Property Expert on avoiding the sharks and finding a genuine cash buyer

The cash house buying industry is rapidly growing in the UK. With rising interest rates and slumping property prices, many homeowners are turning to cash house buyers for quick property sales, often within as little as seven days. These services are especially appealing to individuals in financial or situational distress. However, the industry's growth has outpaced regulation, leading to the emergence of companies with questionable ethics, exploiting homeowners' urgent need to sell.

To address these concerns, Gaffsy, one of the UK's leading cash house buyers, is unveiling its new ethical pledges designed to encourage transparency and fairness and protect consumers in the rapidly growing but largely unregulated cash house buying sector. Gaffsy is hoping to encourage other legitimate cash buyers to adopt these pledges, ensuring the highest standards across the industry. 

In addition to this for the first time, Gaffsy is exposing common tactics used by less scrupulous companies, empowering consumers to make informed decisions. Here's how to identify a genuine cash house buyer and avoid the sharks:

 

What to Watch Out For:

1. Over-promising on Initial Offers

Many companies lure homeowners with high initial offers only to lower them later. Gaffsy advises caution and recommends having multiple companies evaluate your property before making a decision.

2. Lock-in Contracts

Reputable cash buyers shouldn't require you to sign contracts before exchange. Be wary of any company asking for a 'lock-in contract' without a deposit or those wanting to place a restriction on your property with HM Land Registry. Ask them directly if they do this; trustworthy companies won't until contracts are exchanged unconditionally.

3. Guaranteed Sale Claims

Avoid companies promising a guaranteed sale close to 100% of market value. These offers are often misleading, as they typically aim to sell your property rather than buy it themselves. Genuine cash offers will be transparent about the purchase process.

4. Last-minute Price Drops

Some companies might lower their offer at the last minute, hoping you'll accept out of urgency. This tactic is unethical; any genuine issues should be identified earlier. Stand firm and consider other buyers if this happens.

5. Hidden Fees

Legitimate cash buyers do not charge fees. Be cautious of firms asking for a 'refundable payment for valuation' before making an offer. They will usually phrase it as a 'refundable payment for valuation' which sounds fine – it's 'refundable' after all. However, because the money is only refunded if you accept their offer, this system is wide open to abuse.

6. Dodgy Solicitors

A reputable buyer won't push you to use in-house solicitors. They might recommend firms, but these should be independent and regulated by the Solicitors Regulation Authority. Genuine companies will also pay any upfront instruction fees.

7. Conditional Exchanges

A conditional exchange is different from an unconditional exchange. It effectively ties you into selling whilst giving your buyer an out. Many less reputable firms will try and exchange conditionally immediately without looking at the legal pack on one or even two month contracts. This then ties you into selling to them but gives them two months to complete and a series of outs if they decide in that time they don't want to whilst you are locked in.

8. Long Completions

Genuine buyers should complete within seven days. Longer requests may indicate plans to flip your property. Ensure contracts are binding and request financial compensation for delays.

9. Lead Generators and Independent Reviewers

Be cautious of lead generators and biased industry watchdogs, who take fees for recommending cash buying companies. Always ask advisory companies if they receive a fee for recommendations and verify companies independently to avoid being misled.

 

How to Ensure You're Dealing with a Genuine Cash Buyer:

1. Request Proof of Funds

Legitimate buyers will provide proof of funds for the purchase amount upon request. Ask for this early to confirm their credibility.

2. Agree on Exchange and Completion Dates

Before proceeding, agree on clear dates for exchange and completion. This helps ensure the buyer sticks to their promises.

3. Check the Company Registration Number

Ensure the company lists their registration number on their website.

4. Verify the Name on the Contract

Ensure the House Buyer you're selling to is the name on the contract. If it isn't, ask them to explain why. 

 

What are Gaffsy doing about it?

Gaffsy's new ethical pledges aim to set the benchmark for industry standards, ensuring transparency, fairness, and consumer protection. Gaffsy encourages other cash buyers to adopt these pledges, fostering a more trustworthy and reliable industry.

Gaffsy's Commitment to You: Trustworthy, Fair, and Straightforward

• Genuine Cash Buyers: We purchase with our own funds, independent of mortgages or lenders, ensuring a dependable and swift process.

• No Dodgy Contracts: No lock-in agreements or exclusivity demands. The first thing you will sign is the final exchange contract, ensuring you are free to walk away at any time.

• No Survey, Just a Quick Look Round: We're not about surveys; as real cash house buyers, a quick inspection is all we need to verify your info. No delays—once confirmed, we're ready to proceed.

• Zero Penalty Promise: Change your mind? No worries. We don't charge cancellation or withdrawal fees.

• Completely Fee-Free: All selling costs are on us. You won't pay a penny for the process.

• Legal Guarantee: We've Got Your Legal Fees Covered. Only recommending Independent, SRA-Regulated Solicitors for Extra Confidence.

• Honest Process, No Surprises: We never use delay tactics or last-minute price changes, ensuring a transparent and fair transaction.

• Your Timeline, Our Priority: You set the completion date. We work around your schedule, it is that simple.

• Full Offer Integrity: The amount we offer is exactly what you receive, with no hidden deductions.