There are a lot of myths surrounding a cash sale and one of them is that they offer really poor value-for-money. What is rarely discussed, however, is gross price versus net price and it’s really important.
Simply put, many buyers are too focused on the price their property is valued at (the gross price). They don’t stop to think about the final price it actually sells for (the net price) and the fees they pay along the way.
When it’s laid out side-by-side, very transparently, a net cash offer will be extremely close to the net price achieved on the open market. Agents to charge fees and buyers reduce their offers – it’s this that eats away into the final gain when all costs are deducted. Here’s why you should consider a cash offer.
Asking price versus sold price
It’s an unspoken rule that purchasers will offer under the asking price and the figure first advertised is rarely the price you’ll sell for. If you’re struggling to find a buyer, you may have to accept an offer below what you set out to achieve.
This figure could be further reduced during the conveyancing stage. A survey that returns unfavourable results or a mortgage valuation that doesn’t match the asking price can also prompt buyers to slash their offer, or you could find yourself a victim of gazundering and be forced to take the financial hit.
Open Property Group is transparent in its below market offer – it’s an aspect of our operation we don’t hide – but we’re not in the business of haggling. The offer we make you at the start is incredibly likely the figure that you will see on your completion paperwork – there’s no chipping away as time goes on.
Factor in ALL fees
When using an estate agent, fees can come out of the blue. Most sellers know they must pay the estate agent a percentage of their sale price (usually somewhere between 1% and 2%) but there will be a fee to commission an EPC certificate, potentially professional photography costs and VAT too!
Don’t forget your conveyancing bill - expect to pay between £1,000 and £2,000 to your solicitor. We know fees soon add up, so Open Property Group pays the legal and EPC charges on behalf of our clients, who also save money by cutting out the estate agent and their bill.
The clock is ticking down, along with your asking price
Time will erode your home’s value and if you use the open market, there’s no guarantee how long your home will take to sell. If your listing is online for weeks – months even – you increase the prospect of having to reduce your asking price to attract interest. To avoid this demoralising scenario, opt for a cash sale to Open Property Group, with completion in as little as seven days.
Don’t waste money on ‘getting ready’ maintenance
Almost every estate agent is full of advice about getting your property in the best shape before a sale and most suggestions involve money. From redecorating to replacing a dated bathroom suite, sellers are frequently asked to spend money on a property they don’t want to live in.
We don’t think that’s right, so Open Property Group buys on a ‘sold as seen’ basis, which is great for problem properties. We’ll never ask you to finish DIY or complete building work, and we’ll make you a cash offer even if the property is damp or derelict!
What you can’t put a price on
Stress. Inconvenience. Privacy. Selling can feel like a burden when you’re on the open market. After all, it’s a property bun fight, with everyone knowing your business and an endless stream of strangers undertaking viewings. It can even leave you feeling your home is being exploited purely for the financial gain of your agent.
While it’s hard to put a price on a private, hassle-free sale, selling directly to a business buyer can be invaluable. Working with a business doesn’t mean impersonal, however. Open Property Group cuts out the middleman but you gain our full, one-to-one support. Plus, we have instant access to financial reserves and will make you a cash offer – no ‘for sale’ board, no viewings and no chain above you.
Watch the video below which explains more about selling your property fast or click here to continue reading this article