5 Simple Techniques For How much below market value do house buying companies offer

5 Simple Techniques For How much below market value do house buying companies offer

Blog Article

Sell Your House Fast: A Guide to House Buying Companies

The UK property market can be unpredictable, with traditional sales often taking months to complete. If you need to sell your house fast, house buying companies offer a streamlined alternative, allowing you to bypass estate agent delays and hidden costs. These firms purchase properties directly for cash, often completing transactions within weeks rather than months.

But how do house buying companies operate, and are they the right choice for your situation? This guide covers everything you need to know.

Why Homeowners Choose to Sell Their House Fast

Financial Pressures and Urgent Circumstances

Rising interest rates and the increasing cost of living have left many homeowners struggling to keep up with mortgage payments. Unexpected financial difficulties, such as redundancy or debt, can create an urgent need to release property equity.

With traditional estate agent sales taking an average of 6-9 months, many homeowners opt for house buying companies to ensure a quick and guaranteed sale. Cash buyers eliminate the uncertainty of failed transactions, helping sellers avoid repossession and financial distress.

Life Events and Relocations

Life changes, such as divorce, separation, or job relocation, can create a pressing need to sell a property quickly. Selling a house fast enables individuals to settle financial matters, relocate for work, or downsize without prolonged delays.

For those dealing with probate property sales, house buying companies provide a stress-free alternative by handling legal paperwork and purchasing properties without requiring costly repairs or improvements.

Traditional Estate Agents vs. House Buying Companies

The Lengthy Estate Agent Process

Selling through an estate agent involves listing the property, arranging viewings, negotiating offers, and navigating a lengthy conveyancing process. The entire transaction can take up to nine months, with risks of deals falling through due to mortgage issues, chain breaks, or buyer withdrawals.

Hidden Costs in Traditional Sales

Selling a property through an estate agent incurs various costs, including:

• Estate agent fees (1-3% commission + VAT)
• Solicitor fees (£1,000+ for conveyancing)
• EPC certificate (mandatory before listing)
• Ongoing mortgage payments during the sale process
• Potential repair or renovation costs to make the property more appealing

The Faster Alternative: House Buying Companies

Unlike estate agent sales, property buying companies purchase homes directly for cash, ensuring completion within 7-28 days. This eliminates delays caused by mortgage approvals, property chains, and market fluctuations.

How House Buying Companies Work

Step 1: Initial Contact and Valuation

The process starts with an enquiry, where homeowners provide property details. The company then conducts an initial desktop valuation using market data and comparable sales.

Step 2: Cash Offer Within 24-48 Hours

A formal cash offer is made based on the property's condition and market trends. While offers typically range from 80-85% of market value, sellers save on estate agent fees, repairs, and holding costs.

Step 3: Solicitors and Surveys

Once the offer is accepted, the company instructs solicitors and surveyors to carry out due diligence. Unlike traditional sales, these transactions rarely fall through due to mortgage issues or survey complications.

Step 4: Completion in 7-28 Days

Sellers choose a convenient completion date, often within weeks. Funds are transferred directly upon completion, allowing homeowners to move forward without further delays.

Benefits of Selling to a House Buying Company

Speed and Certainty

With completion times as short as seven days, selling to a cash buyer is ideal for those facing repossession, relocating for work, or finalising probate sales quickly.

Sell in Any Condition

Unlike traditional buyers, house buying companies purchase properties in any state, including those with structural issues, damp, or subsidence. This eliminates the need for costly repairs or refurbishments before selling.

No Fees or Hidden Costs

Most reputable house buying firms cover legal and survey fees, meaning sellers avoid the typical expenses associated with estate agent sales. Additionally, there are no commissions or marketing costs.

Finding a Reputable House Buying Company

Check for NAPB Membership

The National Association of Property Buyers (NAPB) ensures ethical standards in the quick house sale industry. NAPB members must also be registered with The Property Ombudsman (TPO), providing additional consumer protection.

Verify the Company's Financial Standing

A genuine cash buyer should have immediate funds available, rather than relying on mortgage approvals or investor chains. Request proof of funding before proceeding.

Read Reviews and Ask Key Questions

Research customer feedback and online reviews to gauge the company's reputation. Before agreeing to a sale, ask:

• Do they provide proof of funds?
• Are they NAPB and TPO members?
• Will they cover all legal fees?
• What is their average completion time?

Comparing Traditional Sales vs. House Buying Companies

Cost Breakdown Example

Sale Method	Market Value	Final Sale Price	Fees & Costs	Net Proceeds
Estate Agent	£100,000	£100,000	£10,000 (fees, mortgage, repairs)	£90,000
House Buying Company	£100,000	£80,000	£0 (no fees)	£80,000

Although house buying companies offer below market value, the absence of estate agent fees, legal costs, and mortgage repayments makes the financial comparison more balanced than it appears.

When is Selling to a House Buying Company Ideal?

