Not everyone has the same priorities when selling a home.
Money and timing are two of the main ones.
But there are others.
This is why there are different ways to sell your house.
Read on to learn about one of the most popular: selling to a property buying company.
What is a property buying company?
Property buying companies are typically cash buying companies.
A cash buyer is any buyer that doesn’t rely on a mortgage or loan.
This includes companies and individuals. But it’s usually only the former who provide a fast service at scale – they have the team and resources available.
So, the cash buying process different to traditional house sales.
Below we have listed the advantages and disadvantages of this difference.
Pros of selling to a property buying company
1. Speed
Traditional property sales take time. The average time it takes to sell a property in the UK is about 6 months.
To find the right buyer, you first need to find the right estate agent. They will market your property and host viewings.
You then need to negotiate with potential buyers. If this fails, the process starts again.
Property selling companies skip most of these stages. This enables them to sell much faster. At We Buy Any Home, for example, we can complete a sale in as little as 7 days.
2. Certainty
Property sales can fall through for many reasons.
Sometimes it’s because the buyer – or their lender – changes their mind. Other times it’s because if their property chain collapses.
You might pull out too (for example, if the buyer tries to gazunder you).
In short, a lot can go wrong.
Property buying companies avoid this. They don’t rely on mortgages or property chains. And they contractually agree to buy your property. So, sellers gain certainty and can plan accordingly.
3. Ease
When you sell your property through a cash house buyer, they will often buy the house as it is.
You don’t need to renovate or make repairs. Nor do you need to worry about staging your property.
You can also avoid estate agents and their tricks of the trade…
In short, you save countless hours of phone calls, meetings and administration tasks.
Cons of selling to a property buying company
1. Lower selling price
Property buying companies do not offer market value for your property. If they did, they wouldn’t make any profit and simply wouldn’t exist.
Instead, genuine cash buying companies offer a reduced percentage of the property value. This is typically 75 – 85% of market value. In return, they provide a fast, guaranteed, and stress-free sale.
So, if maximising your price is your priority, then a cash buyer won’t be for you.
2. Bad companies
Like most industries, property buying has it’s share of bad actors.
Some property buying companies mislead customers about their service’s speed and cost.
Some act on behalf of other organisations. They charge extra fees for services such as arranging surveys.
Others don’t have the funds to make cash purchases. They stall sales whilst they secure loans from third-parties.
3. No say in your replacement resident
Most property buying companies will buy property to flip it. This means that you have no idea who will replace you as the resident there.
In larger cities this is often not an issue. But in smaller communities, it can make a big impact.
After all, many sellers prefer to sell to buyers they have a rapport with. And they likely want to ensure their former neighbours avoid problems.
