How much below market value do house buying companies offer Options

How much below market value do house buying companies offer Options

Blog Article

Sell Your House Fast: A Guide to House Buying Companies

The UK property market can be unpredictable, with traditional sales often taking months to complete. If you need to sell your house fast, house buying companies offer a streamlined alternative, allowing you to bypass estate agent delays and hidden costs. These firms purchase properties directly for cash, often completing transactions within weeks rather than months.

But how do house buying companies operate, and are they the right choice for your situation? This guide covers everything you need to know.

Why Homeowners Choose to Sell Their House Fast

Financial Pressures and Urgent Circumstances

Rising interest rates and the increasing cost of living have left many homeowners struggling to keep up with mortgage payments. Unexpected financial difficulties, such as redundancy or debt, can create an urgent need to release property equity.

With traditional estate agent sales taking an average of 6-9 months, many homeowners opt for house buying companies to ensure a quick and guaranteed sale. Cash buyers eliminate the uncertainty of failed transactions, helping sellers avoid repossession and financial distress.

Life Events and Relocations

Life changes, such as divorce, separation, or job relocation, can create a pressing need to sell a property quickly. Selling a house fast enables individuals to settle financial matters, relocate for work, or downsize without prolonged delays.

For those dealing with probate property sales, house buying companies provide a stress-free alternative by handling legal paperwork and purchasing properties without requiring costly repairs or improvements.

Traditional Estate Agents vs. House Buying Companies

The Lengthy Estate Agent Process

Selling through an estate agent involves listing the property, arranging viewings, negotiating offers, and navigating a lengthy conveyancing process. The entire transaction can take up to nine months, with risks of deals falling through due to mortgage issues, chain breaks, or buyer withdrawals.

Hidden Costs in Traditional Sales

Selling a property through an estate agent incurs various costs, including:

• Estate agent fees (1-3% commission + VAT)
• Solicitor fees (£1,000+ for conveyancing)
• EPC certificate (mandatory before listing)
• Ongoing mortgage payments during the sale process
• Potential repair or renovation costs to make the property more appealing

The Faster Alternative: House Buying Companies

Unlike estate agent sales, property buying companies purchase homes directly for cash, ensuring completion within 7-28 days. This eliminates delays caused by mortgage approvals, property chains, and market fluctuations.

How House Buying Companies Work

Step 1: Initial Contact and Valuation

The process starts with an enquiry, where homeowners provide property details. The company then conducts an initial desktop valuation using market data and comparable sales.

Step 2: Cash Offer Within 24-48 Hours

A formal cash offer is made based on the property's condition and market trends. While offers typically range from 80-85% of market value, sellers save on estate agent fees, repairs, and holding costs.

Step 3: Solicitors and Surveys

Once the offer is accepted, the company instructs solicitors and surveyors to carry out due diligence. Unlike traditional sales, these transactions rarely fall through due to mortgage issues or survey complications.

Step 4: Completion in 7-28 Days

Sellers choose a convenient completion date, often within weeks. Funds are transferred directly upon completion, allowing homeowners to move forward without further delays.

Benefits of Selling to a House Buying Company

Speed and Certainty

With completion times as short as seven days, selling to a cash buyer is ideal for those facing repossession, relocating for work, or finalising probate sales quickly.

Sell in Any Condition

Unlike traditional buyers, house buying companies purchase properties in any state, including those with structural issues, damp, or subsidence. This eliminates the need for costly repairs or refurbishments before selling.

No Fees or Hidden Costs

Most reputable house buying firms cover legal and survey fees, meaning sellers avoid the typical expenses associated with estate agent sales. Additionally, there are no commissions or marketing costs.

Finding a Reputable House Buying Company

Check for NAPB Membership

The National Association of Property Buyers (NAPB) ensures ethical standards in the quick house sale industry. NAPB members must also be registered with The Property Ombudsman (TPO), providing additional consumer protection.

Verify the Company's Financial Standing

A genuine cash buyer should have immediate funds available, rather than relying on mortgage approvals or investor chains. Request proof of funding before proceeding.

Read Reviews and Ask Key Questions

Research customer feedback and online reviews to gauge the company's reputation. Before agreeing to a sale, ask:

• Do they provide proof of funds?
• Are they NAPB and TPO members?
• Will they cover all legal fees?
• What is their average completion time?

Comparing Traditional Sales vs. House Buying Companies

Cost Breakdown Example

Sale Method	Market Value	Final Sale Price	Fees & Costs	Net Proceeds
Estate Agent	£100,000	£100,000	£10,000 (fees, mortgage, repairs)	£90,000
House Buying Company	£100,000	£80,000	£0 (no fees)	£80,000

Although house buying companies offer below market value, the absence of estate agent fees, legal costs, and mortgage repayments makes the financial comparison more balanced than it appears.

When is Selling to a House Buying Company Ideal?

