Let’s face it, buying and selling property through the traditional estate agent route has never been easy. With lengthy completion delays and the rise in demand caused by COVID-19 and nationwide lockdowns, the process has only gotten all the more lengthy and complicated.
It’s why more and more people who are looking to sell their house fast, are turning to cash buyers only through companies like Faster Property Solutions.
Auctions are one route to consider, but there is a lot of uncertainty and stress involved about the price you are going to achieve until the hammer falls and it can prove to be confusing to those unfamiliar with the process. In addition, there are auction fees to cover which make little sense if you’re aiming to sell the house fast and are not willing to invest in it.
Using a cash buyer, such as a company that promises to buy your house quickly can be a lifeline for many people. That’s because they have the money available to purchase your house there and then, i.e. they are not dependent on a mortgage lender, which usually slows the process down significantly.
This means that the individuals whose house is in danger of being repossessed can sell their property at market rates and carry on without the stressful legal paraphernalia to face and most importantly, avoid the threat of homelessness. It also means a fair deal when it comes to what their property is really worth.
But before choosing this option, it’s important to make sure the company you are considering selling to is legitimate. If so, they should be registered with ‘The Property Ombudsman’, have a website and a physical address. Otherwise, you could be caught up in the ‘selling houses for cash’ scam. You can also view other means of checking the company is legitimately looking out for your best interests here.
Benefits of selling a house to a Cash Buyer
There are many benefits to selling your property quickly to cash buyers only. It’s not just the speed, but also the simplicity – the two things you can’t benefit from with a buyer needing to go through a mortgage application and having estate agents involved.
The sale is more likely to be successful
According to property market intelligence company Twenty CI, 306,198 property transactions fell through last year. This is 12.26% more than the previous year with 272,768 property sales deals terminated.
This situation was mainly caused by mortgage applications being rejected. This, in turn, was due to applicants having a poor credit history or the house proving to be more expensive than the building survey price or that on the Home Buyers Report. The cost of this, says the HomeOwners Alliance, is around £4 million lost for sellers every year. Individually, a collapsed sale costs homeowners around £2,727, although one in 10 sellers whose deal fell through, was out of pocket by more than £5,000.
No reliance on a mortgage approval
By choosing to sell to cash buyers only, the mortgage application is taken out of the picture because credit history and valuation/survey discrepancies no longer apply. You decide what you are willing to sell your property for – whether that is over or under the survey valuation. Provided the cash buyer can prove they do, indeed, have the money available, there should be no reason why the purchase can’t be completed in due course.
Additionally, restricting the sale to cash buyers only means there is no fear of a deal falling through because another buyer in the chain can’t complete it for whatever reason – usually either because they can’t sell their own home or their mortgage has fallen through.
Another reason to go with a cash buyer rather than a conventional buyer via an estate agent is that your property may be difficult for buyers to obtain a mortgage for. That could be due to structural difficulties, such as a survey identifying subsistence. Nowadays, many house owners with cladding that doesn’t meet fire regulations are unable to sell because lenders won’t mortgage such properties.
Cash buyers can also move much quicker (7-10 days on average) than buyers planning to take out a mortgage. And that is especially relevant in today’s property market. Since the market reopened after the May 2020 lockdown, the time taken to sell a property has increased by more than two weeks, according to figures provided by the property portal Zoopla. This is simply due to the backlog that most transaction solicitors and mortgage lenders are having to handle right now.
Coronavirus compelled house owners to move to ‘greener spaces’ and created a higher demand to move out of congested cities. At the same time, the Stamp Duty Holiday and its extension has encouraged those intending to move to do so straight away to capitalise on large tax savings.
No estate agent fees
Provided an agent manages to sell your property, they are likely to charge a percentage of the sale – usually about 1.5%. You will also have to cover the solicitor’s fees that are 1%, on average. However, none of the above apply when you sell your property for cash. The cash buyer will make an offer that covers all costs: what they offer is what you get!
How we can help with buying your property for cash
If you are currently worried that you may be at risk of losing your home, it’s time to get the process started. As a first step, take a look at how we can assist via our Helping Hands service. We offer a number of financial solutions to help ensure you don’t lose your home, including buying your property for cash. Our support services also include setting you up with a counselling service if you believe it might help.