For those people who need a quick home sale or wanting to sell and rent back their properties there is now a whole plethora of specialist homebuying and rent back companies to chose from. The problem is that until regulation comes in (which will hopefully be shortly after the FSA have finished their investigation in the practices and best way to regulate the sector).

How does the quick sale process work
The home buying company will buy your property directly from you. They are not an estate agency of middleman and they take full ownership of the property. They will typically offer you between 75-85% of the property’s market value in exchange for a quick (4 weeks or less) guaranteed sale. They will then rent out the property or sell it on.

Given the buying and selling costs are about 5% each then these companies may only make 5% profit on each property if bought at 85% – less if they can not sell it for months. This is why they need to buy at a discount.

How does rent back work
If you need to sell but want to stay in your property (i.e. because you need to pay off arrears or avoid repossession for example) then renting back your property could be the ideal solution.

This involves you selling the property to a specialist company and then them renting it back to you (most home buying specialists offer this service). The sale price will normally be between 75-85% of its market value just like in a quick sale situation.

The rent you would be charged would be similar to the market rent of that property. This rent normally works out less than previous mortgage payments and loan outgoings so that the person stays in the their property and reduces their outgoings.

When you rent back your property will most normally be on an assured shorthold tenancy agreement (AST). This is the standard contract between tenants and landlords. The maximum term of this contract can only be 12 months so it is imperative this has a clause added to this agreement giving you the right to
renew this contract on it expiry. They should also specify how much the rent will increase each year (normally with inflation or set % amount).

A good company will insert a right to renew clause in the tenancy agreement. This gives the tenancy the right to renew their tenancy each year as long as conditions are met (i.e. the rent is paid, the property is kept in satisfactory condition).

Be careful which company you deal with
Anyone who says they can show you how to “Sell your property in 7
days or less for full market value” is LYING!! They just want to get into your front door and soon the offer of ‘buying at full market value’ disappears. If you think about it, how could they make such an offer and make money as a business and why would they not just go to estate agents and buy up all the properties in the
windows? If it sounds to be good to be true it normally is!

Some unscrupulous companies have tarnished the image of sale and
rent back by evicting tenants when they did not want to leave. Please contact previous customers of the company and check online for reviews of them to make sure you are not dealing with such a company. Also check to see if they are a member of a recognised association which has a strict code of conduct (i.e. the National Association of Sale and Rent Back – NASRB).

Why wouldn’t the rent back company throw me out?
The vast majority of rent back companies love having previous owners stay in the properties for the long term as they do not have to advertise for new tenants each year and have periods when their property is empty.

In addition, sale and rent back tenants treat the property with great care as it still s feels like their house and not rented accomodation. They tend to respect properties better than normal tenants and most companies do not want to lose them.

Also, a good sale and rent back company will give some assurances about future increases in rent. For example, they may stipulate that rents will only increase with inflation each year or at the same rate as market rents. This should be in the contract. If not, there is a danger they could increase the rents massively each year to the point where it is effectively forcing their tenants out.

Option to Buy Back
Some companies will also give you the option to buy back your property at a fixed price in the future. This is agreed before you sell and this contract is registered at the land registry. This gives you a legal right, but not obligation, to buy your property at a preagreed price over a set timeframe.

Regulation of sale and rent back
The Office of Fair Trading are conducting a study that will determine whether existing consumer laws can keep homeowners adequately informed and protected, and could recommend that sale and rent back is fully regulated. Any further protection will be great for reputable companies and rent back customers.

Firstly it is important to know that your lender can not evict you without a court order.
If you have been given a court order by your lender (received in the post) it usually means that other attempts made by you and the lender to overcome the arrears have failed. Some lenders are very sympathetic to borrowers who have got behind in their mortgage payments and may wait 6 months before applying for a court order. Some lender (of the ‘sub prime’ variety) will be all to quick to take late payers to court.

In order to start the eviction process the lender will apply to the local court to issue a ‘possession claim’ which will give you a date and time for a hearing in the county
court. You should have at least 28 days’ notice of the hearing date. (Note; a court hearing does not mean you will automatically lose your home.) Even if the court decides you cannot afford to stay there, you will not be evicted from your home on the date of the hearing.

What you need to do before the hearing
A document called ‘particulars of claim’ will be sent as well. This sets out your lender’s case for taking possession of your home. You will also receive form N11M called a
‘defence form’ which you should fill in and return to the court within 14 days or receiving it.

