What Is The Cheapest Way To Sell A House

The cheapest way to sell a house in the UK is to use a cash house buyer. These companies purchase properties directly from sellers for cash, eliminating estate agent fees and other selling costs. This allows homeowners to sell quickly and for the lowest overall price.

Cash house buyers are companies or individuals that purchase properties directly from the seller for cash. This differs from the traditional process of house selling via an estate agent where you must find a buyer, agree on an offer, and then wait for them to secure financing before exchanging contracts.

With a cash house buyer, the entire process happens in a streamlined fashion. The buyer has the cash readily available, so they can move quickly to complete purchases without needing to secure loans or mortgages. This speed and efficiency results in major cost savings for the seller.

Get Help Selling A House Cheaply

At Cash House Buyer Guru, our mission is to guide you through the home-selling sector, ensuring that you make informed decisions and steer clear of untrustworthy companies. We understand the importance of choosing reputable companies to work with when planning the cheapest possible house sale. Our goal is to empower inheritors to do this by offering resources and advice that help them navigate the industry successfully while avoiding unnecessary stress and costly mistakes.

Selling a house can be an expensive endeavour. Between estate agent fees, solicitors, and extra costs like home staging, the costs can really add up. For those looking to maximise profits and minimise headaches, using a cash house buyer is the most affordable option.

Read on for clear and straightforward tips that will help you understand the steps involved in selling your property in the most affordable way possible.

From knowing the main options like estate agents and cash buyers, to calculating costs and preparing your home, we outline how to maximise your profits and minimise headaches. Whether you choose a cash buyer, private sale, or the cheapest estate agent listing, we provide advice to ensure you pocket the most cash possible from your sale while avoiding unnecessary fees and delays.

What is a Cash House Buyer?

A cash house buyer is a company or individual that purchases properties from sellers directly for cash. This differs from the traditional route of selling via an estate agent and waiting for a buyer to secure a mortgage. Cash house buyers have the funds readily available to complete quick purchases.

These types of companies have grown in popularity in recent years for several key benefits that they offer:

Speed – sales can be completed in under a month in many cases
Certainty – no risk of a fall-through once an offer is accepted
Lower costs – no estate agent fees to pay

Find out more: How do cash house buyers value your house?

What are the Other Main Ways to Sell a House?

Outside of cash house buyers, homeowners generally have two main options – selling with an estate agent or selling privately. Both have their own pros and cons.

Selling With an Estate Agent

This is the most common way homes are sold. You contract a local estate agent or high street chain. They will come to inspect your property and provide a valuation. The same high street estate agent will then list and market your home, conduct viewings, negotiate offers, and handle much of the sales process.

Once an offer is accepted, the buying party normally has to secure a mortgage before exchanging contracts. This can take 4-12 weeks depending on the buyer’s situation. Only then will the sale be complete.

The main fees when selling via an estate agent include:

Estate Agent Fees – Typically 1-3% of the sale price. This is paid upon completion. For a £300,000 home, expect £3,000-£9,000 in agent fees.
Conveyancing Fees – The legal cost for the property transfer, usually £1000-£2000. Paid on completion.
Mortgage Fees – If you have an outstanding mortgage, early repayment charges may apply.
Pre-Sale Fees – Some minor upfront costs like Energy Performance Certificates.

The primary advantages of using an estate agent are wider marketing exposure and having an agent handle negotiations. But the process can be lengthy and you have little control once you find a buyer. Fall-throughs are also a risk.

Selling Privately

You can sell your home without any estate agent involvement. This means placing your adverts, conducting viewings, negotiating offers, and handling the sales process.

Selling your house privately means avoiding paying agent fees, so you keep more money from the sale, however, you take on all the work and stress of marketing the home and finding interested buyers.

To sell privately, you must:

Get the right property valuations and price competitively. Overpricing leads to lack of interest.
Advertise the sale through classifieds sites and your own networks.
Legally comply with paperwork like the TA10 form.
Vet potential buyers carefully.
Negotiate effectively. As the seller, you must handle all bartering.
Stay on top of all legal filings and requirements.

For some, the extra work is worth it to save on agent fees but for many, this process is too demanding.

Weigh up the costs vs effort to see if selling privately makes sense in your situation. For quick, convenient sales, most still prefer using online estate agents’ offers, or cash buyers.

What are the Pros of Using a Cash House Buyer?

Now that we’ve covered the main methods, let’s explore the biggest advantages of using a cash house buyer versus other options:

Avoid Paying Online Estate Agents Fees

This is one of the biggest costs saved by going with a cash buyer. You avoid the typical 1-3% agent fees on the property price. For a £300,000 home, that’s £3,000-£9,000 saved.

As cash buyers purchase properties directly, you keep all the property sale proceeds minus legal fees. For those looking to maximise profits, this avoidance of high agent fees makes cash buyers very appealing.

Faster Sales Process

Cash sales can complete in as little as 7 days in many cases. The buyer already has the cash, so no waiting on mortgages and financing. Even complex sales rarely take over 4 weeks to finalise.