Urgent Sales (Repossession, Probate, Relocation)

If facing repossession, a quick sale prevents negative credit impacts and legal action. Similarly, probate sales and job relocations often require a fast, hassle-free property transaction.

Problematic Properties (Structural Issues, Unmortgageable Homes)

Selling to a cash buyer removes the burden of repairing properties with subsidence, damp, or fire damage, which may otherwise struggle to sell on the open market.

Final Thoughts

Selling your house fast through a property buying company offers speed, certainty, and convenience. While offers are typically below market value, the absence of fees, mortgage payments, and repair costs makes this option financially viable for many homeowners.

By choosing a reputable, NAPB-registered company, sellers can avoid the stress of prolonged estate agent sales and secure a guaranteed cash sale within weeks. Whether facing financial difficulties, life changes, or property issues, house buying companies provide a practical solution for selling your house fast.

Frequently Asked Questions

How much below market value do house buying companies offer?

Typically, 80-85% of the market value. However, savings on fees and costs make the financial difference smaller than it first appears.

Do I have to pay any fees?

No, reputable house buying companies cover all legal and survey fees, ensuring no hidden costs.

How long does the process take?

Completion usually takes 7-28 days, depending on your requirements.

Can I sell a house that needs major repairs?

Yes, cash buyers purchase properties in any condition, including those with structural issues, subsidence, or damp problems.

Sell Your Home Quickly For Cash – Get a Cash Offer Today

Sell Your House Fast in Birmingham
Sell Your House Fast in Bradford
Sell Your House Fast in Bristol
Sell Your House Fast in Coventry
Sell Your House Fast in Leeds
Sell Your House Fast in Leicester
Sell Your House Fast in Liverpool
Sell Your House Fast in Manchester
Sell Your House Fast in Newcastle
Sell Your House Fast in Nottingham
Sell Your House Fast in Sheffield
Sell Your House Fast in Wolverhampton
Sell Your House Fast in Plymouth
Sell Your House Fast in Derby
Sell Your House Fast in Stoke
Sell Your House Fast in Preston
Sell Your House Fast in London



Preunderwriting is considered a step further than preapproval. Closing acceptance will depend upon if the house appraisal is significant adequate and Should the house fulfills any circumstances the lender or financial loan method has.

Begin by browsing area “available” listings, and bookmark those that get noticed for owning terrific photographs and powerful descriptions. Among the agents at the rear of These types of listings might be a good selection since they’re likely to be seriously interested in finding your home bought in a very timely manner.

They'd a look in the house, agreed with the prices I had in my head, so we went in advance. The rest was accomplished on the internet and in excess of the telephone, so we have been very happy Using the method. It was place around the market on Tuesday and was marketed on Thursday and it absolutely was ‘money buying’. - one 7 days back John Prepare dinner

Should you be thinking about selling your property to a firm that may spend cash, there are many marketing ripoffs, and unreliable (or phony) hard cash property buying companies you would like to keep away from.

However, an offer from the wholesaler is likely to become substantially below Anything you might be able to sell your residence for in case you checklist it that has a housing agent, even when you Consider the agents' cost of as much as six%.

But in the long run, you’ll have to come to a decision if breaking even is worthy of looking forward to, determined by your individual instances and need for selling.

The compensation we acquire from advertisers does not impact the suggestions or suggestions our editorial group provides inside our article content or usually affect any in the editorial content material on Forbes Advisor. While we work flat out to supply accurate and current details that we expect you can find pertinent, Forbes Advisor does not and cannot guarantee that any information and facts presented is complete and would make no representations or warranties in connection thereto, nor to your accuracy or applicability thereof. Here is an index of our partners who offer items that we have affiliate one-way links for.

Your home will demonstrate up Sell Your House Fast in additional queries. Prospective buyers normally established a utmost rate when they’re looking on-line listings.

The rest was finished on the web and in excess of the telephone, so we were very happy Along with the technique. It was set about the market on Tuesday and was offered on Thursday and it had been ‘money buying’.

“We had bought our house How much below market value do house buying companies offer and the buyer pulled out, in the vicinity of plenty of with the last minute. It put us inside of a hard position the place we might have dropped the house we needed. Speedy Move Now took away all of that tension. I can’t put a selling price around the provider Brief Move Now gave us House Buying Companies as it was exemplary!”

If our offer is unchanged but you may have transformed your brain, you may be charged a little rate. This cost is dependent upon time and price We have now invested at that point.

We marketed a residence via Springbok seriously efficiently. We selected Springbok since our sale experienced fallen via so I appeared on-line for a quick uncomplicated sale. They offered me the full asking rate for the house, and it was fast and assured.

If it’s SOLE SELLING Legal rights then I’m fearful your agent will likely be in their rights to say a payment.

That they had given me a ideal figure, This really is how much it’s likely to cost you While using the solicitor costs and everything. I realize that it was genuinely pressure-cost-free for me given that they have taken the lead.

Report this page