It is important you give as much information as possible in the defence form as this give the court a chance to see your side of the story. The court will not evict people unless they have to so give them a good reason why they should order the lender not to evict you. You need to ensure you:

* Check the details of your lender’s claim to see if you agree with them. Say if you think that the information is wrong.
* You will be asked how much you can afford to pay off the arrears. Prepare a personal budget sheet to work out how much you can afford to offer and show this.
* Put down an amount which you can afford, even if your lender has already refused this offer.
* If you are hoping that your circumstances will improve in the future (i.e. the reason why you got in arrears will change or improve), or you want time to be able to sell you home, then say so in the space provided.

You should send this document back 14 days after receiving it. If you have missed this date it is still worth sending it if it will reach the court before the hearing date. Remember to keep a copy.

What you need to on the day of the court hearing

* Come prepared to the court with short noted about what you would like to say at the hearing. Don’t be afraid to refer to them when you speak.
* If your financial circumstances have changed since you filled in the court form work out a new budget sheet and take it with you.
* Take 3 copies of your latest personal budget with you (one for you, one for the judge and one for the lender’s representative).
* Try to answer questions clearly, calmly and fully. Remember you have as much right to put your case as the lender and the judge will be keen to get the full story.

What should you say?
If you think you can pay off some of the arrears in staged payment let the judge know your plan. If the judge agrees the lender can not evict you if you stick to these plans. If the judge does not agree with this plan you can ask for an adjournment or postponement to give you time to sell your property yourself.

If you plan to pay off the arrears in a short space of time (by remortgaging or selling your property ask for an adjournment). You should also ask for an adjournment if you don’t agree with the lenders figures. This will give the lender time to get detailed accounts ready for the judge.

If the judge does not accept any of your plans they can the district judge can make
a possession order, which allows you a set period, usually 28 days, before your lender can take any action.

What if I can’t pay?
If you subsequently find you can not pay the amount which the court has ordered you to pay, you should go back to the court and ask for the order to be changed. Use the form N244, available from the court office. You should also contact your lender and try to make a new arrangement.

If you finally decide you need a fast home sale or you want to consider selling and renting back contact Quick Home Buyers.

This report is written for anyone interested in selling their property quickly.

Selling property can be one of the hardest and most stressful things you can do in your life. 90% of people sell through an estate agent so it must offer some advantages. So, should you do the same?

Well, it depends on time pressure you are under. When selling through an estate agent you will normally have to go through these stages:

1. You need to pay for and complete any renovation and refurbishment necessary (2-3 weeks)
2. You will need to conduct multiple viewings (4 to 8 weeks)
3. If your estate agent finds you a buyer, you will need to wait a few months for the buyer to arrange a mortgage (8 to 14 weeks)
4. If the buyer is in a chain, you will need to wait for their home to sell before yours can be purchase (2-3 weeks)

This can take between 4 to 7.5 months! That is a long time! It is a also a sad fact that 1 in 3 chains break down at the last moment due to buyers pulling out. It only takes one person to pull out and the whole chain falls apart.

How to sell in less than 4 months
However, even with these obstacles in mind it is still possible to sell your home in less than 4 months by these following tips (and having luck on your side):

1. Get a reliable, reputable agent.
2. Finish off any necessary DIY jobs
3. Thoroughly clean and de-clutter you home
4. Depersonalise your house and go neutral

It is worth remembering, “buyers are not looking to buy property. What they’re really looking to buy is a better life – property just happens to be the way they’ll get it”

The problems with Estate Agents
In response to many complaints about estate agents the Office of Fair trading conducted a study and found serious concerns over the way estate agents serve the public.The consumer group Which? has also conducted research and found evidence of serious violations of the law and a massive 50% of consumers voicing dissatisfaction over the service received from their estate agent. They said:

“Consumers entering the home-buying or selling process are substantially disadvantaged by the way estate agents currently operate”

Now, in fairness there are some great estate agents out there but they seem to be hard to find. Will you be lucky enough to uncover a good agent? Are you prepared to pay 1.5 – 2.5% +VAT (i.e. the price of a new kitchen) to find out?

So what it the alternative??
One of the more popular alternatives if you need a quick sale is using a specialist home buying company to help you. They can purchase your property directly from you with out the need to go through an estate agent.

Sell Fast to Cash Buyers & “Sell and Rent Back” Specialists
First things first, it is important that you understand that using a specialist property buying company should only be considered if your need for a quick sale is greater than your need to sell for the best price.

