Companies that offer to biu 'Any House'

My DH has investigated these companies as he is trying to sell his mothers retirement flat without success. They seemed interested so he got all excited but then they reduced the offer significantly. Others were not at all interested in retirement flats as they’re difficult to sell. As we know.

Franbern you do not need to be a cash buyer to buy at auction, but, if you aren't you need to have the finance stitched up, either a loan or mortgage already agreed for the house.

Absolutely. There has to be a profit in it for them!

If you want to sell your house 'just like that' of course the company obliging you is going to put a heavy discount on the property, why wouldn't it?

In the city I live in, properties are sold within days. Not a lot up for sale either. Those that have been around for a while are either over priced or have something major wrong with them (part ownership, non standard construction, sitting tenants).

Even those would sell if the pricing was realistic.

Auctions are a quick way to sell and buy but you do not need to be a cash buyer unless there are caveats on the property short lease, fire damage, mine shafts, the lists go on !
Also, mortgage needs to be in place before property is sold if required or you can forfeit your deposit.

Thanks, you have confirmed what I thought about these companies,. I was interested in someone saying it is a good market at present for sellers.

I think exactly the opposite. It is families at the bottom of chains who not able to get sufficient mortgage with current interest rates, or even not feeling in the position to get a new mortgage with interest rates being so unpredictable.

So, they are causing a dramatic hold-up in these family type houses, meaning that those who are selling them, either to go to a far bigger house or to downsize to flats, bunglows, etc. cannot put any offers in on those.

Market is pretty stagnant at present. Yes, obviously, if you price a property low enough you may actually get an offer.

I do agree that many Estate Agents start off with over-pricing properties (I have always assumed that this was to try to encourage seller to go with them as Sole Agency). Those EA's then after about six weeks inform the seller that it is overpriced, etc. etc. but does not look good when a property has been 'reduced'.

We have three flats in this block of 25 at present on market, one is Under Offer, both the others are over-priced - IMO (both probate inherited property - so nobody 'in situ'.)

The person who spoke to me would love one of these, but until he gets an offer on his house, cannot go any further. I did try to discourage him from the companies, and he is looking into Auction. Am I correct that most people buying at Auction need to be cash buyers?

These companies occupy a similar gap in the market to "payday loan" companies. As several posters have remarked they are for those who need to sell up and realise their assets quickly, knowing that they will only get 75% of the market value. In a similar way payaday loans are often used by the desperate. However if you "know" you will have the money to settle the loan quickly and the boiler or car suddenly goes kaput they do have their uses.

A friend of mine currently has had their house on the market for 6 months. It is immaculately presented in a pleasant suburban area with room for 2 cars off road and space to extend. However it backs onto a noisy school, which would certainly put off anyone viewing in the day time. It also has a tiny kitchen and bathroom and the stairs are in the lounge. In my opinion the agent grossly overpriced it and the first sale fell through. They have now reduced it by 10k but I believe its still over priced. Have not said any of this to friend - not my business.

The current market is great for sellers. If their property isn't selling, the price is probably set too high.

2 apartments in my daughters block. Hers and another the same. Her price was 15K less than the other one, which had been up for sale for 3 months. Hers sold in a week. The other is still not sold.

I've never heard of them before.

Some builders will buy your old house if you cannot sell it and are buying one of their new-builds.

The company will offer a percentage - often only 75% - of the market value. They will likely argue that if the property has been on the market for some time the value is less than it’s being advertised for. They are for the truly desperate who can afford to lose a very large chunk of their property’s value.

I got an offer to take my property to auction and the fee quoted was almost £4K - a big chunk of the equity.

I think there’s a place for this type of company under certain circumstances. As long as vendors know they won’t get full market value (about 75-80%) an offer can be made in 48 hours and a sale completed in 28 days.
Personally, I hope I never need to use such a service, but I can see it being useful, should someone die in a different part of the country from their family and the prospect of overseeing a sale and keeping an eye on an empty property hundreds of miles away is too difficult.
When I was trying to sell my rental house, I got regular letters offering such a purchase - it smacks of desperation, but I was tempted. However, I didn’t need the money that desperately, so I rented it out again.

If you have an older house that need refurbishing auction is probably a good alternative, you get a non refundable deposit, and a strict time to complete.

They are “last resort” buyers.
They will give you a rock bottom price.
Your friends best bet is to find a good agent who will not inflate the asking price.

I knew someone who needed the money quickly, business failure, marriage failure etc.
The got well below the market value, about 25% less. Don’t know any more because they took the money and vanished. The house was soon back on the market at considerably more.
It’s a route I wouldn’t go down. I think auction might be a better idea.

They're advertising widely here. Posters on lamp posts etc. Seems pretty dodgy to me.