If you are thinking about selling your property fast then we’ve put together this Quick Property Sale Guide to help you navigate your way around the whole method of selling. Remember that we specialise in buying property quickly and the cash could be in your account within a matter of days.
The property market can sometimes be really confusing and you may have wondered what the deal is with quick property sale companies.
In this article, we’ll give you a guide to what these companies do and how it can help you if you want to sell your home quickly.
There are any number of reasons why people want to sell their house or flat quickly and as we’ve learned everyone’s situation is slightly different.
That having been said there are some general themes. Some people find themselves in a chain that breaks down.
This can be incredibly frustrating, especially when they have set their heart on moving to a new home and so a quick sale company can certainly help bridge the gap.
By arranging a quick sale the chain can be reformed before all of the individual deals break down irrevocably and people can get on with their moves.Relocation is another reason why people may wish to get a quick deal done on their property.
It can often be the case that our sellers find that they have little time to get everything sorted before they move overseas and frankly once they have moved to their new home they can’t find the time or money to keep coming back and dealing with the sale of their old home.
Sometimes our sellers find themselves in a pickle with money and either need to unlock some cash from their equity or may even be facing repossession.
In these cases, we can organise a very rapid sale and speak with the lenders so that the repossession is stopped and the debt paid quickly from the proceeds.We don’t just deal with private sellers.
Often, executors will want to move property on and they are duty-bound to get a good price but also not hold up the process unduly.
Buy to let landlords sometimes want to adjust their portfolio (for example they may want to move from flats to houses) and they wish to sell their flats as quickly as they can.
Alternatively, some people get into the buy-to-let business but find it is not for them and they just want a quick exit.
Some years ago, businesses started to emerge that specialised in getting property deals done ultra-quickly. Unlike traditional methods that might have taken months to complete, these companies were able to get the deal done within days.
With the advent of the internet and online information, together with some more forward-thinking solicitors and surveyors, it became possible to affect those quick sales.
A quick property sale company is specifically set up to get all of the administration and organisation of the selling of a property done slickly and with the minimum of fuss. The main point is to get cash to the seller as quickly as possible.
A quick sale company will have a panel of property experts who can be called upon at a moments notice to start the ball rolling.
Initially, they will have internal experts who will assess the property using a variety of sources of information and will be able to give an offer to the seller.
And at this point, we really see the difference between a quick property sale company and normal buyers.Once the offer has been made and accepted then there will be no going back.
This means that the company needs to be fairly entrepreneurial and take the risk that something will turn up later.The company also has to take the risk that it won’t be able to sell the house later.
So essentially the quick house sale process is a case of transferring these risks from the seller to the company.
Once the offer has been accepted then the company will typically use external experts such as solicitors and surveyors to continue with the sale process but they will be specially chosen because of their expertise in this form of property transfer.
It’s also true to say that technology has made a big difference to the speed of completion and this helps to ease the way.
So that all sounds very positive but there must be some downsides? There are naturally some downsides to the industry.
The most obvious one is that in order to get the property sold quickly the company will expect a discount.
For some people, this can be too much and they will prefer to sell their house the traditional way however you should check out our article on the economics of selling your house quickly here.It is also true to say that some companies haven’t acted in the best way and sellers haven’t been impressed.
The good news is that the new generation of quick sale companies realise that reputation is everything and only by treating their sellers fairly and honestly can they expect to have a growing and profitable business.
The number one question people ask when looking at ways to sell their property is – ‘is it worth selling my house quickly?’ Now this is a difficult question to answer because everyone’s situation is different but we can try and help with some general points that we’ve split into the strategy and the money.
The Strategy Of Selling Your House
So it might seem a bit odd talking about the strategy of selling your house but the canniest sellers know that a good selling strategy makes all the difference.
The first thing you need to think about is what outcome you want to achieve. For example is it your aim just to get the most money out of the sale you can? Or maybe you just want to free yourself from debt?
Whatever your aim is will dictate the sort of strategy you want when thinking about moving.
So let’s imagine that you have seen your absolute dream house and your aim is to buy it. You visit and it is everything you expect it to be but there’s just one snag – the buyer wants out really quick so they are giving priority (and a decent discount) to people who can make a cash offer, or at least where they think they can complete quickly.
So you can go ahead and market your property and hope for the best, or you can get a bridging loan (expensive) and hope for the best or you can go for a quick property sale which will give the seller confidence that you are serious and will get you that hefty discount!
A Quick Property Sale Isn't Just For Buyers
Selling your house quickly isn’t just for people who are buying another house though. One of the things we are seeing more and more is where people are moving into sheltered accommodation or care homes.
