The top 5 “quick house sale” scams to avoid

In the UK housing market, the appeal of a swift and hassle-free house sale can be enticing, especially if you’re trying to sell a problem property or need a quick sale. There are several legitimate options for selling your house fast — but it pays to know how to spot the bad actors first. This is when cash house buying companies, who offer a guaranteed quick sale for cash, come in. However, not all offers are what they seem and some unscrupulous businesses may seek to take advantage of vulnerable sellers. 

In this blog, we’ll shed light on the top 5 scams associated with quick house sales associated with the cash buying sector. Our objective is to inform and empower readers with the knowledge to protect themselves from potential scams and make well-informed decisions.

5 “quick house sale” scams to avoid

There are scammers who will use a variety of techniques to defraud unsuspecting homeowners into selling their homes to a cash house buying company. Here are the scams you should look out for.

Scam #1: Phantom buyers

One common tactic employed by dubious cash house buyer companies is the “phantom buyer” approach. In this scheme, scammers will say they will buy your property, when in reality they don’t have any cash and are doing little more than advertising your property to find a buyer (often just listing it on Rightmove, or selling your personal details to legitimate house buying companies). 

In this scam you get the worst of all worlds – the downside of a lower offer by selling to a quick-sale company, and the downsides you’d get with an estate agent of a drawn-out process and no guarantee of a sale! 

Scam #2: Gazundering aka dropping the price at the last minute

This is one of the most common tactics where the house buying company starts by offering you a reasonable, higher price and then they reduce it at the last minute under some pretence of adverse survey or changing market conditions. Although it is common for some renegotiation of an offer, this is a particularly poor pressure selling tactic, also known as gazundering,  by leaving it to the very last minute where you feel you have little choice but to accept the lower offer. 

Scam #3: Unfair contract and fees

Many house buying companies will ask you to sign a contract prior to proceeding with the purchase of your property. The only thing you legally must sign is the contract at the point of exchange – so be wary of any other document they put in front of you. Make sure you read and understand the details so you avoid getting stuck in a contract you can’t get out of unless you pay an exit fee. Some companies try and lock you into an arrangement that gives them more time to find you a buyer (rather than buy it themselves). If you doubt their ability to buy, then don’t sign!

Scam #4: False advertising

There is a well-known saying that “when something is too good to be true then it probably is”. If a quick-house sale company says they will pay ‘full market value’ and give a quick sale then they’re lying. A genuine company will always pay around 80% of what they consider to be the market value. Their definition of market value is what they think they can sell a property for within 3 months of buying it (so it will be lower than what an estate agent says your house is worth). Be very wary of any company offering to pay more. In this market, you have to choose between a quick sale and a top price!

Scam #5: Pressure tactics

Unscrupulous cash buying companies will use aggressive and high-pressure tactics to rush homeowners into making hasty decisions. Remember that selling your property is a significant financial transaction and you have the right to take your time and carefully consider all offers. Steer clear of buyers who employ forceful sales tactics. A genuine company will always give you the time you need to make sure you understand what you’re committing to.

Tips on avoiding “quick house sale” scams

There are some simple things you can do to make sure you are dealing with a genuine company that won’t look to take advantage of you. Here are some essential steps to protect yourself from falling victim to fraudulent schemes.

Research the company

Before engaging with any cash house buying company, conduct thorough research to verify they are who they say they are, and they do what they say they do! 

Check them out at Companies House where you can view their accounts, buying history and director details. Ask them for their proof of funds so you know they have the cash to buy your property. 

Look for online reviews, testimonials and ratings from previous customers. Legitimate companies will have a transparent online presence and be willing to provide references upon request.

At House Buyer Bureau, you can find out what our customers are saying about their selling experiences so you don’t have to take our word for why you should choose us.

Research your property

Your house is your biggest asset so if you’re thinking of selling it then it makes sense to do some research into its potential value. You can get an agent round to value it, or use an online valuation tool to get an approximate value. BUT you should remember that a quick-sale company’s starting valuation will be lower than an estate agent’s. An agent wants you to list with them so will give you a higher valuation, whereas a house buying company is assessing what they think they can sell your property for quickly so will always value at the lower end of the market. 

Avoid upfront fees

Legitimate house buying companies will not charge you any upfront fees for their services. Be wary of any buying company that asks for payment before the completion of the sale. Reputable buyers cover the costs associated with the transaction. They will pay all the surveyor and search fees, and most will cover your legal costs.

At House Buyer Bureau did you know that there are no costs to using our service? When you sell your house for cash to us there are no estate agent fees to pay, no survey costs and no solicitor fees (if you use our recommended solicitors). And it doesn’t cost you anything to get an offer.

Don’t succumb to pressure

Scammers often use high-pressure tactics to rush homeowners into making quick decisions. Resist the urge to succumb to such pressure and take your time to evaluate all offers carefully. A genuine cash buyer will understand and respect your need to consider the offer thoughtfully.

Get Legal Advice

When you sell your property you should always get expert legal advice. A genuine house buying company will let you choose your solicitor but will also recommend one from their panel (and they’ll offer to pay for it). You might be suspicious of using their recommendation BUT it usually makes sense to do so as a) the solicitors they recommend will still legally work for you, not the company, b) they will cover the cost of using them and c) the solicitors they recommend will be experienced in the quick-sale market whereas a solicitor you choose may not be. Appointing the right solicitor can make a significant difference to how quickly and how smoothly the transaction progresses. 

How can House Buyer Bureau help?

There are many quick house sale companies on the market and when you’re looking to make a quick sale, it can be hard to know who you can trust. At House Buyer Bureau, we make the whole process easy and transparent, and we have the funds to buy your property for cash in any timescale that you want us to.

Chris

Chris

Chris has worked in property all his career, first as a successful estate agent before spotting a gap in the market for buying property directly from people looking for a simple, quick sale.

He has a passion for property and as an experienced valuer, has looked at well over 50,000 properties so far at HBB. He has extensive experience in property buying and regularly comments in the press on property matters, trends and promotes ways to simplify and speed up the selling process.

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