According to a study from 2022 by Zoopla, on average it takes about 6 months to sell your home through an estate agent. It’s even longer than the unhappy half of homeowners.
Given the long time it’s only natural alternatives will arise… this is where Cash House Buying Companies come in.
Let’s begin with the basic. What is a Cash-House Buyer?
Cash House Buying Companies buy houses directly from sellers. They pay less than the market value, yet offer a much faster and more certain way to sell your home than auctions or estate agents. They’ll even buy any property, no matter if it has issues.
I’ve been involved within and around the “Cash House Buying” industry since 2013. In that time, I’ve been working with (or played against) many of these companies which include all of the major players.
In this article I want to reveal the truth and reveal the truth about selling your house fast to an Cash House Buying Company. If you’re considering making use of one, you’ll find this article really beneficial.
If you want to cut straight to the chase and discover whether a cash-for-house buyer is the right choice for you, I’ve developed an easy quiz. Hit the link below to start:
Let’s get started with an overview.
1. Are cash House Buyers any good?
First of all, are the cash buyers for property any good?
Genuine cash house buyers are a very good alternative if you wish to sell your house fast. They can give you a formal offer within 1 to 2 days and purchase your home in a matter of 2-3 weeks. However, as they are paying lower prices for your home , they’re not the best option for everyone.
If you select the right cash house buyer, they’ll basically offer you the easiest home sale you’ll have ever had.
Let’s look at some benefits in more depth.
2. Advantages of cash home buyers
Let’s face it: selling your home through an estate agent is difficult. Why is this so hard?
Delays. The average wait time is 6 months , as per an 2022 study conducted by Zoopla. The unlucky half of home sellers, it takes even longer than that.
Stress. There is no excuse for the length of time required to sell, but. The whole process of selling can be really stressful too. There’s a lot of estate agents, conveyancing solicitors and buyers, as well as mortgage surveyors. It’s a pain.
Uncertainty. Even if everything goes according to plan, there’s still the chance that things might fall apart. (For instance, we conducted a survey of 305 recent home sellers and found that 31% of them had a deal fail at least once).
The best thing about selling to a Cash House Buyer is that you’ll be able to avoid many of the hassles anxiety, stress, and confusion that make home sellers mad by selling their home through an estate agency.
Selling directly to a Cash House Buying company is faster and easier than selling via auction or estate agents. There are a few other benefits too.
Here are some advantages that you’ll receive if you choose to sell your home to a cash home buyer.
Pro #1 – Speed
We’ve already covered that the average house sale takes about 6 months. Auction auctions are quicker however, it can take about 10-12 weeks.
Therefore, is it faster to sell your house to a cash buyer?
Selling to a cash house-buying firm is much faster than selling through an estate agent or by auction. It is possible to sell your home to an cash House Buyer in as little as 2-3 weeks, however, the timelines are entirely flexible. This means you can set the completion date to suit your plans.
How do Cash House Buyers work so quickly?
If normal house sales last approximately 6 months, it’s a bit insane to think that some companies could purchase your house in just two weeks. These are the major modifications they’ve made to the process to acquire homes this quickly:
1. They buy directly from you. You don’t need to deal with estate agents or wait for viewings to be held, negotiate offers, waste time with unqualified buyers, or even wait for others’ houses chains.
2. They have their financing ready. Since the Cash House Buyers will either buy your home in cash or with a large commercial loan facility They won’t be waiting for mortgage lenders like normal buyers are. They definitely won’t need for a sale of a home in order to purchase yours, as do ordinary home buyers.
3. They have a knowledgeable team. They can act quickly and effectively, and are able to solve legal problems that arise. They’ll be more comfortable with taking out insurance policies and will be able to steer clear of some of the issues that impede estate agent sales.
4. They are able to offer their services rapidly. You don’t need to sit around for viewings or offers. Cash House Buyers conduct an exhaustive valuation quickly and then make an offer the same day. The company I recommend can make you an offer (backed by a written guarantee) within 24-48 hours.
5. They employ the top solicitors. Speedy completions are essential to the company’s success So they’ll have long-standing relations with swift, responsive solicitors that handle everything via telephone and email. (No waiting around for the postman for crucial documents!)
6. They’re service-focussed. Because their sales are more valuable than the typical selling by an estate agent, they’ll spend more time in the service they provide for you. This means more communication. You’ll always feel up-to-date and in control, and it will ensure that any issues are discovered and resolved quickly.
Pro #2 – Certainty
Most people think that when they decide to sell their house, it’s almost certain they’ll be able to sell. This isn’t the case:
Success rate of Estate Agents According to research by financial services firm Jefferies estate agents can only sell around 51 percent of the properties they sell on. My personal experience pretty much mirrors this as well.
Success rate of Property Auctions: Auctions for property have a more likely chance of success however it’s still between 70-80% in the majority of auction homes.
