What’s the difference between a CASH buyer and an estate agent?
Estate agents market your house on your behalf to others. For this they charge a fee of around 2%. This fee covers their cost of advertising (places like Rightmove and Zoopla), staff costs for viewings and a profit. Typically, an estate agent will tempt you to use their service by inflating the price of your house making you think it’s worth more than it really is. Then around a month later, they’ll suggest you reduce the price (to the correct value) to encourage viewings.
On average it takes 85 days and 19 viewings to have an offer accepted on your home with another 70 days for completion. That’s 5 months and 19 viewings on average from advertising your home to selling it. Added to the fact that 1 in 3 sales fall through prior to completion, that means 1 in 3 people have to go through the whole process again.
The purchaser will want a discount on your advertised price otherwise they feel they’re not getting a deal – This will typically be around 8 – 10%.
Then there’s the legals. Dealing with conveyancing solicitors. Who do you choose or trust? Do you have recommendations? You may know a good solicitor, but you cannot control who the purchaser uses. This can turn into a battle on its own.
Then there’s the dreaded, purchaser’s surveyor. These people are employed to find any imperfection in your home and report on it. It’s their legal duty to do so and carry liability insurance to protect them at great expense. These imperfections are reported to the purchaser (and mortgage company) which enables them to again reduce the price they’re willing to pay for your property. It’s a never-ending vicious cycle.
Finally the costs. Conveyancing solicitors will normally charge between £750 – £1,500 for the legal requirements of selling your property (and an up-front fee) with the estate agent want around a 2% slice. This alone can run into thousands of pounds!!
The typical scenario……
Estate agent ‘Your house should be advertised at £110,000, we have people waiting to buy.’
1-month later ‘We think you should reduce your asking price to £100,000 to get people interested in the property.
3-months and 19 viewings later.
‘We’ve had an offer on your property which we think you should except for £90,000.’
2-months later (If you’re lucky enough not to be the 1 in 3 that falls though, the surveyor has not found any defects, the solicitors have done what they’ve been paid to do and the purchaser’s mortgage has been agreed).
- Sale of the property £90,000
- Estate agents fee £1,800
- Solicitors fee £1,200
- Money left for you £87,000
How we work.
Your property is worth £100,000 which has been based on an independent RICS valuation. We will offer you £85,000 CASH, pay for and deal with all your legal hassles and you could have your money in as little as 7 days. The price we offer is the money you receive. It’s that simple!
Is it worth it?
Only you can answer that question. If you are not in a rush to sell, are happy to allow multiple viewings and
happy to deal with the legal issues yourself then we’d probably advise you to use the more traditional route of using an estate agent. We have excellent working relationships with various agents (as we buy properties from them also) and happy to put you in contact with someone suitable for your area.
Who should use us?
- Sellers who don’t want the headache of dealing with multiple agencies.
- Sellers who are tied in a chain and waiting to buy their dream home but are stuck and in fear of losing that home.
- Families selling through probate.
- Sellers with property issues such as subsidence or Japanese knotweed.
- Sellers with un-mortgageable properties.
- Sellers with tenants in the property
- People in distress needing to ‘sell their property quickly’.
There are countless reasons why you should consider using a CASH buyer as opposed to a ‘traditional’ estate agent, but mainly because you’re looking for a fast, hassle free and guaranteed sale.