Ethical Cash Buyers
How to spot an ethical cash buyer for your home
As more and more home owners face mortgage arrears and looming repossession, selling and renting back their own home can seem like an attractive option to achieve a fast cash sale, but how do you spot a conman from an ethical buyer?
1. Be very cautious of any cash buyer that provides you with a valuation over the phone without having viewed your property. This is a clear indicator that they have no real knowledge of the property market, do not understand how to value property and may offer you a price but then change the offer at the end of the deal. This type of buyer will most certainly leave you out of pocket and in a vulnerable position after the sale.
2. Look for well established ethical companies such as www.thepropertybuyers.co.uk that have a large portfolio of properties and access to cash funds. If you are not sure that they are telling the truth about their availability of cash, fully check their credit history.
3. Get your home valued by three reputable local estate agents and try selling your home on the open market first. If you do decide to go ahead with a sell and rent back scheme, it is essential to get a number of quotes from different ethical cash buyers. If the cash buyer offers to carry out a valuation, ensure they use independent RICS (Royal Institute of Chartered Surveyors) valuers.
4. Ask the company to provide an Assured Shorthold Tenancy Agreement (AST) – a tenancy agreement for sellers to remain in their home - and agree on future rental fees. Do not accept a 6 month rental agreement. Most companies will offer you a 12 month agreement which can be renewed at the end of the term.
5. Has the cash buyer got a solvent and proven track record as well as all of the necessary landlord insurances in place? These are essential and will point out the sharks from the genuine buyers.
6. Avoid paying any fees upfront. You should not be paying anything. A reputable buyer will cover legal and other costs on your behalf.
7. How much under the asking price is the valuation? Some buyers will offer as low as 60% below the market value of your home. Property Buyers make it clear to sellers that they can offer between 25 and 30% below market value because of the current marketplace conditions. This not only covers their costs (associated sales fees) and the buyer’s but also allows for over valuations from estate agents in what is currently a falling property market.
8. A genuine cash buyer can exchange at 7 days of valuation and complete at your convenience. Beware of those that offer cash within 48 hours. They are usually a scam.
For further media information, please contact Lyn Churcher or Victoria Dyson, The Property Buyers’ Press Office at Churcher Associates PR, victoria@churcher-associates.co.uk, telephone 01949 850010 or mobile 07711 776885.
(Thursday, September 11, 2008)