Urgent Sales (Repossession, Probate, Relocation)

If facing repossession, a quick sale prevents negative credit impacts and legal action. Similarly, probate sales and job relocations often require a fast, hassle-free property transaction.

Problematic Properties (Structural Issues, Unmortgageable Homes)

Selling to a cash buyer removes the burden of repairing properties with subsidence, damp, or fire damage, which may otherwise struggle to sell on the open market.

Final Thoughts

Selling your house fast through a property buying company offers speed, certainty, and convenience. While offers are typically below market value, the absence of fees, mortgage payments, and repair costs makes this option financially viable for many homeowners.

By choosing a reputable, NAPB-registered company, sellers can avoid the stress of prolonged estate agent sales and secure a guaranteed cash sale within weeks. Whether facing financial difficulties, life changes, or property issues, house buying companies provide a practical solution for selling your house fast.

Frequently Asked Questions

How much below market value do house buying companies offer?

Typically, 80-85% of the market value. However, savings on fees and costs make the financial difference smaller than it first appears.

Do I have to pay any fees?

No, reputable house buying companies cover all legal and survey fees, ensuring no hidden costs.

How long does the process take?

Completion usually takes 7-28 days, depending on your requirements.

Can I sell a house that needs major repairs?

Yes, cash buyers purchase properties in any condition, including those with structural issues, subsidence, or damp problems.

Sell Your Home Quickly For Cash – Get a Cash Offer Today

Sell Your House Fast in Birmingham
Sell Your House Fast in Bradford
Sell Your House Fast in Bristol
Sell Your House Fast in Coventry
Sell Your House Fast in Leeds
Sell Your House Fast in Leicester
Sell Your House Fast in Liverpool
Sell Your House Fast in Manchester
Sell Your House Fast in Newcastle
Sell Your House Fast in Nottingham
Sell Your House Fast in Sheffield
Sell Your House Fast in Wolverhampton
Sell Your House Fast in Plymouth
Sell Your House Fast in Derby
Sell Your House Fast in Stoke
Sell Your House Fast in Preston
Sell Your House Fast in London



The problem higher than encourages agents to give you a far more considered estimate of open market value (versus the usual deliberate overvaluation utilized to impress and get new clients).

Much like other companies, Florida Hard cash Home Prospective buyers advertises an easy, 3-stage system that is probably going to shut in fifteen-30 days. Unlike some Other folks, they do not give “fast” or “instant” offers, but you can find a exact-day offer at your offer appointment, that may be about the mobile phone or in individual. The company’s website doesn't specify regardless of whether you can find specific household varieties that they do not get.

3 in 4 FSBOs marketed in less than two weeks during 2020—even though they also tended to sell for about ten% a lot less than agent-shown properties, In keeping with NAR. So when you may perhaps conserve on commissions, you may end up basically breaking even.

Get Cost-free Dollars Offer What are different phases and when will Each individual take place? We’ll question you to accomplish some easy paperwork and supply documents that establish your property ownership.

As you can imagine, I will not be speaking to them when they contact me. I can't consider people today can be so callous when they have no idea about an individual’s problem.

Cleaning and decluttering your property right before listing it'd sound like frequent sense. But search by means of your community real-estate listings, and you also’re prone to look for a couple of properties in disarray.

I desired to sell quickly simply because my father wasn’t really well in Spain And that i needed to go Are living with him. The process was pretty speedy. They kind almost everything for you personally, you don’t really have to do nearly anything other than signing a number of points.

The Forbes Advisor editorial team is impartial and objective. To help support our reporting perform, and to carry on our capability to supply this material for free to our readers, we Sell Your Home Fast obtain payment in the companies that advertise within the Forbes Advisor web page. This compensation arises from two primary sources. Initially, we offer paid out placements to advertisers to existing their offers. The payment we acquire for the people placements affects how and exactly where advertisers’ offers seem on the internet site. This web site would not include all companies or items readily available inside the market. Second, we also involve backlinks to advertisers’ offers in several of our content articles; these “affiliate backlinks” may perhaps produce cash flow for our website once you click them.

Get Cost-free Income Offer If my circumstances change, can I pull outside of a sale? Our offers hardly ever change. But whenever they do, Sell Your Home Fast as an example if the survey finds subsidence, you can stroll absent totally free.

Force tactics: We Acquire Houses for Funds companies know that homeowners in need of A fast sale will often be facing a desperate predicament. Though several offer serious options, some companies may take advantage of this urgency by applying strain practices.

If our offer is unchanged but you've got altered your head, you could be charged a little price. This cost is dependent upon enough time and price We've invested at that time.

They could then reduce their offer with the last second – occasionally just days right before completion. It's possible you'll really feel you don't have any choice but to just accept.

Rhys was friendly and affected person through as well as their suggested solicitors (Ricky @ Houldsworth) had been handy as well. You might not get market value for your house However they’re a business it is possible to House Buying Companies belief for A fast sale.

Whether or not you’ll should spend your estate agent a rate will count on what sort of estate agency deal you’ve signed.

Report this page