In these cases a quick sale does one of two things; it means that they can get access quickly to cash to pay fees and the cost of moving in but also it gives them peace of mind that they don’t have to worry about the whole sale process for an extended period of time, after all quick property sales with Lothian can take as little as ten days.
There’s a trade off between selling quickly and waiting a longer time for full price. Now we know that selling your house isn’t all about money but we do need to look at the basic economics of a so called ‘normal’ sale compared to a quick sale through Lothian. There’s an old saying – ‘time is money’ and in terms of property this is absolutely true.
The longer your sale process goes on the more it costs you, so whilst the ticket price on your property might look attractive, once you have paid all the fees and the extra mortgage payments it suddenly doesn’t look that good! Here’s the comparison:
Estate Agents Fees
Making Property Saleable
9 Months Mortgage Payments
Net Cash Amount
We have assumed that you have a pretty good estate agent who doesn’t overvalue your property just to get the sale but even so most buyers expect to negotiate the price down.
Despite some horror stories we have used a conservative 10%.Estate agents’ fees are an area that often catches people out and again, we’ve gone middle of the road.
The problem here is that often a fee will be quoted but it will just be a basic fee and won’t include extras like accompanied viewings or cost of advertising.You’ll see we’ve added in a line for making the house saleable and moneysavingexpert.com has some great advice here.
In particular Martin Lewis makes the point that doing up your house doesn’t necessarily change the amount of money you can get for a property but it DOES effect how quickly you can sell and the truth is that an agent may be less than glowing about a property that needs a lick of paint so if you don’t want to be waiting over a year to sell then you’ll need to dust off your overalls.
Legal fees can come as a bit of a shock and we’ve used a fairly middle of the road value that is likely for a single house sale although flats and properties with complex ownership of legals can end up costing much more.
We’ve also included a conservative £1,500 (we’ve all heard the horror stories about underpinning!) for any issues that arise from the survey.
You’ll either need to make these right or you will need to offer a further discount so your buyers can get the work done. Often mortgage companies won’t advance money on a house that has survey problems so you’ll need to find the cash up front to sort these out.
We’ve kind of assumed an average of 9 months from contacting an estate agent to completion, which seems about right. Some can go a lot longer but some can be magically quick at around 3-4 months if you are really lucky.
The big difference as you can see is that with Lothian you pay no fees. Lothian Property buyers take care of all of this for you, leaving you to actually get the cash in your bank that you expect.
With all this to bear in mind it’s no wonder people just want to get it over with!Is it worth selling your house quickly?Well truthfully that’s a matter for you.
The difference isn’t actually as big as you might think at first sight and could be entirely sucked up by an adverse survey report so the question for you really is how valuable is selling your house quickly?
If you are prepared to wait a very long time and put up with the extra hassle for the potential of a little more money then hanging on might be the best bet.If you have a dream house that you want to buy or you need the cash quickly then it certainly looks like an attractive option.
There are some key features that make a quick property sale different from a normal estate agency sale in the UK.
We’ve listed the main differences here which should give you a good guide as to whether a quick property sale is the right way to go for you.
#1 They are quick
Ok so we know this is kind of obvious but actually people are constantly surprised just how quick they can be. Lothian can potentially go from enquiry to exchange within 10 days for example. Contrast that with the 9 months we often see usually.
#2 No upfront fees
When you are trying to sell your property then you often find that there are fees to pay upfront. Depending upon your estate agent you may need to pay a deposit, a contribution to advertising or pay them upfront whether they sell the house or not! We don’t charge any upfront fees and you won’t even have to pay for an EPC, we’ll do it all for you.
#3 No estate agents fees
Again another obvious one but worth stating as estate agents fees can certainly be hefty.With Lothian’s quick property sale service there is no estate agent so no fees.
#4 No need to spruce up your property
Lothian are selling to trade buyers and they really don’t care if you have last year’s wallpaper designs.They expect to have to do work to the property and they are experts in doing so. This means that you can sell without spending too much time at your local DIY store!
#5 No fuss sale process
Imagine selling your house without having people trooping round your front room. No messing about with offer and counter offer, no brinkmanship, no pulling out at the last minute or waiting for the chain to complete.
With a quick sale process there is no chain and you are dealing with professionals who give you a price and stick to it!
#6 Very little admin
With Lothian’s quick property sale service there really is very little admin for the seller. Naturally there will be a contract to sign and we’ll ask a few questions but other than that there isn’t a lot else to do. We’ll even deal directly with your building society and send final readings into your utility suppliers
#7 Dealing with the buyer directly
One of the biggest frustrations that people express about selling their house is that often then never actually get to talk to the buyer directly.everything has to go through the estate agent or solicitor which adds to the time it takes, can cause confusion and certainly increases frustration.
