kevray

Does anyone have experience of these Fast buy companies, they specialise in purchasing property at "slightly" below market value, and can complete within days, sound a rip off to me but if anyone out there has some experience they can share, I would be really interested.
An example is http://www.quickpropertysale.co.uk/index.htm

helenp

I don't know about "Slightly" below market value but when I worked in an estate agents we dealt with one such company who were legitimate and specialised in buying properties at the lower end of the market for thousands of pounds less for cash. Usually terraced houses in rundown areas which nobody wanted to buy, but they would then rent them out. I would check them out and see what they offer you otherwise I would hang on the market is slow but it will pick up. Ours has been on the market for a few weeks and we have only had one viewing we accept it may take a couple of months to sell instead of with our last houses days when the market was faster.

Helen

Helen

Mitzyboy

And me!!! But I suspect its a bit of a con .... I've had paople like this approach me for cars in the past when I've sold them. They say they have a buyer but when it comes to it they don't. Having said that, as long as you don't have to pay anything up front its got to be worth a try.

Just reduced mine by 10k

Casa Santo Estevo

Beware
There was a similar company featured on the BBC's Watchdog. Here is a report on there workings. Hopefully this company is not the same

http://www.bbc.co.uk/consumer/tv_and...20051122.shtml


Ian And Irene

Mitzyboy

Yep ... there you go then! Anything that sounds to good to be true probably IS to good to be true!

coralsoft

The OP's link is almost certainly not the same thing as this pay-up-front con.

The OP's link looks to me like the result of someone who has been following the advice of some of the more reputable property experts over recent years. There are a number of dodgy get-rich-from-property seminars on the go which encourage you to spend increasing amounts on more detailed seminars, use their recommended professionals, buy from new-build stock they have contact details for, etc.

However, more reputable property educators* advise that the way to profit from property, whether you sell on or rent out, is to buy below market value by working on a mutually beneficial deal that solves problems for the vendor when they may not be able to sell via normal routes. Some of the ideas I've seen include setting up a web-site to attract people who are looking to sell quickly or are having difficulty selling through normal channels. They are looking for what are termed 'motivated sellers', who would be prepared to structure a deal such that it solved their problems but was below market value and gave the buyer/investor, a good investment.

I'd expect such a website to be evaluate someone's circumstances, see if there was a means of solving someone's problems and either help directly, or put together deals with other investors who are too busy to search for and evaluate deals themselves.

There's no guarantee that they'll buy, if any deals don't meet their parameters (they don't want to make an amount that isn't worth their risk, after all), but it might be the means to getting a quick sale in the face of a moving date or other problem. Perhaps worth talking to, without obligation but dropping at the first sign of having to pay money up front.

If they don't work for you, I could probably put a seller in touch with somone whose network might be able to help.

* why would a successful property investor want to help others? It's not about creating competition, but about creating a network of people who can pass on deals they might not be interested in to others in the network who might, for example in more suitable areas.

kevray

Sorry you had to reduce Mitzy, I have been debating doing the same, just can't get my head round that reducing by 10k will increase viewings, I am convinced that if you are genuinely looking to buy you always look at property at the top end of your budget and then hope to negotiate a lower price, not looking good for us to move out in Sept as planned.
Think your all correct that the fast buy companies are a con, have checked further and it appears that the average buy price is 70% the value set by 3 local estate agents, I can't afford to drop 30%.

GCM

I think these companies provide a useful service - I looked into it when we were selling in England - they buy the house themselves and so of course offer 20-30% below market value - but then at least they can complete very quickly and you get cash in the hand and get out of your situation.

If you are struggling to pay the mortgage and want to move quickly for whatever reason it is an option at least.

If your house isn't selling you may be waiting for months - and may have to reduce the price then anyway.

Mark

Mitzyboy

If you have to reduce your price by around £88,000 on a £295k house to achieve a sale then there would have been something very very wrong with the original valuation. We're not talking small reductions here Mark, we're talking serious serious money. Frankly I'd rather not sell as that would put my house up for less than I bought it for about 5 years ago

QPS

These companies have their advantages and disadvantages and as with any industry there are always cowboys so due diligence is a must.

Cons: You will not receive a market value price. Usually their offers are between 75% & 90% of the value of the property. Their offers are based on what has actually sold not what Estate Agents say its worth. Other sources are from hometrack, land registry and comparables from Estate Agents (used with caution). Their objective is to sell on the open market within a period of 6 months.

Pros: Most companies will exchange and complete within 4 weeks no later than that. Some companies pay a proportion of your solicitor fees and should not charge any other fees. Offers are guaranteed. They should tailor make a solution to your circumstances, for example, they will allow you to stay in the period after completion for either a nominal rent or rent free to allow you time to move. Some companies may pay your moving costs or even arrange it for you.

This route is really a last resort and I would only recommend this once all other avenues have been exhausted. You have to weigh up the offer in relation to what you would have to pay in mortgage payments, estate agent fees, solicitor fees and more importantly ones time and peace of mind - how much is your time worth?

I am involved within the industry so I hope I have shed some light on its advantages & disadvantages.

Kind Regards

Tim

QPS

These companies have their advantages and disadvantages and as with any industry there are always cowboys so due diligence is a must.

Cons: You will not receive a market value price. Usually their offers are between 75% & 90% of the value of the property. Their offers are based on what has actually sold not what Estate Agents say its worth. Other sources are from hometrack, land registry and comparables from Estate Agents (used with caution). Their objective is to sell on the open market within a period of 6 months.

Pros: Most companies will exchange and complete within 4 weeks no later than that. Some companies pay a proportion of your solicitor fees and should not charge any other fees. Offers are guaranteed. They should tailor make a solution to your circumstances, for example, they will allow you to stay in the property after completion for either a nominal rent or rent free to allow you time to move. Some companies may pay your moving costs or even arrange it for you.

This route is really a last resort and I would only recommend this once all other avenues have been exhausted. You have to weigh up the offer in relation to what you would have to pay in mortgage payments, estate agent fees, solicitor fees and more importantly ones time and peace of mind - how much is your time worth?

I am involved within the industry so I hope I have shed some light on its advantages & disadvantages.

Kind Regards

Tim

GCM

Good posting Tim - as you say these companies are best used as a last resort but then many people have reached that stage - at least they have an option as compared to repossession.

When we see more of these companies in Spain we will know the market is in a real slowdown.

Mark

Mitzyboy

As usual another example of company's jumping on the bandwaggon targeting the disadvantaged and desperate!!