Typically you find yourself in need of house buying specialist if:
1. You are in financial difficulties
2. You are being threatened with repossession
3. You would like to sell your property & rent it back
4. Your chain has collapsed and you’re totally desperate to sell
5. You need money quickly and remortgaging is not an option
6. Bereavement or divorce means you need to move-on as quickly as possible
7. You’ve inherited property that you want to cash-in quickly
8. You’re emigrating and your property is proving difficult to sell

How Quickly Can Quick Cash Buyers Act?
Exchange of contracts can take anywhere between a few days and 3- 4 weeks. Completion can then be fixed to suit you but the norm is completion within 3-4 weeks.

How Much Can You Expect to Sell for?
Anywhere between 75-85% of your properties open market value (80% is the average). Open market value is the price a property would sell on the open market within 3 months. This is typically less than the price estate agents advertise properties at as they expect to make offers.

So, the main service home buyer service can offer you is speed and a guaranteed sale.

Certainty and speed are rare commodities when selling property. For this service you have to be willing to sell at a discount. That is why they will buy your property between 75%-85% if its market value.

What other benefits can these companies provide?

A good company will offer to:
1. Pay your legal fees (up to GBP 500 which normally covers
them all)
2. Pay any survey and valuation fees
3. Allow you to stay in the property after selling (rent back)
4. Meet their promises on price and completion date
5. Adhere to some Code of Practice from a recognized body such as the National Association of Sale and Rent Back (NASRB).

A Word of Warning!
Beware of any company that does not offer the benefits above. Some companies charge for valuation fees regardless whether they buy the property or not. Also beware of companies that string you along and then reduce their offer at the last minute when you are at your most desperate.

For those people need a quick property saleor wanting to sell and rent back their properties there is now a whole plethora of specialist homebuying and rent back companies to chose from. The problem is that until regulation comes in (which will hopefully be shortly after the FSA have finished their investigation in the practices and best way to regulate the sector).

How does the quick sale process work
The home buying company will buy your property directly from you. They are not an estate agency of middleman and they take full ownership of the property. They will typically offer you between 75-85% of the property’s market value in exchange for a quick (4 weeks or less) guaranteed sale. They will then rent out the property or sell it on.

Given the buying and selling costs are about 5% each then these companies may only make 5% profit on each property if bought at 85% – less if they can not sell it for months. This is why they need to buy at a discount.

How does rent back work
If you need to sell but want to stay in your property (i.e. because you need to pay off arrears or avoid repossession for example) then renting back your property could be the ideal solution.

This involves you selling the property to a specialist company and then them renting it back to you (most home buying specialists offer this service). The sale price will normally be between 75-85% of its market value just like in a quick sale situation.

The rent you would be charged would be similar to the market rent of that property. This rent normally works out less than previous mortgage payments and loan outgoings so that the person stays in the their property and reduces their outgoings.

When you rent back your property will most normally be on an assured shorthold tenancy agreement (AST). This is the standard contract between tenants and landlords. The maximum term of this contract can only be 12 months so it is imperative this has a clause added to this agreement giving you the right to
renew this contract on it expiry. They should also specify how much the rent will increase each year (normally with inflation or set % amount).

A good company will insert a right to renew clause in the tenancy agreement. This gives the tenancy the right to renew their tenancy each year as long as conditions are met (i.e. the rent is paid, the property is kept in satisfactory condition).

Be careful which company you deal with
Anyone who says they can show you how to “Sell your property in 7
days or less for full market value” is LYING!! They just want to get into your front door and soon the offer of ‘buying at full market value’ disappears. If you think about it, how could they make such an offer and make money as a business and why would they not just go to estate agents and buy up all the properties in the
windows? If it sounds to be good to be true it normally is!

Some unscrupulous companies have tarnished the image of sale and
rent back by evicting tenants when they did not want to leave. Please contact previous customers of the company and check online for reviews of them to make sure you are not dealing with such a company. Also check to see if they are a member of a recognised association which has a strict code of conduct (i.e. the National Association of Sale and Rent Back – NASRB).

Why wouldn’t the rent back company throw me out?
The vast majority of rent back companies love having previous owners stay in the properties for the long term as they do not have to advertise for new tenants each year and have periods when their property is empty.

In addition, sale and rent back tenants treat the property with great care as it still s feels like their house and not rented accomodation. They tend to respect properties better than normal tenants and most companies do not want to lose them.

