We Buy Any House (2020 Reviews)
Cash property buyers are very simply, people who can buy property for cash without taking out a mortgage. There are also firms that do this, that are commonly referred to as quick sale companies who came to the forefront of the property industry in the early 2000’s. These are companies who claim to buy properties quicker than the average estate agent, for cash – however many of them have been the subject of much media scrutiny linked to scamming homeowners. Today we’re going to delve into the world of cash property buyers and cash property buying firms and learn a little more about who they are and what they offer.
Who Are these So Called “We Buy Any House” Companies?
Before going any further, it makes perfect sense to explain what the exact meaning of cash property buyer is:
- Rather than taking out a mortgage like most homebuyers would, these people can afford to buy a house upfront for cash. If you’re looking for an individual who will be able to do this, they’re few and far between – trust us – but there are firms out there who offer this service exclusively.
- However, these companies have been the subject of much controversy over the years, with many of them being accused of false advertising in order to scam potential clientele. Although there are some reliable and trustworthy organisations out there, it’s without question that some of them who advertise themselves as cash buyers, don’t actually have the cash influx in order to buy property fast.
- This is problematic, as selling property is huge. It’s the largest asset you’re likely to own in your lifetime, and therefore you want to get the best price you possibly can – that’s perfectly normal. Statistics have actually proven that within the industry, as many as 85% of the companies who claim to be cash buyers don’t actually have the funds that they claim to.
- If you are going to deal with a cash buyer, it’s vitally important you do your research and check out the credentials of the company or person you’re dealing with. The transaction is made in cash, which makes it a lot more difficult to trace legally if you end up going through a scamming organisation, so be careful, and do your research! It’s not a small sale you’re making.
It’s vitally important to remember the importance of checking credentials and sources.
Why Would I Need to Sell a Property for Cash?
Good question. In a world where the vast majority will sell their home on the traditional market, and the buyer will go through a mortgage lender – why would you need to sell a property quickly for cash?
- A lot of people need to sell a property quickly for cash, because of time sensitive circumstances that require an influx of cash immediately. Some prime examples of these are people in an enormous amount of debt, and even people who are trying to avoid their property repossessed. Selling it for cash, quickly, immediately becomes the best option.
- Another reason could be that it’s a property they’ve inherited. A lot of people inherit properties from deceased relatives and can’t afford to either keep it up and running, or to pay the costs of selling it on the traditional market. This provides a relief to them, in cash and responsibility.
- Couples going through a nasty divorce have also known to lean towards using this service. If they can’t come to a divorce settlement on the property, and also don’t want to continue living there together, many will lean towards using a quick house buying service, and splitting the cash.
- In some situations, entrepreneurs might need a heavy cashflow in order to get their businesses up and running. Those who are serious will sometimes consider selling their property in the early days for cash, so that they have the money to fund the start-up. They’ll tend to rent in this timeframe, and will get back on the property ladder when the business takes off – but this is only a choice for those with a fully costed business plan.
- Finally, many people leave their homes to either go travelling, or emigrate because of job offers. The last thing you want is to still be paying your mortgage while you’re not living there – and let’s face it, if you’re uprooting your entire life, you’ll need some cash to make it possible. A quick sale for cash is an easy solution to both of these issues, so long as you do your appropriate research!
You’ll notice that despite the different reasons – each one has common factors, and they are time and money. It’s clear to see that if people are working on a short timeframe and need to save cash, then cash house buyers could be the answer for them.
What are the Benefits of Selling Your Home for Cash?
We’ve looked at who cash buyers are, and why someone might want to choose to sell their home for cash. Now let’s take a look at some of the benefits of using cash buyers:
- So long as you’re going through a well reputed individual/organisation with good credentials, you’re going to get a sale far quicker than you would going down the traditional route.
- Not going through the rigmarole of using estate agencies and the like will save you a LOT of money and hassle. Think about it – you miss out on estate agent fees, legal fees, and not to mention the entire process of marketing and hosting house viewings.
- You also miss out on the hassle of being in a property chain. For those who don’t know, a property chain is a term used by industry professionals to describe the situation you’re in when you’re both simultaneously buying, and selling a house. If you’re in a property chain, you’ll find yourself immediately at the mercy of the person buying your house – and as will all of the other people in your chain. If the chain has one weak link, wherein one sale falls through, then the chain in its entirety is likely to collapse, and all of the sales are more likely to fall through. Selling quickly for cash eliminates this as a possibility.
- And finally as we’ve covered, if you’re in a time and cash sensitive situation, then it could be the answer to all of your problems.
Are There Any Pitfalls of Selling Your Home for Cash?
We’ve looked at the benefits – now it’s time to see what the pitfalls are of selling your house to cash property buyers:
- As stated, some of the companies who state that they have the cash to buy your property, very simply don’t. They’ll pose as quick buying companies in order to get your custom, but when it comes down to it, they’ll take longer to buy and sell your property and give you the money for it, than a traditional estate agent would.
- Again, organisations of disrepute are likely to dupe you into doing business with them by making you a cash offer you’re happy with, only to reduce it massively at the last minute when you can’t back out. People have claimed to have lost tens of thousands of pounds to firms who are scammers in disguise.
- A lot of the time, in exchange for a quick sale, you’re only likely to make 85% of the market value on your property, meaning you’re probably going to have to decrease the price of your property by 25%.
- Because it’s all done in cash, it’s easier to get scammed. So long as everything is above board and signed for, it’s perfectly safe – but be very mindful of making sure there’s a record kept of everything.
Now we’ve looked at all of the main points, we’re going to finish off by summarising what we’ve discussed:
- Cash buyers are very simply people or organisations who have the cash to buy property with, outright. They’re difficult to find, but it’s not impossible.
- One of the biggest issues in this industry, is the unreliability of the vast majority of these advertised “cash property buyers” with research showing that as many as 85% of them don’t do as they say.
- They’re a great alternative to traditional sales methods for people who need a cheaper or quicker sale of homes.
- They also eliminate the chances of sales falling through and being stuck in a property chain.
- However, they must be used with vigilance. Unless you’re 100% sure you know who it is that you’re dealing with and have done your research, then we wouldn’t recommend officially signing anything. Remember – check credentials, and check sources.
- In exchange for a quick sale, you’re going to have to be willing to sell your home for 25% less than the market value in the vast majority of cases.
We hope this has helped you to understand a little more about the world of cash house buyers, who they are, what they do, and what you should be watching out for. Happy selling!