Ethical Cash Buyers
How do you spot the good from the bad? 1.
Be extremely wary of any cash buyer that gives you with a valuation over the phone without having seen your property.
This clearly shows they don't really know real the market or understand how to value a property.
They will more than likely make an offer then change it at the end of the deal.
These buyers will typically leave you out of pocket and vulnerable.
2.
Look for seasoned, ethical companies that have a portfolios of properties and cash funds.
It is also a good point to do your due diligence and check the availability of said cash and their credit history.
3.
Always have your home valued by at least three local estate agents and try selling your with them first.
If Sell and Rent Back is something you go ahead with then it is essential to get quotes from different ethical cash buyers.
If the buyer offers to carry out a valuation, make sure they use independent RICS (Royal Institute of Chartered Surveyors) valuers.
4.
The company should provide an Assured Shorthold Tenancy Agreement (AST).
This tenancy agreement means sellers can remain in their home.
Also, agree on future rental fees and do not accept a 6 month rental agreement.
Most companies will offer you a 12 month agreement which is renewable.
5.
Check the buyer had a solvent and proven track record as well as having all necessary landlord insurances in place? These are essential and will point out the genuine buyers.
6.
Don't pay any fees upfront.
A reputable buyer will cover legals and other costs on.
7.
Some buyers will offer as low as 60% below the market value of your home.
Most Buyer will buy at 25-45% - this not only covers their costs but also allows for over valuations from estate agents in the current falling property market.
8.
The sell and rent back industry is not regulated, so it is pertinent that you do your research and only contact companies who adhere to a professional code of conduct and encourage sellers to explore all other options first.
9.
A genuine cash buyer can exchange at 7 days of valuation and complete at your convenience.
Beware of those that offer cash within 48 hours.
They are usually a scam.
10.
Lastly, just because you may be in dire financial straits, it doesn't mean you should rush into making a decision about your property.
Approach your mortgage lender for advice and help first before considering selling through a sale and rent back company as a last resort.
Be extremely wary of any cash buyer that gives you with a valuation over the phone without having seen your property.
This clearly shows they don't really know real the market or understand how to value a property.
They will more than likely make an offer then change it at the end of the deal.
These buyers will typically leave you out of pocket and vulnerable.
2.
Look for seasoned, ethical companies that have a portfolios of properties and cash funds.
It is also a good point to do your due diligence and check the availability of said cash and their credit history.
3.
Always have your home valued by at least three local estate agents and try selling your with them first.
If Sell and Rent Back is something you go ahead with then it is essential to get quotes from different ethical cash buyers.
If the buyer offers to carry out a valuation, make sure they use independent RICS (Royal Institute of Chartered Surveyors) valuers.
4.
The company should provide an Assured Shorthold Tenancy Agreement (AST).
This tenancy agreement means sellers can remain in their home.
Also, agree on future rental fees and do not accept a 6 month rental agreement.
Most companies will offer you a 12 month agreement which is renewable.
5.
Check the buyer had a solvent and proven track record as well as having all necessary landlord insurances in place? These are essential and will point out the genuine buyers.
6.
Don't pay any fees upfront.
A reputable buyer will cover legals and other costs on.
7.
Some buyers will offer as low as 60% below the market value of your home.
Most Buyer will buy at 25-45% - this not only covers their costs but also allows for over valuations from estate agents in the current falling property market.
8.
The sell and rent back industry is not regulated, so it is pertinent that you do your research and only contact companies who adhere to a professional code of conduct and encourage sellers to explore all other options first.
9.
A genuine cash buyer can exchange at 7 days of valuation and complete at your convenience.
Beware of those that offer cash within 48 hours.
They are usually a scam.
10.
Lastly, just because you may be in dire financial straits, it doesn't mean you should rush into making a decision about your property.
Approach your mortgage lender for advice and help first before considering selling through a sale and rent back company as a last resort.
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