Posted By
Laurence Basturkmen
on
October 21, 2024
How Much Below Market Value Do House Buying Companies Offer?
Posted By
Laurence Basturkmen
on
October 21, 2024
There are many options available when it comes to selling your home. You could go down the traditional route of selling your house with the help of a real estate agent and company, but this can be costly both in time and money.
Working with a buying company like Faster Property is an emerging option for quickly selling your home. We can offer cash payments on your property, cutting out the middleman and quickly getting your money to you.
House-buying companies are growing in popularity, but many people are still uncertain about their legitimacy due to their low buying offers and quick operation.
We are here to debunk everything you have come to believe about house-buying companies and explain why you could actually get more out of selling your house to a company such as Faster Property.
When selling to a house-buying company, especially one that just makes purchases in cash, it is generally unlikely that you’ll be offered the total market value of your property. You’ll be surprised to learn that even though you will be offered a smaller amount, you will receive more than you may expect.
You have to consider that these companies' primary purpose is to sell your property for a profit, so they will offer a lower price to ensure that. However, with the added convenience of just how quickly house-buying companies take your property off your hands, it feels worth the minor loss in earnings.
You also need to consider that a buying company will purchase your property in its current condition, whereas if you worked with real estate agents, you would be expected to foot the bill for making repairs before the house could even be sold.
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Whether or not selling to a house-buying company is worth it depends on several factors, such as the condition of your home and the reason for selling.
Working with a house-buying company may be the best option if you are looking for a quick sale with minimal effort. Working with a house-buying company can also remove a lot of the uncertainty and anxiety that can come with selling a home, as you essentially have a guaranteed sale.
You can skip a lot of the hard work associated with selling a house, such as hosting a showing or meeting up with potential buyers, so the price sacrifice can save you a lot of time and money that you would have spent on staging your home.
Money speaks, and we know that it is still important to know the difference you can expect financially between using a house-buying company and selling your home with the help of a real estate agent.
The fees you pay a real estate agent are usually up to the agent's discretion and can change, but you can usually expect them to take a commission of around 6%, with other closing costs of around 3%.
That does not even consider additional fees, such as externally hiring a solicitor to help with documentation.
When selling to a cash house-buying company, you can expect to receive around 15-30% below market price. That may seem like a lot at first glance, but you must remember that you are paying for the convenience and avoiding all the other external costs of selling a property.
You can expect a 10-20% difference between the two selling methods, which, in the grand scheme of things, is not too much of a difference, especially when you take into account additional costs outside of the real estate costs.
To put it plainly, the main goal of a house-buying company is to make a profit. When you sell your house to a cash-buying company, it is important to consider the other costs they have when investing in your property.
House-buying companies take on the burden of all the legal costs of purchasing the house.
If a house-buying company such as ours were to purchase your house at market price, we could, in fact, lose money, which could impact the sustainability of the house-buying industry.
When it comes to buying a house, everybody benefits. Sellers can skip the difficult house-selling process and make money, and we can profit from our investments.
Now you know more about the industry's financial side, let's look at the pros and cons of working with a house-buying company.
The biggest benefit of working with a house-buying company is the quick sale. While it can take months to sell a house using the traditional route, you can sell your house in a matter of days with a house-buying company.
This is great if you need a quick cash injection or simply want to move quickly through the process.
As we have already established, when you work with a house-buying company, you can expect to receive a lower offer on your property. Though there is a good reason for this, it can still be off putting for people looking to profit from selling their home.
One of the worst parts of selling a house is being dependent on a chain of people to complete the transaction. You depend on real estate agents, solicitors, conveyors and buyers, who all need to share information between themselves.
This chain can make selling your house much slower and can have a big impact on your profit. Working with a house-buying site can cut out the middleman and help you complete a sale quickly.
As the industry becomes more popular, a few scam companies have emerged. These companies make a bad name for the industry and reflect badly on companies like Faster Property, which provides a legitimate service.
There are some easy tells to identify scam companies, such as poorly designed websites and a need for customer reviews, so make sure you research before signing any contracts.
If you want to work with a house-buying company, work with a company you trust. At Faster Property, we can purchase your home quickly and offer a suitable price for the purchase of your home.
If you would like to know more about how we can help you with the sale of your property, get in touch with our team today to receive your free cash offer.
Get your free cash offer today
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