Quick House Sale: What’s the Catch?
Buyer beware.
We have all heard this age-old advice – but in the housing market, it is equally applicable to the seller. Your home is likely your single biggest investment and your most valuable asset. It provides shelter and comfort now, but it also needs to provide security in the future if you want to or need to sell. If that point comes sooner rather than later, you may be considering a quick house sale. What does this mean for you? What is the “catch” for which you should be looking?
What is a Quick House Sale?
While there are different ways to sell your home on an expedited schedule, including getting lucky when listing it on the market, selling to a friend, family member or neighbour or going to auction, what is typically meant by a “quick house sale” is that you opt to work with a cash buyer.
There are many reasons to go this route over a more traditional sales process (complete with estate agents, solicitors and endless fees). For example, people in the following situations often find themselves in need of a quick sale:
- They are going through a divorce and need to dispose of the marital home
- They are facing repossession
- They need to sell their house to pay for care
- They need to relocate for work, school or family reasons
- They have inherited a property that they do not want or cannot afford to maintain
- They need to make a deposit on a new property
With a cash buyer, the process is streamlined and simple. Rather than going through the myriad steps involved in a conventional sale – from making improvements and staging to engaging an estate agent and solicitor to juggling all of the legalities, technicalities and paperwork – you start with a quick form that asks for just a few basic details. Within 24 hours, you will receive an offer in principle from the buyer. If this is acceptable to you, you proceed.
At this stage, the buyer will instruct valuations experts to look at the property. Upon their reports, the buyer formulates a final offer. This is often the same as the initial offer. If, however, there were serious issues uncovered during inspections, they may reduce it to accommodate. It is highly unlikely that they will rescind an offer.
If the final offer is acceptable to you, you proceed towards completion. If not, you walk away without penalty or obligation. It really is that simple.
How much does this cost? Is that the “catch” you have been waiting for? With a traditional sale, there are fees and expenses at every turn. With a cash buyer that specialises in quick house sales, you are freed from this burden. No estate agent fees. No solicitor fees (unless you choose to use your own, in which case, you may be offered a stipend towards this expense by the buyer). No extensive, and expensive, home improvements. No document processing fees… You get the idea.
What’s the Catch?
When exploring any options that have the potential to create such a significant change in your life (and selling your house certainly qualifies), it is important to do your research and to thoroughly weigh the pros and cons of any decision. In terms of a cash buyer, we have discussed the benefits, from a streamlined process to elimination of many expenses. But is there a drawback?
It depends on how you look at it. Cash buyers typically offer between 80% and 85% of total market value. Could you get a higher price on the open market? Possibly. But if your home is in less-than-ideal condition, you will need to complete repairs, improvements and upgrades to make it marketable. You will need to stage it. To hire an estate agent. To engage a solicitor. To wait, and then wait some more for offers and for financing to go through.
For many, the offer made by a reputable company that specialises in quick house sale is the best, most profitable, option. It allows them to sell fast – and minimises the stress associated with this big life change.
Is This the Right Option for You?
Only you can decide. Do your research, evaluate the advantages and disadvantages, and determine if this is the right path for you.
