Well, is one cash buyer just like another?
As we have seen, a cash buyer will tend to be a property trader, investor or developer. Most are offering a ‘homebuying’ service although they may not describe it as such. This is a service that can be tailored to your circumstances. On the face of it, if you want to sell your house quick, this might fit the bill. But who do you want to be dealing with?
The vast majority of cash buyers or traders focus their efforts on specific geographic areas or have a network of contacts throughout the country. So let’s first address the issue of whether one cash property buyer is just like another. After all, if you want to sell your house quick it’s important to get your bearings so you know the range of options open to you.
There are essentially three different types of professional cash property buyers:
small independent companies
Let’s deal with property wholesalers first. These are individuals or companies (sometimes connected to estate agents in some shape or form) who focus on buying property at wholesale prices to sell on to other (trade) buyers often at a discount. Wholesalers are the one type of cash buyer who will tend to focus on properties rather then people. This means they won’t be interested in sitting down with you to discuss possible ‘solutions’ to your current circumstances. Consequently, these companies or individuals generally offer very low prices for property – around 60% of market value. Some never waiver from their target percentage and have a ‘take it or leave it approach’. End of story.
You probably won’t come across these kinds of property buyers as many of them focus on property auctions. But others advertise in local newspapers or on the internet so it’s important you know they are out there.
Other types of cash buyer
As we indicate above, the other types of cash buyers can be small local companies or larger operations providing UK-wide coverage. These are the companies you may want to contact as they do offer a ‘home buying' service. This means they have a more solutions or ‘consultative’ approach to life. Essentially they will take time to listen to you so they can match their service to your specific needs.
However what makes life a bit more complicated is that the small independents often have a relationship or link with one of the national networks. Confusing? Let us explain.
Most property traders are small independent businesses but the companies you see advertising in the national press (and some of those of the internet) are often franchise-style operations with individual traders ‘subscribing’ to gain access to enquiries in their area. Or more simply can be groups of individual investors who have ‘clubbed’ together. The subscriptions, or contributions, pay for the marketing and advertising which is organised centrally.
Some of these national umbrella companies also advertise locally, but the local advertising is likely to be paid for directly by the local trader covering that area (and subscribing to the service). All these networks have slightly different ways of working. Some have lots of procedures and systems in place governing how members operate, others have far fewer.
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