Selling a house can be stressful and can take months or much longer to sell if sold in the conventional way. Whereas if you sell to an investor, the process is very quick and you’ll sell your house chain free and estate agent commission free. But there’s a catch, as often times you need to be prepared to accept a below market offer. This is the price to pay for the convenience of a quick sale. But how much will an investor pay for my house you may ask? If you want to sell your house fast and for cash; expect to receive between 25% to 30% below its market value. But there are alternative methods to sell your house where you could achieve market value.
Due to the introduction of Section 24 Tax or the Tenant Tax, as of April 2020, you are no longer able to deduct any of your mortgage expenses from rental income to reduce your tax bill. Instead of a deduction from your rental income, you’ll receive a tax-credit. This tax credit is based on 20% of your mortgage interest payments. So whether you’re an accidental landlord or had the intention of buying your rental properties, these Section 24 (also known as Tenant Tax) rules will affect you. How much the rules affect you will depend on the level of rental income you have and how much mortgage interest you pay.
Whilst there are risks associated with exchanging and completing on the same day, it is worth considering how these compere to the risks of a delay between exchange and completion during the Coronavirus pandemic. The main risk is from someone in the chain contracting Coronavirus Covid-19, which could delay or prevent the move. This could be you or one of the other people in the chain. But equally it could be your solicitor or another solicitor in the chain. If this were to happen it could cause a delay to the completion date and may have serious financial implications to you or to others in the chain.
Companies that buy houses work well for those home owners who are looking for a quick sale and need cash fast. The process is normally very quick from accepting the offer through to completion and you receiving the funds. There are no chains to contend with, you don’t need to involve estate agents (so no estate agent fees), but you will need to be prepared to accept a lower than market value offer to sell your house in this way. Typically you’ll receive between 25-30% less for your property than if you were to sell it in the conventional way using an estate agent. You will need to weigh-up the pros vs the cons of selling your home in this way before making a decision.
If it’s your intention is to sell your house in 7 days to completion, then you’ll either need to take a hit on the price you accept of 25-30% discount. Or you need to be willing to accept alternative creative methods of sale. If you’re willing to be open to creative ways to selling your property, you may end up with the full asking price for your house or close to it.
How long it will take to sell your house from accepting an offer to completion is estimated to take between 8-10 weeks. But the time taken will be affected by a number of factors. These factors among others include how efficient your and your buyer’s solicitors are. How good your estate agent is at chasing the deal. How long it takes for the searches to be returned to your buyer’s solicitor. Plus how ready your buyer is to begin the buying process and whether or not they require a mortgage.