When you are undertaking a major life change… like selling your house… it is important to ask any and all questions that come to mind. And to find answers that are satisfactory to you. The more you know, the better. So, when you are contemplating working with a cash property buyer in order to reduce the time it takes to complete the transaction, you may wonder why they are interested in quick sale houses. And more to the point, do they want yours?
Let’s find answers so you can feel confident about proceeding, no matter what decision you ultimately make.
Investing In Quick Sale Houses
A cash house buyer is generally a group of investors that pool resources in order to make strategic purchasing decisions. Reputable companies have the capital – and cash on hand – to complete sales on a significantly accelerated timeline. Why do they do this?
Real property is an asset that is always valuable (though the value does fluctuate). After all, we cannot manufacture any more land in the UK. So yes, virtually all homes have value, even if it is just for the land on which they are built. Investors typically focus on quick sale houses in order to:
- Renovate and then sell the house. While making repairs, upgrades and improvements may be cost-prohibitive or otherwise not of interest to you, an investment company does have the capital to renovate a home and make it marketable to the average buyer. In other words, they seek to “flip” the house.
- Renovate and keep the property in their portfolio as an investment property. Depending on their goals, the cash buyer may update the property and utilise it for a profit-generating activity. For example, they may transition it into rental units.
- Hold on to the property if it has development value. A house may be all but falling down (or indeed, falling down!) and still have value because of its location. In these cases, the investors may hold it and make plans in terms of its development potential. This could be turning it into more upscale rentals or selling it for commercial use (if allowed).
These are all ethical and practical uses for houses. Yes, it benefits them — which is why they focus their investments here! At the same time, however, it also greatly benefits homeowners who need to sell on a fast timeline. There could be any number of reasons for this, from facing repossession to needing to relocate for work to a loss of job or income.
Now, if you fall into any of those categories we just mentioned (or another that is equally time sensitive), you may be highly motivated to work with a cash buyer. But… What if your house is not in pristine shape? What if it’s not even in good shape?
Do Cash Investors Buy Any House?
You may have seen ads or signs: We Buy Any House. That seems to answer the question! But again, you need answers that are satisfactory to you. Do they really? Are there loopholes? Will they buy your house?
Companies that specialise in quick sale houses, which are sometimes called “we buy any house” companies typically do follow up on that promise. This allows homeowners to sell in “as is” condition, avoiding the tremendous expense of making repairs and upgrades. They typically offer 75% to 85% of total market value (this varies by companies so be sure to do your homework and select the right choice for your needs) – but again, you do not have to pay for repairs, estate agent fees, solicitors’ fees, title searches, valuations or the rest of the laundry list of other expenses associated with selling one’s home.
The company will extend an initial offer, and if you would like to proceed, they will instruct valuations experts. Using this information, they will make a formal offer. Sometimes this does change. For example, if they find significant damage to the roof or foundation, mold, plumbing or sewer problems, etc., they may reduce their offer to accommodate for this. In only the rarest of cases will they completely rescind an offer because, as stressed, nearly every house has some value.
Answering the dozens of questions flying through your mind as you sell a home is important. Quick sale houses have value. Make sure you do your due diligence and benefits as much as possible.