Sellers tempted by offers of a quick sale could be giving away up to 25% of the value of their home.
Research by Confused.com shows that the purchase price paid in quick sale deals is typically far below the true market value of the property. You can see their report here
There are a number of such quick sale companies which advertise nationally, notably Webuyanyhome.com and NationalHomebuyers.co.uk. But there are local companies that do much the same thing. The element common to all of them is the offer of a quick sale – which sounds pretty tempting
But the quick sale can cost thousands in terms of a lower selling price.
If you already have your home on the market, you’ll still be better of cutting your asking price by 10-15% than you would be going to a quick sale company. And if you can’t afford that sort of price cut because it would leave you in negative equity, then the quick sale company is not going to give you a better offer. If you haven’t tried the market at all yet, it makes sense to see what you can get on the open market before considering the quick sale route.
No wonder then that quick sale companies are usually the resort of the desperate, particularly those facing the prospect of repossession.
If that sounds familiar, don’t be panicked in to a quick sale before you have considered your options. Lenders have been actively working to avoid repossessing properties (what they call forbearance) and have a number of ways in which they can ease the strain of a mortgage.
Firstly, they might extend the period of you mortgage, giving you more time to pay and reducing monthly payments. They could also add any outstanding repayments to the total, so you don’t have to make any shortfall right now. And they could convert you temporarily to an interest-only mortgage to reduce your monthly payments. There is even the possibility of a payments holiday if you have just lost your job, but have a reasonable chance of getting another one.
Fundamentally, if you can find the breathing space to sell your home on the open market, you should. If you really have no time and you have enough equity in your home to accept less than the market value and still pay off the mortgage, a quick sale may be your only option.