Property Guide: Avoid Cash House Buying Scams in the UK
Published by Property Saviour
The UK's No.1 Fast House Sale Company
April 30, 2015 - Read time: 3 minutes
Our property guide reveals how to avoid becoming a victim to cash house buying scams in the UK.
Unfortunately the ‘sell house quickly’ industry is an unregulated market. This allows some firms to take advantage of sellers’ situations.
Scam 1 – You have found a cash buyer! Or so you think?
Look out for buying firms or individuals who will offer you a good price, and then market your property online to other property investors at a higher price than they agreed with you. These ‘buyers’ or ‘property buying firms’ are not real buyers but merely glorified estate agents acting for their buyer. They will be charging a buyer between £2,000 to £6,000 for finding a discounted property. Ultimately you will end up paying for this, as the buyer will then suddenly reduce their price – often at the point of Exchange of Contracts.
“Our advice is to avoid any buyer that is unable to give you their solicitors’ details. A house buyer who cannot Exchange Contracts, a legally binding sale agreement, is not a real cash buyer. We will Exchange Contracts within days and not months.”
Scam 2 – Exclusivity on basis of finding an investor for YOUR house!
Some property buyers will get you to sign an ‘Option Agreement’ tying you into a sale via these buyers. They will then look for real buyers for your house. We believe this is an unethical and morally wrong practice which has to be stopped.
“Do not get caught up in these scams. If you are a victim of these fraudsters, get in touch with us today and let us help you get out of their contract.”
Scam 3 – Charge you an upfront ‘Valuation Fee’
The recent Office of Fair Trading investigation revealed that some house buying firms charge upfront fees in excess of £500+. They will then book a valuation that is favourable to them. This is not a fair or accurate valuation at all. These house buying firms will then reduce the agreed purchase price just before Exchange of Contracts – to see if you are desperate enough to accept. If you do not accept, they are still £200-£300+ up on the deal because a typical RICS surveyor would charge £200-£300.
“These scams work because of a heavy marketing budget. The distressed seller is vulnerable. You are even more vulnerable once you have paid thousands in fees upfront. Therefore, you are more likely to accept their ‘chipped away’ price because you require a quick sale, and cannot simply write off fees that you have already paid.”
If you are looking for a fast house sale, we will help. Even if you have already paid fees upfront, see if we can offer you higher price. You may find that you get a higher offer from us than from one of our competitors. We buy properties for our own stock. We are not estate agents. We are not looking for investors for your house. This allows us the ability to Exchange Contracts quickly, within days rather than months. We will never drop the price at the last minute. We always have and always will honour our agreed purchase price.
Are you a victim of these scams? You need someone who can talk you through your options – without any commitment or costs? Simply free advice? Sounds about right? Then please get in touch with us today – before it is too late.
If you need a quick and certain sale without all hassle, then simply fill in our Get Your Free Cash Offer enquiry form to get started. We will call you back within 24-48 hours at a time to suit you. It only takes 2 minutes to fill in the form. Or if you are not into technology and you would prefer a telephone conversation to see if we can buy your property then just give us a call on 0113 320 6700.