If you’re selling your home, understanding as much as you can about the process of buying the property is an absolute must. After all, it gives you an advantage. You know what to consider as you begin moving toward your sale, what could potentially interrupt your sale, and what you need to do to make your home sale an easy one. Learning more about buying a property, the process, and UK home sales as a whole has to be your goal before you make the sale on your home.
The Traditional Path
Just a few years ago, buying a property meant you listed it with an estate agent, potential buyers came to take a closer look, a buyer who really liked it made you an offer, the two of you exchanged draft contracts, you had your house surveyed, you exchanged final contracts, and completion day appeared. The whole process typically took a few months. Fast forward to 2022, and a lot has changed in the world of buying a property in the UK. What was the traditional path is no longer the only path. Instead, many buyers take a much faster option today – working with home buying companies that pay cash for the property in a matter of days.
How Does the Buying a Property Process UK Companies Use Work?
So, how do these home-buying companies work? Most are groups of individuals who are experienced enough to understand the process and where they can make a bit of extra money. Many of these companies have created a strong online presence so they can carry out the majority of the hard work – finding the properties in which they wish to invest – easily. Sellers are flocking to these companies, too, because they offer them more freedom and choice when it comes to the sale of their property. It may even mean a cheaper sale because there are no estate agents involved. In fact, the entire process is usually fast and hassle free.
The process itself is a fairly simple one. Sellers visit the site of the national home buying company they’re considering. The site offers important details of what’s involved, but in most cases, it’s the same. The seller enters their postcode on the website, and within a matter of hours, a company representative contacts them with a few questions about the property, its location, and its condition. At that point, an initial cash offer is made. If the seller is interested, the process can move forward. The seller is assigned a conveyancing solicitor, and a property survey is booked. Neither the solicitor nor the surveyor costs the home seller anything. Instead, the buyer pays for all of that. After they survey, the report is prepared, and both the seller and the buyer get a copy. The buyer then makes a final offer, and the seller has the right to accept or reject that offer. If the seller accepts, contracts are exchanged, and completion day is nigh. In fact, it could happen in just a day or two after the final offer is made.
This novel method of selling a home has become practical because the majority of national home buyers are independent organizations and not part of a property chain; they have the necessary funds in place for an immediate buyout.
For homeowners, the national home buying organizations offer a faster route to sell the home. This is particularly useful when the seller is desperately trying to sell the home quickly and/or requires urgent cash. For example, the home may be under the threat of repossession or the home sale did not go through via the traditional route; then the owner can turn to a home buying agency for a quick sale.
Understanding the Offer Itself
In general, home buying companies offer up to 75-80 percent of the open market value of the home. For example, if your home is worth $200,000, you will be offered anywhere from $155,000 to $160,000 for the home- however, this also depends on the location and state of your home. It’s a bit below market value, but the speed of the process often makes up for the lower offer.
The Bottom Line
Using the services of a cash buying company is not for all homeowners; it all depends on your preferences, the status of your home, and your personal need for cash. For the most part, cash buying companies are legit but the onus is on the seller to do the legwork, understand how the property buying process works in the UK and work with a reputable firm.