Landlord Products / Services
I used to understand why sellers, particularly those after a quick sale and/or those trying to ditch a problematic property, would seek sanctuary and resolution from property auctions. Notoriously, that’s always been the trusty go-to.
However, today, not so much. There just seems to be a much better alternative than property auctions that make it seem like far less of a gamble.
Of course, selling on the open market via traditional means would be the ideal scenario, because you’re likely to achieve the best price. But the reality is, folk don’t sell property at auctions for the ideal scenario (for whatever reason).
With that said, I think selling property for cash directly to a ‘Cash House Buyer’ company is the far superior option. Or at least, an option worth exploring before committing to putting a property under the hammer.
What is a “Cash House Buyer” company
Simply (and generally speaking),
- They’re companies that buy properties in condition (that includes absolute hell-holes that’s on the brink of toppling over). That’s why they’re often referred to as “We buy an house” companies
- They are cash buyers
- They can complete in little as 7 days (yes, that includes making a cash offer and transferring the money into your bank account in as little as 7 days)
- They will buy your property below market value; they will typically make an offer of anywhere between 75% – 85% of the market value
- They cover all the legal work and costs, and pretty much handle everything, including surveys
That’s the general gist of it.
If I had to sum their service up, I’d say it’s a very quick and effortless way for anyone to sell a property if they’re willing to sell below market value. If you want to take a deep-dive on how these companies work, I highly recommend reading my complete guide on Cash House Buyer Companies.
“Cash House Buyer” Company Vs Property Auctions
“Cash House Buyer” Company
- Quick sale (exchange and completion possible with in 7 days)
- Cash offer can be made with in 48 hours of enquiring
- Prepared to buy any house in any condition
- Seller will know from the outset how much the property will sell for
- All legal paperwork is taken care of
- No upfront costs, and the sale is significantly more certain than at auctions
- The sale price will always be below market value (anywhere between 75% – 85% of the market value)
- The industry is unregulated and full of bad actors, so it’s critical to work with a reputable company
Property Auctions
- Quick sale (exchange straightaway with completion 28 days later)
- Auction buyers are well versed with buying difficult properties
- It’s possible to get an offer over the current market value / asking price (although, unlikely, I would set expectations between 80-90% of open market value)
- Typically not as quick as selling to a cash buying company, because it’s dependent on the auctioneer’s schedule
- A sale is not guaranteed (an expert once told me that there’s a 75%’ish chance of sale on the day)
- There’s an element of gambling, because the sale price is uncertain (for example, on the day of auction, the property can either set the world on fire and do extremely well or barely scrape the reserve price)
- The seller has to pay an upfront fee up to £1000 for an auction pack, whether the property sells or not
- If the property does not sell at auction the first time, there could be a waiting time of up to two months for the next auction. This is not uncommon, some people end up waiting several months, which defeats the purpose one of the primary perks of selling purpose at auction
Get a cash offer today (no obligations)!
If you want to see how much a cash buying company is willing to pay for your property, I have created a compact list of highly-rated companies with in the industry, which I believe to be the most reputable…
Recommended Cash House Buyer Companies
If you want to pursue this path, I highly encourage you to get a few offers to see how they compare (whether the companies are featured on my list or elsewhere). But I must emphasise, only focusing on the best cash offer is not a hill I’d be willing to die on when dealing with cash buying companies. Do your research!
Always explore your options!
While I believe “Cash House Buyer” companies offer the more compelling solution for anyone that’s after a quick sale and is prepared to sell below market value (which, as mentioned, is a risk sellers take on when selling at auction anyways), I think it’s critical to do your own due diligence and always explore the various options available. That means, for example, talking to a few auction houses and talking to a few cash buying companies, and that way you can make an informed decision on what best suits your circumstances.
Anyways, hope that’s been useful. At the very least, I hope I’ve given you a new option to explore.
Happy selling, and best of luck!
Disclaimer: I'm just a landlord blogger; I'm 100% not qualified to give legal or financial advice. I'm a doofus. Any information I share is my unqualified opinion, and should never be construed as professional legal or financial advice. You should definitely get advice from a qualified professional for any legal or financial matters. For more information, please read my full disclaimer.