With Lothian you’ll have a dedicated point of contact so you can discuss any issues with the buyer directly
#8 It's a guaranteed sale.
Did you know that it is estimated that 33% of estate agency sales fall through? Once you have your offer from Lothian we won’t pull out. Having the peace of mind that your sale is settled means that you can carry on and plan your next steps.
Typically they will be banks and other loan companies that you may have had an advance from. If you have had a court judgement against you then there may be other charges against the property that will need to be paid next.
It is likely that you may have made an agreement with a company that you will pay them when your house is sold. An estate agent would be a typical example of this. You will have signed an agreement that when the house is sold and the charges settled, they will be paid their fees.
Of course the benefit of a quick property sale with Lothian is that there are no estate agents’ fees! It is also possible that there may be an agreement in existence with someone else or another organisation that you will pay them.
A good example of this would be your solicitor who will of course take their fees before ending you your money. Again with Lothian Property Buyers you won’t be paying solicitors’ fees so you don’t need to worry about this.Money you need to pay.
Once you have your proceeds from the sale you will need to settle up with a few people. You’ll need to pay any outstanding council tax up to the date you left. There will also be closing bills for utilities such as gas, water and electricity and you’ll only get these a couple of weeks after you have left the property. And of course your phone and broadband provider, and satellite or cable company will send you a closing bill.
And after all, that what’s left is yours. With Lothian Property buyers many of these costs simply don’t exist so you get to keep more of the offer price of your property.
When your house is being repossessed it can be a really stressful time. As if it isn’t enough that your house is going to be taken, there’s the issue with your credit file and having no cash to find another place to live.
The good news is that Lothian property buyers can help.
We can give you cash for your property – even if it is being repossessed and you can move on with your life.
One of the main problems when selling your house when it is under threat of repossession is that lack of time.
It depends upon where you are in the process but you could find yourself needing to do something very quickly indeed to stop any action that your bank or building society will bring. The second problem is that when you sell your house you’ll need to admit to the buyers that it is the subject of repossession proceedings and this can cause all sorts of issues.
And if your house does get repossessed then you’ll find yourself with a big black mark on your credit file.It can certainly feel like the world is against you! Lothian are on your side.
The good thing about dealing with Lothian is that our process is totally confidential.Nobody needs to know that your house is being sold and your neighbours certainly won’t find out anything about any repossession proceedings.
Another valuable aspect of our quick house buying service that people tell us they really love is that we will deal directly with your mortgage lenders. We know it can be stressful talking to people who want their money and we take all of that away when we communicate directly.
Well speak with them, let them know that we are buying your house and, because they know that you are dealing with trade buyers will more than likely stop all proceedings against you whilst the sale goes ahead. We’ll pay them directly and then send the balance on to you to allow you to start again.it really couldn’t be easier.
Super quick property sale to stop your repossession
Our buyers are often amazed to find that the sale process can be completed within as little as ten days!But that’s not the only reason that people really value our service.The really great news is that there are no upfront fees to pay!
That’s right, we take care of all the fees, you don’t even have to pay your solicitor. All you need to do is sort out your packing and let us get on with the paperwork.It really couldn’t be simpler.
Did you know that 33% of sales fall through between offer and completion often where the buyer simply pulls out?
It’s an interesting statistic but it is much more than an academic exercise. In fact, this can cause real problems for people especially when they are in a chain or when they are counting on the money to pay for care.
So what should you do when your buyer pulls out at the last minute? Here's some advice:
#1 Don’t panic - Easy to say, less easy to do, but we can promise that panicking isn’t the mode you are looking for here. Instead, you need to adopt a cool head and assess your options calmly. Adopt a philosophical attitude and sit down with a glass of wine, a pen and paper and consider your alternatives.
#2 Call your solicitor - It very much depends upon where you are in the sale process but if you have already exchanged contracts then you have the option to retain the buyer’s deposit or enforce a sale.
The latter may well be less practical but at least a deposit will pay for any costs of the sale breakdown.
#3 Relist your property - Your estate agent may well be keen to get your property listed again, especially if they are on a contract where they only get paid on completion but you may wish to look at other options.
This might be a time to look at different agents or different ways of selling. In a chain? Talk to people
If you are in a chain then it can be an embarrassing call to make to your buyers to tell them the sale is off. Remember though that it’s not your fault that the chain broke and speaking to the buyers will give them confidence that you are not messing them about, just the unfortunate victim of circumstance.
They may well give you extra time to find a buyer, in which case happy days!
#4 Speak to your buyer - You may not want to but now is the time for a cool head and not emotion. With the best will in the world estate agents may want to put a gloss on things when they relay messages but speaking with your buyer may unearth some misunderstanding that could easily be cleared up.
