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Home » Considerations When Selling To A Cash House Buying Company

Considerations When Selling To A Cash House Buying Company

According to a 2022 study conducted by Zoopla, on average it takes nearly six months before you can sell your home with an estate agency. This is even longer than it does for the unhappy half of homeowners.

With such a long wait is only natural that alternative options would arise… which is why Cash House Buying Companies come into.

So let’s get started with the basic. What is a cash house Buyer?

Cash House Buying Companies buy homes directly from sellers. They will pay less than market value, but offer an easier, faster and more certain way to sell your home than auctions for property or estate agents. They’re also willing to purchase any property, no matter if it’s in need of repairs.

I’ve been in and around the “Cash House Buying” industry since 2013. In that time, I’ve been working with (or faced off against) many of these companies, including all the biggest players.

In this post, I’m going to open the curtains and provide the facts about how to sell your house quickly to a Cash House Buying Company. If you’re thinking of applying for one, you’ll find this post helpful.

If you’re looking to get short the fat and find out whether cash-for-house buyer is suitable for you, I’ve created a short quiz. Click here to get started:

Let’s begin by giving an overview.

1. Are cash House Buyers any good?

First of all, are property cash buyers any good?

Genuine Cash House Buyers are a very good option if you want to sell your house quickly. They will make you a formal offer within the space of a few days, and then purchase your home within 2-3 weeks. But, since they pay lower prices for your house, they’re not right for every person.

If you pick the right home buyer who is cash-based, they’ll basically provide you with the most simple house sale you’ll have ever had.

Let’s look at some advantages in more detail.

2. Benefits of cash house buyers

It’s true that selling your home with an estate agent is difficult. Why is this so hard?

Delays. On average , it takes six months to complete an 2022 study conducted by Zoopla. For the less fortunate one-third of home buyers, it can take longer than that.
Stress. It’s not just about the time it takes to sell, but. The whole process of selling can be extremely stressful as well. It’s not easy to manage estate agents, conveyancing solicitors and buyers, as well as mortgage surveyors. It’s a pain.
Uncertainty. Even if everything goes according as planned, there’s still the possibility that things could be thrown off. (For example, we surveyed 305 recent home sellers and discovered that 31% had a sale fall through at least once).

So the greatest benefit of selling to an Cash House Buyer is that you’ll be able to avoid many of the hassles anxiety, stress, and confusion which can drive home owners mad in the event of selling via one of the estate agencies.

The direct selling of your property to an Cash House Buying company is quicker and simpler than selling through auctions or an estate agents. There are other advantages, too.

Here are a few advantages you’ll get if you decide to sell your house to a cash home buyer.

Pro #1 – Speed

As we’ve covered, the typical house sale takes about six months. Selling by auction is faster, but it still takes around 10-12 weeks.

So is it quicker selling your home to an individual cash buyer?

Selling your house to a cash-for-houses firm is much faster than selling your home through an estate agent or auction. It is possible to sell your home to an cash House Buyer within as little as two weeks, but the timeframes can be adjusted to suit your needs. This means that you are able to set the date of completion to fit your needs.

How can Cash House Buyers work so quickly?

When normal house sales take around 6 months, it seems crazy to think that some companies could buy your house in only a few weeks. Here are the key modifications they’ve made to their procedure to purchase homes this quickly:

1. They buy directly from you. Yo don’t have to deal with estate agents, wait for viewings to be held, negotiate offers, waste time dealing with unqualified buyers or wait on other people’s houses chains.

2. They’ve got their financing in place. Because Cash House Buyers are able to purchase your house with cash or through a commercial lending facility They won’t be waiting for mortgage lenders as normal buyers do. They definitely won’t need to sell a home to buy yours like many ordinary home buyers.

3. They have a highly experienced team. They can be act quickly and decisivelyand deal with legal issues which arise. They’ll feel more comfortable taking out insurance policies and will be able to steer clear of a lot of the problems that delay estate agent sales.

4. They are able to offer their services rapidly. There is no need to attend to viewings or offer. Cash House Buyers conduct an extensive valuation in a short time and then make an offer on the very next day. The business I recommend will make you a formal offer (backed by an assurance) within 24 to 48 hours.

5. They have the best solicitors. Fast completions are crucial to a House-Buying Company’s business They’ll have established relationships with fast, proactive solicitors who work via phone and via email. (No waiting on the post to receive important documents!)

6. They’re service-focussed. Because their sales are more valuable over the normal estate agent sales, they’ll invest more time into the services they provide to you. This means that they’ll be more in touch. You’ll feel informed and in control. It means any issues are identified and dealt with quickly.

