Are Quick House Sale Companies Legitimate?
If given the choice, many people would prefer a quick sale of their home and get cash for it. Luckily, there are several quick house sale companies that offer a no-hassle way of getting rid of your home. This industry has been around for the better part of a decade, and the companies involved are steadily gaining popularity. However, it is important to understand the industry as a whole is unregulated. While there are many reputable companies, there are also some home sellers want to avoid. How can you find the right company to meet your needs? Take a look.
How Can You Tell If You’re Working with a Reputable Company?
What do reputable quick house sale companies do that others don’t? Here’s what sets most of them apart.
- They don’t push the seller unnecessarily.
- They provide the seller with a guaranteed home purchase contract that is mutually agreeable.
- They minimise inconvenience and offer a stress-free venture.
- They answer all of a seller’s questions without being evasive.
- They readily provide references that support its business and reputation.
- They have buying and selling experiences that date back at least five years.
- They provide the names of previous customers to whom sellers can contact for references.
- They come see your property days after you call and begin discussing a possible sale.
- They offer between 75-80% of the market value for the property. Genuine cash buyers rarely offer more than that because they also pay for the cost of the home inspection and the conveyancing solicitor.
If you’re working with quick house sale companies that do any of the following, it may be time to find another buyer for your home.
- They fail to deliver the service they have advertised. Instead of buying your home directly, they may involve third-party investors from whom they obtain a commission.
- They send you an agreement or contract that locks you into a sale immediately, and this lock-in contract may prevent you from selling your home to other companies and there is no guarantee that the company will purchase your home. These option agreements are legal, but they never favour the seller, so consult with a solicitor before signing any such contract. In most cases, the optional agreements are sent to the seller very early and seriously limit the options of moving forward with the home sale.
- Even though they have a contract stating that they will buy the home within 3 months, they back out of the deal. For example, the company may send you an offer for your home that is $300,000 but they will delay in purchasing the home and offer you many reasons for the delay. They are looking for an investor who will pay $310,000 for the property; they then pay $300,000 to the seller and pocket the $10,000 as profit. This is one of the easiest ways for the cash buying company to make a large profit without doing much work.
- They continue to delay the purchase of your home. This usually occurs after the company speaks to the seller and understands his or her financial situation. The more desperate the seller, the more the company will play on his or her emotions. When the home purchase is delayed for several months, this can cause the seller to panic and become desperate. In many cases, the seller is so desperate for cash that he or she will further lower the value of the home
- They ask for up-front fees. There are some home-buying companies that charge a fee to value the property. This is done even before they see the property and make an offer. In most cases, the offer they submit is less than 75% of the market value. Home cash buying companies that charge you before they’ll even look at your home just aren’t worth your time.
Quick house sale companies do offer sellers convenience and good service, but the key is to find the best options out there. The best way to know which of these companies will serve your needs the best is to speak to other homeowners, estate agents and read online reviews. Always ask questions and if you’re unsatisfied, seek a second opinion.