Cash House Buyer success rate: Selling to an Cash House Buyer is a 100% guarantee that if you are able to accept their offer then the property will be sold.
Selling your home to a cash House Buyer provides a 100 percent chance of selling, compared with only 70-80% for auctions and 51% for estate agents.
Pro #3 The Pro #3 “We buy any home” approach
One of the most important selling advantages for Cash House Buyers is that they’ll purchase any property. They’ll give you an offer regardless of property’s condition or how dirty it is within, or how significant the problems are.
It is possible to sell a property with subsidisation to them.
Although this may be advantageous in some ways, if your house has serious defects then I’d recommend you look into selling your home via auction. Cash House Buyers will buy any home, but if the home is in serious problems they’ll buy it at a serious discount.
This makes auction sense for the majority of people.
Tip: If the home is in a state of serious damage, I’d recommend staying away From Cash House Buyers.
Though they’ll likely make an offer, it’s likely to be extremely low. If you decide to deal with them to sell the item, they’ll probably place it directly in an auction to make an impressive profit.
My advice is to put it up for auction directly and make your own money.
Pro #4 – Sell your house in its current condition
Cash House Buyers can purchase your house as it is, which means it’s not necessary to carry out any renovations before the purchase.
Another advantage of using a Cash House Buyer is that you can offer your house as-is. There’s no need to renovate and redecorate your home prior to selling (and there’s no reason to keep the smell from freshly-baked bread lingering through your home for house viewings).
House-buying firms are business-minded and will not be influenced by clutter, mess, or a badly needed renovation. You can sell your house in its current condition and then simply move on.
Pro #5 – No viewings
Similar to that the house won’t need to carry out any viewings. No tidying the house up to impress strangers, no having them traipsing through your home. Just agree on a cost with the company and get prepared to move on.
Pro #6 – No estate agents
I’m not a fan of blaming on estate agents , because the fact is that there are plenty of really great ones out there.
However, there are plenty of negative ones too…
In fact the survey of 2022 we asked 291 home sellers how satisfied about their estate broker. A majority of them gave their estate agent at 6/10 or less.
We asked 291 recent home buyers how satisfied felt about their estate agents. A majority of them gave their estate agent with a score of 6/10 or less.
There is no doubt that there are many estate agents who aren’t bad… However, if you opt to sell my home for cash in Washington to an Cash House Buying Company, you will not have to worry regarding dealing with any.
Pro #7 – Chain-free buyer
Housing chains slow transactions and increases the likelihood of your sale failing. Home-buying firms aren’t chained, however so your sale can be quicker and more straight-forward.
Cash House Buyers do not require a chain which makes it easier to make your home sale more efficient.
Pro #8 – No charges (kind of …)
Many Cash House Buyers will list “no charges!” as one of their advantages. They’ll argue that this makes them the most economical method to sell the house.
However, this isn’t the truth. I’ve added this as a reason for this because I want to debunk that myth:
While it’s true that many houses-buying businesses don’t have to charge fees, it’s crucial to think about the bigger view…
These companies purchase your home for a substantial price discount up in full value, and that’s how they make their cash.
Although they’re not directly charging you for fees, this is without doubt the most costly way to sell your home.
3. Contraints of selling an estate to House Buying Company
Now we’ve explored the benefits of selling your home to a Cash House Buyer, let’s examine the drawbacks.
What are the negatives to selling to a Cash House Buyer?
The most significant disadvantages of selling to a Cash House Buying company are the low prices they’ll pay (which is typically between 80 and 85% of your home’s value), and the fact the industry is poorly regulated. That means that a large portion of the largest companies rely on very unprofessional methods.
Let’s examine them in more in depth.
Con #1 – Low sale price
A cash house buyer is a great way to make a fast sure sale and to move your house to your timeframes.
Unfortunately , the most significant mistake home sellers make is with regards to price:
House buying companies offer substantially less than the market value.
Typically, you should expect to sell your house for 15% to 15% less than its full worth.
Certain home owners feel that this is a worthwhile trade-off for the quick, certain deal…
… But it’s such a big decline that it’s the best option for many homeowners.
This is probably the biggest drawback of selling to buyers who are Cash House Buyer.
Con #2 – The absence of regulation
Another issue with entering into “Cash House Buyer” market is how poorly regulated it is.
Let’s tackle the elephant in the room first of all:
Are Cash Home Buyers Regulated?
Cash House Buying Companies are not regulated.
A majority of them have joined The Property Ombudsman but this is a voluntary redress program and not a regulator. It “do don’t have authority to take any regulatory or legal actions” against corporations.
The National Association of Property Buyers are “not a redress scheme or an authority to regulate”.
This is what The Property Ombudsman and the National Association of Property Buyers each have to say about their power:
Property Ombudsman: Property Ombudsman: “The Ombudsman is not a regulator , and is not able to take regulatory or legal action against an agent, impose fines or determine how agents manage the business.”
