A Close Examination Of The Cash House Buyer Market Place
Firstly, let’s clarify what the cash house buyer market is. This is where someone has the cash readily available to be able to buy a property outright, without having to sell their house or get a mortgage first. It doesn’t matter whether this is an individual person or a company who specialises in buying properties. If someone has the cash to buy a property without having anything else attached to it, this is part of the cash house buyer market.
The Process
The cash house sale process is not that much different from buying with a chain. The main difference is that the person buying the house does not have anything to sell and this usually means that the process goes faster. So, when someone sees a house that they like, and they have the cash to pay for it, they usually put in an offer subject to conditions and the offer is either accepted or declined. If the offer is accepted, the buyer will then have all the checks that they feel are necessary done on the house like a survey. Once they have done this, the solicitors will handle all of the legal parts, the money will be exchanged, and the house will be sold.
Companies Who Cash Buy
National Property Trade are a company who buy houses, and they use three steps. First, they will make a cash offer online based on what you have put the property on the market for, and this will be subject to conditions. They then pay to have your house valued and surveyed. After this, they will come back to you with a firm offer after the house has been valued and instruct a solicitor. After this, they will arrange for an RIC survey and the last few checks, but you are under no obligation to accept this offer and can pull out at any time during the process. Everything is paid for by this company, and there is no cost to the seller for the solicitor, or the valuation/survey.
Other companies that cash buy include Property Rescue, Open Property Group both of which claim to be members of the National Association of Property Buyers. Both these companies also have the house valued before they make a firm offer. They will offer you the price that your house is worth, and you can decide whether or not to accept it. Again, all the costs will be handled by the company, and there will be no cost to the seller.
Pros
If you experience any issues with this process, you can take it to The Property Ombudsman who will review your case. They are a free scheme that specialises in alternative dispute resolution, and they will handle your case fairly and quickly. This is good because you have this layer of security for if something does go wrong.
Another benefit is that a lot of the time selling your home this way is a lot faster. So, if you are looking for a fast sale, this might be the best option for you. Cash buys tend to be quicker because the person or company buying your home has nothing holding them back, due to having the cash ready.
Cons
More often than not, you will be looking at getting a lower value than you were hoping for at around 80% of the open market value. Cash buyers will offer you what they think is a fair price, but it is often the case that it will not be exactly what you wanted for it. While for some people this is okay, for others, they don’t like the way this works.
There are stories of some less than reputable buyers who have mislead desperate sellers. So watch out for the scams and make sure you only use a buyer who is registered with the TPOS and NABP.
The cash buyer house marketplace is a great place to be if you can afford the sell at a discount and need a really quick sale. If you are a cash buyer, it will mean that acquiring property will be easier for you than for others. If you are selling your home and you need to be out ASAP, it is also a good way for you to sell your home. Hopefully, after reading this article, you feel like you know more about this market and its strengths and weaknesses.
