We Buy Any House: how much below market value?
There are a lot of misconceptions about the “we buy any house” industry. People think that these services are scams, or that they can’t be trusted.
But is this the case? In this article, we will take a look at what the “we buy any house” service is, and why you might want to use it. We will also explore how fast houses can be bought through these services, and whether or not they are safe to use. Finally, we will compare “we buy any house” services to traditional estate agents, to help you make an informed decision.
You might get confused with two unrelated companies webuyanyhouse.com & webuyanyhouse.co.uk both offer the service and are completely unrelated to webuyanycar.com, they’re all using their name to target an audience seeking the service. When we talk about ‘we buy any house’ we refer to the service, more common you might find companies referred to as ‘quick house sale’ or ‘cash buyer’ in the industry.
We’ve found there are three main types of websites/companies
- A company that will directly buy a property with their own cash
- Companies that have to source 3rd party cash buyers or investors (they act as a middle-man)
- A website that just sells your data to a company in either the first or secondary company.
There are a lot of companies out there and the industry has no regulation so it can be difficult to know what you’re getting.
Why would you use a ‘we buy any house’ company?
The most common reason people use these types of companies is that they’re facing financial difficulties and need to sell their property quickly e.g. to avoid repossession. In some cases, people might also be moving abroad or downsizing, so they don’t have the time to go through the traditional selling process. Traditionally they were considered a last option when you don’t have any others. With costs going up and the time it takes to sell a house taking longer and longer they’ve become a bit more of a viable option for the select few who use them.
These companies usually offer a quick and easy solution to selling your house. You can often get an offer within 24 hours, and the sale can be completed within a matter of weeks. This is much faster than going through an estate agent, which can often take months and run the risk of failing.
So how do these companies make their money?
The truth is that we buy any house companies don’t usually offer the full market value for your property. This is because they are taking on a lot of risk by buying your property quickly, without doing any repairs or renovations. They will also incur additional costs when they resell the property, such as estate agent fees and legal fees. For this reason, you can expect to receive around 70-80% of the value on the property market.
However, this is still much better than going through the traditional selling process, which can often take months and run the risk of failing. In addition, you won’t have to pay any estate agent fees or legal fees when you sell your property.
So, what are the risks?
– You might not get the full market value for your house
– The sale might not go through, or it could take longer than expected
– There is a risk of the company going bankrupt and not being able to complete the sale
– The company might not be legitimate, so you could lose your money
Reasons why “we buy any house” company will work for you:
- You need to sell your house fast (in as little as 7 days or less)
- You don’t want to pay any estate agency fees or legal fees
- You don’t want to go through the traditional selling process
- Your property required repairs or renovation and you lack the funds or time.
- Inherited property and you need to sell the house quickly
- Settle debts
- Avoid property chains or a chain that fell through and you need an option.
What protection is available?
House-buying companies are not currently regulated which is why there are more risks involved. A lot of property buyers have started to self-regulate via The National Association of Property Buyers (NAPB). It can be worthwhile ensuring that companies offering a ‘we buy any house’ service are members. You can also use The Property Ombudsman to help facilitate any problems though they cannot do more than give advice and guidance. If you get stuck you can also look to the trading standards but you shouldn’t have an issue with any legitimate company. It’s usually scam companies that prove problematic and they’re harder to pin down.
What kind of properties do they help with?
A professional cash homebuyer can help with any kind of but they’re especially suited to problematic properties like:
- subsidence or flooding
- properties with tenants
- repossession risk
Just how fast can a genuine cash-buying company buy my house?
You can expect a free cash offer on your home within 24-48 hours of an initial conversation. Contracts can exchange within 7-28 days. It seems unreal but without the requirement for mortgages etc., cash-buying companies can move fast. Properties with larger problems that require extensive surveys or have problem tenants may take a bit longer to arrange than the general time we’ve listed.
If you are dealing with a shady company you might find you get bounced around a little and it takes longer and it’s tedious, this is usually because the buyer doesn’t have the cash and is trying to source it to buy the property.
How are quick house sale companies able to buy so quickly vs traditional methods?
They do not need to source funds to buy properties so that’s perhaps the largest time taken care of. Other time saves will be:
- Searches – Normally this can take time but they can be booked in quickly normally using RICS surveyors which are started quickly, any risks identified will be reflected in an agreed price.
- Financing – They will have this streamlined due to having the funds available, assuming you are dealing with genuine cash buyers.
- Solicitors – They will have specialists solicitors that can rush through paperwork and know the industry and business for quick turnaround times.
How does a cash house-buying company compare to a traditional estate agent?
The biggest and most noticeable thing you’ll have between the two is the price, whilst 15% less than the market value might seem a lot you should consider fees which add up so depending on other factors might not be as big of a difference as you’d expect.
Fees– Estate agents tend to charge about 1% of the property price though can be up to 3%
Cash buyers will include all fees and have no other hidden fees so what you’re offered is what you get
Completion date – selling your home via traditional methods can take months there is also the risk of none completion due to dropouts in the property ladder. You’ll sell faster and with a guaranteed date of the initial offer if time is an important factor.
Marketing – High-street estate agents will advertise your property online, and in shops and you’ll have a for-sale sign-up on your property as well as lots of viewings. Cash buyers will not need any of thing and until the day you move no one will know you’ve sold.
We Buy Any House services offer a quick and easy way to sell your home, often for less than the market value. Whilst there are many legitimate companies in this industry, there are also some that may not be legitimate. It is important to research any company before you decide to use its services. If you do decide to use a We Buy Any House service, be sure to ask what fees (including legal costs) are included and understand the contract before signing. Don’t be afraid to ask questions and shop around for the best deal. You should also expect a fast turnaround time once an agreement has been made. The service may not be suitable for all.