According to a study in 2022 conducted by Zoopla in 2022, it takes nearly 6 months to get rid of your house by using the help of an estate agent. That means it can take longer than the extremely lucky half of sellers.
After such a long period of waiting it’s only natural alternatives could emerge… which is why Cash House Buying Companies come in.
So let’s start with the basics. What is a Cash-House Buyer?
Cash House Buying Companies buy houses directly from the sellers. They pay less than the market value, but offer an easier and faster sure way to sell your home than auctions for property or estate agents. They’ll even buy any property, even if it has issues.
I’ve worked within and in the “Cash House buying” industry since 2013. Over the years, I’ve collaborated with (or competing against) numerous of these businesses which include all of the major players.
In this article I want to peel back the curtain and share the truth about how to sell your house quickly to an Cash House Buying Company. If you’re considering making use of one, you’ll find this article really helpful.
Let’s begin with an overview.
1. Are Cash House Buyers really worth it?
First , is property cash buyers any good?
Genuine Cash House Buyers are a great alternative if you wish to sell your house fast. They will make an offer in one or two days, and can purchase your home within 2-3 weeks. However, due to the fact that they pay an affordable price to purchase your home, they’ren’t suitable for every person.
If you choose the best home buyer who is cash-based, they’ll provide you with the most simple house sale you’ll ever experience.
Let’s cover some of the benefits in more detail.
2. Benefits of Cash House Buyers
Let’s face it, selling your home through an estate agent is a pain. What’s the problem?
Delays. The average wait time is six months, according to a 2022 study by Zoopla. For the less fortunate 50% of home owners, it’s even longer than that.
Stress. There is no excuse for the time it takes to sell their house, though. The entire selling process can be extremely stressful as well. There are estate agents, conveyancing solicitors buyers, mortgage surveyors, and conveyancing solicitors. It’s a slog.
Uncertainty. Even if everything goes as planned, there’s still a chance everything might fall apart. (For example, we surveyed 355 recent home owners and learned that an incredible 31% of them saw their sales not to be completed at least one time).
The best thing about selling to an Cash House buyer is that you’ll steer clear of many of the hassles or stress which can drive home owners mad by selling their home through an estate agent.
The direct selling of your property to an Cash House Buying company is much quicker and more convenient than selling via auction or estate agent. There are additional advantages too.
Here are some of the advantages you’ll get if you choose to sell your home to a cash house buyer.
Pro #1 – Speed
As we’ve mentioned, the typical house sale takes about 6 months. Selling by auction is faster however it takes around 10-12 weeks.
Is it more effective for you to sell your property to the cash buyer?
Selling to a house buying firm is much faster than selling via an estate agent, or through an auction. It is possible to sell your home to a cash House Buyer within a matter of a couple of weeks, but the timeframes can be adjusted to suit your needs. This means that you are able to set the deadline to meet your plans.
Wondering how to sell my home for cash in Washington? Find out how on our website.
How can Cash House Buyers work so quickly?
If normal house sales last around 6 months, it’s crazy to imagine that some businesses can purchase your house in just two weeks. Here are the important modifications they’ve made to their procedure to purchase homes so quickly:
1. They buy from you directly. Yo don’t have to deal with estate agents, wait for viewings to come along make offers, waste time dealing with buyers who aren’t qualified, or rely on other people’s house chains.
2. They are prepared for financing. Because they are Cash House Buyers can either purchase your home in cash or with a large commercial lending facility They won’t be waiting for mortgage lenders as normal buyers do. They definitely won’t need to sell a house to purchase yours, as do normal home buyers.
3. They have a knowledgeable team. They can react quickly and decisively, and can resolve legal issues which arise. They’ll feel more comfortable taking out insurance policies and will be able to steer clear of some of the issues which delay estate agent sales.
4. They provide their services quickly. There is no need to sit around for viewings or offers. Cash House Buyers conduct an extensive valuation in a short time and make their offer the very next day. The company I recommend will give you a formal proposal (backed by an assurance) within 24 hours.
5. They employ the top solicitors. Quick completions are vital to a House-Buying Company’s business So they’ll have long-standing relationships with fast, proactive solicitors who do everything by phone and via email. (No waiting around for the postman for important documents!)
6. They’re service-focussed. Because their acquisitions are higher-value than typical sale by estate agents, agents will invest more time in the services they provide to you. This means more communication. You’ll always feel up-to-date and in control. It means any issues are identified and quickly resolved.
Pro #2 – Certainty
Many people believe that if they decide to sell their house, it’s certain that they’ll sell. This isn’t the case.
Rate of success for estate agents Based on research by financial services firm Jefferies, estate agents only sell 51 percent of the properties they sell on. My own experience matches this.
Property Auction success rate: Auctions for properties offer a higher chance of success, but the success rate is only between 70-80% in the majority of auction houses.
