What is a cash property buyer exactly?
The UK market contains so many of these property cash buyers that homeowners are wondering whether this is the best way to dispose of their homes and property. In this article kindly written by Caroline Taylor Properties, you will find out exactly what this transaction entails if you happen to be the homeowner.
Defining Cash Property Buyer
As the name suggests, a cash property buyer is a person or business willing to purchase properties for sale in cash. That is right – the company buys the property outright in cash, allowing homeowners to completely divest themselves of the land as well as its attachments quickly and with immediate compensation deposited directly to their account.
The question is: why exactly are these companies buying properties outright for cash and how are they able to afford it?
The practice is popular for the following reasons:
• Interest rates in the UK are getting higher and higher, hence the preference for a more direct approach on buying.
• Companies engaged in direct property buying through cash are typically composed of various individuals placing a stake in the business. As such, their collective money makes it possible to close the purchase without relying on the bank.
• The properties are often bought for resell or rental purposes.
Benefits of Outright Cash House Sale
Most homeowners are more than happy to sell their home for direct cash, for the simple reason that it is more convenient for them. However, you will find that through cash property buyers, the benefits of such a transaction are more prevalent.
Following are some of the most obvious perks of this particular option:
• It is quick with most sales closed in as little as 14 days. This is perfect if you are selling your house in order to move out of the city or the state. In a matter of days, you should be able to get all your things together and leave for a new life without any worries.
• An outright sale is also ideal for individuals who are going through a divorce. The immediate cash payment lets you divide the proceeds swiftly as well as easily between yourselves.
• It gives you the chance to utilise the sale money for whatever needs you presently have.
• Valuation for property is usually free with no hidden payments placed upon the sale. You will be able to get the full agreed cost of the property without worrying about additional payments. Since the presence of agents is usually foregone, this also means that you do not have to make separate payments for any service.
It is also interesting to note that some cash property buyers are providing rent-back options. This means that if you are selling your property because of overdue loans, it is not necessary for you to leave the house after such sale. Instead, you can “rent” the house from the new owners; perhaps even buy it back if the situation demands.
Cash Buying Process for Property
So how exactly does this process work? Cash property buyers operate differently, which means that the process provided below would not be completely accurate. Typically, however, this is how it goes:
Contact the Buyer
The first step obviously involves contacting possible buyers for the house – more on this discussed later in the article. Know that you have several options for buyers, which means that YOU are actually the one making the choice here and not the other way around. Contact as well as compare different buyers before proceeding.
An online valuation typically follows. This involves downloading as well as sending a form containing important data regarding your home. Using this information, the buyers will be able to calculate a rough estimate of how much the house is worth in the current market.
What follows next is an actual valuation. A representative of the company might drop by the house to see it in its entirety. From here, they would be able to attach an actual price to the home, based on several factors.
Contracts and Agreement
From here, the buyer as well as property owner talks about the possibility of the sale. It stands to reason that the two of you will have to reach an agreement regarding the cost of the property before a contract is made. Thanks to the simplicity of payment, contracts for the sale of the house are pretty straightforward.
Upon the completion of the contract going through due process, payment is made. Homeowners are now fully divested of the property and can do whatever they wish afterwards.
Where to Find Cash Property Buyer
So where exactly can you find cash property buyers? The good news is that UK is currently filled with companies providing this exact service. As such, you should not have any problems locating one that fits your immediate needs. For the sake of safety, however, following are some tips on how to transact with a cash property buyer:
• Inquire about the source of their funds and if possible, ask about any legal documents backing up their claims.
• Look for a company that is situated near your current location. This way, you would be able to visit their office whenever it becomes necessary.
• Do not be afraid to ask questions about their process. This is crucial since you do not want any problems in the future. If anything is in doubt or unclear, ask.
• Compare different possible buyers before committing to one. There is a good chance that one buyer will offer a higher price compared to another.
• Seek the help of a good legal counsel. They should be able to provide you with sufficient insight on cash property purchases and whether it is actually as good as it sounds
• Know the value of your home in the current market. This is crucial since you don’t want to be short-changed. By knowing exactly how much a home like yours would go, you will be in a better position for bargaining.
Opting for a cash property buyer for your home is a good idea if you need to dispose of the land as soon as possible. If you have the time however, going through the traditional process is often better.