Pitfalls of selling with unscrupulous ‘fast sale’ companies.

Our Property Advisors frequently receive calls from panic-stricken homeowners who need Spring to step in and rescue their sale, after a 'sell house fast' or ‘fast cash sale company’ has let them down and not delivered on what they promised. Selling a property can be stressful enough, but when sellers put their trust in a company who they later find out have been dishonest about the service they offer and the price they are willing to pay, it’s not only highly distressing, but can also prove to be a very costly mistake.

Sounds too good to be true, it probably is.

‘Fast sale’ or ‘sell house for cash’ companies make bold claims that sometimes sound too good to be true…. sadly, they usually are. Watch out for terms such as:

• FAST CASH sale
• Highest prices paid
• No sale, no fee
• Cash in your bank in 7 days
• We have cash buyers ready and waiting

In our experience, there are some good companies out there, but there are also some very bad ones who over promise and dramatically under-deliver.

How to identify unscrupulous companies. 

When selling your home via a ‘fast sale company’ be wary of:

Companies posing as ‘cash buyers’:

A large proportion of cash buying companies who claim to ‘sell house for cash’ actually don’t have the cash. Instead, operate as ‘agents’ or ‘lead providers’ selling your details onto other companies, brokers or investors who buy cheap properties. Many sellers are surprised to see their home advertised on Rightmove or Zoopla when they thought they were dealing with a cash buying company.

TIP: Check if a company is listed on the National Association of Property Buyers and Property Ombudsman websites as this means they have agreed to follow a code of conduct including a proper complaints process. Look on Companies House for more details on their funding. Also check the company’s website. If it has properties listed for sale, it is more likely to be a property broker than a house buyer.

Getting tied into a contract:

Some companies tie you into an ‘option contract’ without you realising, which means you lose the right to sell your home with anyone else.

TIP: Legitimate home buying companies will not ask you to sign a contract. If they do, refuse to sign and get a quote from another company.  

Over-inflated valuations:

Over-valuing properties so customers believe they are getting a fantastic price is a common trait of unscrupulous companies to lure you in to selling to them.

TIP: Trustworthy companies will conduct independent, free valuations and share them with you.

Price drops last minute:

Customers are told ‘we pay the highest price’ and then at the 11^th hour, the price is reduced. As sellers are under contract, there is no option but to sell at the lower price, potentially losing tens of thousands of pounds.

TIP: Reputable companies will make you an initial offer and will stick to that same offer unless anything untoward comes up on a survey.

Stalling of the sale:

Some companies purposely use delay tactics to stall the sale of a property by claiming there is no interest and make sellers drop the asking price. This tactic buys the company time while they find a buyer or apply for a mortgage. And, as the seller has been duped into lowering the price, this means the company needs to borrow less.

TIP: Ask for a company's funding source before you agree to sell to them. If they mention borrowing to fund their purchase or say they have a list of buyers interested in your property, they could let you down at the last minute when their funding/buyer doesn’t materialise.

Know when to walk away.

Don’t use rogue ‘cash buyers’ who ask or claim the following:

• Don’t use a company that promises 100% market value – they won’t.
• Don’t sign any documents, agreements, RX1 forms or ‘option contracts’ upfront.
• Don’t pay any fees upfront, including surveys, even if they say its refundable.
• Don’t allow companies to put any restrictions on your property via land registry.
• Don’t use anyone missing a company registration number or validated customer reviews.

How is Spring different?

• With over £300m funding, we are largest most dependable homebuyer in the UK.
• All valuations and fee details are shared with you for total transparency.
• We never tie you into a contract and never ask for any fees upfront.
• All legal and conveyancing fees are included in our homebuying fee.
• You have the freedom to walk away from the sale at any time up to the day of exchange.
• Our Spring Price Promise offers extra peace of mind.

A brand you can trust.

Spring’s homebuying service is available direct to our customers, and we also provide homebuying, part-exchange, and chain repair services to our business partners, including: McCarthy Stone, Audley, Richmond Villages, Royale Life Bungalows, Churchill Retirement, Connells Group, Sequence New Homes Group, to name but a few.

Our ‘Excellent’ rated Trustpilot reviews speak for themselves. We members of the National Association of Property Buyers (NAPB). We are honoured that The Property Ombudsman adopted our internal code of conduct and use it as a guide for their strict code of conduct for the Property Buying Industry as a whole.

One final point...

Our customer experience team are not paid commission on the homes we buy, instead they are incentivised to provide the best possible experience and service to our customers to make selling a property simple, stress-free, and guaranteed.

“What it says on the tin is what you get... no deviation or amendments. Excellent service thoroughly recommend”. Mr P Wright, Trustpilot Review August ‘21

← RETURN to BLOG/STORIES