Back in the early 2000’s, a new kind of business rose to prevalence in the property industry in the name and form of quick sale companies.
Although in ways it’s become an industry that’s frequently forgotten, over the years quick sale companies have claimed to have been able to solve all the problems and woes of homeowners looking to sell their homes, and sell them quickly.
Their biggest selling point is their ability to value and buy property in as little as seven to ten days, usually in cash. However, there have been deliberations that the charlatans of these organisations have been responsible for ripping customers off for as much as tens of thousands of pounds.
Today, we’re going to be taking a look at how quick sale companies have been ripping their customers off for years.
How Much of a Loss is it Really?
Although there are businesses who are undoubtedly true to their word, unfortunately there are scammers out there – and spotting them can be incredibly difficult. Property experts Ready Steady Sell have gone out of their way to uncover the fraudsters in the property industry, even going as far as to create a 21 Point Checklist on how to do exactly that, which has also been approved by the National Association of Property Buyers.
Now, as we’ve previously mentioned, these companies target their business directly at people who require a quick property sale. Now, without making generalisation, people who need to sell property quickly have one thing in common – they’ve all been put in this situation under a time constraint. The vast majority of the time, if this isn’t the case, it’s more reliable to go for a traditional sale.
That being said, a lot of the time people who need to sell property quickly tend to be in a desperate situation. It could be that they need to sell their home to pay off debts or avoid repossession. It could be that they’ve recently gone through an unpleasant or even abusive divorce wherein cohabiting becomes impossible. It could even be a good form of desperation to sell, as in they’ve chosen to emigrate or move for a job. One things for certain though – it leaves potential customers with an air of vulnerability, which is exactly what the fraudsters target.
Do these companies really do what they say they do on the tin? Let’s take a look at the true cost of this exploitation, shall we?
- In exchange for a quick sale, you’re likely to lose money – and that’s a fact. The general statistic is that you’ll lose up to 25% of the original market value of your property – however it has been proven that when swindled by these institutions, homeowners have lost up to as much as 53%.
- So, that’s the cost. Is it reliable? Well, the answer is a lot of the time, we can’t be certain. The transactions themselves can’t be regulated because they’re made in cash – which in the past has led to investigations by the Office of Fair Trading.
- It’s also worth mentioning, that a lot of the time these companies use false – or shall we say, misleading – advertising. They might say they can buy your home in as little as seven days, but the overall process takes far longer, and you’re far more likely to have to wait up to four weeks for completion.
Lastly, is it Possible to Spot and Avoid Scammers?
So, that’s how some of the unruly companies manage to do what they do – and it’s a horrendous loss for a lot of people. Mark Hayward who is the Chief Executive of the National Association of Estate Agents Propertymark strongly advises people to always read the small print, and not to do business with companies who are not regulated.
Realistically, there isn’t a fool proof method of spotting the scammers and avoiding them. however, there are a few things you can check about companies in order to test their overall reliability. These include, but aren’t limited to:
- Checking if they’re a member of the NAPB
- Checking if the company are registered with the ICO and are in compliance with the rules of GDPR
- If they have the proof of the funds that they’re offering to pay
- Their terms of business
Now, as we stated previously, this isn’t fool proof – but it can set the bad companies apart from the honest organisations fairly well.
Remember that if you’re selling your home, it’s always worth looking at all of the options. Read the small print, do your research, and be smart about who you do business with. Your property is likely to be your biggest asset, after all.
