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Would you sell your house to a cold caller?

Property Cash
Property Cash

Homeowners are being warned against accepting low-ball offers from “quick sale” property companies as Britain faces the biggest house price slump since the financial crisis.

In some cases offers are slashed even further at the eleventh hour when owners are under huge pressure to complete a sale.

House prices are expected to plunge by at least 10pc next year, prompting owners to sell up now before the worst of the falls. Soaring mortgage rates and the cost of living crisis will leave owners susceptible to low offers from unscrupulous firms, property experts warn.

One Telegraph reader in south London received a letter from a company interested in making a cash offer in just seven days – at roughly 80pc its market value.

The company said the home “appeared to be available for sale” online, although it has not been on the market since it had been bought more than five years ago. Four weeks later another unsolicited letter from the company arrived – but another £26,000 had been shaved off its offer.

A quick-sale firm could be an attractive choice for buyers willing to trade convenience and speed for a hit on their price. But the sector is unregulated and plagued by accounts of rogue traders using high-pressure tactics to shave thousands of pounds off a sale price at the last minute.

Quick-sale companies offer to buy a property at a discounted price, typically between 10pc to 25pc below market value, in return for a cash offer and fast completion. The company will then sell the property on the open market and pocket the profit after costs and stamp duty.

The process appeals to homeowners who need to sell in weeks. Divorce, relocating or inheriting a property are common reasons for considering a quick sale, as are debts and financial issues. A growing number of landlords have also approached these buyers in search of a quick exit from the market.

Danny Luke of Quick Move Now has bought and sold more than 6,000 properties since 1998, offering an average of 82.5pc of their market value.

Mr Luke said: “The property market is close to breaking point and huge delays mean there is a need for a quick sale service – a lot of people can’t wait half a year to sell. But this type of sale is not appropriate for everyone and we will rarely be the right option for someone in financial hardship as they are unlikely to have the capacity to accept the discounted purchase price.”

The absence of a watchdog in this market means sellers have few avenues for complaints or redress.

Mr Luke said: “The sector needs more regulation and there are many rogue traders masquerading as genuine cash home buying companies.

“There is a lot of mis-selling going on and many of these companies don’t have registration numbers or an address on their website so it’s difficult for people to do their research.”

A How to Sell Guide published by the Government in 2019 recommended that anyone wanting to sell to a company offering an instant cash purchase should use a member of the National Association of Property Buyers. The NAPB is a voluntary group of roughly 50 members. Admission is dependent on companies registering with the Property Ombudsman, meaning sellers have means for dispute resolution if necessary.

The ombudsman has received 20 complaints relating to quick sale companies so far in 2022, mainly about a disparity between what was advertised and the end service. Last-minute price cuts are common among the less scrupulous players in the sector.

Jonathan Rolande, of the NAPB and property buyer House Price Fast, said: “Dropping an offer should be the exception, not the norm. And it should always be for a genuine reason, such as a survey flagging structural issues that the seller wasn’t forthcoming about.”

NAPB members are required to sign a code of conduct with strict rules on reducing offers at the eleventh hour, but Mr Rolande warned rogue traders would be hoping to take advantage of economic uncertainty.

Nick Karamanlis of estate agency Elliot Leigh said: “Some quick-sale companies are bona fide and offer a good service to owners looking for a quick sale. But there are also vultures acutely aware the market is getting tougher and there will be more sellers willing to accept a low offer in cash.”

Alarm bells should ring if a buying company asks a seller to sign a contract tying them into their services.

Mr Luke said: “These agreements mean you can only sell to the buying company for however long the contract states, which can be months. It means the company doesn’t have the cash funds to buy your house and is using the time you are tied in to find an investor or third party buyer.”

Before you sell, consider all options. Speak with a traditional estate agent, or your mortgage lender if the reason for needing a speedy sale is because of financial pressures.

If you do proceed with a quick sale, get more than one valuation for your property, this will give you an idea of what your home is worth before a cash offer is made.


Have you been approached by a quick sale company or sold your home to one? Tell us about your experience at rachel.mortimer@telegraph.co.uk