It’s widely known that the UK property market is in a state of decline. Since the first mention of ‘Brexit’ in 2016 the UK property market has slowly reduced asking prices and house price sale rates have been at the lowest for over a decade. However, many companies advertising online to buy any house for cash still claim now is a good time for the British public to consider selling their homes for cash.
Current statistics show that estate agents are taking on average 7 months to complete on the sale of a property, and with Brexit still in unknown territory; many homeowners are unsure whether it’s a good idea to sell their homes.
Whilst selling through a traditional estate agent is going to ultimately get a vendor the highest possible asking price, many vendors fail to consider the other associated costs with selling a home that they could be saving on by selling their home to a cash buying company. According to Ready Steady Sell the rise of ‘scam’ and genuine cash house buyers has led to a number of questionable companies within the ‘we buy any house’ industry (which is currently nonregulated); leaving customers confused and bewildered by the options in front of them.
Below we have identified the pro’s and con’s of selling your house fast to a cash buying company so you can identify if this route to selling your home is for you.
The Benefits of a Cash Property Buying Company
Most homeowners will only see the negatives of selling your house to a cash buying company; missing out the many benefits that come with a quick cash sale. Here are some of the main benefits of selling your house quickly for cash;
- You are getting a guaranteed sale. The biggest benefit of dealing with a genuine cash house buyer is that you are getting a guaranteed house sale, something that you would never find on the open market. This mean there are no buyers changing their minds, no chains breaking down and no buyers failing finance checks.
- You can sell in as little as 7 days. We already stated that estate agents are taking up to 7 months to sell property. With a genuine house buying company you can be guaranteed a sale in as little as 7 days or in a timeframe that suits you.
- You are saving on fees. A genuine cash buying firm will not charge you any fees. What’s more because you are selling for cash, there are no legal fees, estate agent fees or valuation costs to pay for.
- You are saving on mortgage payments and other bills. If estate agents take on average 7 months to sell a property; that’s 7 months of mortgage payments and bills you as the vendor will have to pay on a property you no longer wish to be in.
- You become a cash buyer yourself. By selling your home for fast cash you will have the cash from your property directly in your bank in as little as 7 days. This means you are then in the position of being a cash buyer. When it comes to making your next purchase this puts you in a very powerful position.
The Disadvantages of a Cash Property Buying Company
The major disadvantage to selling your home to a ‘we buy any house’ company is the price they are going to pay for it. The majority of quick house sale companies will be offering on average 85 percent of market value. This means if your property is valued at £100,000 they will offer you £85,000 in cash. This may not seem like a lot but the higher the valuation of the property the higher the discount amount will be. There are also some other disadvantages to selling your house to a cash buying firm, they are;
- You can’t be sure they are genuine cash buyers. Many companies advertise online to be able to ‘buy any house’ for cash, however not all of them have the cash to proceed. Due to the fact the industry is unregulated, other than the advertising standards agency there is no one to say what a company can and cannot say on a website.
- You could get more on the open market. As mentioned earlier, an estate agent is always going to get you a higher price, but how long will it take them to do so?
- Last minute reductions. There are some companies out their that buy your house for cash, agree a purchase price and then drastically reduce at the last minute. This leaves you in the position whereby you must accept their new offer or look to restarting the whole sale process.
Whether you are in a dire need to sell your house quickly or not; selling your home to a cash buying firm could work for you, if you can see past the discount they will require.
This is a collaborative post.