Comparing Cash Buying Companies Vs Estate Agents
When it comes to selling a house, two of the most popular options that homeowners have is the option to sell to a cash buying company or go through the traditional route of listing the property on the open market with the help of an estate agent. Both options have their own advantages and disadvantages, and it’s important to understand them before making a decision.
|
Cash Buying Company |
Selling through Estate Agent |
| Advantages |
Quick and hassle-free process |
Maximum exposure to potential buyers |
|
No need for repairs or renovations |
Guidance on pricing, marketing, and offers |
|
Handles paperwork and associated fees |
Expertise for achieving better outcomes |
| Disadvantages |
Potential lower sale price |
Time-consuming process |
Benefits Of Selling To A Cash Buying Company
First and foremost, this option provides a quick and hassle-free sales process. Cash buyers are often able to make an offer and complete the purchase within a short time-frame – as little as 2-3 weeks in some cases! This can be appealing for those who need to sell their house quickly. Additionally, cash buying companies typically buy houses in any condition, eliminating the need for costly repairs or renovations. They also handle the paperwork and associated fees, simplifying the selling process for homeowners.
Benefits Of Selling Through An Estate Agent
Selling a home on the open market through an estate agent has its own advantages too. It allows for maximum exposure of the property to potential buyers, increasing the likelihood of getting a higher sale price than you would get from a cash buying home company.
Estate agents can provide guidance on pricing, marketing, and negotiating offers, leveraging their expertise to help homeowners achieve the best possible outcome. On the flipside, this route can be more time-consuming, as it often involves staging the house, hosting open houses, and waiting for a suitable buyer.
The Right Option When You Want To Sell A House Fast
Ultimately, the choice between cash buying companies and open market sales depends on individual circumstances and priorities. Those in need of a quick sale or who prefer a hassle-free process may find cash buyers to be a viable option. On the other hand, homeowners who are willing to invest time and effort into marketing their property and potentially obtaining a higher sale price may opt for the open market route via an estate agent. It’s essential to carefully weigh the advantages and disadvantages of each option to make an informed decision that aligns with your specific needs and goals.
Timings With Local Estate Agents
The estate agent route typically involves several stages that can extend the overall timeline. Firstly, homeowners need to engage with estate agents, who will assess the property, create listings, and market it to potential buyers. This process can take a variable amount of time depending on the market conditions and demand for properties in the area but you can expect this to be 2 weeks as a minimum.
Once a buyer is interested, negotiations and offers may take place, which can further prolong the process. If an agreement is reached, the sale progresses to the conveyancing stage, where solicitors handle legal matters, such as property searches, title deeds, and contracts. This part of the process typically takes several months, especially if any issues or complications arise.
Timings When Selling To A Property Buying Company
On the other hand, selling through a cash buying company generally offers a faster timeline. These companies are known for their ability to expedite the selling process. They often provide quick property assessments and make offers within a short period, sometimes as quickly as within 24 to 48 hours. If the homeowner accepts the cash offer made, the sale can progress rapidly without the need for marketing, viewings, or negotiations.
At the point solicitors are involved, this is also far more streamlined when selling to a cash buying company. Since cash buyers often have their legal teams, they can handle the necessary paperwork and legal requirements efficiently. This can significantly reduce the time spent on conveyancing, resulting in a faster overall transaction.
Time Considerations Summary
The estate agent route typically involves longer overall timelines to sell a house due to the various stages involved, such as property marketing, negotiations, and conveyancing. In comparison, selling through a cash buying company offers a quicker process, with rapid property assessments, fast offers, and simplified conveyancing. As a result, homeowners looking for a speedy sale without the complexities of the traditional selling process may find the cash buying company route more appealing.
Regulations For Cash House Buying Companies
When searching for “sell your house fast” on Google, you’ll find numerous cash homebuyers. However, caution is necessary in selecting one. Some companies take advantage of your urgency and employ unethical practices to lower the price or attempt to sell the property on the open market for their own profit.
While cash house buying companies and the market lack specific legal regulations, there are two voluntary regulating bodies in the sector. These are the National Association of Property Buyers (NAPB) and The Property Ombudsman (TPO).
The NAPB enforces self-regulatory processes to ensure transparency, fairness, and integrity among companies. They have their own codes of conduct in addition to complying with TPO rules. TPO serves as a resolution service for customer disputes with cash house buying companies, providing an extra layer of protection.
To choose a cash homebuyer, always verify their membership with the National Association of Property Buyers and the Property Ombudsman. This ensures you have support if issues arise. Additionally, check independent reviews on platforms like Trustpilot to gauge the experiences of other sellers.
