Advantages of selling your house to a company
As discussed the main advantages of selling your house to a company are speed and certainly. There are also other advantages such as no upfront costs, in fact there are no costs at all. A reputable house buying company will cover all of your legal fees, they will pay for the survey and, unlike estate agents who charge a fee, they don’t charge for their service since they make their money by buying the property at a reduced price.
There are other cost savings to consider as well. If your house sale takes 12 months to complete with a private buyer that is 12 months of costs that you have to pay on the property such as mortgage payments, council tax, energy bills, insurance and other day to day expenses. These add up to a significant amount over a prolonged period of time, selling to a company in a matter of weeks can cut out this extra burden.
Another advantage is that house buying companies are experts in purchasing properties, it is their job after all, this means that if any issues arise during the conveyancing they have the knowledge and experience to resolve them quickly and efficiently. Issues that would likely derail a sale to a private individual aren’t going to phase a company they will simply resolve the issue and continue with the purchase full steam ahead.
Many house buying companies will also be able to organise additional services such as removals. This can not only save time the costs can often be taken from the sale price so you don’t have to pay anything out.
Disadvantages of selling your house to a company
The only real disadvantage of selling to a house buying company is the amount of money that you receive for your property. Professional house buying companies look to pay around 80% of what the property is worth if it were to be sold on the open market. There are a few exceptional circumstances where they can offer a few percent more but in general this is what you can look to expect. If any company makes an offer for your house at a higher percentage than this then it is likely that they are either not planning on purchasing it themselves and are just going to try to sell it in the background or they are going to reduce their offer later down the line, usually at the 11th hour.
Further reading: how much can house buyers actually pay
This brings us to another disadvantage, not really of selling your house to a company but more of a disadvantage of the industry in general. The house buying sector, unlike estate agents, is not regulated, this can mean that there is a vast chasm of difference between the service you can receive from the reputable companies and the wolves in sheeps clothing that are pretending to be.
We have reviewed the top house buying companies to help guide people to using the reputable companies so they don’t get caught out by the scams used by the rogue ones. You can read more about some of the tactics used by the disreputable companies in our article below.
Further reading: Shady tactics used by disreputable house buying companies
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