The Hottest New Property Buying Process in the UK
In less than a decade, the property buying process UK homeowners once knew has significantly changed. No longer do homeowners have to rely solely on estate agents; today there are many property buying companies in the UK that offer cash for homes. These companies are by no means a new phenomenon; paying cash for property has been practiced ever since homes were built. The only difference is that today there are many property buying companies in the UK that have streamlined the process of a home purchase. While all cash home buying companies have a similar process, they do have subtle differences that include the following:
- Some charge no fees for registration, home valuation, or the purchase of the home. However, there are a few companies that do have a fee for home valuation.
- Some purchase the property without even seeing it, but the majority will send out a surveyor to assess the home before making a final offer.
- Some quickly send a restrictive contract that states you cannot work with any other cash buying company or a estate agents during the entire process.
- While most cash-buying companies do buy your property outright, there are others who work with third-party investors. By referring the property to these investors, they get a commission in return. However, it may take a little while to find an investor and if the seller is desperate to sell the home fast, he or she is out of luck
Aren’t There Private Cash Buyers?
Not every cash buyer works for one of these companies. There are private cash buyers as well, but they usually purchase the property because they want to reside in it, whereas cash buying companies want to renovate the property and make a profit.
Private home buyers also don’t usually buy the property as is; they usually want the property to be in tip-top shape, livable, attractive, and without any issues. Cash buying companies will usually buy the property as-is and then make the repairs themselves.
Finally, private home buyers are usually in no rush to buy a property; they will keep looking until they find the right property that meets their lifestyle and personal preferences. Cash buying companies usually buy just about any property and complete the process within a few weeks.
Many Different Kinds of Companies
This industry is a fairly diverse one. There are many different kinds of companies renovating the property buying process UK homeowners know so well.
- There are some cash-buying companies that buy distressed properties and restore them. These companies usually look for properties in the local community that are in need of major repairs, facing foreclosure, or where the owner has lost his job and had no money to make the repairs. Companies that restore homes do not flip homes; they aim to renovate the property and either rent or lease it out.
- Home flippers also fit into this category. With a great demand for homes and the rising costs to buy one, many investors have been flipping properties to make a profit. Flippers may be solo private investors or large companies that buy run-down homes, renovate them, and flip them for huge profits. Most of these homes need minor repairs so that the flippers do not end up spending huge sums of money repairing them. Flippers may also change the home layout to make the home more appealing and also bring a higher price.
- Buy & hold companies operate very similarly to flippers and generally buy homes that do not need major work. These companies are not interested in selling homes but leasing or renting them out. Buy and hold companies are often local companies that will do their own repairs and even manage the property.
Is Working with One of these Companies Worthwhile?
There is no right or wrong answer when it comes to using a home buying company to sell a home. It all depends on your situation, your goal, and the type of company you are dealing with. If you are willing to perform all the repairs in your home and make it look nice, you will get a better deal from a private home buyer. But, if you’re motivated to sell because you just need out, you can close within 7-14 days with one of these companies. The best recommendation is to speak to several cash buying companies and determine their offers. In most cases, the offers for the home will be between 75% to 80% of the total value of your home, as long as the home is functional and does not have any major structural issues. If you like what you hear, consider choosing the company that’s right for you.