Over the past decade, many cash house buyers in the UK have appeared on the market. In the simplest terms, these cash house buyers offer cash for homes and the whole deal is completed in a matter of days. For a home seller who needs the process to be quick, it is a win-win situation since there is no money down, no estate agents or home showings involved, and there is no need to make any home repairs. But are these deals as good as they sound?
How Do Cash Buying Companies Operate?
The premise behind house buyers in the UK who operate this way is a fairly sound one. You first contact the company on their website and provide information about your house. Within 24-48 hours, you receive a preliminary offer for your property. If you decide to move ahead, the company uses registered surveyors to conduct a survey on your property (at their cost), then send you a final offer with a contract. If you like the offer, you see a solicitor to close the deal. All of the fees are paid by the company. The entire process can take as little as fourteen days.
How Many Sellers Use the Services of These Companies?
Data from a 2018 study revealed that nearly 29% of homes were sold using the services of companies that buy homes for cash. While there was a slight decline in the trend during the pandemic, sellers have again started to use the services of these cash-buying companies. It is anticipated that more homeowners will use the services of these kinds of house buyers. UK real estate is hot right now, and many sellers are looking for a fast, low stress sale.
What Benefits Do These Companies Provide Home Sellers?
In the past, most home sales followed a pretty traditional pattern. The home was listed by an estate agent. It was then shown to lots of interested buyers. Potential buyers made an offer on the property, then the home worked its way through the conveyancing process before the final day of completion was reached. However, this method of selling a home has many disadvantages for the homeowner. One of the biggest drawbacks in this process is financial. Estate agents will usually charge a commission that can vary from 4-to 7 percent of the total value of your home. This means that if your home sells for $500,000 the realtor will get between $20,000 to $35,000- and that is a lot of money to give away. Moreover, many estate agents work for both the seller and the buyer. What this means is that there is a conflict of interest and it is usually the buyer and /or seller who lose out. The buyer will pay a higher price for the home so that the realtor can get more commission from the seller. Another real drawback is the fact that often these deals involve a property chain. The seller must not only sell his or her house, but also look for another one. That house cannot be purchased until his or her current house is sold. The property chain can create some serious issues. Add that to the fact that mortgage lenders must also be involved which can create lots of extra paperwork and time involved, and you have a pretty frustrating process as a whole.
Cash house buyers in the UK, though, offer some real benefits to sellers. They work on a fairly quick schedule because there’s no involved property chain and no mortgage on the property is required. There are no hidden fees, and no repairs to the home are required either. It means a fast, easy process that you can count on to sell your home.
If you’re considering selling to house buyers in the UK who offer cash for your property, do your homework and search for a reputable company. The rewards are immense when working with a cash-buying house company. Check their reviews and make sure they are members of the National Association of Property. Those companies have to abide by a Code of Practice established by the Property Ombudsman, which makes the process both safe and trustworthy.
Finding the right buyer for your house can be a frustrating process, but working with a company offering cash for your home can make it quite a bit easier.