The National Association of Property Buyers: “The NAPB is not as a redress mechanism or a regulator, but it does offer information to anyone who feels that they have been treated unfairly.”
And that’s it. You’re about make one of the largest financial transactions of your life and the organisations overseeing the industry have no regulatory powers. They’re able to give you details if you believe you’ve been mistreatedand could you can give the company a pat across the back.
Con #3 Con #3 Scams & Dodgy Companies
If you have an industry with poor regulation, you get lot’s of unethical companies that are popping up to take advantage of it.
This is why because of this, the “quick sales of houses” business has earned itself an awfully bad name.
I wanted to determine how bad this reputation has taken on, so we polled 562 adults to find out how trustworthy they thought Cash House Buying companies are. 58% of those who had preconceived notions about Cash House Buyers stated that they believed they were “not trustworthy at all”.
4. What is the cost for cash house buyers make?
As we’ve discussed, Cash House Buyers are the fastest way to sell your home, however it does come with a significant discount on the price. What is the price that Cash House Buyers cost?
Companies that buy houses with cash pay around 80-85% of your home’s value. This is less than you’d have to pay an estate agent, however you’ll save some money which should be factored in. For example, you won’t have to pay legal or estate agent fees and you could lower your monthly expenses through selling faster.
4.1 Why can’t Cash House Buyers offer higher rates?
For the majority of us 80-85 percent of market value may seem to be an extremely low figure. Why can’t some businesses pay more?
Companies that buy houses make money by purchasing your house below market value, and then taking over in the role of the owner and attempting to sell it for full market value.
They are liable for a large amount of costs by buying and selling homes though, so they require buying homes between 80-85% value to cover their costs and earn some profit.
This is why you won’t discover a legitimate company able to offer more than. Particularly in a market like this where prices are starting to drop.
Why aren’t cash buyers able to pay more than the 80-85% markup value?
The expenses Cash House Buyers will incur are financing costs, stamp duty, 3 sets of legal fees estate agent charges, and holding fees (council tax, insurance etc).
That’s not even taking into account the costs of the business itself are covered, like staff salaries, office rent and marketing costs, tax and so on.
I’m not saying you have to be sorry for Cash Home Buyers due to their costs… but when you see them buying properties for between 80 and 85% of market value , keep in mind two points:
They’re not as greedy as they appear. They are required to purchase homes at a reasonable cost to cover their expenses and also make a profits.
Any business that says it can offer 90 percent of the value of more isn’t a good idea. There just isn’t enough scope to cover their expenses and earn a profit buying homes at this kind of price.
So if Cash House Buying companies pay reasonable prices do you need to use one? If yes, which one is the best?
5. Should you sell your home to a Cash House Buyer?
Cash House Buyers will help you get the easiest home sale you can get if you’re happy to accept a lower the price.
The Cash Home Buyer is the fastest way to sell your house. They are a quick home sale that is hassle-free, but are you obligated to use one?
For most people, the answer should be “no”. In today’s property market, most people simply can’t afford to pay a 15 to 20 discount off their purchase price.
What if you are able to afford to sell your product at a discount? ?
If your home isn’t secured by a a large mortgage against it and you are able to sell it for less than its true value and you are able to pay cash, then House Buyers might be the best alternative. Especially if you feel that the convenience and time are more valuable to you than getting the best possible value for your property.
A few examples of homeowners who choose to sell their house to a Cash House Buyer are:
Chain repair. If your house sale goes through and you do not want to be unable to purchase your next home, Cash House Buyers might be a great option. You may even be able to get other parties involved in the chain to share some of the lower cost. For a great example, read the “chain fixing” research paper to read about the experience that one of our readers faced after deciding to go for the services of a House-Buying Company.
Relocation/Emigration. If you’re faced with a deadline for relocating then a lengthy auction with an estate agent might not be the best option.
Separation/Divorce. Although you’ll pay the lowest price, those in this position feel that it can be worthwhile to avoid a drawn-out separation. Personally, I’d advise to collaborate with your partner as you’ll both end up more prosperous if you manage a traditional house sale together. A lot of people prefer to break up sooner though, so an immediate cash sale of their house can be a great option for a lot of people.
Inheritance. Sell directly to house buying company can be a good way to sell an inheritance property. it could help settle an estate, and also find closure faster.
Downsizing. If you’re planning to move with the least amount of stress feasible, the ease of home-buying services provide makes them a good option to assist you in downsizing quickly and efficiently.
Ultimately, if you’re considering selling to a Cash House Buyer , then it’s up you to consider how you feel about the compromise you’ll have to accept on the priceand how important speed and certainty are to you.
According to a study from 2022 by Zoopla, on average it takes about 6 months to sell your home through an estate agent. It’s even longer than the unhappy half of homeowners.