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Are Cash House Buyers any good?

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According to a study from 2022 conducted by Zoopla according to a study by Zoopla, it takes about six months before you can sell your house with the help of an estate agent. That means it can take longer than that for an unfortunate half of home sellers.

With such a long wait it’s only natural alternatives could emerge… which is why Cash House Buying Companies come into.

We’ll start with the basics. What is a cash house Buyer?

Cash House Buying Companies buy houses directly from sellers. They pay less than the market value, yet offer an easier, faster and more certain method to sell your house compared with auctions or estate agents. They’re also willing to purchase any property, no matter if it’s in need of repairs.

I’ve been working in and within the “Cash House buying” industry since 2013. Over the years, I’ve collaborated with (or competed against) many of these companies and all the largest players.

In this piece, I’m hoping to open the curtains and expose the truth about selling your house fast to an Cash House Buying Company. If you’re thinking of using one, I think you’ll find this article really useful.

If you’re ready to cut short the fat and find out whether or not a cash house buyer is the right choice for you, I’ve developed a short quiz. Follow the link to get started:

Let’s begin with an overview.

1. Are cash House Buyers really worth it?

In the first place, are the cash buyers for property any good?

Genuine cash house buyers are an excellent choice if you are looking to sell your house fast. They can make an offer that is formal within the space of a few days, and then purchase your house within a couple of weeks. However, due to the fact that they pay a reduced price for your home they aren’t right for all buyers.

If you choose the best home buyer who is cash-based, they’ll give you the easiest house sale you’ll ever make.

Let’s discuss a few benefits in more detail.

2. The advantages of buying a house with cash

Selling your home with an estate agent can be an absolute pain. Why is this so hard?

Delays. It takes on average 6 months according to the 2022 study of Zoopla. For the less fortunate one-third of home buyers, it takes even longer than the average.
Stress. People don’t just complain about the time it takes to sell, but. The entire selling process can be really stressful too. It’s not easy to manage conveyancing solicitors, estate agents buyers, mortgage surveyors, and conveyancing solicitors. It’s a headache.
Uncertainty. Even if everything goes according as planned, there’s the possibility that things could go down the wrong path. (For instance, we conducted a survey of the 305 most recent home buyers and found that 31% of them saw their sales not to be completed at least one time).

The best thing about selling to cash House Buyer is you’ll avoid some of the delays anxiety, stress, and confusion that can make home sellers numb in the event of selling via an estate agency.

Selling directly to a Cash House Buying company is more efficient and less hassle than selling through auctions or an estate agents. There are additional benefits as well.

Here are some of the advantages that you’ll receive if you decide to sell your house to a cash-for-house buyer.

Pro #1 – Speed

We’ve already covered that the typical house sale can take about 6 months. Auction auctions are quicker however it takes approximately 10-12 weeks.

So is it quicker to sell your house to cash buyers?

Selling your house to a cash-for-houses business is much more efficient than selling your home through an estate agent or by auction. You can sell to an Cash House Buyer within as little as two weeks, however, the timelines are totally flexible. This means that you are able to set the completion date to suit your schedule.

What is the secret behind how Cash House Buyers work so quickly?

If normal house sales last around six months, it’s a bit insane to think some companies can buy your house only 2-3 weeks. Here are the key changes they make to the procedure in order to purchase homes so quickly:

1. You buy directly from them. Yo don’t have to deal with estate agents or wait for viewings to come along make offers, waste time dealing with buyers who aren’t qualified, or wait on other people’s houses chains.

2. They’ve got their financing in place. Because the Cash House Buyers either purchase your house with cash or by using a massive commercial loan facility They won’t be waiting on mortgage lenders like ordinary buyers do. They definitely won’t need to sell a home to purchase yours, as do typical house buyers.

3. They are a team of experts. They are able to act swiftly and decisivelyand deal with legal issues that arise. They’ll be more comfortable in taking out insurance policies, allowing them to avoid most of the difficulties that delay estate sales.

4. They provide their services quickly. You don’t need to wait for viewings or offers. Cash House Buyers perform a thorough valuation quickly and make their offer the next day. The company I recommend will make you an offer (backed by the guarantee) within 24-48 hours.

5. They use the best solicitors. Quick completions are vital to the business of a House-Buying company, so they’ll have long-established relations with swift, responsive solicitors who work via phone and via email. (No waiting around for the postman to receive important documents!)

6. They’re service-focussed. Because their transactions are of greater value than typical estate agent sales, they’ll invest more time in the services they provide for you. This means they’ll communicate more frequently. It keeps you informed and in control, and it will ensure that any issues are discovered and dealt with quickly.

Pro #2 – Certainty

Most people think that when they choose to sell their house, it’s certain that they’ll be able to sell. Unfortunately, this isn’t the case.

