Houses purchased for cash

[Sheela]

Has anyone had a successful experience selling their home to one of the many companies that offer to buy your home for cash. Our buyer has just pulled out at the last minute and we are in danger of losing the house we planned to buy. I was wondering what sort of percentage these companies knock off the price that our estate agent has fixed and our buyer accepted. I remember seeing a case on Watchdog where the company dropped their originally offer by quite a lot - it all seemed very underhand - not nice at all.

[CheekyChops]

They will generally offer you 75-80% of the market value.

[Twenty20]

I think CheekyChops is right, you'd lose up to 25% of the value.

Personally, I'd treat these people as the last resort. If you're in a hurry or have to sell quickly then it might be worth it. Most of them actually don't buy with 'cash', all it means is that they don't have to sell their own house to buy yours, so there is no chain. Most will be taking out mortgages on another property to buy your house. They make their money by buying the house cheaply off you and selling it on at a profit or sometimes letting it out.

[parkesquay]

I looked into this at one time(because I was in a similar situation) and the best that you are going to get is 85%(so they say)but there are extras such as paying for a survey which will only be a 'drive-by'. I agree with 'Twenty20' that there is sufficient anecdotal evidence to indicate that at the last minute some of these companies drop their offers.
I have moved a lot and believe me that there will always be another place to buy. Probably one that is even better .
Please don't panic into doing something which would result in a severe financial loss.

[parkesquay]

I have just done a little bit of a search. Have a look at:

http://www.theadvisory.co.uk/selling-a-house-1 .php

[philandlil]

The buyers of my previous house sold their house for �70grand to one of those companies and bought mine for �90grand (they lived on the next street up from mine and their house needed some cosmetic work doing on it.)