With agents, it takes on average 2-3 months just to find a buyer. Then another 1-3 months for exchange and completion. Cash buyers compress this down into weeks.

If you need to sell quickly due to life circumstances, cash buyers are often the only viable option. Their speed and efficiency makes the selling process that much less stressful.

Certainty of Sale at an Agreed Price

Once you accept an offer from a cash buyer, the sale is secure. There’s no risk of gazumping or the buyer pulling out. You have the certainty that the purchase will complete at the agreed price and date.

This provides peace of mind that the sale will go through. With traditional buyers, even late in the process things can fall apart costing you time and money.

Avoid the Hassles of Open Houses and Viewings

Cash buyers only need to visit the property once or twice to make an offer. You avoid the disruption of constant viewings and openings that come with traditional estate agent sales.

Your home stays private and secure. The quick process also means you can move out faster. Less time with furniture packed up or rooms overturned.

Take Care of All Legal Paperwork

Reputable cash buyers will handle everything from contracts to transfer deeds. You deal with one company instead of coordinating solicitors on both sides.

For those new to selling or overwhelmed by the process, having a buyer handle legalities makes things far easier. One less thing to worry about.

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What are the Cons of Cash House Buyers?

Using a cash buyer isn’t perfect in every scenario. There are some potential downsides to consider:

May Receive Below Full Market Value

Most cash buyers will make offers at 5-10% under the maximum value you may get on the open market. Some may offer even less for properties needing extensive repairs or updates.

While you avoid agent fees, the actual sales price could be a bit under what you may get otherwise. Important to weigh costs vs the final selling price when comparing to selling privately or via an agent.

For those with no time pressures, selling through an agent may yield a higher price tag albeit with higher fees. But it varies case by case.

Have Less Control Over the Sales Process

With an estate agent, you decide on a minimum listing price and have control over accepting offers. When dealing directly with a cash buyer, they make the initial offer and negotiations are limited.

If you’re open to a quick, efficient process, this isn’t an issue. But if you want control over price talks and buyers screened, an agent may provide more say in how things proceed.

Can’t Shop Around Different Buyers

There’s no ability to pit multiple buyers against each other as you may do with agent listings. You are dealing with a single cash buyer, so have less leverage to negotiate price.

However, getting quotes from several cash buyers before accepting an offer can help overcome this. The competition between cash buyers means they still have to make fair offers.

Overall, for those who prioritise speed and cost savings, these trade-offs are often worthwhile. But they should be factored into any decision on using a cash buyer versus other routes.

Is This Option Suitable for All Home Sellers?

Given the pros and cons, using a cash house buyer is ideal for certain situations and sellers but it may not make sense universally.

Here are the cases where cash buyers are best suited:

Inheritors or Executors Selling an Empty Property

If you’ve inherited a home or are acting as executor of an estate, cash buyers make the process simple. You can sell an unoccupied property quickly without the headaches of prepping for viewings or waiting for a buyer. For inherited homes with little sentimental value, cash buyers provide fast sales with minimal effort compared to traditional listings.

Downsizers Needing a Quick Sale

Retirees or empty-nesters often downsize to smaller homes once children move out. To get their money out quickly for the next purchase, cash buyers get the sale done fast. Saving on agent fees also maximises profit from the sale and keeps more equity available for the new home.

Emigrating Sellers Needing a Guaranteed Sale

If you’re emigrating abroad and need certainty your UK home will sell, cash buyers provide this. There’s no risk of a fall-through or delays which could disrupt your international move. You also avoid the stress of preparing your property for openings and showings if you are already abroad as Cash buyers handle everything.

Homeowners Facing Repossession or Foreclosure

As a last resort, cash buyers can help those facing repossession or foreclosure. The quick sale releases equity to pay off mortgage arrears before the lender forecloses. While not ideal financially, it does allow homeowners to salvage their situation and avoid worse outcomes.

Sellers Wanting a Convenient, Stress-Free Process

Some may pay a premium for traditional agent listings simply to have someone else handle the entire sales process. For a fraction of agent fees, cash buyers take this burden off the homeowner’s shoulders.

If you want to avoid the hassles and headaches of selling privately or via an agent, cash buyers make life much simpler. Just make sure to use a reputable company.

How to Find a Reputable Cash Home Buyer

As cash home buying has grown more popular, many new companies have emerged. This rising competition is good for sellers, but it also means more due diligence is required to pick the right buyer.

Find the best house buying companies here. When researching, be sure to:

Research Companies Extensively and Read Reviews

Spend time researching potential cash buyer companies online. Check review sites like Trustpilot for feedback from past sellers. This will reveal more about their customer service and offer amounts.

Look for patterns – both positive and negative. No company is perfect, but you want to see that they are fair overall.

Verify Credentials and Accreditations

Reputable cash home buyers should have credentials like membership in the National Association of Property Buyers or registration with the Property Ombudsman redress scheme.

Check for any disclosed company information like registration numbers. Accreditation helps ensure they follow industry standards.

Get Quotes From Multiple Cash Buyers

Never take the first offer! Shop around with at least 3-4 buyers to compare offers. A wider net ensures you get the best price.