Rate of success for estate agents According to research by the financial services company Jefferies Estate agents can only sell 51 percent of the homes they take on. My own experience mirrors this as well.
The success rate of auctions at property is Auctions for property have a better chance of success, but the success rate is only between 70 and 80% for the majority of auction homes.
Cash House Buyers’ Success rate: Selling to the Cash House Buyer offers complete certainty though: if you accept their offer, then the house will be sold.

Selling your property to a Cash House Buyer offers a 100 percent chance of selling, compared with only 70-80% auctions and 51% of estate agents.

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

One of the main selling features for Cash House Buyers is that they will buy any home. This means that they’ll offer you an offer regardless property’s condition the condition, how messy it’s within, or how significant the problems are.

You can even sell a house that is subsidised to them.

Although this may be advantageous in some ways, if your property has serious defects then I’d actually encourage you to think about selling through auction. Cash House Buyers can buy any property, however in the event that your house is plagued by serious problems, they’ll only buy the property at a price that is a serious bargain.

Auctions make more sense for most people.

Tip: If the home is in a state of serious damage, I’d recommend staying away from Cash House Buyers.

Although they’ll definitely make you an offer, it’s most likely to be extremely low. If you do decide to deal with them to sell the item, they’ll likely place it directly in an auction and make a healthy profit.

My advice would be to sell it in the auction and earn more money from it yourself.

Pro #4 – Sell your house in its current condition

Cash House Buyers will purchase your home as-is, meaning it’s not necessary to undertake any repairs before the purchase.

Another advantage of using a Cash House Buyer is that you can offer your home as it is. There is no need to remodel and redecorate your home prior to selling (and there’s certainly no need to have the smell from freshly-baked bread permeating throughout your home to accommodate house viewings).

Companies that buy houses are business-oriented and won’t be swayed by clutter, chaos, or the need for a major remodel. It is possible to sell my home for cash in Washington as is and then simply leave.

Pro #5 – No viewings

Also, you won’t have to organize any viewings. There’s no need to tidy up your home to impress guests, no having them traipsing through your home. You just agree to a price with the company and get prepared to move on.

Pro #6 – No estate agents

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

But there are lots of bad ones , too…

In fact the survey of 2022 we asked 291 current home buyers how satisfied that they felt with the services of their estate representative. Nearly a third scored their estate agent at 6/10 or lower.

We asked 291 home buyers how satisfied were with their estate agent. A third of them gave their estate agent at 6/10 or less.

In addition, not all estate agents are poor… If you decide to sell your home to an Cash House Buying Company, you will not have to worry concerning dealings with anybody.

Pro #7: Chain-free buyer

Housing chains delay transactions and increases the likelihood that your deal will fail. The companies that purchase houses aren’t chain-free however so your sale can be much quicker and simpler.

Cash House Buyers are not chain-free, which helps simplify and make your home sale more efficient.

Pro #8 – No charges (kind of …)

Many cash House Buyers will list “no fees!” on their list of advantages. They’ll say that this makes them the most cost-effective method to sell houses.

However, it’s not true. I’ve added this as a benefit here because I wanted to debunk that myth:

Although it’s true that the majority of houses-buying businesses don’t have to charge charges, you should be aware of the bigger picture…
They buy your home at a significant discount, up at the highest value – which is how they earn their income.
Although they’re not directly charging you fees it is the most expensive method to sell your house.

3. Cons of selling to a House Buying Company

We’ve now explored the advantages of selling to a cash House Buyer, let’s consider the disadvantages.

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

The most significant disadvantages of selling your house to the Cash House Buying company are the very low cost they’ll give you (which typically ranges from 80 to 85% of your home’s value) and also the fact that the industry is poorly regulated. This means that many of the most reputable companies rely on very indecent methods.

Let’s take a look in greater detail.

Con #1 – Low Sale Price

A cash house buyer can be a great option to get a quick or guaranteed sale, and also to relocate your property according to the timeframe you have set.

Unfortunately though, the major compromise home sellers make is on the price:

House buying firms offer considerably less than market value.
Typically, you should expect to sell your home for about 15% less than the entire value.
Certain home owners feel that this is a worthwhile trade-off in the short, guaranteed purchase…
… It’s such a huge drop that this simply isn’t the best choice for the majority of home sellers.

This is the most significant disadvantage of selling to the Cash House Buyer.

Con #2: Inadequate regulation

Another issue with entering to the “Cash House Buyer” market is the way it’s not properly regulated is.

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

Are cash house buyers regulated?

Cash House Buying Companies are not controlled.

A majority of them have joined The Property Ombudsman but this is a voluntary scheme for redress and not a regulatory agency. It “do do not possess the authority to take any regulatory or legal action” against companies.

The National Association of Property Buyers are “not a redress scheme or a regulator”.