Cash House Buyer Success rate: Selling to the Cash House Buyer offers complete certainty but if you agree to their offer, the property will be sold.
Selling to a Cash House Buyer offers a 100 percent chance of selling, compared with only 70%-80% of auctions and 51% for estate agents.
Pro #3 Pro #3 – Their “We buy any house” method
One of the most important selling points for Cash House Buyers is that they’ll purchase any property. It means they’ll make you an offer regardless of property’s condition or how dirty it is inside, or how severe any issues are.
It is possible to sell a home with subsidy to them.
Although this is beneficial in some ways, if your house is in serious need of repair, I’d actually encourage you to think about selling through auction. Cash House Buyers will purchase every house, but if the home is in serious issues , they’ll purchase at a significant discount.
This is why auctions make more sense to most people.
Tips: If your house is in a state of serious damage I’d advise staying away from Cash House Buyers.
Although they’ll surely make you an offer, it’s likely to be quite low. If you offer it for sale, the buyer will simply put it in an auction and make a healthy profit.
My advice would be to sell it in the auction yourself and then make your own money.
Pro #4 – Sell your house as-is
Cash House Buyers buy your property as-is, meaning it’s not necessary to carry out any renovations before the purchase.
Another advantage of using a Cash House Buyer is the ability to sell your home in its current condition. There is no need to remodel or redecorate it prior to selling (and there’s definitely no need to smell fresh baked bread permeating through your home for house viewings).
House-buying businesses are business-minded and won’t be swayed by clutter, mess or the necessity of a renovation. You can offer your home for sale as-is and then go on.
Pro #5 – No viewings
On a similar note, you won’t have to organize any viewings. There’s no need to tidy up your home to impress guests, or having them wander through your house. Simply agree on a price with the company and get set to go.
Pro #6 – No estate agents
I don’t really like blaming estate agents since the truth is that there are lots of really great ones out there.
But there are lots of bad ones , too…
In fact the survey of 2022 we asked 291 recently home buyers how satisfied they were with their estate agent. Nearly one third of them scored their estate agent 6/10 or less.
We asked 291 recent home sellers how satisfied they had been with the estate representative they used. Nearly a third scored their estate agent 6/10 or lower.
However, there are many estate agents who aren’t poor… If you decide to sell your home to the Cash House Buying Company, you won’t have to worry concerning dealings with anybody.
Pro #7 Chain-free buyer
Housing chains slow selling and can increase the chances of your sale not going through. Companies that buy houses are not chain-free, however which means that your sale will be much quicker and easier to complete.
Cash House Buyers are not chain-free that helps to simplify and make your home sale more efficient.
Pro #8 – No charges (kind of …)
Many Cash House Buyers will mention “no fees!” in their advantages. They’ll say that this makes them the cheapest way to sell a house.
But it’s not really true. I included this as a advantage here since I wanted to dispel the myth:
While it’s true that the majority home-buying firms don’t charge any charges, you should think about the bigger perspective…
They buy your home for a substantial discount to the fullest extent – and that’s how they make their income.
So although they aren’t directly charging fees it is the most expensive method to sell your house.
3. Contraints of selling to a House Buying Company
After we’ve discussed the advantages of selling to a Cash House Buyer, let’s consider the disadvantages.
What are the drawbacks to selling your house to a Cash House Buyer?
The biggest drawbacks to selling your house to the Cash House Buying company are the low prices they’ll pay (which is typically between 80 and 85 percent of the home’s value), and the fact the industry is not regulated. This means that many of the most reputable companies rely on very unethical tactics.
Let’s examine them in more depth.
Con #1 – Low Sale Price
A cash house buyer is a great way to get a quick specific sale and then move the home according to your timelines.
However, the biggest mistake home sellers make is in the price.
Home buying companies provide significantly less than market value.
Typically, you should be able to sell your house at 15-20% less than its full value.
Some homeowners feel it’s worth the sacrifice in the short, guaranteed purchase…
… But it’s such a big fall that it’s the right option for most homeowners.
This is the biggest disadvantage of selling to the Cash House Buyer.
Con #2 – The absence of regulation
Another major drawback of entering into “Cash House Buyer” market is how unregulated it is.
Let’s tackle the elephant in the room first of all:
Are Cash-On-Hand Buyers Regulated?
Cash House Buying Companies are not regulated.
A large number of them belong to The Property Ombudsman but this is a voluntary scheme for redress and not a regulator. The Ombudsman “do don’t have authority to take any legal or regulatory actions” against companies.
The National Association of Property Buyers are “not an insurance scheme for redress or a regulator”.
This is what The Property Ombudsman and the National Association of Property Buyers each say about their powers:
Property Ombudsman: Property Ombudsman: “The Ombudsman is not a regulator and has no authority to take any legal or regulatory action against an agent and impose fines, or to determine how agents manage their activities.”
