Quick house sale companies are also known as property buying companies, house buying companies etc. They are the latest trend to sell your house fast. The traditional way of selling through an estate agent wasn’t always practical for people’s needs and this has led to the fundamental growth of companies in the industry.
There have been concerns over the past few years that homeowners could be misled and lose out financially if they don’t use a RICS approved company to represent them to achieve their quick house sale. In essence, there are advantages for quick house sale companies as they offer to purchase your property fast (or the unregulated property buying companies may find you a third party buyer but this is never guaranteed), pay cash but the disadvantage is they pay a discount to the market value.
The purpose of this blog post is to highlight the advantages and disadvantages of property buying companies so that homeowners are fully aware of the property buying process and what’s involved. It would be quite easy for us to say that there are only advantages, but this isn’t the case. There are several factors to consider and it’s up to you as the homeowner to consider your cards when you need to sell your house fast. You need to have considered the following:
- Found your dream home and need to sell your house fast
- You need to relocate to a catchment area for your kids
- You are emigrating
- Inherited property and want a quick sale Retirement
- Financial problems
- Problem Property or neighbours
What are the Advantages of Quick House Sale Companies?
Like we have already discussed, there are a number of advantages for people who need a guaranteed quick sale. Barry Home Buyers as a regulated company can provide a number of advantages to homeowners and can help in the following cases:
- Regulated companies can help you avert repossession, clear debts and address any financial problem you have.
- An inherited property can be easily translated for cash.
- When you need a quick sale for health reasons like retirement, a guaranteed sale can be secured with Barry Home Buyers.
- If you are struggling with a divorce or relationship breakdown, the advantage of quick house sale companies is a sale can be completed within 7 days.
- If you are looking to emigrate or moving owing to job relocation, a house buying company can assist by providing a cash offer for your property so a quick completion can take place.
- If you own a problem property (e.g. problematic tenants, short lease, structural problems etc.) and you can’t sell your property through an estate agent, a quick house sale company will buy any type of property regardless of condition or problem!
What are the Disadvantages of Quick House Sale companies?
Whilst there are a number of benefits to selling your property quickly to house buyers, there are always going to be some disadvantages:
- As discussed, if you have made a rash decision and not chosen an NAPB approved company, unregulated property buyers may charge additional fees due to unclearness. Regulated companies don’t charge ANY fees so if a company starts trying to charge you fees just ignore them.
- Another disadvantage of companies is that unregulated companies tie homeowners into contracts sometimes for up to 12 months! This doesn’t happen with regulated property buyers so be cautious when you read the contract and make sure you aren’t tied in for long.
How to evaluate a property buying company
As you can see there are a number of advantages and disadvantages to property buying companies. We thought it be prudent to provide a property buying checklist for homeowners. If you need to instruct a property buying company we suggest you follow the below criteria:
- We would recommend you get an initial valuation. By understanding what your house is worth you should be able to establish the type of offer a company will make.
- Check the company’s credentials. This blog makes this point perfectly clear, make sure that your property buying company or property buyers are regulated! Quick House Sale companies should always be a member of The Property Ombudsman.
- Get your offer in writing. Don’t just accept a verbal offer, get the offer in writing and for your records. Barry Home Buyers follow this process on each house transaction.
- Never be hasty. Take your time! Selling your house quickly to a property buying company is a daunting prospect if this is your first time. Take all the time you need to make the right decision and chose the best property buyer for you.
- Read your agreement through and through. If there is anything in the agreement which you don’t understand clarify this with the property buyers, or further still speak to your own legal adviser.
- Avoid lengthy tie-ins for contracts. Estate agents contracts are usually around 12 weeks, a quick house sale companies should be around 3 – 8 weeks, certainly nothing longer (unless the homeowner requests this).
Guiding Questions to ask Quick House Sale Companies
Barry Home Buyers recommends asking the following questions to property buying companies:
- Is the company or an investor buying your property?
- Will it be a cash transaction or will you require a mortgage? Seek for evidence of proof of funds.
- What guarantees do you have that the transaction will take place?
- Will completion of your property be accurate in terms of timescales?
- Confirm who will be valuing your property, and the process to be undertaken.
- Is the offer subject to a RICS valuation?
- Ask for the company to confirm fees from the outset and get this in writing.
We hope you have found this blog insightful regarding the advantages and disadvantages of property buying companies.