Should I Use A Quick-Property-Sale Company To Sell My House?
Selling a house in today’s world is not the easiest task. If you were to look back to merely the mid-nineties, the cost of reasonable housing was easily within reach of the less wealthy when studied alongside wage levels. Since those days, however, property prices have increased dramatically – placing them far out of reach for even wealthier middle-class adults.
Between 1997 and 2016, the average house price rose by a staggering 259% while average wages increased by a mere 67%. This means that in the space of twenty years, a potential buyer has gone from needing 3.6x their annual wage to buy a home, to 7.6x their annual wage – more than double1.
Those who pay attention to new about the economy will be more than aware of the problems caused by this wage shortfall, with first time buyers being edged out of the market due to a lack of savings, or failing to qualify for the mortgage size required, and a glass ceiling being imposed on those who previously wished to upsize.
There are, nonetheless, worse issues to emerge from this situation. When fewer buyers are able to purchase a home, the ratio of supply and demand changes and sellers find their homes staying on the market for much longer than hoped unless they are willing to reduce their asking price to encourage a sale. Furthermore, the inability to sell means that these people are unable to buy a new home themselves2.
This vicious circle has continued to this very day, and thanks to the outbreak of the coronavirus and the fast-approaching Brexit deadline, it isn’t the easiest time to sell3.
So what options are available to those who need to sell their home fast?
There are auction houses where a stroke of good luck can occasionally grant you a decent profit, and there is also the possibility of private selling if you are able to find someone who is looking. Unfortunately, neither of these routes promises a sale in the time required.
The other option that is increasing in popularity across the UK in recent years is to contact a quick-property-sale company and ask for a quotation. But what are house-buying companies?
What is a house-buying company?
Quick-property-sale companies are not a service for everyone but are perfect for those who need a speedy sale with little fuss4. Unlike standard agencies, they are contacted by individuals who are hoping to sell but have fallen prey to one of several situations:
- Their home has developed structural issues that has prevented interest from potential buyers.
- The house has been gutted, or mis-treated by tenants and needs too much work.
- The house is failing to sell due to being located in a high crime area.
- The house has been on the market for a long time and is failing to attract interest.
- The sellers themselves need to move house urgently for the sake of work, family, or personal reasons.
- They are unable to afford the mortgage.
For those stuck in a house as a result of these reasons, it can often seem like there is no hope and that they are trapped forever.
By contacting a house-buying company, they can ring, discuss their situation and start the ball rolling. Once contacted, the company will send a professional valuer to survey the home before settling upon a quote4.
If the amount quoted is accepted by the potential vendors, then the company will be able to pay them in cash for the home and they can begin to move on with their lives.
Why use a house-buying company?
Life doesn’t always work out the way we want it to, and this extends to buying and selling a home. If you find yourself needing to sell but are having trouble trying to do so, a house-buying company may be a great help4, and here’s why:
- A traditional sale can take anywhere between six weeks and eight months to be completed depending on whether or not there is a chain, or there have been issues with the paperwork – a house-buying company will be able to complete the purchase in as little as two weeks5.
- A house-buying company will absorb all of the fees normally associated with a house sale, such as agency fees, conveyancer fees etc. This means that the percentage of the sale that normally goes to an agent can be used to barter more effectively6.
- A house-buying company look at a house for its potential, not its current state and so requires less housekeeping attention than a house that is due to be sold via an estate agent.
- The amounts quoted – depending on the company – can be extremely competitive compared with other options.
- If you were behind with your mortgage payments, this allows you to make your repayments and save your credit rating.
- If your house is unsellable, for example, being located in a high risk flood zone that prevents insurance cover, a house-buying company will still be happy to purchase.
Are there any downsides?
As with any business, the company you deal with be reputable. There are many house-buying companies who provide their service with the sole purpose of taking advantage of those enduring a troubling period of life. A good company will be friendly, helpful, empathetic of your situation and be willing to work with you to make sure that you are happy5.
At National Homebuyers, we believe the best way to offer service to our clients is to be open and honest, and always maintain an excellent line of communication throughout the entire process.
While the amount quoted by many of these of companies is unlikely to match market value, good companies will over between 80-85% of market value to encourage you to sell. While this may seem negative, it is worth taking into account that by taking a small loss you may be saving much more in the long run as you do not need to pay any related fees for the sale, nor continually reduce your asking price6.
While a quick-property-sale company may not be for everyone, for those in need, they offer a service that can help them to get out of debt, reduce their day-to-day stress and provide them with a large cash sum that can be used to moved forward with their lives.
Are you interested in selling your house for cash? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property before it’s too late.
1Jackson, G. (2017). UK house prices ‘least affordable ever’. Available: https://www.ft.com/content/ea8f28fc-0b08-11e7-ac5a-903b21361b43. Last accessed 25th November 2020.
2Jones, R. (2020). New housing supply down 35% in 2020. Available: https://www.financialreporter.co.uk/finance-news/new-housing-supply-down-35-in-2020.html. Last accessed 25th November 2020.
3Barker, G. (2020). Coronavirus: How It Could Affect The U.K. Housing Market. Available: https://www.forbes.com/sites/garybarker/2020/03/10/coronavirus-how-it-could-affect-the-housing-market/. Last accessed 25th November 2020.
4Anon. (2020). Quick House Sales. Available: https://www.moneyadviceservice.org.uk/en/articles/quick-house-sales. Last accessed 25th November 2020.
5Wallis, V. (2017). Should I use a quick-property-sale company to speed up my move?. Available: https://www.theguardian.com/money/2017/mar/02/should-i-use-a-quick-property-sale-company-to-speed-up-my-move. Last accessed 25th November 2020.
6Anon. (2020). Selling A Home . Available: https://www.citizensadvice.org.uk/housing/moving-and-improving-your-home/selling-a-home/#h–quick-house-sales-. Last accessed 25th November 2020.