Read our independent cash house buyer reviews
Cost Comparison Of Cash Buying Sales Vs Open Market Sales
When comparing the costs of selling a house through a cash house buying company versus the open market, there are several factors to consider:
Estate Agent Fees & Renovation Costs
One significant advantage is the elimination of estate agent fees, which can typically range from 1% to 3% of the final sale price. Additionally, homeowners can save on renovation costs since cash buyers usually purchase houses in their current condition, regardless of any necessary repairs or renovations. This can be particularly beneficial for sellers who may not have the time, resources, or inclination to invest in fixing up their property before selling.
Reduced Legal Costs
In terms of legal costs, both options are likely to involve solicitors fees but some cash buying companies are able to waive these completely as part of their service or lower them significantly compared to the open market sale route.
When selling through a cash buying company, the process is typically streamlined, and the associated legal fees may be lower compared to a traditional sale on the open market. In an open market sale, solicitors’ fees can vary depending on the complexity of the transaction, negotiations, and any legal issues that may arise during the process.
Mortgage & Maintenance Costs
Another factor to consider is the ongoing expenses homeowners incur while their property is on the market. In an open market sale, homeowners are responsible for bills, mortgage payments, and maintenance costs until the property is sold. This can add up, especially if the property remains on the market for an extended period. With a cash buying company, the sale process is typically quicker, reducing the duration of these ongoing expenses.
Final Sale Price
Ultimately, the final sale price is a critical consideration for every seller. While selling through a cash buying company may involve a slightly lower sale price compared to the selling price on the open market, it’s important to weigh this against the potential savings on estate agent fees, renovation costs, and ongoing expenses.
For many sellers, the convenience and speed of selling to a cash buying company that provides a ‘one-stop-shop’ service, may outweigh the difference in sale price for homeowners who prioritise a quick and hassle-free transaction.
How Do House Buying Companies Purchase So Quickly?
Cash house buying companies purchase properties quickly due to their streamlined processes, cash offers, simplified sales process, and ability to buy properties as-is. They eliminate the need for property listings, conduct quick property assessments, and have streamlined due diligence procedures. By having readily available funds and minimising paperwork, these companies expedite the purchasing process, allowing for faster transactions compared to traditional buyers.
Quick House Sale Tips For Sellers
There are plenty of things that you can do to try and speed up the process of selling your home, but you won’t need to do any of them if opting to use a cash house buyer!
- Set the right price
- Prepare your home for sale
- Use online sales platforms
- Leverage social media
Setting the Right Price
Selling a property quickly can result in a lower asking price, but setting the right price from the start can ensure that you get a fair price and the best return on your investment.
Setting the right price is a crucial aspect when selling your home. It involves careful consideration of various factors such as market conditions, comparable sales in the area, and the unique features and condition of your property. Pricing too high may deter potential buyers and lead to a prolonged listing time, while pricing too low could result in leaving money on the table.
To determine the optimal price, it is recommended to consult with a professional estate agent who has expertise in your local market. They can provide a comparative market analysis and guide you in pricing your home competitively to attract interested buyers and maximise your chances of achieving a successful sale at a fair value.
Preparing Your Home for Sale
To get the best price for your home, make sure you give it the TLC it deserves. Spruce up the landscaping, touch up the paint, and de-clutter the interior for a warm, inviting atmosphere.
Here are some tips to help you prepare your home for sale:
- Clean the interior and exterior of your home to make sure it looks its best. Clean carpets and walls, dust, and vacuum regularly.
- Freshen up the paint and make minor repairs. Small repairs can make a big difference in the overall appeal of the home.
- Landscaping is a great way to add value to your home. Make sure the grass is mowed, the bushes are trimmed, and the flower beds are neat and tidy.
- De-clutter the interior of your home. This will help potential buyers see the home for its potential. Remove any extra furniture or items that are taking up space in the home.
- Stage the home. Bring in neutral colours and create inviting spaces. This will give potential buyers an idea of how the home could look once it’s furnished.
When you’re done preparing your home, make sure to take photos to show potential buyers. They’ll be impressed with the thought and care you’ve put into the presentation of your home and will be more likely to make an offer.
Utilising Online Platforms
Advertising your home online is a great way to make sure it is seen by the right people, allowing you to maximise your home’s value and increase the chances of a quick sale.
Sites like Zoopla and Rightmove are great places to list your home, and these sites have wide reach to potential buyers. Additionally, many estate agents have their own websites which can be used to showcase your home to prospective buyers. Another great way to advertise your home is with social media.
Platforms like Facebook, Instagram and Gumtree can also be used to create posts about your home and share them with potential buyers. You can also use video platforms like YouTube and Vimeo to create virtual tours of your home, which is a great way to make it stand out from the competition.