The National Association of Property Buyers: “The NAPB is not in itself a redress scheme or a regulatory body, however, it can give information to anyone who feels they’ve been treated unfairly.”
And that’s it. You’re about the make one of the most significant financial transactions of your life, and the organizations that oversee the industry don’t have any regulating power. They’re able provide information if you feel that you’ve been mistreatedand could provide a slap in the face.
Con #3 – Scams & Dodgy Companies
In any industry that is not regulated You will find a lot of unethical companies appearing to profit of it.
As a result, due to this fact “quick house sale” business has gained an extremely bad reputation.
I wanted to determine how bad the reputation of this company has taken on, so we polled 562 adults , asking what they believed to be the most trustworthy Cash House Buying companies are. 58% of those who were sceptical about Cash House Buyers stated that they believed they were “not credible at all”.
4. What is the cost for Cash House Buyers need to pay?
As we’ve discussed, Cash House Buyers are the most efficient way to sell your home, but it comes with a substantial reduction in the cost. What’s the cost for Cash House Buyers pay?
Cash House Buyers pay between 80 and 85% of your property’s total value. This is lower than what you’d be able to sell your home through an estate agent. However, you’ll get some savings that should be considered. For example, you won’t be required to pay for estate agent or legal fees and you could save on monthly payments through selling faster.
4.1 Why don’t Cash House Buyers offer higher rates?
To most of us, 80-85 percent of market value appears to be a low number. Why aren’t certain companies paying more?
Companies who buy homes make their profits by buying your home at a price below the value of the property, and the following day, taking over to become the next owner and attempting to sell the property for full market value.
They incur a lot of costs by buying and selling houses, but they need to buy with a range of 80-85% value to cover their costs and earn an income.
That’s why it’s hard to find a genuine company who’s able to offer more than that. Particularly in a market like this one where prices are beginning to fall.
Why aren’t cash buyers able to pay more than 80-85% market value?
The costs Cash House Buyers incur include financing costs and stamp duty. They also pay 3 sets of legal fees estate agent fees and holding fees (council tax, insurance , etc.).
That’s not even taking into account the costs of the business itself are covered, such as salary of employees, office rent, marketing costs, tax and more.
I’m not suggesting you should be apathetic about Cash House Buyers because of all their costs… however, if you observe them buying homes at 80-85% of market value , keep in mind two points:
They’re not being as generous as they appear. They have to buy homes at relatively low prices in order to cover their costs and make a worthwhile profit.
Anyone who claims to offer 90 percent of the value or more isn’t being truthful. There’s simply not enough space to pay their costs and generate a profit buying properties at this kind of price.
In other words, if Cash House Buying companies pay relatively low prices Should you consider using one? If yes, which one is the most effective?
5. Should you sell your home to a Cash House Buyer?
Cash House Buyers will help you get the most straightforward house sale If you’re willing to compromise on price.
Cash House Buyers are the most efficient method of selling your home. They are a quick purchase that is quick and easy, however, should you use one?
For the majority of people, the answer is “no”. In the current market for property many people cannot afford to take a 15-20% discount on their sale price.
But what if you can afford to sell for an affordable price? ?
If your home isn’t secured by a an enormous mortgage and you are able to sell for less than its value or value, then cash House Buyers might be the best option. Especially if you feel that the convenience and time are more important to you than getting the best possible price for your property.
Examples of homeowners who decide to sell their house to a Cash House Buyer could be:
Chain repair. If the sale of your home falls through and you don’t want to risk losing your purchase, then Cash House Buyers could be the perfect solution. It is possible to persuade other participants in your chain to absorb some of the lower cost. To get an excellent example, read this “chain repairs” analysis to read about the experience that one of our readers had when he opted for the services of a House-Buying Company.
Relocation/Emigration. If you are on a timetable for moving, then a lengthy auction with an estate agent might not be the best alternative.
Separation/Divorce. Although you’ll pay an affordable price, many in this position feel that it can be beneficial to avoid a long-drawn divorce. Personally, I’d recommend to collaborate with your spouse, as you’ll all be more prosperous if you make it through a typical house sale together. Many prefer to cut ties sooner though, so a cash house sale can be a great option for a lot of people.
Inheritance. Directly selling to a home buying company can be the best way to market an inheritance property. it may help settle an estate and bring closure much faster.
Downsizing. If you’re looking to move with as little stress as possible, the ease and convenience buying houses from a company can make the perfect choice to assist you in downsizing quickly and effortlessly.
In the end, if your thinking of selling to a Cash House Buyer , it’s up to you to decide how you feel about the compromise that you’ll be forced to make with the cost, and how valuable the speed and security is for you.