Guide to cash home buying companies
If you’re looking to sell your home simply and quickly, cash buying companies are a great option.
With a cash buyer, you don’t need to put your house on the market via an estate agent in the traditional way. As we all know, you can spend months sitting on the market, the inconvenience of preparing for viewings, waiting for an offer that never comes etc. This can be frustrating and time-consuming, and doesn’t even guarantee you a sale at the end of it all! The average time to sell a house via an estate agent has risen to almost 16 weeks, not to mention the average 10-16 weeks for the conveyancing process to complete after that!
Using a cash buyer is a much simpler alternative to relying on an estate agent in achieving your ultimate goal - selling your house quickly.
Isn’t that an exciting prospect?; an immediate cash offer and a guaranteed, fast sale. An easy, no stress transaction, instead of what’s typically considered to be one of the most stressful things people go through.
Cash buying is a fairly new process in Britain but it’s established itself firmly as a popular option for many home sellers especially in the US where they are known as iBuyers. In fact, when you consider the most popular iBuyers include Opendoor’s 7,200 home sales last year and Offerpad’s 3,500 home sales during the same time period, it’s clear that cash buyers are growing in popularity. It has been predicted that 60% of home sale transactions in the US will be completed with cash buyers by 2025, and the UK is set to follow closely.
What is a cash home buyer company?
Put simply, a cash buyer is someone who can offer a formal cash offer for your house as soon as they decide they’re interested in it. Unlike most buyers found via a traditional estate agent, a cash buyer has the means to purchase your property with cash, rather than a mortgage.
Using the latest technology and up-to-date data, experienced cash buying companies can give you an accurate and fair initial offer in principle for your property quickly (usually the same day).
By using OfferPal, you can compare cash offers from reputable cash buyers in less than 24 hours. Perfect to save you time ‘shopping around’ to find the best offer for your home.
Why should I sell to a cash house buyer company?
- You require a speedy sale. This is the quickest method of selling your house. Typical cash buyers can complete in less than 4 weeks and as quick as 3 days if required!
- You want to avoid paying agency fees.
- You are prepared to accept an offer of 75% - 85% of the full market value in return for a quick guaranteed sale
Sell your house quickly
There are many reasons why you might need to sell your house quickly, such as relocation for a new job.
Accepting a job offer is a truly exciting time, but what if you need to sell up and move house immediately? Your dream job might not wait, so finding a way to sell your property quickly is key. That’s where cash buying comes in.
If your home is accepted by a cash buyer, you’ll be able to sell up and complete on your house sale in just a few weeks. Instead of balancing your old mortgage and getting to grips with your new job, you can simply start afresh.
Quick access to to cash
Facing a major life change, such as getting married or suddenly having to care for an ageing parent, can make living in your current home quite difficult. In some cases, staying where you are is impossible and you need a quick move.
In this case, opting to sell to a cash buyer may be preferable. A cash buyer will quickly give you an all-cash offer so you can move forward.
No chains to break
If you’ve found a house you really love, the last thing you want is to be stuck in a chain reliant on other people selling or buying other properties. So much can go wrong, delays can occur and the sale can even fall through completely.
By selling your house quickly, you’ll be in with a chance of securing the property you’ve fallen in love with. A cash buyer can help you achieve this by giving you an offer for your home in just 24 hours and having the money in your account a couple of weeks later. This also makes you a very attractive prospect as a buyer, meaning you can potentially negotiate a better price on your onward purchase.
Help solve financial problems
If your financial situation has changed, you’ll need to find ways to adjust quickly. Life happens, and whether you’ve been laid off from your job or you are struggling to make up mortgage payments, it’s time to consider selling your home through a cash buyer.
By providing a quick and easy solution to house selling, cash buyers can help you access funds quickly to fix financial problems.
How do I find the best cash home buying companies?
To make sure you are receiving offers from reputable cash buyers, follow our tips:
- Think carefully about whether using a cash buyer company is right for you. There are lots of pros and cons to consider and you should certainly do your research before making your decision. We can talk you through these to discover if it’s the right option for you.
- Do your own valuation to support the one provided by the quick sale company. It can be tempting to rely solely on their valuation but it’s worth doing your own research too.
- Don’t forget to shop around! There are many options to consider, so we’d recommend using a service like OfferPal to compare the best offers from the most reputable companies.
- Protect yourself by using a company that is a registered member of the National Association of Property Buyers (NAPB). The NAPB requires its members to register with The Property Ombudsman (TPOS) which gives all homeowners the chance to access their independent redress in the event of a dispute.
- Check the company’s reviews to look for any potential warning signs. To make this easier, OfferPal provides a list of the quick sale company’s reviews when you receive your offers.
Double-check whether the company in question is buying directly or sourcing a buyer. As we’ve already
mentioned, there are two main types of service available with regards to cash buyers. Either they will buy
the property off you directly, or they will source a third-party buyer. Make sure you have a thorough
understanding of the options available to you, as typically:
- If they buy directly: you will get offered a lower price (e.g. 80% of the market value) but the sale will be quicker (e.g. 7 – 14 days).
- If they source buyers: you could get offered a higher price (e.g. 90% of the market value) but the sale will take longer (e.g. 6 – 12 weeks).
- Read the contract(s) carefully and make sure you fully understand the terms and conditions before agreeing to work with a company. You should pay particular attention to the associated fees.
- Make sure all communication between yourself and the company is recorded; don’t rely on terms which have been agreed upon verbally.
All OfferPal cash buyers have to meet certain criteria as a trusted buyer - see our guide HERE
How do I compare offers?
So the time has come to compare the offers from the cash buyers, but where do you start? Offerpal is a new comparison website offering honest and up-to-date information to empower home sellers. Offerpal compares reputable and experienced cash buyers, putting their offers in one place to help you decide.
- The seller can find out which of the cash buyers will offer a better price
- The seller can find out which cash buyer offers the most favourable terms
- The seller can view ratings and reviews to conduct their very own side by side comparison.
Get started today by simply entering your postcode at OfferPal.com