Selling a property can be a stressful endeavour, especially when trying to secure a swift and straightforward sale. Property cash buyers can offer a quicker, simpler alternative to the traditional market.
These buyers offer instant cash, removing the agonising wait for potential buyers to secure a mortgage or for chains to complete. Companies such as We Buy Any Home have grown in popularity for this very reason.
However, while this route may seem tempting, there are potential pitfalls that sellers must be wary of. Here are the top five mistakes you should avoid when selling to property cash buyers.
1. Failing To Do Due Diligence
Before settling on a particular cash buyer, it’s imperative to research their reputation and legitimacy. Just because a company markets itself as a cash buyer doesn’t mean they’re credible or trustworthy.
Actionable Tip: Check reviews and testimonials, and even reach out to past clients if possible. Professional accreditation, like membership with The Property Ombudsman or the National Association of Property Buyers, can also provide peace of mind.
2. Not Understanding the Valuation
Cash property buyers often give an initial offer that’s below the market value. This is expected, as their model is built on buying quickly and often, renovating, and then selling or renting. However, some might provide offers that are far too low, taking advantage of sellers in urgent situations.
Actionable Tip: Have an independent valuation of your property done. This ensures you have a realistic understanding of its worth and can negotiate more effectively.
3. Overlooking the Terms and Conditions
Some cash-buying companies might present contracts filled with complicated jargon or clauses that can trap an uninformed seller. For instance, some contracts might have extended tie-in periods that prevent you from selling to anyone else if you change your mind.
Actionable Tip: Always read the fine print and, if possible, have a solicitor review any agreement before you sign. Make sure you fully understand all the clauses, particularly those relating to fees, time frames, and any potential penalties.
4. Being Misled by Headline Offers
It’s not uncommon for cash property buyers to make a headline offer that seems very attractive, only to reduce it after a closer inspection of the property. While it’s fair for offers to adjust based on the condition of the home, some companies might use this as a tactic to hook sellers.
Actionable Tip: Be wary of offers that seem too good to be true. Clarify the conditions under which the offer might change and by how much. If a company frequently changes its offers post-inspection without valid reasons, it’s a red flag.
5. Not Exploring Multiple Offers
One of the gravest mistakes is jumping on the first offer you receive without exploring other options. Even within the realm of property cash buyers, you’ll find a range of offers, terms, and conditions.
Actionable Tip: Approach multiple reputable cash-buying companies to gauge the different offers and terms. This not only gives you leverage in negotiations but also provides a clearer picture of what you can genuinely expect from the market.
While the allure of a quick sale with companies claiming to buy properties for cash is strong, especially when looking to release funds or move swiftly, it’s essential to tread with caution.
By being informed, understanding your property’s true value, and carefully reviewing offers and contracts, you can navigate the world of property cash buyers with confidence. Avoiding these common mistakes ensures that you get a fair deal without unnecessary setbacks or regrets.