A property buying company can purchase your house without needing a mortgage or a loan. They have the funds available, in cash, immediately.
For home sellers who want to get a property ‘out of your hair’, using a property buying company can be an excellent option. You can often complete a sale within a matter of days, and do not have to deal with the hassle of a buyer who is in a property chain.
But alongside the benefits of selling to a property buying company, there are drawbacks, too.
Read on to find out some of the major pros and cons of selling to a property buying company.
Pros – Speed
The longer the sale process runs on, the more likely it is to fall through. Therefore, the quicker transactions that come with a property buying company is a major advantage.
Finding a buyer and arranging a mortgage on a property can take many months. Property buying companies do not need a mortgage, and they buy the property from you directly, which therefore speeds up the house-buying process significantly.
An estate agent typically takes 6-9 months to sell your home. At We Buy Any Home, we can purchase your property in as little as 7 days.
Pros – Chain Free
Property chains are notoriously difficult to manage, and often cause delays. When you are reliant on several other transactions completing on the same day as yours, it leaves you vulnerable to the whims of other people.
For example, if a house buyer somewhere along the chain decides not to buy their house, then your transaction may breakdown, too. And the longer the chain, the more likely it is to break down.
Cash buying companies such as us don’t rely on any chains, so there is no threat of a chain breaking or a sale falling through. What is more, we contractually agree to purchase the property, so you won’t be vulnerable to “cold-feet” buyers who change their mind at the last minute.
Pros – Reliable
Property buying companies are not reliant on outside sources of money – such as a loan – to buy your house. All the money they offer on your property is immediately available, which makes them more reliable, compared to a buyer who requires approval on a loan.
When a cash house buyer puts in an offer, they are typically more certain that they want, and can afford, your property. Therefore, when an offer comes in from a cash house buyer, it is more likely that the deal will be completed, compared with an offer that comes from someone on the market.
Pros – Any Condition
When you sell your property through a cash house buyer, they will often purchase the house as it is. This means that you don’t have to spend large sums of cash on additional repairs to make the property look ‘marketable’ for prospective buyers in. This also means you aren’t limited by mortgage agreements and other restrictions that come with transactions that are funded by a third party.
Pros – No Estate Agents
Selling to a property buying company means you don’t have deal with estate agents over valuing your property to win your business (which ultimately means you’ll be on the market for far longer until the property is marketed at its true value). Also, selling to a cash house buyer means you don’t have to open up your house to Joe Public for countless viewings in a bid to find a buyer.
Another plus side to avoiding selling through an estate agent means you don’t have to pay their commission fees.
Cons – You Won’t Receive Full Market Value
Unfortunately, cash house buyers are unable to offer market value for your property. If they did, they wouldn’t make any profit and simply wouldn’t exist. Any company offering 100% of market value is not a cash buyer.
Genuine cash buying companies offer a reduced percentage of the property value in return for a fast, guaranteed, and stress-free sale. At We Buy Any Home, we between 80-90% of the market value. We also offer a best price guarantee on any genuine offer from cash buying company.
Understandably, this service isn’t for everyone. It is important for you as the seller to identify what your main priorities are. It maximising your price is the most important thing, then a cash buyer won’t be for you. However, if speed, certainty, or ease are your main priority when selling a property, then a cash buying company is absolutely worth considering.
Cons – Not All Cash House Buyers Are Genuine
You must take care and consideration to ensure you only work with a professional and reliable house buying company.
Sadly, not all home buyers who use cash to buy property are genuine. Some are simply acting on behalf of other organisations and may charge extra fees for services such as arranging surveys. Whilst this is becoming far less of a common occurrence, it is important to check that you are dealing with a reputable company.
The best way to avoid this is by carrying out thorough research on the property company you are selling to, before approaching them. There are lots of resources online, guiding you towards the market-leading reputable buying companies, most notably the National Association of Property Buyers (NAPB) – a regulatory group set up to improve the standards of the quick sale housing industry.
If you have never heard of a company before, and they offer you a sum way above your quotes from other competitors… it is almost certainly too good to be true, and they are likely not a genuine cash buyer.
Cons – You Don’t Choose Who Moves Into The Property
Most property buying companies will purchase your property simply to sell it on. This means that you have no idea who will be living in your property 6 months, 6 years or 60 years from now.
While this may not be a significant drawback to all people, many property owners take comfort in knowing who will be taking over their home. For example, many people enjoy selling to parents in their late 20s/early 30s, because it is possible that the property will be inhabited by the family (and perhaps their children, when older) for a long time.
If this sentimental aspect of selling a house is important to you, then you may want to take this into consideration.
The Upsides Of Property Buying Companies
There are many significant advantages to selling your house through a property buying company; speed, ease, certainty.
We Buy Any Home is a cash house buyer which gives you a quick turnaround on your property transaction. With us, you can sell your house in as few as 7 days, and access the cash almost immediately afterwards.
We conduct no viewings (apart from one by our RICS chartered surveyor who values the property for us) and there are no hidden costs or obligations. We guarantee to offer you the best price of any home buying company out there. And remember… we also pay your legal fees.
