Who is the Best House Buying Company 2024?

Using a reputable auctioneer to sell your house is a well-trodden path. It’s very possible to get a sale complete in 2 to 3 months without accepting too much of a discount.

Whilst it’s common to find problem properties at auction, more sellers are using this channel as a means to get a level of security that’s practically impossible through an estate agent.

This growth in interest has been fuelled by “modern method” auctions where the exchange completion timelines are extended to attract a wider pool of bidders (and therefore better prices).

All too often, we see estate agents providing false advice to their clients on what the true market value of their property is. In most cases, this is done to win your business.

If your house or flat has been on the market for a while and enquiries have dried up, all it often takes are one or two incremental drops in price to attract more buyers.

In terms of how much you should decrease, we generally recommend using HM Land Registry sold house price data of properties of similar size, type and condition.

If you feel that the level of service you’re getting is inadequate, it may be worth seeking out a new estate agent to work with.

Before going ahead, however, it’s worth speaking to the manager to see if there are any suggestions. For example, are they attending to every interested buyer that comes through?

You can also ask for records of enquiries that come via Rightmove Plus and ZooplaPro (the property portal back-end systems that estate agents have access to).

Other times, it may be a case of asking the manager to take more control or assign your property sale to a more senior / experienced sales negotiator.

Also known as “flash” finance, the idea is to borrow finance over the short term in order to fill the gap.

As an alternative to using a cash buying company, these loans are often used by sellers dealing with broken chains. Decent bridging loan companies can organise finance in 2 to 3 weeks.

Be weary of the high interest costs (often 3 to 4 times higher than a standard residential mortgage). There are also arrangement /exit , survey and extra legal fees to consider. Most bridging lenders also have a minimum term of 3 months.

If you feel you need to sell below market value in order to clear debts, it’s worth running through the following:

• Look for another way to clear your debts such as borrowing from friends or family;
• Check how close to the end of your mortgage term you are. Then speak with a good broker and your current lender to see what better products may be available;
• Swapping your mortgage from repayment to interest-only can save you money in monthly payments. Remember that your overall level of debt will not decrease here;
• It may be possible to extend your mortgage term to spread the payments out over time;
• Taking out a personal or secured loan (always make sure you have definitive means to pay it back);
• Take on a lodger that can help with your mortgage payments and other financial commitments;
• If you are facing repossession, speak to your lender regularly and seek out appropriate advice from organisations such as Citizens Advice, the National Debt Helpline, Shelter and Debt Advice. Our guide on how to stop repossession contains more potential solutions if you’re going through this situation.

Whilst remaining a highly regulated sector, there are 1 or 2 house buying companies that can buy your property and then rent it back for a minimum of 5 years.

Be sure to check that the operation is fully regulated by the Financial Conduct Authority (FCA).

Provided you have sufficient equity, you could potentially think about keeping the property.

Renting it back will provide you with an extra income stream and the benefit of future price growth. Remember, however, being a landlord these days is not easy and the costs can often outweigh the benefits.

Head to the Companies House website where you can review the most recent account submissions made by the quick house sale company.

Remember that many firms in the industry have similar names. The organisations that are not so good will often tend to imitate the ones that are.

Check who the Directors are and Google their names to ensure they have a good reputation.

If nothing appears, you can also check their LinkedIn, Twitter, Facebook and Instagram social media profiles.

If the buyer is an individual, you can request a personal credit report (from a reputable agency such as Experian or Check My File).  You can also obtain more specific information about the Directors using these services.

We generally do not recommend signing option or lock-in agreements, even if it forms part of the cash house buying company’s internal policy.

Some may propose an exchange with delayed completion with a better price should you agree to proceed. This may work if the property requires an extensive amount of work or there are unresolved planning-related issues.

However, most sellers we deal with prefer a straight cash and guaranteed sale.

It’s important to make sure that you’re dealing with genuine cash house buyers that will not have to rely on other dependent sales in order to purchase yours.

Reputable quick sale companies should not charge estate agency fees (as you’re selling directly to them). Similarly, you should not be expected to pay any legal fees, including administrative costs (known as disbursements).

The offer price should therefore be exactly what you receive when the sale completes.

You may want to check that the quick house sale company has readily available cash funds.

This is typically demonstrated via a recent bank statement or a letter from a Law Society accredited solicitor.

An undrawn debt facility with a reputable banking institution or line of credit is also valid. However, even though the cash can be made available within days, you may wish to ask more questions about the specifics of any external funding sources.

It’s worth noting that fake reviews for home buying companies are rife.

Although sites like Trust Pilot have taken a number of steps to vet the quality of reviews, it remains quite easy to “game the system”.

The authentic property buyers will gladly put you in touch with previous clients (via phone or email).

Although more companies may have a remote working policy, make sure that the company has an office.

This should not be a cheap “official” address that’s obtainable on the internet.

Although longer is not always better, the well-known companies tend to have been been in active operation for some time.

You can ask the firm’s age from the representative that deals with your enquiry directly and then cross-check against Companies House.

If you Google Domain Age Checker, you can also see how long quick house sale companies websites have been in operation.

Most property buyer firms would have (as a bare minimum) Facebook, Twitter and Instagram accounts.

You can also check out the credentials of the directors on their LinkedIn company and personal pages.

It’s sometimes worth confirming that the quick house sale service has genuine experience of completing sales within the stated deadlines.

Usually, your appointed conveyancer will be able to confirm this (as they would have been instructed for previous sales).

A government-approved trade body that attends to the home seller concerns. Members must adhere to a strict Code of Practice and any concerns will be heard fairly and impartially.

TPOS will also mediate any cases that cannot be resolved through initial contact with the quick sale company.

This organisation was formed to represent the professional home buying industry and ensure that members commit to operating with the highest standards of transparency and fairness.

Being part of the Consumer Codes Approval Scheme (CCCS) – which essentially lays out the principles of effective customer service, protection and trust – is good practice for firms to follow in our space.

Signing up for these regulations means that any exchanged funds are legally protected.

Membership of this organisation means that the company is obliged to keep your details 100% secure under the Data Protection Act (1998). The firm can only pass on your details to a third party with your full consent.

Last on the list is an organisation that governs estate agency and property auction sectors.

Most quick house sale companies do not need to join the NAEA however Property Solvers decided to – particularly given our work as an agency for quick sales.