It’s no secret that property buying companies can be a convenient way to sell your property fast, earning quick cash. This method cannot compare with other processes such as selling property at auction or using an estate agent which are much more time consuming.
However, many of these online companies are scammers who will wrongly take your money.
Don’t stress, there are ways you can avoid property scams.
Fast Sales Homes has listed the 5 top house buying cons you need to know.
1. Are they genuine cash house buyers?
It is vital you confirm that the company you are dealing with is a genuine cash buyer and not just a middleman. Often online property scammers will simple sell your details onto to a third party, making you lose money and time.
To check you are dealing with a genuine cash house buyer, ensure they…
• Have a full office address
• Are registered at the Property Ombudsman (TPOS) and the National Association of Property Buyers
• Agree to meet you face to face and speak over the phone.
2. Have they valued your property incorrectly?
Often scammers will promise to buy your house for the best value, beating any other market (this is also known as ‘bait and switch scheme’). This usually results in your house being overvalued and you may incorrectly believe you are getting more for your house. Overvaluing your home usually causes the company to extend your contract or suddenly reduce your offer right before your completion date.
On the other hand, some cash house buyers will under value your home. Usually these companies will ask for less information and try to pressure you into a sale quickly. Rushing into a decision will often result in you losing money and is a sign that you may be being scammed.
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Note: If you are unhappy with the value of your house and want to sell it for more money, read our guide on ‘How to Add Value to Your Home Before Selling.’
3. Are there any hidden fees?
Take your time and read all the small print! Often scammers will try and make a bit of extra profit by hiding additional fees in the small print of paperwork. Hidden fees are often planted in survey fees, upfront fees and/or or other fees that are not made clear. Don’t fall into this trap!
Beware of any inconsistencies in price between your firm and company (prices should always be the same). Furthermore, wiring information and paperwork should not usually change.
Make sure you read and confirm each piece of paperwork received.
4. Are they offering false promises on the completion time?
Another big sign you are being scammed is if they cannot sell your property in under a month. On average a fast house buying company should only require 7 days to sell your property. Any longer timescale may mean you are not dealing with a genuine cash house buyer.
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5. Are they offering a sale and rent back scheme?
Sale and rent back schemes involve a company buying your property which is then rented back to you. For customers facing house repossession, this scheme can appear like a great solution removing any mortgage repayments.
However, sale and rent schemes often make you lose all your rights to that property, allowing the company to make you leave your home in under 6 months.
Do your research! A company offering a sale and rent back scheme must be registered with the financial conduct authority to ensure your scheme is being regulated properly.
What does dealing with a legitimate property buying company involve?
The process of using a legitimate property buying company should involve the follow steps:
1. Complete an online form
2. Receive a cash offer for your property
3. If you accept this offer, the firm will then cover all your legal fees including a solicitor
4. Confirm a completion date (shouldn’t extend over a month)
5. The sale will then go through and you will receive your cash offer
PhotoCredit: ShutterStock/ Andy Dean Photography
Are you looking to sell your house fast but concerned about being scammed? Check out our website today. Here at Fast Sale Homes, we ensure sale are completed within a month and never contain hidden fees. Making the process, quick, easy and beneficial.
