Quick Property Sales Hit Owners in Pocket
Home sellers using quick-sale companies have been warned by Confused.com.
They can be offered significantly less than the market value for their property in return for a quick sale, resulting in a potential shortfall of tens of thousands of pounds.
However statistics have shown that desperate sellers still turn to such companies due to the time it takes to sell a home having risen significantly over the last five years.
New Research by Confused.com found that quick-sale companies can offer customers as little as 75% of their property's value in return for a promise to complete the transaction as soon as necessary.
In fact, using a quick-sale company may mean homeowners will receive substantially less than the market value of their home. Shockingly, a house valued at 266,000 could be bought for as little as 199,500 by a Quick-sale company.
So what kinds of home sellers are after a quick-sale?
Homeowners wishing to dispose of their properties as soon as possible include families being threatened with repossession, as well as people who want to sell homes that they have inherited, especially if cash is needed to settle an inheritance tax bill.
This kind of service may also be an option for vendors whose homes have proved hard to sell through traditional marketing routes. As property website Home.co.uk suggest, more and more people may fall into the last category due to a general slowdown in housing-market activity.
The research shows that the time the average property spends on the market before being sold has risen substantially across the UK. On average in 2007 it took 75 days to sell a house and now in 2012 it has risen to a shocking 154 days.
In London, the average property was on the market for just 75 days in September 2007: today the figure is 152 days; in Cardiff, the number has risen from 87 days to 222 days in the last five years, and in Leeds from 78 to 228 days.
The type of house someone lives in will also affect its selling appeal. In 2012 a detached house can take on average 178 days to sell compared with 141 days for a terraced house.
So can we really question why homeowners are turning to drastic measures to sell their property if the selling period of a house has risen by over 50% in the last five years?
Mhairi Duffin, Head of Mortgages at Confused.com said: "Taking this drastic method of selling your property may offer a speedy way of releasing some much needed cash, but there are some serious implications to be made aware of.
"Using these quick-sale companies means you could be losing thousands of pounds off the market value of your property as it's all about profit for them and giving the customer the quickest sale possible. That's why at Confused.com we want you to consider how important it is to look at all avenues when considering such a drastic option.
"At Confused.com we'd advise you to make your mortgage lender aware if you have any difficulties paying your bills or would just like to sell your property. Those that are finding life difficult and meeting mortgage payments a struggle should initially contact their mortgage lender to work out a plan of action that can help them get back on track and avoid repossession, rather than irrationally selling their home and losing one of their most important worldly assets."
They can be offered significantly less than the market value for their property in return for a quick sale, resulting in a potential shortfall of tens of thousands of pounds.
However statistics have shown that desperate sellers still turn to such companies due to the time it takes to sell a home having risen significantly over the last five years.
New Research by Confused.com found that quick-sale companies can offer customers as little as 75% of their property's value in return for a promise to complete the transaction as soon as necessary.
In fact, using a quick-sale company may mean homeowners will receive substantially less than the market value of their home. Shockingly, a house valued at 266,000 could be bought for as little as 199,500 by a Quick-sale company.
So what kinds of home sellers are after a quick-sale?
Homeowners wishing to dispose of their properties as soon as possible include families being threatened with repossession, as well as people who want to sell homes that they have inherited, especially if cash is needed to settle an inheritance tax bill.
This kind of service may also be an option for vendors whose homes have proved hard to sell through traditional marketing routes. As property website Home.co.uk suggest, more and more people may fall into the last category due to a general slowdown in housing-market activity.
The research shows that the time the average property spends on the market before being sold has risen substantially across the UK. On average in 2007 it took 75 days to sell a house and now in 2012 it has risen to a shocking 154 days.
In London, the average property was on the market for just 75 days in September 2007: today the figure is 152 days; in Cardiff, the number has risen from 87 days to 222 days in the last five years, and in Leeds from 78 to 228 days.
The type of house someone lives in will also affect its selling appeal. In 2012 a detached house can take on average 178 days to sell compared with 141 days for a terraced house.
So can we really question why homeowners are turning to drastic measures to sell their property if the selling period of a house has risen by over 50% in the last five years?
Mhairi Duffin, Head of Mortgages at Confused.com said: "Taking this drastic method of selling your property may offer a speedy way of releasing some much needed cash, but there are some serious implications to be made aware of.
"Using these quick-sale companies means you could be losing thousands of pounds off the market value of your property as it's all about profit for them and giving the customer the quickest sale possible. That's why at Confused.com we want you to consider how important it is to look at all avenues when considering such a drastic option.
"At Confused.com we'd advise you to make your mortgage lender aware if you have any difficulties paying your bills or would just like to sell your property. Those that are finding life difficult and meeting mortgage payments a struggle should initially contact their mortgage lender to work out a plan of action that can help them get back on track and avoid repossession, rather than irrationally selling their home and losing one of their most important worldly assets."
