Are Sell House Fast Companies Scammers?

Transcript

Hi, I’m Ruban Selvanayagam, co-director at Property Solvers.

In today’s video, we’re diving into a contentious topic – Are sell house fast companies like ours just out to SCAM HOMEOWNERS?

It’s a fair question often asked by potential clients and outsiders looking into our sector – and one that deserves a straight answer. Because while there are reputable operators in this space, there are also firms that give our industry a bad name. 

This is a largely unregulated corner of the property market, and sadly, there are some companies that prey on vulnerable sellers, operate with little transparency, or use tactics that verge on exploitation.

If you’re weighing up whether to use a firm like ours, keep watching as I unpack how a genuine fast house sale company works, the common pitfalls, why speed comes at a price, and how we’ve evolved as a company to give sellers more options and help them get more money for their homes.

Let’s get into it…

If you’ve searched for terms like “sell my house fast”, “we buy any house” or “cash homebuyers” on Google recently, you’ll know just how crowded the space is. You’ll see claims like “sell in 7 days”, “guaranteed offers” or other pitches to grab your attention.

These promises can be appealing – especially if you’re under pressure. For instance, maybe you’re facing repossession, have an inherited property that you just want to get rid of, going through a divorce, or simply need to relocate quickly. 

But here’s where things can get murky.

Whilst there are several legitimate operators, there are many out there that aren’t true cash buyers. They don’t have the funds readily available and instead operate as lead generators or middlemen – often trying to tie you into contracts without fully explaining the terms.

Another common tactic once you reach out to some firms in our space is to be offered 80 to 90% of the market value upfront, but then the price gets slowly reduced during the sales process. It’s a strategy known as “chipping” – and it’s one of the main reasons our industry has a reputation problem.

Another concern is the use of option agreements – legal contracts that tie you in for months, even if you’re not fully committed to the sale. You may not realise it, but signing one could prevent you from selling your property elsewhere.

These companies know you’re under pressure – and some use legal complexity or manipulative tactics to take advantage.

These days, it’s all too easy for someone to set up a company offering quick house sales, then use high-pressure tactics and misleading marketing to push sellers into signing lock-in contracts loaded with hidden fees or clauses.

Most people don’t know the difference between the good and the bad operators – and because sellers will probably only go through a quick sale once in their life, they can be swayed to sign up for something that’s not in their best interest.

This is particularly dangerous for people who are in financial distress or going through some other complicated situation, which is why we firmly believe that the industry needs to be more transparent.

Many people looking from the outside in wonder why a seller would accept 70-75% of what their property could fetch on the open market?

The answer lies in Certainty, Simplicity, and Speed.

Selling through a traditional estate agent is currently taking between 5 and 9 months on average – and that’s if everything goes smoothly. 

Even well-presented properties can sit on the market for 150 to 200 days, then, after a property is marked as sold subject to contract or under offer, chains collapse, buyers pull out, surveys uncover issues, solicitors get bogged down, and a range of other problematic issues can crop up.

We actually built a tool that pulls real-time sales data from the major portals and the Land Registry which we’ll add in the show notes – and the delays can be eye-opening.  

And that’s where operators like us can step in…

Now, in the US, the sell house fast model is often called wholesaling. In the UK, you see similar practices in industries like car trading – where you sell something below it’s retail value to avoid hassle, delays and overheads that you may otherwise incur. You accept less for a quicker, more predictable outcome.

We Buy Any Car is perhaps the most well-known example of this – and it’s not uncommon for vehicles to be sold at 50% or more of their true market value through this platform. Yes, it’s true that we’re talking about much larger sums of money when it comes to property – but the underlying logic is the same: you’re trading maximum value for convenience, speed and a firm commitment by us, the home buying company.

To talk real n n behalf of the sector that it’s not a sign of dishonesty and reflects the very nature of quick home buying..

There’s no faffing around with tyre kickers, haggling, arranging viewings, or dealing with deals that fall apart at the last minute. For some sellers, especially those who value their time or need a clean break, accepting such a discount can make a lot of sense.

Some of the common situations we come across include mortgage arrears, debt, cashflow pressure, divorce and urgent relocation requirements. It’s also common for landlords downsizing their portfolios and people who have inherited properties to sell to cash buyers like us. As hundreds of our reviews show, the ability to sell quickly, securely and with no back-and-forth is worth the trade-off 

What’s more, in most cases, cash buying companies will cover all your legal fees and there are no estate agency costs as you’re selling directly the firm without any middlemen. 

Also, keep in mind that the longer you hold onto the property, the more you’ll be paying out in ongoing costs like insurance, council tax, utilities, and often mortgage payments while you wait for the sale to complete.

However, if price is your top priority, we’ll be the first to say it: go with an estate agent. Wait it out. You’ll probably get more money – but you’ll need to be patient and put up with what is an inherently complex system.

