agents are more apt to give you an accurate estimate of open market value instead of an overvaluation designed to impress and motivate you into using their services.
Remember when valuating your property, use online tools to get a strong estimate in conjunction with an estate agent. 2 popular tools are Nationwide’s house price calculator and Zoopla’s value your property tool.
Other Costs to Consider When Using a House Buying Company
Reputable selling companies don’t charge any fees. In fact, most will pay your legal fees and deduct this cost from their offer price.
Beware of quick house sale companies that claim to buy any and all houses regardless of condition. Also, avoid any buyers that offer a verbal agreement but insist you pay inflated surveyor valuation costs.
These can range from £200 – £600. Always get all agreements in writing.
These charges are usually called a ‘refundable payment for valuation’, which at least gives you some protection since it’s refundable. The loophole here is that you can only get your money back if you accept the company’s offer.
Some companies can offer you a strong verbal offer, pocket £200 or £300, and then lower it after you’ve paid. For companies that do this enough times, they can make a profit without ever buying a property!
Avoid using quick sale companies that require payment upfront. Another red flag is if the company requires a cancellation or withdrawal fee.
Using a Quick House Sale Company If You’re Already Listed with an Estate Agent
Some homeowners may not want to put all their eggs in one basket, so to speak.
If you’re wondering whether or not you can list your property with a quick sale company and still use a quick sale company the answer is yes — but with some exceptions.
Estate agent fees depend on the type of contract you sign. Be sure to check if your contract specifically states that it’s a SOLE AGENCY agreement or a SOLE SELLING RIGHTS agreement.
If you’ve signed a SOLE SELLING RIGHTS agreement, the agent can claim a fee, even if someone else buys or sells your home! On the other hand, if your contract reads as a SOLE AGENCY agency agreement, the agent isn’t entitled to a fee.
Home Auction vs. Cash House Buyers
There are two ways to guarantee a quick sale of your home — at auction or using cash house buyers. But which one is the better option?
There are 2 major problems with trying to sell your home at auction.
First off, the minute you decide to auction your property, it’s publicly advertised on Zoopla and Rightmove with a low guide price. Second, if your house doesn’t sell, home buying companies will now base their offers on these low guide prices.
The bottom line is that the cash offers are reduced by nearly £1,000 following a failed attempt to sell at auction.
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