I’m going to explain how much quick cash buyers will pay for your property. Many people need to sell a property quickly, and I get asked this all the time, “What percentage do you pay?”
For us at Sell With Richard, we don’t have a fixed percentage. Personally, we look at properties and say what we can get for you if we’ve got to sell to an investor. And I don’t put a fixed percentage on that.
A lot of the big companies say they’ll give 20-25%.
And there are some that say they’ll give you near to the market price. Although this is to get you into a false sense of security. This is just to get you on board where the buyer says, “Oh, yes, we’ll get you this price”. But they know all full and well that they won’t. Not a good way to operate, but that’s the way some of them do.
Some say, “Yeah, we’ll give you 90% of your value and no problem at all.” But when it comes down to the nitty-gritty, you’re never going to get that.
I’ve seen in this business that there a lot of unscrupulous companies who will say, “Well, yes, if your property’s worth £100,000, we’ll give you £90,000£ or we’ll give you 85,000.” And sometimes, when you’ve got down the road with the legal process and about to exchange they suddenly come up with a problem and demand the price is reduced by another £10,000.
Very naughty and unscrupulous, not a way to behave at all.
I absolutely hate that, but there are many companies that do it and it’s totally wrong.
As a guide, you can bet your life that they’re going to want at least 20% off. And that’s how some of them work.
The important thing is the starting value.
So you’ve got to be sure that your property, if you say it’s at £100,000 is worth £100,000 on the open market, because that’s where the house buying companies will start at and then work backwards.
If you try to put an inflated figure on then it’s not going to wash because obviously they’re going to do their own due diligence. They make say yes to your price but know full and well that they will reduce the price to achieve a minimum of 20% discount to the true market price.
Im not saving all house buying companies are unscrupulous. Some are very good and once they make their offer, they’ll stick with it. You just got to be very careful with who you deal with.
If you want to have a chat about this any time, please feel free to give me a call at 0191 486 2386.