If you need fast cash for your home, do not panic. Fill in this cash for homes form and an expert in will be in contact with you. There is no charge for this service.
A quick online search will return a whole load of companies offering to buy your house for cash. By filling in a simple online form, they promise you a free valuation and cash offer on your home within twenty-four or forty-eight hours. As little as two weeks later, your home will be sold and shortly afterwards the cash will be in your hands. So, cash for homes offers can seem very attractive.
At a glance, cash for homes looks like the ideal solution. You avoid the delays you always get with a traditional estate agency. You get rid of all the problems that normal buyers bring; changing their minds, dropping out and gazumping each other. The process, from your side, is very simple. And it’s fast, at a time when you’re probably feeling fairly desperate for a solution.
But is it too good to be true? As you’d expect there are positive and negative points.
Who offers cash for houses?
Most professional buyers offering this type of deal claim to be well connected within the property industry. They have cash buyers ready and waiting, urgently looking for properties just like yours. You don’t pay a thing when selling your home for cash. And there are no estate agency or any other fees, which is another big advantage when you’re on the brink of repossession.
At the end of the day the buyers are looking to make a profit and so they should if they are to purchase a house or flat usually with no building surveys completed and they pay in cash, on time without pulling out of the deal. But what discount is this worth to the vendor? That is what you need to weigh up.
Cash for homes – what’s in it for the buyer?
Professional property buyers either purchase the property themselves or make their money by charging your buyer a finder’s fee for your property when arranging cash for homes.
Not only that. The biggest financial advantage to the cash for homes company is that they’ll only offer you a percentage of your home’s fair market value. Sometimes they’ll offer as little as 45% of the market value, sometimes as much as 85% but rarely more.
So although you benefit from a more or less immediate sale with no hassle, you face losing an enormous amount of profit. Unless you have a tiny mortgage and a massive amount of positive equity in your home, you are bound to lose.
Liaison with your lender
A professional buying company will take on all communications with your lender. While this is good because it reduces your stress levels and gives you time to breathe, it also takes all control completely out of your hands, leaving you with no say.
Cash for homes – the benefits and disadvantages
No Home Information Plan (HIP) required
When you sell your property via a cash for homes provider, you avoid having to pay for an Home Information Pack. But the saving comes nowhere near the loss of profit you suffer because of selling way under the market value. The only real benefit of a HIP-free sale is that you save time and a bit of hassle.
Some people are embarrassed about being repossessed, preferring to keep it quiet. Cash for homes companies always promise a confidential sale, but confidentiality comes at a high price.
Most suppliers offering to buy your home for cash promise amazingly fast completion, usually within 28 days or to a date that suits you.
Cash for homes – How does it work?
• You request a free survey. Always confirm that there’s no obligation to go ahead.
• A company representative will come to your home, when it is convenient for you, and undertake a valuation survey. Always ask to see your survey in writing and make sure it has been completed by a Royal Institute of Chartered Surveyors (RICS) qualified valuer. If it is not undertaken by a RICS qualified valuer then it is simply someone’s opinion of value and the report can not be called a valuation report. Also ask to see what comparable and recent sales evidence the report uses to calculate the value of your own home. Make sure that this is a qualified valuation indicating fair open market value and not the cash for homes companies’ idea of value.
• The company will then contact you to make an offer. Get this in writing and check all the small print before you decide. It is very important that you do check the small print and if you are considering taking the offer we strongly suggest that you employee a solicitor to read through the contract and highlight any important sections. You should be able to find a good high street solicitor which might be an hour or two work for them but well worth doing.
• The cash for homes provider only offers the trade value, not the market value. This can be anywhere between a worst case 45% and best case 85%. Think of it as a wholesale or fire sale value.
• If you accept this trade offer, the cash for homes supplier guarantees to sell your home following the contract you have signed or at this point it might be on a spec basis.
• The company will discuss and agree timescales with you, then they’ll attempt to find a buyer for your home.
• The potential buyer gets in touch with you to arrange a viewing and/or a survey, which they pay for.
• You agree the sale or negotiate until you reach agreement.
• You choose a completion date.
• If you decide to go ahead, the solicitors will exchange contracts, making them contractually obliged to buy your house.
• Completion will happen and soon afterwards you’ll get the cash for your house in your hand.
Cash for homes providers include:
Please read our disclaimer on the front page of this website. We do not endorse any of these companies above and suggest you take legal advice and make sure you understand exactly what they offer. Search the internet and look in papers for the best cash for homes deals, as there’s an enormous variety available.
Have you used the companies list above or other companies like them? Please comment below outlining your experiences.