September 17, 2008
Let’s get straight to the point: As you know, when you sell your property for £100,000 you don’t get £100,000. You’re more likely to get closer to £85,000.
Not only that, it’s taken 4 months to sell and then you’ve had to jump through hoops with solicitors, and the buyers are in a chain so the sale is delayed… and further delayed… and delayed once more and then finally, when you’ve lost all hope, the property finally sells!
So, how does that work? Where did I lose £15k? And why did it take more than 6 months?
Let us help you to understand the traditional sales route…
It’s the 1st of January, and you know you’re selling a property. It doesn’t matter the situation but you’ve got a property and you’ve decided to sell it.
You decided to get some estate agents out to value your property and tell you some of the costs associated with it. You call 4 agents, and they come out over a 7 day period, then you take another week to appoint one of the agents. So now you are 2 weeks in and you’re just getting started.
You finally appoint an agent, sign up with them, and they arrange to come out and take photos and either get a survey done (if in England) or Home Report (if in Scotland), which takes an additional 2 weeks… Now we are a month in and we still haven’t sold your house.
However, it’s now the 1st of February, and we can finally start! Estate Agents Ltd are good to go, your house is on Rightmove, Zoopla and every other portal in the UK , and the leads start to come in. But Brenda, the lady that carries out the viewings, isn’t well this week so we can’t do viewings until next week, and then next week comes and of the 5 viewings you were supposed to have only 3 turn up, and of the 3 that turn up, 1 offers, but the offer is too low and you’re not interested.
So now another month has passed and some more viewings take place until finally there is an offer that comes in that’s good, you’re happy with, and you agree. You wanted £100,000 but they offered £94,500 and you just want it sold, so you agree. You receive a letter from the buyer’s solicitor, everything is accepted and you expect the property to be sold and cash in the bank in 10 weeks.
Now we are in March, but things are delayed… the buyers didn’t send the documents to the solicitors in time, and the solicitor has become carried away on another project. Oh, and not to mention the buyers, because the buyers’ property is waiting on the sale of their own property to go through before they can send the money from their buyers! So now it’s a waiting game, and the person that is waiting is YOU! Because you don’t have a chain, you just have a house and (quite rightly so) you just want it sold.
But now we are into mid June and the property sale is finally coming to completion at last! A few signatures here, a few signatures there, and finally your property is sold and the money is transferred to your solicitor.
You wanted £100,000, you agreed on £94,500 and now here come the fees…
Solicitor – £1500
Estate Agent – £450 sign up or “Marketing Contribution” as they like to put it and 2% of the sale £1890
You had to get your Survey carried out for £200
You had 5 months of Council Tax – £500 on average (£100 per month)
And you had to carry out some essential repairs and works to get it up to standard for £10k before you started…
And finally, capital gains tax. Let’s assume that there was a mortgage on the property of £40k, with total costs of £4340 leaves you a net profit of £40k. Dependant on your personal situation the government are kindly going to ask for on average 20%, which is £8,000.
So after 6 months, all the hassle and problems, and you walk away with £32,000.
Now here is where a house buying company really shows its benefit. You appoint a company to come out and value your property for cash.
They offer you £70k cash paid in 30 days and no fees. Yes, this is a lower price than you would have got selling traditionally, but you don’t have to pay for anything at all.
You get the £70k, paid directly to your bank within 30 days. You pay your mortgage off of £40k, leaving you £30k. You then pay the tax man 20% and this leaves you with £24k.
So for the sake of £8000, you have the money paid into your account 5 months sooner and no headaches. Does that sound good? Sometimes £8000 makes all the difference to some people and in those circumstances it is important to make the decision that suits you best! NEVER feel obligated to go with a quick sale purchase; always do what is best for you.
However, sometimes the £8000, is worth the lack of hassle that you have to go through.
At Easy House Buying we buy all properties for cash and can complete as quickly as within 7 days! We buy all houses, in all conditions, in all areas!
If you require a quick turn around and want to get cash paid directly into your bank call us today, or click here to get a free quote, to buy your property for cash!