Also, a good sale and rent back company will give some assurances about future increases in rent. For example, they may stipulate that rents will only increase with inflation each year or at the same rate as market rents. This should be in the contract. If not, there is a danger they could increase the rents massively each year to the point where it is effectively forcing their tenants out.

Option to Buy Back
Some companies will also give you the option to buy back your property at a fixed price in the future. This is agreed before you sell and this contract is registered at the land registry. This gives you a legal right, but not obligation, to buy your property at a preagreed price over a set timeframe.

Regulation of sale and rent back
The Office of Fair Trading are conducting a study that will determine whether existing consumer laws can keep homeowners adequately informed and protected, and could recommend that sale and rent back is fully regulated. Any further protection will be great for reputable companies and rent back customers.

If you have missed any payments on your loans you need to check if they are secured or unsecured on your home. If they are secured then they need to be dealt with urgently as the lender has the power to take possession of your property if they are not paid. We are going to discuss secured loans and what to do if you miss these payments.

Contact your lender
The first thing you do is you need to contact your lender to confirm the amount you owe and the steps you intend to take to pay them back. Many lenders would rather put in place a payment plan than repossess properties but there needs to be dialogue between the lender and the mortgage holder. It is very tempting (and common) for people in arrears to bury their heads in the sand rather than face up to the situation but the earlier steps are taken the better it will be.

Most UK lenders are regulated by the Financial Services Authority (FSA) who have rules saying lenders must deal fairly with any customer who is in arrears. In practical terms each lender must:

* have a written policy on how to deal with customers in arrears;
* allow customers to set up a payment plans which is realistic
* send out regular information about the arrears;
* Not put pressure on customers through too many calls or letters.

If you took out a mortgage before 31st October 2004 and you think you are being treated unfairly by a lender, you can complain to The Financial Ombudsman Service (0845 080 1800). If you took out a mortgage after this date, then FSA rules apply and it is best to contact them directly (0845 606 1234).

Help towards paying your mortgage
If you need help towards paying your mortgage then there are a number of options you can consider.

* Check that you are not entitled to income support, child benefit, pension credit, jobseekers allowance, working tax credit or child tax credit. Contact your local Department for Work and Pensions office or local advice centre for more information.
* Check to see if your mortgage has payment protection insurance. If it has but you are still refused this contact the national debt helpline.
* Check to see if your lender will buy your home and rent it back to you (these are pretty rare and known as mortgage rescue schemes).
* Check sale and rent back schemes by private companies as they can buy your home and rent it back to you (similar to the mortgage rescue schemes). They can often offer you the option to buy back your home at a later date when you have overcome any debt problems. Please check below for links to one such specialist company.

Arranging to pay off the arrears.

Do not arrange to borrow more money to pay off your existing debts as this will make matters worse in the long term. Switching all loans to a cheaper interest rate may be a sensible solution but increasing your debts is not.

In order to pay off arrears on secured loans you will usually have to pay extra monthly amounts to your lender. Lenders will sometimes ask for the arrears to be cleared over 12 to 24 months. Ask for a longer time to pay the arrears if you cannot afford to do this. If you cannot manage to clear the arrears as quickly as your lender wants, start paying the amount you have offered anyway and explain why you can only afford this, particularly if there are special circumstances (i.e. long-term illness, birth of a child, relationship breakdown or unemployment).

Other options to consider

* Change from an endowment mortgage to repayment/interest only mortgage
* Change from repayment mortgage to interest only to reduce monthly payments.
* Try and move onto a cheaper rate with your existing lender or move to a different lender.

What if I still can not afford my mortgage or arrears payments?

* Look for ways to increase your income (i.e. by renting out a room in the property) or reduce your other outgoings.
* Sell and rent back your home from a specialist rent back firm. Often the rent charged is less than previous mortgage payments.
* Sell home to homebuying company and move to a cheaper home that you can afford.

What if they threaten to evict me?

If you have been given a court order (via the post) you will normally have 28 days notice of the hearing date. This court order does not mean you will be evicted on the date of the court hearing. This is just so the court can hear the case for and against your eviction. In order to understand the court hearing and preparation required we suggest you contact your local citizens advice bureau or national debt helpline.

Being in mortgage arrears is an incredibly difficult time for those experiencing them but it is very important to take action at the first instance of arrears. Unfortunately, many people get evicted unnecessarily by ignoring their lenders threats due to the stress of facing up to the situation.

