Is It Safe To Sell To A Property Cash Buying Company?
In the past the only mainstream way to sell your house was to use an estate agent, which could take months, breaking your buying chain and losing out on your next house. Nowadays you have a lot more flexibility and more options, including the use of a cash house buying company. Here we look at the potential risks and advantages of using a cash buying company to sell your property.
What is the difference between using an estate agent and selling to a private cash buyer?
The normal route to selling a property is through an estate agent. This takes a considerable amount of time; also, a fee for the estate agent is involved as they need to be paid for finding a buyer and completing a sale. A much faster route to selling a property is to use a company that pays 100% cash and can complete in a much shorter timeframe. Serene Homes, as one of the UK’s leading cash buying companies, can complete the purchase of a house sale in as little as 7 days.
There are a number of differences between using an estate agent to sell a property and alternatively selling to a private company, such as Serene Homes, which purchases using only cash. These can be summarised as follows:
- An estate agent takes a fee whereas Serene Homes take no fees whatsoever.
- Marketing materials are required by an estate agent, so as to entice prospective buyers. Serene Homes do not require any marketing materials to be made.
- An estate agent will undertake viewings on the property (often a large volume of viewings), but Serene Homes will not require any viewings.
- An estate agent will typically take 6 to 12 months to complete the sale of a property including all tasks involved, whereas Serene Homes can complete within 7 days.
- The typical buyer who an estate agent introduces uses a mortgage, which adds on extra time and introduces an added risk that the mortgage may be declined. Serene Homes do not require any mortgage funding.
- An estate agent will try to find a buyer as close to market value as possible. Serene Homes will offer up to 90% of the property's market value.
What is crucial for each property seller to decide is what is most important for them. If they want to sell their property in the fastest possible manner without the intrusion of any viewings and risking house sales falling through, then choosing Serene Homes as a house cash buyer is a preferable route.
Every property that Serene Homes purchases comes with a guarantee that completion will take place at the agreed final price. Once a valuation is undertaken, a final price is agreed upon, and completion of the house sale can take place within a matter of days.
What Are The Risks Of Selling To A Property Cash Buyer?
Although there are many benefits to selling a property to a cash buying company, it is important to understand what risks are involved:
Choosing The Right Company
There are a number of cash buying companies in the market and it is important to work with the right one. A good cash buying company will have experience in actually buying property in a short timeframe and delivering on what they said they would do. Serene Homes has extensive experience in completing house sales within 7 days and this is reflected in their customer reviews.
Making Sure The Company Has Cash
Although various companies advertise themselves as cash buyers, it is not certain that all of them will actually have cash. If a company needs to go and find a buyer, even if this is a cash buyer, then the company is not a true house cash buyer. Such a company is acting as a broker, which is the same as the role of an estate agent. Finding a buyer takes a considerable amount of time, so it would not be possible for such a company to complete a house purchase within a week. Serene Homes is a true cash house buying company with the funds readily available, enabling us to aim to complete property purchases within 7 days.
Understanding Price Changes
One of the concerns in the property cash buying industry is regarding the change of price after a formal price has been agreed. Serene Homes is completely open about this and in some situations, a price can change following a survey.
For example, a 90% offer of £180,000 agreed for a property initially thought to be worth £200,000, may change to say £170,000, if the survey highlights a number of problems. There may be structural damage, internal issues, asbestos, or the property may be in poor condition. It is only fair and correct that these issues are taken into account and as such, a price adjustment may be required. Where property sellers are safe with Serene Homes, is that the cost of the survey is covered by Serene Homes. So, if a house seller chooses to withdraw, then they are free to do so having not incurred any costs.
One of the advantages of using a property cash buying company such as Serene Homes is that all fees are avoided. If there is a request for property sellers to pay any fees, including a valuation fee, then this is a red flag that the company is not a true house cash buying company.
As property cash buying companies will pay a lower price for a property - up to 90% of the market value - it is important that the property seller is not subjected to any fees. It is also important that they are not tied into any contract before everything is agreed, and the price is final. The property seller should have the right to pull out at any time, including after a survey has been undertaken.
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