Having a chat and even possibly being flexible on money may sweeten the deal so that you can repair your broken chain
#5 Think about a quick sale - Here at Lothian, we specialise in quick property sales and often we find that people use our service to repair broken chains.We can step in and have an offer with you in 24 hours and could complete within as little as 10 days which means you could get your sale back on track.
Quick property sales, as the name suggests can happen really quickly, so if you are thinking of selling your home to us then here’s a list of things we suggest you’ll need to do.
#1 Rent or buy
Some people don’t actually need to find somewhere else to live when they sell to us.
Sometimes they are a landlord selling an unwanted rental property, sometimes they are an executor of a will or maybe they already have somewhere to live.
But if you aren’t in these categories, then you’ll need to find somewhere else to buy or rent.
#2 Figure out the money
Not everyone’s cup of tea but now that you have an offer for your house (and you know there won’t be any hidden fees) you can work out your finances.
Think about how much it is going to cost to move, what new things you’ll need to buy etc.If you are going to have money over from the sale then it’s always a good idea to think about where you will put your cash windfall and we’d suggest talking to a tax advisor about any tax implications of your investment.
#3 De clutter
De cluttering is an exceptionally cleansing thing to do. Getting rid of all those things you were saving because they might come in hand one day is incredibly liberating. Be ruthless though.
After all, you don’t want to find yourself sitting in your new home wondering why you brought that ornament that you’ve never really liked! You need to get this done quickly so a car boot can be an excellent way to dispose of unwanted but still useable items – it can be a handy dollop of cash too!
Hiring a van for a couple of days makes sense because you can fill it with your sale items and do a boot sale on the weekend and then nip to the dump with the less desirable stuff afterwards.
Make sure you hire over the weekend because it’s cheaper than during the week.
#4 Contact your utility suppliers
Let the gas, electricity and water know you are leaving. If you’re going to a property in the local area then you may be able to transfer over your accounts or alternatively you’ll need to find new suppliers out of area.
You’ll also need to contact your phone and cable suppliers if you have them and the local council for your council tax.
#5 Decide whether to move yourself or use experts
Lots of people nowadays move themselves.Van hire is much more reasonably priced and if you have a load of helpful friends and relations then it can be cheap with just a few pizzas and a couple of pints needed to oil the wheels.
If you don’t have that luxury then you’ll need to shop around for the best deal.It may be that you aren’t moving into a new property (many of our customers are moving abroad with their jobs) so you will want to think about some storage options for stuff you want to keep.
Again make sure you shop around although often movers will have package deals they can do for you.If you want more advice on how to choose a mover then Which have a great guide here
#6 Let people know
There are a bunch of people you’ll need to tell about your move.If you have children then you will need to inform their school about the move (and potentially find a new school if you are moving out of area).
You’ll also need to talk to the doctors, dentists and any other healthcare professionals you deal with. You may well need to tell HMRC, especially if you are self-employed or the benefits office and these can be done online.
You will no doubt have a load of official documents like driving licence and passports that will need to have the address changed but this can be put off until you are sitting in your new front room.
It’s always a good idea to have a template email to send out to organisations that need to know and of course, don’t forget your friends and relations! Get some hand postcards made up with your new address on and you never know it may end up spurring people to send you a housewarming gift!
#7 Think about the practicalities
Run down your stock of food, after all, tins and bags are heavy so if you don’t need to take them then why bother?Also, run down the food in your freezer prior to defrosting.Professional movers hate dealing with pot plants so give them away if you can bear to part with them.
You also need to be aware of the stress that a moving day can have on pets. So if you have them then try and find a place that they can lodge for the day or even book them into kennels until you get straight.
#8 gumtree is your friend
Get an account on Gumtree if you haven’t already and post up all the stuff you want to get rid of but aren’t going to charge for. It’s a great feeling knowing that things aren’t going to the dump but will find a new life with someone who will value them
#9 Collect boxes like they are going out of fashion
Often you will find that businesses are only too happy to let you have their boxes so scout around. Find boxes that are sturdy and big enough to hold stuff but that won’t weigh an absolute ton when filled. Also, think about packing materials like bubblewrap or blankets, again Gumtree can be your friend here.
#10 Pack your essentials box
Make sure that the last thing that goes on to your van (so it’s the first thing out) is your essentials box.Fill it with the stuff you are going to need first like cleaning materials, toilet roll and of course the kettle and teapot (don’t forget the tea bags).
So that’s our to-do list.The good thing about selling using our quick sale process is that you don’t need to have a clean down of the house when you leave, just collect the keys to hand over to us and then walk away.