This is what The Property Ombudsman and the National Association of Property Buyers each have to say about the powers they have:

Property Ombudsman: Property Ombudsman: “The Ombudsman is not a regulator , and is not able to take any legal or regulatory actions against agents, impose fines or dictate the way agents conduct their businesses.”

The National Association of Property Buyers: “The NAPB is not an redress scheme or a regulatory body, however, it can provide information to anybody who feels they’ve been unfairly treated.”

This is it. You’re about make one of the most significant financial transactions of your life, and the organizations that oversee the business have no oversight authority. They can provide information if you feel that you’ve been mistreatedand could provide a slap in the face.

Con #3 Con #3 Scams & Dodgy Companies

Wherever you get an industry with poor regulation You will find a lot of illegal companies that are popping up to take advantage of it.

Because of this, because of this, the “quick sales of houses” industry has earned an awfully bad name.

I wanted to determine how bad this reputation has turned out to be, so we surveyed 562 people and asked them what they believed to be the most trustworthy Cash House Buying companies are. 58% of the respondents who had preconceived notions about Cash House Buyers reported that they thought they were “not very trustworthy”.

4. What’s the average price for cash house buyers make?

As we’ve discussed, Cash House Buyers are the fastest way to sell your house, but it comes with a substantial reduction in the cost. What is the price that Cash House Buyers pay?

Companies that buy houses with cash pay about 80-85% of the home’s value. This is less than you’d be able to sell your home through an estate agent. However, you’ll make some cost savings which should be factored in. For example, you won’t have to pay the estate agent or legal fees as well as you may save money on monthly payments due to selling more quickly.

4.1 Why aren’t Cash House Buyers offer higher costs?

To most of us, 80-85 percent of market value appears to be an extremely low figure. Why don’t some companies pay more?

Companies who buy homes make their profits through buying your house at a lower the value of the property, and then taking over as the new owner, and then trying to sell it at the full market value.

They have to pay a significant amount of costs when buying and selling homes though, so they must be purchasing between 80-85% the value in order to cover their costs and also make some profit.

That’s why you can’t find a genuine company who’s able to offer more than that. Particularly in a market like this where prices are beginning to fall.

Why aren’t cash buyers able to pay more than the 80-85% markup value?

The expenses that Cash House Buyers are responsible for include financing as well as stamp duty. There are also 3 set of fees for legal estate agent fees and holding charges (council taxes, insurance, etc.).

This is before the company’s own costs are covered, such as salary of employees, office rent marketing costs, taxes and more.

I’m not saying you have to feel sorry for Cash House Buyers because of their expenses… However, when you see them buying properties for between 80 and 85% of market value , keep in mind two things:

They’re not as shrewd as they look. They must purchase homes at a reasonable cost to cover their expenses and earn a decent revenue.
Anyone who claims to offer 90 percent of the value of more isn’t honest. There just isn’t enough scope to cover their costs and make a profit buying homes at this kind of cost.

In other words, if Cash House Buying companies pay reasonable prices do you need to use one? If yes, which one is the best?

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

Cash House Buyers offer the most straightforward house sale when you’re willing to compromise on the price.

These are a fast way to sell your house. They can help you make a smooth home sale that is hassle-free, but should YOU use one?

Most people’s answer is “no”. In the current market for property many people cannot afford to get a 15 percent discount on their sales price.

What if you are able to be able to sell at the price of a discount? ?

If your home doesn’t have an enormous mortgage and you’re able to sell for less than the value of your property and you are able to pay cash, then House Buyers might be a really good alternative. Particularly if the convenience and time are more important to you than obtaining the highest value for your home.

There are a variety of homeowners who opt to sell their house to a Cash House Buyer could be:

Chain repair. If your house sale falls through and you don’t want forfeit your future purchase, Cash House Buyers can be the perfect solution. You may be able to persuade other participants within your chain to pay some of the cost of the sale. For an example, check out the “chain fix” case study to learn about the experience that one of our readers faced after deciding to go for an House-Buying Company.
Relocation/Emigration. If you’re facing a deadline for moving, then a lengthy sale with an estate agent might not be a viable alternative.
Separation/Divorce. Even though you’ll see for a lower price, many in this position feel that it’s beneficial to avoid a long-drawn divorce. Personally I’d always recommend trying to negotiate with your partner as you’ll be both more successful if you manage a traditional house sale together. A lot of people prefer to break up sooner , so the idea of selling your home for cash can be a great option for a lot of people.
Inheritance. Directly selling to a house buying company is an ideal way to sell an inheritance property. it can assist in settling an estate and bring closure more quickly.
Downsizing. If you’re planning to move with the least stress possible, the convenience that buying houses from a company can make the perfect choice to help you downsize quickly and efficiently.

In the end, if you’re thinking about selling to a Cash House buyer, then it’s on you to decide how you consider the decision you’ll have to make on the cost, and how valuable the speed and certainty is to you.