Pro #2 – Certainty

The majority of people think that if they decide to sell their home, it’s almost certain they’ll be able to sell. Unfortunately, this isn’t the case:

Rate of success for estate agents Based on research by financial services firm Jefferies, estate agents only sell 51% of the homes they take on. My personal experience pretty much matches this.
Property Auction success rate: Auctions on property offer a greater chance of success but it still only hovers between 70-80% in the majority of auction houses.
Cash House Buyers rate of success: Selling to an Cash House Buyer provides complete assurance though: if you accept their offer then the property will sell.

Selling your property to a Cash House Buyer gives you a 100 percent chance of selling as compared to 70-80% auctions and 51% of estate agents.

Pro #3 Pro #3 – Their “We buy any home” method

One of the main selling points to consider Cash House Buyers is that they’ll purchase any property. This means that they’ll offer you an offer regardless property’s condition the condition, how messy it’s inside, or how serious any problems are.

You can also sell my home for cash in Washington even if it has subsidence.

Although this may be advantageous in some ways, if your house has serious defects then I’d suggest that you think about selling it via auction instead. Cash House Buyers will buy any home, but if the home is in serious problems they’ll buy at a substantial discount.

This is why auctions make more sense to most people.

Tips: If your house is in serious need of repair I’d suggest staying clear of Cash House Buyers.

Although they’ll surely make you an offer, it’s likely that it will be extremely low. And if you do deal with them to sell the item, they’ll simply put it in an auction to make an impressive profit.

My advice would be to offer it to the auction and earn the additional money on your own.

Pro #4 – Sell your house as-is

Cash House Buyers will purchase your home as-is, meaning you don’t need to carry out any renovations in advance.

Another advantage that comes with using a Cash House Buyer is that you can sell your home in its current condition. There is no need to remodel and redecorate your home prior to selling (and there’s certainly no need to keep the smell from freshly-baked bread lingering throughout your home during house viewings).

House-buying businesses are business-minded and won’t be swayed by clutter, mess, or the need for a major remodel. You can sell your house as-is, and just move on.

Pro #5 – No viewings

In the same way it is not necessary to carry out any viewings. You won’t have to clean the house to impress people, or having them wander through your home. Simply agree on a price with the company and get ready to move on.

Pro #6 – No estate agents

I really don’t like bashing estate agents due to the truth is that there are plenty of really good ones out there.

But there are many negative ones too…

In fact during a survey in 2022, we asked 291 recent home sellers how satisfied they were with their estate agent. A majority of them gave their estate agent 6/10 or lower.

We asked 291 recent home sellers how satisfied they had been with the estate representative they used. A third of them gave their estate agent at 6/10 or less.

In addition, not all estate agents are bad… But if you choose to sell your house to one of the Cash House Buying Company, you don’t have to fret about dealing with any.

Pro #7 chain-free buyer

Housing chains delay sale times and raise the chance that your deal will fail. House-buying companies are chain-free though so your sale can be much quicker and simpler.

Cash House Buyers have no chain, which helps simplify and speed up your home sale.

Pro #8 – No fees (kind of …)

Many cash House Buyers will list “no fees!” as one of their advantages. They’ll tell you that they’re the most cost-effective method to sell the house.

However, this isn’t the truth. I’ve included this as an benefit here because I wanted to dispel the myth:

While it’s true that many houses-buying businesses don’t have to charge charges, you should think about the bigger picture…
These companies buy your home for a substantial price discount up at the highest value – this is how they earn their cash.
Even though they’re not directly charging you any fees it is the most expensive way to sell your house.

3. Pros and cons of selling your home directly to House Buying Company

We’ve now explored the advantages of selling to a cash house buyer, let’s take a look at the disadvantages.

What are the negatives to selling to a Cash House Buyer?

The biggest drawbacks to selling to an Cash House Buying company are the low price they’ll offer (which is usually around 80-85% of your home’s value) and the fact the business isn’t regulated. This means many of the biggest businesses rely on a lot of unethical tactics.

Let’s examine them in more in depth.

Con #1 – Low price sale

A Cash House Buyer is an excellent way to get a quick, certain sale and move property according to the timeframe you have set.

However, the biggest mistake home sellers make is over the price.

House buying companies offer substantially lower prices than what is actually the market price.
Typically, you should be able to sell your home for 15-20% less than its actual worth.
Certain home owners feel that it’s worth the sacrifice to ensure a quick and easy purchase…
… But it’s such a massive decrease that it’s an option for all homeowners.

This is one of the main disadvantages of selling your home to an Cash House Buyer.

Con #2 – Inadequate regulation

Another drawback to entering into the “Cash House Buyer” market is how unregulated it is.

Let’s tackle the elephant in the room in the first place:

Are Cash Home Buyers Regulated?

Cash House Buying Companies are not subject to regulation.

A lot of people are members of The Property Ombudsman but this is a voluntary redress system and not a regulator. It “do not have the power to take any regulatory or legal actions” against corporations.

The National Association of Property Buyers are “not a redress scheme , nor a regulator”.

