FAQs
How Quick?
Selling your house to a cash buyer is a comparatively quick process. With no chain involved, there is very little that can lead to a delay. On top of this, cash buyers work with specialist solicitors and mortgage brokers that are trained and committed to minimising delays.
In certain circumstances, when a very quick completion is required (within 7 days), a specialist solicitor can be assign to you and even insurances taken out on delayed searched. Note: a completion this quickly is not always possible depending on the circumstance.
Typically however, a completion should be completed around 8 to 10 times more quickly than through a traditional sale process. The average sales in the UK is 12 to 14 weeks, sometime much longer is the sale falls through due to a broken chain.
Estate Agents
When selling your property through an estate agent, you have to carefully plan for many essentials before you have any chance of selling your property quickly and at a good price:
- If your property needs renovation or refurbishment, you will need to get it paid for and completed before you do anything else.
- You need to find a reliable and honest estate agent.
- Your property will need to be made spotless for viewings.
- If your estate agent finds you a buyer, you will need to wait a few months for the buyer to arrange a mortgage.
- If the buyer is in a chain, you will need to wait for their home to sell before yours can be purchased.
- If the buyers chain breaks, you have to start all over again from step.
This is an optimistic scenario. What if the agent didn’t find a buyer? What if you were forced to drop the price to achieve a quick sale? What would you do if you were gazumped? What if your buyer was gazumped? Because of the huge amount of time estate agents take to sell properties you could leave yourself exposed to all sorts of factors which could seriously affect the progress of your sale.
This process commonly takes many months of stress and hassle and explains very clearly why the services of fasthomesaleonline are consistently in high demand from homeowners across the UK.
Rent-back
The Rent-back option is a great solution for those people who have come to a time when it makes sense to release the burden or property ownership but would like to remain in their home.
This could be simply to take the maximum amount of equity out of your property to spend on your retirement or perhaps you haven't yet found that ideal new home to move on to. Don't forget, you are in a much stronger position when negotiating for your new home if you are not in a chain. You could save up to 10% off your new property with some shrew negotiation.
We can accommodate either short or long term Rent-backs and the options are completely flexible.
Just make sure that you add the words 'Rent-back' when answering the question:
'Please provide further information you feel may be relevant for the cash buyer ' on the property details section of our form.
Lease Option
Lease options are a complete different service to a cash buyer buying your property and are only suited to certain circumstances.
- Do you have little of no equity in your property?
- Are you unable to continue to finance your property or facing repossession?
If the answer to both of these questions is yes then a Lease Option could be a great solutions for you.
A Lease Option is a combination of a lease agreement that will allow the buyer to lease the property and this money goes towards the mortgage payments and the property service costs such as council tax and bills. The option then allows the buyer to purchase the property as a specified point in time in the future. The main benefit is that a lease option can be drawn up immediately and processed as quickly as 24 hours. This is ideal if you are facing repossession.
A sale price is agreed, usually at today's Market Value, which means that you do not have to drop the price! The exercise period of the option is usually between 2 and 5 years. At that time, either the option is exercised, which means that the property is sold at the value agreed, of the option is not exercised, which means that you would get your home returned to you, giving you enough time without paying the mortgage to resolve your situation. Most options however will be exercised.
Costs
Selling to a cash buyer through fasthomesaleonline is completely FREE. There are no costs involved that you would traditionally expect with a property sale such as Estate Agents fees or Solicitors costs and even the valuation of your home is paid for.
As you are likely to me selling your home at quite a discount to the Market Value, this is the cost that you will really be faced with when dealing with a cash buyer. (The Market Value can be defined as the likely price to be agreed between two willing participants in a property transaction).
Dropping your price by 15% to 20% does sound like a lot, however, when you consider all of the other costs then this is not that much of a drop. You will essentially be receiving 80% to 85% of your property value. Lets look at the example below to illustrate what the actual implications are for this kind of reduction in price:
Lets take a property (for simplicity) on the market for £100,000. Typically in the UK, sellers will strike up an agreement with a buyer at around 93% to 97% of the property value. See www.hometrack.co.uk for the current national average. If we use 95% then this would equate to an agreed sale at £95,000.
You would then need to pay Estate Agents fees or typically 1.5% + VAT, which would equate to £1674. Also solicitors fees including disbursement would be around £1000. Taking this into account this would reduce the value to £92,326.
What is then there is a post purchase reduction if something comes up in the survey. A figure of 5% is not uncommon. This would reduce the value by £4,750. Finally, if you property doesn't complete for say 6 months then you'd be liable to pay mortgage payments and council tax for this period, say £2,750 and £600 respectively.
The would all reduce the final amount due to you to £84,226. Suddenly the reduction to a cash buyer doesn't seem so drastic.
Let's recap:
Asking price: £100,000
Initial agreed price (95%): £ 95,000
Post survey reduction (5%): £ 4,750
Agent Fees: £1674
Legal fees: £1,000
6 month mortgage interest: £2,750
Council tax (6 months): £600
Total return after costs: £84,226
A cash buyer will take over all of the costs and risks associated with keeping the property and eventually selling it, taking this away from you. Considerably more costs are then liable to the cash buyer which is reflected in the final cash offer made. Cash buyers look for a win - win solution, designed to benefit the seller as well as being a prudent investment for the buyer.
No HIP required
Yes, that's right, if you sell your property to a cash buyer and don't market your property through an Estate Agent of other method then you will not be required to purchase a Home Information Pack for your property.
If, however, you have already instructed an Estate Agent to market your property (only 4 bedroom houses or more from 1st August 2007) or you are using a 'For Sale By Owner' site then you will still require a HIP.
Houses with 3 bedrooms or less currently do NOT require a Home Information Pack, although this is due to be brought in next year.
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