Once you find the top few bids, you can negotiate between them or use their offers to motivate other buyers. More competition equals more leverage for you.

Clarify All Fees, Charges, and Timelines

Some cash buyers have admin fees on top of legal costs while others don’t. Make sure to clarify any charges so surprises don’t come up later. Get all terms in writing.

Also understand how quickly they can complete the purchase. You want the buyer that gives you the best overall deal and service.

Taking these steps will help you feel confident you are choosing a fair, transparent, and speedy cash buyer. Don’t rush into accepting the first lowball offer. A bit of due diligence goes a long way.

How Much Below Market Value do Cash Buyers Pay?

One big question sellers have is how much they will net compared to listing the property traditionally. There is no single figure, but here are some guidelines:

On average, cash buyers may offer 5-10% under a home’s maximum market value. Some may go up to 15% lower for properties needing extensive repairs or located in difficult markets.
For newly renovated or updated homes in good condition, offers tend to be closer to market rate – around 5% under is typical.
Quick sales in high demand areas also lessen the discount amount. Buyers have less leverage so may only offer 5-7% below market price.
In slow markets with low demand or rural locations, buyers may push for 10-15% discounts as they take on more risk holding the home.
Properties with structural issues, damp, or major cosmetic defects see the largest markdowns. Buyers account for higher repair costs.

The exact asking price on offer depends on multiple factors – location, property condition, market conditions, and the buyer’s resources. But the average range is 5-10% below a home’s potential market price.

Always get multiple quotes rather than accepting the first offer. A bit of negotiation can often reduce the discount amount too if you have competitive bids.

How Quickly Can a Cash Buyer Purchase My Home?

For those new to the cash home buying process, it’s understandable to ask: just how fast can sales actually complete? Here are some timeframes to expect:

The quickest sales can finish in 7-14 days once the offer is accepted. However, this is rare and usually only possible with small, straightforward purchases.
Most cash sales take 2-4 weeks to exchange contracts and complete the purchase. Lenders can process funds quickly once legal work is moving.
For quick chain-free sales with no issues arising, 4-6 week turnarounds are common. There are simply procedural steps that take time.
Complex properties or chains may take up to 8 weeks if surveys flag repairs or extensive legal work is needed. But still faster than traditional sales.
At the extreme end, problematic properties can take 10-12 weeks if special lenders must be sourced or major works are required before purchase.

The average time is 2-4 weeks for a cash sale from the accepted offer to the keys in hand. Be wary of buyers touting unbelievable 7 day purchase promises – while possible, it’s rare in practice.

In all but the most complex scenarios, cash buyers will purchase your property and complete it within 1-2 months. Much faster turnaround than listing through estate agents. Speed and efficiency is a major perk.

What Costs are Involved When Selling to a Cash Buyer?

One key advantage of cash buyers is avoiding expensive estate agent commissions. But what other costs are involved when selling your home this way?

No Estate Agent Fees

This is the largest savings – you avoid the typical 1-3% of the property value that goes to the agent. On a £300,000 home, that’s £3,000 – £9,000 saved in fees.

This money stays in your pocket rather than going to the agent. Selling privately is the only other way to avoid these fees.

You Still Pay Legal Fees

While cash buyers handle the conveyancing, you still pay legal fees for this process. These are typically £1000 – £2000 depending on property type and location.

You avoid agent fees – not all costs. But legal fees are fixed and modest compared to agent commissions.

Some Buyers Charge Admin Fees

Reputable buyers with no admin fees do exist. But some may charge admin and paperwork processing fees of £500 – £1000. Get this clarified in writing beforehand.

These fees should be justified – watch for inflated charges. A fixed fee or low admin fee may be acceptable if the overall offer is competitive.

Early Mortgage Repayment Charges

If you still have an outstanding mortgage, early repayment charges will apply. This depends on your mortgage terms, not the buyer.

To calculate this, check your mortgage paperwork for repayment terms. This will clarify charges.

Outside of normal legal costs, reputable cash buyers don’t have hidden fees. Just be diligent checking paperwork so no surprises arise later in the process.

Summary Of Cheap House Selling Options

For homeowners who want to find the cheapest way to sell a house quickly, for the lowest overall cost, and with minimum hassle, using a cash house buyer is often the best option. By eliminating expensive estate agent fees and offering a fast, certain sale, cash buyers can provide the most affordable way to sell your house that saves you thousands compared to other methods.

The majority of cash buyers will make offers 5-10% under the maximum market price you may be able to achieve. However, this discount is often less than the estate agent fees you would pay otherwise. And you benefit from a faster, simpler sales process.

If you need to sell due to life circumstances like emigrating abroad, downsizing for retirement, or dealing with an inheritance, cash buyers can make the process practically stress-free. Just be sure to research buyers thoroughly and get multiple quotes before accepting an offer. This ensures you get fair market value.

Selling your home through a cash buyer may not maximise the sale price. But for those focused on speed, cost efficiency, and convenience, it is an advantageous method that can save you time, money, and headaches. Just approach cash buyers as educated, informed sellers. Taking the time to understand the pros, cons, and process of finding the cheapest way to sell a house is key.