This is the way it works. The Property Ombudsman and the National Association of Property Buyers both have to say about their respective powers:

Property Ombudsman: Property Ombudsman: “The Ombudsman is not a regulatory body and is not authorized to take any legal or regulatory actions against agents and impose fines, or to make rules about how agents manage their activities.”

The National Association of Property Buyers: “The NAPB is not in itself a redress scheme or a regulator, but it does offer information to anyone who believes they have been treated unfairly.”

This is it. You’re about to make one of the largest financial transaction of your life, and the organizations overseeing the industry don’t have any regulating powers. They’re able to give you information if you feel that you’ve been mistreated, and maybe you can give the company a pat in the face.

Con #3 Con #3 Scams & Dodgy Companies

If you have an industry with poor regulation You will find a lot of unsavory companies emerging to make a profit of it.

Due to this, due to this fact “quick houses for sale” industry has earned an unpopular reputation.

I wanted to find out how bad the reputation of this company has become, so we surveyed 562 adults , asking how trustworthy they thought Cash House Buying companies are. 58% of the respondents who had preconceived notions about Cash House Buyers claimed that they thought they were “not very trustworthy”.

4. How much do the cash buyers of houses need to pay?

As we’ve previously discussed, Cash House Buyers are the most efficient way to sell your home, however it’s a huge compromise on the price. How much will Cash House Buyers charge?

Companies that buy houses with cash pay around 80-85% of your property’s total value. This is less than the amount you’d be able to sell your home through an estate agent. However, there are some cost savings which must be accounted for. For instance, you don’t have to pay fees for an estate agent or attorney or legal fees, and you can lower your monthly expenses because you can sell more quickly.

4.1 Why can’t Cash House Buyers offer higher rates?

To the majority of us, 80-85 percent of market value may seem like a very low figure. Why do some companies not pay more?

House-buying firms earn their money through buying your house at a lower the market value, the following day, taking over being the brand new proprietor and attempting to sell it at the complete market value.

They are liable for a large amount of expenses by purchasing and selling homes , however, they must be purchasing between 80-85% value to pay for their expenses and earn an income.

This is why you won’t come across a legitimate business capable of providing more than that. Particularly in a marketplace like this one , where prices are beginning to fall.

Why can’t cash house buyers pay more than the 80-85% markup value?

The expenses that Cash House Buyers have to pay include the cost of financing as well as stamp duty. There are also 3 types of legal costs estate agent fees and holding fees (council tax, insurance etc).

And that’s before any of the company’s own costs are covered, like employee salaries, office rental marketing costs, taxes and so on.

I’m not suggesting that you feel sorry for Cash House Buyers because of all their costs… However, when you see them buying properties for between 80 and 85% of market value just remember two points:

They aren’t being as greedy as they look. They have to buy homes at a reasonable cost to cover their expenses and make a worthwhile profit.
Any business that says it can offer 90 percent of market value or more isn’t true. There’s not enough room to pay for their expenses and generate a profit purchasing homes at this type of cost.

If Cash House Buying companies pay reasonable prices do you need to use one? If so, who’s the best?

5. Should you sell your home to a Cash House Buyer?

Cash House Buyers give you the easiest home sale you can get if you’re happy to accept a lower the price.

cash house buyers are the most efficient method of selling your home. They provide a simple, hassle-free house sale, however, should you use one?

For the majority of people, the answer should be “no”. In today’s property market it is common for people to not afford to get a 15 percent discount on their sales price.

What happens if you afford to sell for an affordable price? ?

If your home doesn’t have an enormous mortgage and you are able to sell it for less than its true value in cash, then House Buyers might be an ideal alternative. Especially if you feel that time and convenience are more valuable to you than getting the best value for your home.

Examples of homeowners who choose to sell their house to a Cash House Buyer include:

Chain repair. If your house sale goes through and you don’t wish to be unable to purchase your next home, Cash House Buyers might make perfect sense. You may be able to negotiate with other parties within your chain to pay part of the price reduction. To get an excellent illustration, take a look at this “chain fixing” analysis to read about the experience one of our readers had after opting for an House-Buying Company.
Relocation/Emigration. If you’re facing a deadline for relocating then a lengthy sale with an estate broker is not an alternative.
Separation/Divorce. Although you’ll pay a lower price, many people in this situation feel it’s worth it to avoid a lengthy separation. Personally, I’d recommend to work with your partner as you’ll both be more successful if you manage a traditional house sale together. Some prefer to end their relationship faster, which is why a cash house sale can be a great option for a lot of people.
Inheritance. Sell directly to home buying company can be the best way to market an inheritance property, and it may help settle an estate and get closure quicker.
Downsizing. If you’re looking to move with the least amount of stress possible, the convenience that houses-buying firms provide can make them a good option for helping you reduce your size swiftly and easily.

In the end, if you’re thinking about selling to a Cash House Buyer then it’s up to you to decide how you feel about the compromise that you’ll be forced to make with the priceand how valuable the speed and security is for you.