Selling via an estate agent is the preferred route of most property sellers and accounts for 90% of all sales. The reason why this method continues to be so popular is that it allows the seller to get near the maximum price possible for their property (assuming they are using a good estate agent which is not always the case). Just a quick note on this: the market value and is the price that people are willing to pay for the property. Sounds simple but it is important to distinguish that the value of a property is what people will pay and not what surveyors or estate agent say. Most of us have seen (either on TV or through personal experience) 3 different estate agents value the same property and come up with 3 very different prices. They are guesstimates but many people chose the highest and hold on to this as fact.

Anyway, I digress. Selling via an estate agent normally takes anywhere between 4.5 – 7 months with 6 months being the average. It is also worth bearing in mind that 1 in 3 of these sales collapses down due to chain breaks. The buyer and seller then have to start all over again. So this is not the ideal solution if you need to sell your property quickly. Those who do are increasingly turning to specialist home buying companies as well as the traditional auction route.

Home buying companies can offer the best option to some people who need to sell their homes fast. So what can they offer:

1. Exchange in days and completion in less than a month
2. Guaranteed sale (they buy with cash or have pre-agreed finance in place)
3. Pay sellers legal fees up to £500 (which normally covers total cost)
4. No Estate agency fees
5. No HIP required by seller (as it is a private sale)
6. Many offer option to rent back if you are in financial difficulty
7. Some also offer option to buy your property at a fixed price in the future

That is basically it. You get a quick guaranteed sale with no fees to pay. So what is the catch – why doesn’t everyone use them? Well the biggest reason why they are only suitable for those needing a quick home sale is that they will only offer to buy properties at a discount. Normally, 20-30% below market value. Therefore if you have a house worth £100,000 they will offer to buy it at between £70-80,000. They take this discount as they are in a business to make a profit – they normally try and make a 5% profit for each purchase. 5% is normally all they get after the costs of buying, marketing, waiting for the property to be resold, and selling costs.

In conclusion, if you need to sell home fast and are willing to sell your property at 70-80% of its value then this method is worth considering (it is approximately what you will get at an auction but you will incur more costs selling via this route and there is no guarantee it will sell). If you would just like a quick sale, then your best option is to use a very good estate agent.

Sell Home Quick

If time is the priority then there is another option available whereby you can sell your property in 2-4 weeks. This option is normally only suitable to those who really need to sell quickly. This is normally due to financial difficulties, emigration, divorce, separation or the threat of eviction or repossession. In these circumstances waiting 6 months to sell is not an option.

A specialist home buying company buy properties directly from sellers so there is no need to wait for them to advertise it to potential buyers. They also have the cash available (either in their bank account or as pre-agreed finance which they can access just as quickly). The process for selling to them is normally as follows:

1. You contact them via phone or via their website
2. They give you some sort of preliminary offer which you can accept or just refuse and move on. This offer is normally a set % below the market value (i.e. normally 20-30%).
3. If you accept this preliminary offer, the home buying company carries out a more detailed valuation of the property and gives you a firm written offer which is subject to a survey on the house.
4. If you accept, they pay for a survey/valuation of your property (beware of companies that ask you to pay for this. You walk away if they ask you to).
5. If the survey and valuation comes back ok (i.e. there is no structural problems with the property and the valuation is the same as their original estimate) then they will instruct solicitors to start conveyancing process.
6. The sale is then completed in 2-4 weeks.

At no point during this process should you be asked for any money. It is up to the homebuying company to pay for the survey and valuation. They may get you to sign an option agreement or contract saying that you would be willing to sell at X price which just gives them assurance that you will not back out after they have paid money on the solicitors and surveys. This agreement should not tie you in to sell at any price but at a price you are both happy with.

So in conclusion, a good home buying company will give a guaranteed quick sale and save you selling fees, the hassle of doing multiple viewings and the stress of waiting for a buyer. In exchange for this service you will need to sell your property at a discount. This discount means that is therefore normally only suitable for people who really need to sell quickly.

Sell Home Quick

Need A Quick Home Sale

They can also offer services that estate agents can not such as flexible completion dates, rent back services and options to buy back. So why doesn’t everyone use them?

Well in return for a buying peoples homes quickly they require a discount on the market value. This is often seen as the main disadvantage of using these companies and it is true that if you want to go the best price for your property you are best selling on the open market via an estate agent.

However, the difference is prices is not as great as many estate agents would have you believe. There are many hidden costs of selling via an estate agent that do not occur when you sell to a home buying company.

