Quick Cash Sale - Your Options For Selling Your Property

If you need a quick cash sale for your property then are really only 2 options. Firstly, you can sell your property quick within an auction. Secondly, you could sell your property via a specialist home buying company. So which one is the best option? Well it depends on many factors but we will explore the merits of each here.

Selling via an Auction
The advantages of selling via an auction is that when the hammer falls the property needs to complete within a month or the buyer loses their deposit (normally 10%) which is paid on the day of the auction. The buyers therefore have the cash or lending ready before they even turn up to the auction. There will be no delays for the buyer to find financing that happens so much when selling via an estate agent.

The total time to sell your property when using an auction will range from 8-12 weeks normally (assuming it sells the first time at auction which is not always the case). This is because there will need to be 4-8 weeks to market the property and wait for the next auction. This is faster than selling via an estate agent which takes about 6 months on average but this is vary variable depending on the property, area, demand and economic climate. For example, many properties were on the market for the whole of 2008 so 6 months is only a guide.

If you do plan to sell via an auction you need to be aware of a few factors. The price you will achieve is likely to be less than you would receive on the open market. You should expect to receive about 70-80% of the market value although this can obviously vary depending on the demand on the day of the auction. There is also no guarantee the property will sell. If the guide price is not met the property will not be sold and will be put on in the next auction (usually at a lower price).
Finally there are the auction fees to think about. The sale commission is between 2-3% +VAT and there will also be catalogue entry fees which are payable whether your property sells or not (about GBP350-GBP500).

Selling to a specialist cash home buying company
There are many of these companies to chose from if you need a quick cash sale and their adverts can be found in the newspapers, yellow pages and online. They typically offer a similar price to what you could receive at auction (70-80% of market value) and some guarantee about when they could complete. They can normally complete within 4 weeks after you accept their offer price and can complete quicker for those who need it (i.e. due to repossession).

They normally also offer to pay your legal fees (up to GBP500) and there will be no other fees involved. There is no HIP due as it is a private sale and there is no agent fees. So the advantages over an auction is that the sale is guaranteed, there are no upfront costs and they are quicker (no need to wait 4-8 weeks to market the property as they will be buying it directly from you).

The things to be careful with when dealing with a home buying company is their ability to complete the sale and their integrity. There are some unscrupulous operators out there who may charge you upfront valuation costs (do not pay them!), lower the offer price the day before completion takes place, or simply lack the funds to buy the properties. Do you research and make sure they have experience and good testimonials. Obviously you are not going to get the best price for your property using either of these options so if you do not need a quick cash sale but just a sale you best option is to use a good estate agent. The sale will probably take longer but the price will be higher.

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