Landlords: How to sell your unwanted rental properties quickly for cash
08 June 2018 927 Views
Having a poor performing rental property or one you simply wish to get rid of quickly can be a real drain both emotional and on your finances. If you have inherited a buy to let property or you now have a property that is vacant and is in a poor state of repair and want to sell it onwards quickly you may wish to consider a cash buyer. A professional cash buyer company, while not an ideal solution for every landlord does have immediate funds available to buy unwanted properties quickly in a cash only sale.
What are the benefits?
A guaranteed quick cash sale and fixed completion date
No property chains or delays
A 7 day sale option or a date that suits your requirements
An ideal solution for a none unmortgageable property or one that require extensive modernisation
No legal or estate agency fees to pay
A quick sale which minimises mortgage, council tax and utility bills while the property is empty.
Any type of properties purchased
Nationwide buyers can purchase anywhere in the UK
Prevents repossession and negatively impacting your credit file
What are the disadvantages?
The only real disadvantage of a cash buyer is that the purchase will be below market value. This means that the company will offer you a quote that is below the RICS independent surveyor’s valuation. The amount offered could be in the region of around 20% below the market valuation, so if your rental property is worth £100K, you could expect quotes of around £80K.
However it is worth noting that while a cash buyer will offer less, you need to offset the price against saving on mortgage fees, estate agents commission and the convenience of a really fast and hassle free sale. If you have an unmortgageable property or one that is in a poor state of repair then your only over option would be to consider selling the property at auction.
What to consider?
It is important that you only choose a reputable property buyer and can demonstrate that they are real cash buyers, have genuine testimonials and who have previous satisfied customers. It is also wise to look out for the “We buy any house scams” (www.asksusan.org.uk/buy-my-house-scams-warning-fast-cash-sales/) which covers unrealistic ‘high offers’, unregulated sale and rent back scams and dealing with buyers who claim to be cash buyers who simply aren’t.
Another thing to consider is what borrowing you may have on the property including the mortgage and any other second charge loans or secured debts. The amount you receive from the buyer must be enough to pay off all the outstanding secured debts when the property is sold. A professional buyer will discuss this with you as part of the initial assessment and quotation stage. If you have high leverage or perhaps negative equity there are other solutions such as Assisted Property Sales that the buyer may provide and discuss with you.
If you value speed and convenience over the price you receive then using a cash property buyer may be a viable option for you.
Questions you can ask your potential buyer:
Can they show you proof of available funds to purchase your home? Check that they really are cash buyers.
Can they provide you with genuine testimonials and reviews from previous happy customers?
Have they provided an office address and are you able to make an appointment to visit them in person if you wish to do so? You may feel more confident after a face-face discussion.
Are they a member of the Property Ombudsman (TPOS)?
Are they a member of the National Association of Property Buyers?
How long have they been in in the property buying business? Do they have the necessary experience to complete on a property sale quickly and within the agreed time scale?
Ask who the directors or business owners are and the people behind the business you are dealing with. This will help you in doing further due diligence checks on who runs the company.
Check their customer reviews and testimonials, do they have a positive image and reputation? Is feedback available from previous customers?
In summary the decision to sell your house quickly using a cash buyer company comes down to your own personal circumstances, needs and goals. A solution while not suitable for everyone, may provide a lifeline to someone struggling with a difficult buy to let property or one that is facing repossession and is motivated to achieve a fast and reliable solution.
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