LandlordBuyer looks into the ‘red flags’ with Cash House Buying Companies

With the drop in UK property sale transactions, more homeowners and landlords are turning to Cash House Buying companies to gain a successful sale.

It takes, on average, 70 days to sell a property on the open market in the UK. Leading Cash House Buying companies guarantee a property sale in as little as 7-10 days.

But how can property owners separate the legitimate Cash House Buying companies from the rest? Can all Cash House Buying companies guarantee you a quick property sale with no strings attached?

LandlordBuyer have compiled the most vital ‘red flags’ sellers need to look out for when considering using a Cash House Buying company to sell their property:

Red Flag 1: “They aren’t members of professional landlord bodies or associations”

Reputable companies are often affiliated with professional organizations, such as The Property Ombudsman or The National Association of Property Buyers. Membership in these bodies ensures adherence to strict codes of practice, offering landlords an additional layer of trust and accountability. Lack of affiliation could indicate a lack of transparency or professionalism.

Red Flag 2: “They ask you to pay a fee upfront”

Genuine cash house buyers typically cover all fees related to the transaction, including legal and valuation costs. If a company demands an upfront payment, it could be a sign of a scam or a company that doesn’t have sufficient capital to fund the purchase themselves. LandlordBuyer do not charge you any fees and do not ask for any payments from you.

Red Flag 3: “They can’t buy your property with sitting tenants”

A reliable cash buyer should have the flexibility to purchase properties with sitting tenants. If they insist on vacant possession, it may indicate they lack the expertise to manage tenanted properties or aren’t genuine investors.

Red Flag 4: “They insist on evicting your sitting tenants”

Ethical buyers should respect your existing agreements with tenants and provide solutions that work for all parties involved. LandlordBuyer specialise in buying properties with sitting tenants. This means that you don’t have to evict your tenants.

Red Flag 5: “They recommend a third party as a buyer”

A genuine professional cash buyer will purchase the property directly using their own funds. If they involve third parties, they might not have the capital to complete the sale themselves and could be acting as middlemen, which could complicate or delay the transaction.

When engaging with a cash house buying company, always research their reputation, ask for references, and review their terms carefully to avoid potential pitfalls.