Firstly, when you sell via an estate agent you have to pay their costs which is normally between 1.5%-2.5% of the sale price. You then need to add legal costs and the cost of a Home Information Pack. You will have to pay none of these costs when selling to a home buying company as no estate agent fees will be liable, they will pay your legal fees, and no HIP is required as it is classed as a private sale.

Other costs that are not immediately apparent is those of time and buying power. If you sell via an estate agent you could be waiting for months until the sale is completed by which time you may have missed the opportunity to buy the property you wanted. It is also worth noting that if you sell to a home buying company you will have the cash ready quickly to buy another property. This will put you in a far stronger negotiating position to buy your next property as you will not be in a chain and you have the cash ready. This can often lead to a discount on the purchase price.

A quick sale to a property investor will also mean that you will not have to pay interest on your mortgage repayments as you have sold so quickly.

Sell Home Quick

Need A Quick Home Sale

These are the 4 normal stages of the house buying process:

1. The Valuation: This purpose of this is to give the buyer an indication of the market vale of your home. This will normally take about a week or two to get booked in.
2. The Survey: Surveys are normally carried out by qualified RICS Surveyors who will thoroughly inspect your home for any signs of current or potential problems like damp, dry rot, roofing issues, subsidence etc. Although the problems may be minor it is often the case that any perceived problems will be given by the potential buyer as a reason to withdraw from the sale or used to drive down the offer price. They justify this by explaining that they will need to spend money on fixing the problems.
3. The Exchange: This is where contracts are exchanged. Some potential buyers will put stringent conditions before exchange of contracts is done. For example, they may insist repair work is done before moving forward or the sale price is reduced significantly. There will also be conditions in this contract about when you need to leave your property – this is normally 28 days after exchange. You will also need to pay your solicitors deposit at this stage.
4. The Completion: After exchange of contracts completion normally takes place in a month or so. However, if the buyer has to sell their property (i.e. they are in a chain) then further delays are possible. Unfortunately, 1 in 3 chains collapse on average. If this happens, you must start the whole process again.

Home buying companies offer an alternative to this process. They can often give you a valuation of your home soon after you contact them and give you a guaranteed cash offer within 2 days. If you accept their offer then they can normally complete at a time that suits you with the average being in 3-4 weeks.

Need to Sell Home Quick

Sell Property Fast

Selling via an estate agent is the preferred route of most property sellers and accounts for 90% of all sales. The reason why this method continues to be so popular is that it allows the seller to get near the maximum price possible for their property (assuming they are using a good estate agent which is not always the case). Just a quick note on this: the market value and is the price that people are willing to pay for the property. Sounds simple but it is important to distinguish that the value of a property is what people will pay and not what surveyors or estate agent say. Most of us have seen (either on TV or through personal experience) 3 different estate agents value the same property and come up with 3 very different prices. They are guesstimates but many people chose the highest and hold on to this as fact.

Anyway, I digress. Selling via an estate agent normally takes anywhere between 4.5 – 7 months with 6 months being the average. It is also worth bearing in mind that 1 in 3 of these sales collapses down due to chain breaks. The buyer and seller then have to start all over again. So this is not the ideal solution if you need to sell your property quickly. Those who do are increasingly turning to specialist home buying companies as well as the traditional auction route.

Home buying companies can offer the best option to some people who need to sell their homes fast. So what can they offer:

1. Exchange in days and completion in less than a month
2. Guaranteed sale (they buy with cash or have pre-agreed finance in place)
3. Pay sellers legal fees up to £500 (which normally covers total cost)
4. No Estate agency fees
5. No HIP required by seller (as it is a private sale)
6. Many offer option to rent back if you are in financial difficulty
7. Some also offer option to buy your property at a fixed price in the future

That is basically it. You get a guaranteed quick home sale with no fees to pay. So what is the catch – why doesn’t everyone use them? Well the biggest reason why they are only suitable for those needing a quick home sale is that they will only offer to buy properties at a discount. Normally, 20-30% below market value. Therefore if you have a house worth £100,000 they will offer to buy it at between £70-80,000. They take this discount as they are in a business to make a profit – they normally try and make a 5% profit for each purchase. 5% is normally all they get after the costs of buying, marketing, waiting for the property to be resold, and selling costs.

In conclusion, if you need a quick sale and are willing to sell your property at 70-80% of its value then this method is worth considering (it is approximately what you will get at an auction but you will incur more costs selling via this route and there is no guarantee it will sell). If you would just like a quick sale, then your best option is to use a very good estate agent.