Which Sell House Fast Companies Should you Choose?
Companies who’ll buy your home fast are really useful for sourcing cheap properties from vendors who need to move quickly for one reason or other.
Selling a house fast is perceived by many estate agents, the press and the general public as selling ‘under value’ when really it is more complex than this. For example, if a seller needs to sell quick, then like any other product, ie a car priced cheaply or a holiday which has been reduced, then that is the value of that commodity in order to gain a fast sale at that moment in time. Lower price, demand increases, supply and demand, it really is that simple.
Of course here we are talking about someone’s home, their biggest asset, the inference being that there is always thousands of pounds of ‘equity’ at stake, when sometimes this isn’t always the case. Then there is the price that has to be put on time to sell and opportunity. Quick sale can mean that a seller can move on and buy another property at a discount, therefore negating any loss that they have had to accept to gain a fast sale of their home. Opportunity value can be the opportunity of buying that new house which may not be available if a quick sale is not forthcoming on the property being sold by a vendor at a discount. Also what price do you put on circumstance in the examples below?
Couple getting divorced, extremely stressful, affecting the children, the parents’ ability to work, one parent would like to move out but can’t afford to rent somewhere else. Interest only mortgage of £75,000, mortgage payments of £500 per month, 3 bed house, He works, she looks after the children.
Scenario 1. Estate Agent recommends waiting 6/12 months to get 100% of value, say £100,000 based on selling in that time frame.
Scenario 2. Quick Sale Company offers 80% to sell within 4 weeks, £80,000
Lets look at how much the client above has actually lost, on the face of it if the seller accepts the cash price offered of 80% then it seems the loss is £20,000, or is it?
It really depends on circumstance.
Scenario 1. Sale achieved after 10 months via Estate Agent.
Mortgage paid = £5,000. He has moved out of three bed property after 6 months due to stress etc impacting on children, rented privately at £400 pcm, mortgage in arrears and mortgage company threatening to repossess adding to stress etc. House sold at £90,000 (buyer changed their mind at last minute due to adverse valuation report, drawn out process as he wasn’t a cash buyer and was relying on a mortgage. Offer reduced from £95,000 to £90,000. Therefore net cash after sale:-
Legal Fees £500
Estate Agency Fees – £2,160 (2% plus VAT)
Mortgage Arrears – £1,000 (2 months)
Rent paid by departing person, £4,000 (10 months X £400)
NET position £7,140
Scenario 2. Sale achieved 4 weeks for 80% of value all fees paid.
Both go into rented at £400 each (£800 in total), he can afford the rent, she gets her rent paid by housing benefit.
NET position £5,000
Ok the above example is pretty simplistic, but demonstrates the potential cost of both scenarios. Many people will ask themselves is it worth damaging health and realtionships, dealing with the stress and uncertainty involved to get a few thousand more at the end of the day? Probably not in the above example.
4sale2U estate agents try to price property to sell according to the client’s timescale, but there is no point in over pricing property as it raises expectations and has a negative effect at the end of the day when it takes longer to sell than the vendor anticipated. To research the market try looking at Zoopla or Rightmove for houses for sale similar to yours, this will help you to assess price/value.
If you need to sell your house fast, then ensure you use a reputable property buyer.