November 28, 2015
Ever seen adverts in the press or radio from companies who offer to buy your property for cash in a very quick timescale? Ever wondered what the catch is? Then this article explains how they work, and what other options are available to you.
Over the last 10 years, there have been hundreds of these companies spring up. Some are very credible, some less so. But how does this business model work?
Quite simply, they are looking to buy your property for the cheapest price possible. The cheaper they buy, the more profit they make. Typical offers can range from 50-80% of the open market value, dependent on how desperate the seller is. The big selling point is the speed of transaction. Typically, they can exchange contracts within 7 days and complete a few days later.
The homeowner is desperate to sell their home
The homeowner may have over committed on personal loans, secured loans or credit cards and are having trouble making the monthly payments. Or they may have been made redundant, or their income may have dropped considerably due to illness or injury. If homeowners have owned their property for a number of years, there may be available equity to be able to pay these debts and walk away debt free. Or they could simply be in arrears with their mortgage and have the threat of repossession hanging over them.
If you receive a notice saying your home is about to be repossessed, you often look for the first option available.
Sale by Open House
Quality Estate Agents like Merrick Binch can sell your home at your required timescales by using the Sale by Open House method. The first step is to be totally honest with the estate agent with regards to your position. If you are threatened with repossession, you must give all the information and potential dates to the agent in order that we can formulate the right marketing plan for you. Dependent on your circumstances, Merrick Binch may be able to stop repossession proceedings to help get you the very best price.
Your property is pitched typically at offers over around 90% of the open market value, and then advertised as an ‘Open House’, usually on a Saturday morning for one hour only. Merrick Binch have a substantial mailing list of investors and landlords. Plus with the superior advertising, we usually get a very healthy number of viewers at the Open House period. We then invite sealed bids from the viewers by close of business the following Monday. Sealed bids means that each potential purchaser will not know how much someone else has submitted. This technique usually gets the very best value offer for the seller. Please also bear in mind that the vendor is not at liberty to accept any unsuitable offer presented if they do not want to.
Dependent on your circumstances you may want or need a very quick sale. This can be factored into the marketing strategy. If you do need a very quick sale, then obviously the property will be marketed heavily to cash buyers who have solicitors that can accommodate a speedy transaction. This is also why it is vital to let Merrick Binch know about timescales and if you are threatened with repossession proceedings. Remember we can speak to your lender and the courts on your behalf to stop repossession proceedings.
Don’t make a hurried decision. Make the right decision. Give the sales team a call on 02476 578888 to make a confidential no obligation appointment. We will show you all the evidence to help you make the right decision, and then formulate an action plan to get the best results for you.