By making sure to post your listing on a variety of platforms, you can ensure that you get maximum exposure and can maximise the value of your home.
Leveraging Social Media
Leveraging social media can be a great way to get your home seen by the right people and increase the chances of a quick sale. Whether you use Facebook, Twitter, Instagram, or any other platform, a well-crafted post can go a long way in helping to get the word out that your house is for sale.
Here are four tips to help you maximise the success of your social media posts:
- Create Eye-Catching Content – Make sure to include high-quality images and videos of your home when you post to social media. People are more likely to stop scrolling when they see something that catches their eye.
- Use Relevant Hashtags – Hashtags can help you reach a larger audience. Research relevant hashtags for your area and use them in your posts to help spread the word about your home.
- Share on Multiple Platforms – Don’t limit yourself to just one platform. Posting to multiple sites will increase the chances that your post is seen by the most people.
- Follow Up – Don’t just post and forget. Follow up with comments and answer any questions people might have about the property. This will help to build interest and trust that your house is a great deal.
With the right strategy, social media can be a great tool to help you to sell your home quicker than waiting for buyers to find you.
Staging Your Home for Buyers
Staging your home can be a great way to make potential buyers fall in love with it and successful staging relies on decluttering and depersonalising your home so that potential buyers can visualise themselves living in the space.
Tips for staging your home
- Keep the furniture minimal and remove any personal items like family photos or artwork.
- Clean and spruce up the outside of the home with some potted plants, repaint the front door, and make sure the lawn is neat and tidy.
- Highlight any features of your home, such as an updated kitchen or a beautiful garden.
- Adding some cosy pillows and throws to the living room can make it more inviting.
- Scented candles and flowers make it look more homey.
- If you have a home office, make sure to organise the desk and add some interesting art pieces to the wall.
- Natural light is best, so make sure to open the curtains and blinds in each room. If you have any dimly lit areas, consider adding some extra lighting fixtures.
Conclusion
If you’re looking to sell your house fast, the fastest way to sell a house is always using a cash house buying company. These quick house sale companies specialise in providing quick and hassle-free solutions for homeowners who want to sell their properties swiftly, but there are also plenty of tips you can use to sell your home quicker when opting for one of the more traditional sale routes like auctions or estate agents.
Cash house buyers are useful if you need to sell your home fast because can make an offer within 24 hours and complete the purchase within 2-3 weeks, but they will only offer 80-85% of the property’s market value. You can also sell your house through more traditional estate agents or auctions, but these methods take longer and are less certain. Estate agents typically take 6 months to sell a house and have a success rate of 51%, while auctions take 6-8 weeks and have a success rate of 78%.
By opting for a cash house buying company, you can bypass the lengthy and uncertain process of listing your house on the market, dealing with real estate agents, and waiting for potential buyers. Cash house buying companies offer a range of benefits, including speedy transactions, guaranteed sales, and the ability to sell your house as-is, without the need for repairs or renovations.
With their expertise and streamlined processes, these companies provide homeowners with a convenient and efficient way to sell their houses, allowing them to move on to the next chapter of their lives without unnecessary delays or complications.
Frequently Asked Questions
What are the different options for selling a house?
You can opt to either sell your house fast through an estate agent, as a private seller, at an auction, or directly to a reputable cash house buying company. Selling through an estate agent typically takes nearly 6 months, with a success rate of only 51%. Selling through an auction takes around 6-8 weeks and has a success rate of around 78%. Selling directly to a house buying company is the fastest and most convenient way, but you should expect to receive 80-85% of fair market value for the property. It’s important to make sure you choose a reputable house buying company, as the industry is poorly regulated and there are disreputable companies operating.
What are the advantages and disadvantages of selling to a house buying company?
One major advantage is the speed of the transaction. House buying companies often offer quick and hassle-free sales, allowing homeowners to sell their properties within a short timeframe. Additionally, these home buying companies typically purchase houses in any condition, eliminating the need for costly repairs or renovations. Another advantage is the convenience, as sellers can avoid the complexities and uncertainties of traditional real estate processes.
On the downside, selling to a house buying company may result in a lower selling price than you would get on the open market. Sellers may also need to research and choose a reputable and trustworthy company to ensure a fair and legitimate transaction. Ultimately, individuals considering this option should weigh these pros and cons to make an informed decision based on their specific circumstances.
What costs are associated with selling a house?
Depending on how you choose to sell, you may need to pay for fees such as estate agent fees, legal fees, surveyors fees, repairs and renovations, mortgage exit fees, and auction fees. Selling directly to a house buying company is a great option for those looking to avoid these costs.
