24 Aug What are the SCAMS?
‘Cash Buyer’ scams are commonplace in this industry, so you may be wondering how is Compass Property Buyers different?
Other ‘cash buyers’ operate through a series of misleading claims and scams. Compass Property Buyers are different; keep reading to find out how and why you can trust us with the sale of your home.
Legitimate Cash Buyer
Compass Proerty Buyers are an individual cash buyer company and do not work with any others in the role of a broker or middleman who will actually only sell your enquiry to a Buy to Let investor. We are 100% cash buyers and have the money available to purchase your house immediately, this means that you will not have to wait for us to raise finance before the sale can be completed; we offer a quick and hassle-free service.
Before parting with your details, ensure that the Cash Buying company is legitimate as some common scams involve selling your details and enquiry to third parties.
No Fees to Pay
We do not charge you for the transaction. Some inconsiderate house buyer companies choose to make money through charging their clients fees for their services, even if the sale does not go ahead; we do not believe that this is ethical and therefore do not charge for our services.
If a cash buyer company is trying to charge you fees, then it is best to avoid them.
No Option Agreements or Binding Pre-Sale Contracts
It is common for unethical property buyers to make you sign an option agreement which is legally binding; what this means for you is that you are then unable to sell your property to another party for a set period of time which can be as long as 12 months. They do this to buy time so that they can raise the funds required to purchase your house, or find a third party who would like to buy your enquiry or personal details. If you choose to pull out of the sale, this comes with hefty penalties into the thousands, whilst there is nowhere in the contact which states that the house buyer actually has to buy your property at all; it is completely one-sided against you.
Compass Property Buyers are actively against option agreements and would never ask you to sign one.
RICS Survey Valuations
Many house buyer companies carry out the house inspection and valuation themselves which obviously can be rather biased in nature. These firms are the ones which offer 95-100% of the valuation to you – if the valuation is already low, then even being given 100% of it may mean that you do not get the best deal on your home. Compass Property Buyers always ensure that we employ a RICS member (Royal Institute of Chartered Serveyors) to complete an accurate valuation; we will pay for this to be done. The report produced by the RICS member will then be available for you to inspect, or pass on to your solicitor to have a look at to ensure that everything is legitimate. All surveyors will be local to your area giving you the most accurate price possible.
Gazundering is a practice whereby the cash buyer company (or borker or company pretending to be a cash buyer!) will value your home at a price which is acceptable to you, then the day before the the contracts are exchanged, will renegotiate the price at a lower rate without a genuine reason. Compass Property Buyers do not agree with this practice and would never reduce an offer withou a valid reason e.g. there is a structural problem found with the house, or the RICS valuation came back lower than initially expected.
What do you pay?
Ultimately, the amount that we pay for your house will depend on the RICS and estate agents valuations, type of property, the condition that the property is in and the state of the legal report. You can get a rough idea of what we would offer you by filling in our online form.
Compass Property Buyers aim to be the most helpful and reliable cash buyer company. If you want more information on our services, or to arrange a valuation of your property, give us a call today on 0800 977 4545 or text ‘BUY’ to 60777 and we will call you back free of charge.