Here are some common costs associated with selling a house through traditional sale routes.:
Estate Agent Fees: If you choose to work with a real estate agent, you will typically pay a commission fee based on the final sale price of the house. This fee can vary but is usually a percentage of the sale or final purchase price.
A solicitor or Conveyancer Fees: You will need to hire a solicitor or conveyancer to handle the legal aspects of the property sale. Their fees cover tasks such as property title checks, contract preparation, and handling the transfer of ownership. The fees can vary depending on the complexity of the transaction and the solicitor or conveyancer you choose.
Home Staging and Repairs: To make your house more appealing to potential buyers, you may consider investing in home staging or making necessary repairs. These costs can vary significantly depending on the condition of your property and the extent of the updates or repairs needed.
Energy Performance Certificate (EPC): An EPC is required when selling a house in many countries. It assesses the energy efficiency of the property and provides recommendations for improvements. You will need to pay for an accredited assessor to conduct the assessment and issue the certificate.
Mortgage and Loan Repayment Costs: If you have an outstanding mortgage or loans secured against the property, you will need to settle these debts upon selling the house. This includes paying off the remaining mortgage balance, any early repayment fees, and potential loan discharge fees.
Capital Gains Tax (if applicable): Depending on your country’s tax laws, you may be subject to capital gains tax if the value of your property has increased since you purchased it. Consult with a tax advisor to determine if you are liable for this tax and to understand the potential costs involved.
How can I make sure I am dealing with a reputable house buying company?
When selling your house, it’s important to make sure you’re dealing with a reputable and fast house sale and buying company. Here are some tips to help you do just that:
- Research the company you’re considering and look for customer reviews and testimonials.
- Check the National Association of Property Buyers (NAPB) website for accredited companies and make sure they have the necessary legal and financial credentials to purchase your property.
- Lastly, make sure the company offers a free valuation and no cost to receive an offer.
- Doing your due diligence and taking the necessary precautions can ensure a smooth and successful house sale.
Can I still sell my house quickly if it’s in poor condition?
Absolutely! One of the advantages of selling to a cash house buying company is that they often purchase properties in any condition. Whether your house requires significant repairs, has structural issues, or is in poor condition overall, cash house buying companies are typically willing to make an offer.
They specialise in buying houses as-is, which means you can sell your house quickly without the need to invest time and money into costly renovations. This makes it an ideal option for homeowners who want the cash funds or to sell their house quickly and don’t want to deal with the hassle of fixing up the property.
What is the typical timeline for selling a house?
Selling a house typically takes anywhere from two weeks to six months, depending on the method you choose.
Selling directly to a reputable cash house buying company is the fastest way to sell a house, with formal offers made within 24 hours and the purchase completed in 2-3 weeks.
Selling through an estate agent typically takes nearly 6 months and has a success rate of 51%.
Selling through an auction takes 6-8 weeks to get a binding sale and has a success rate around 78%.
How to make your property more attractive to buyers
Anyone putting their property on the market needs to make it as attractive as possible to potential buyers, especially if looking for a quick sale. Buyers will make snap judgements about a potential purchase, and if your house is scruffy, untidy or in a poor state of repair, then they will look elsewhere.
- Simple ways to make your home attractive to buyers
- Kerb appeal – make sure your house gives buyers the right first impression
- Gardens and gutters – mow the lawn, fix the gutters and paint the exterior
- Declutter inside – make your home a blank canvas for buyers
- Tone down décor – too much ‘personality’ can put people off
- Refresh kitchen and bathroom – these are the two most important rooms for buyers
The trick is to get your home looking as good as possible, without spending too much money in the process.
Ways to speed up an estate agent sale
If you are choosing to sell your home via an Estate agent, there are still things that you can do to speed the process up.
Price competitively from the start – we’d all like the best possible price for our homes, but buyers are savvy so you need to be realistic or your home will be ignored
Reduce the price – even a £5,000 drop will attract attention and get you back to the top of online listings. You may also drop into a lower price bracket, reaching more potential buyers.
Incentivise the sale – offer to pay the buyer’s stamp duty or legal costs. This may not be that expensive for you, but it could make a crucial difference for your buyer.
Hold an open house – this will focus buyers’ minds and create competition
Consider multiple agents – this will increase your potential buyers, but it will also increase the costs. Expect to pay an extra 1%-2% +VAT commission to the successful agent (that’s £3,000 to £6,000 on a £250,000 house)
Keep in touch – estate agents have hundreds of homes on their books. Checking in regularly will keep your property at the front of their mind. Don’t pester or hound them, but do engage with them as often as possible in a positive way.
Cash House Buyer Guru