But if you’re seriously thinking about accepting a cash offer what, should you look out for?

First off, Make sure they’re true cash buyers

The most reputable firms use their own funds – no brokers, no long chains, and no waiting around for finance approvals. If asked, they should be able to provide proof of funds via a solicitor’s letter or a redacted bank statement without any issues.  Also, get written proof from the company that there will be no reduction in the price once you agree to sell.

Remember to also check on Google Reviews, Trustpilot and other review platforms to see what others have said alongside a Companies House search for more information about the Directors (who are usually doing the buying).

Also, while many cash house buyers – including us – are members of The Property Ombudsman (TPO) and The National Association of Property Buyers (NAPB), the reality is that joining these bodies is relatively straightforward, so it shouldn’t be the main factor in your decision.

Next, Make sure they’re transparent about how they’ll value your property

The more reputable firms will walk you through their thinking, and explain exactly how they came up with the figure they’re offering. They should present Land Registry sold prices, local market listings, detailed data from back end platforms like Rightmove Plus or Zoopla Pro and the real-world buyer demand in your area.

We also offer any our seller clients that requests a FREE House Valuation Report which has a range of useful local data not available in the public domain – including sold price data, a market heat gauge, average sale times, asking vs. sold prices and much more all based on your postcode. Drop me an email at ruban@propertysolvers.co.uk and I’ll get run one off for you.  Even if you don’t accept an offer we make, you walk away with a clear understanding of your property’s position in the current market.

Next, Make sure that the sell house fast company is honest and up-front about their offers

This will reflect the price the company needs to pay to operate sustainably.

Now, whilst this figure may feel lower than expected, it’s based on real-world costs – including extra stamp duty charges, taxes, legal fees alongside the significant expenses of holding, refurbishing and managing properties we buy.

Net profit margins in our industry are often tighter than people think, especially when buying properties in poor condition or with legal/structural issues. The costs of dealing with these kinds of situations have risen sharply in recent yea`rs due to a inflationary pressures across the board and the total outlay can escalate very quickly.

So when we make an offer, it’s not just based on market comparables – it also reflects the real-world time, risk and capital required to bring that property back to a saleable or rentable standard.   

Next, Make sure the fast-sale company will buy homes in any condition

Whether it needs a full refurbishment, has legal complications, or is completely unmortgageable. They might want to view it themselves or arrange a survey at their own expense, especially if it’s in poor condition, but that’s simply part of their due diligence.  Nonetheless, this should be done early in the process so sellers can make a decision without feeling under pressure.  At Property Solvers, we’re often able to organise this side of things well within 24 hours including weekends. 

Lastly, Make sure the firm won’t tie you down

The most trustworthy firms never use exclusivity clauses, lock-ins, or option agreements to stop you from selling elsewhere. They make their offer, explain it clearly, and leave the decision entirely in your hands.

You should never feel trapped. If you want to explore other options, that’s your right.

When it comes down to make a decision, take your time, do your research and and trust your gut.

Before I wrap up, I want to stress again — cash buying can work really well in the right circumstances, but it’s not the right fit for everyone.

At Property Solvers, we take the time to understand exactly how urgently our clients need to sell. If there’s 2 or 3 months to play with, and there’s no issue with putting the property on the open market, our auction service can be a great way to get a secure sale without compromising too much on price.

We run both 28-day unconditional and 56-day modern method auctions. Right now, we’re often suggesting reserve prices at around 85–90% of genuine market value — but depending on the property, we can sometimes achieve well above that. Crucially, with our auctions, buyers are legally committed, and we handle everything — from preparing the legal pack, optimally marketing the property, assessing the buyer’s suitability right through to making sure the sale completes within the agreed timeframe.

We also have our Express Estate Agency service, which we run differently to most agents. We focus on finding firm, serious buyers who’ve been properly vetted and prioritise those who can move quickly. For example, if two offers come in, we’ll recommend the one from a buyer with a smaller mortgage requirement, as that reduces the risk of delays. It’s not always possible to be that selective, but over time, we’ve got very good at spotting who’s truly in a position to proceed.

So, to conclude – yes, there are some bad actors in the quick sale space, but there are also genuine companies that help sellers achieve a fast, secure sale when they need it most. Used in the right circumstances, it can be a valuable option that removes stress, uncertainty, and lengthy delays.

We know selling to a “sell house fast” company isn’t for everyone – and we’re never offended if someone decides against it. In fact, more often than not, we advise people who contact us to stick with their estate agent or explore our auction or open market routes instead.

At Property Solvers, our cash offers aren’t about undervaluing your home or taking advantage of something you’ve worked hard to get in life – they reflect the reality of buying fast, covering every cost, and taking on all the risks. We give you a clear, honest picture so you can decide what’s truly best for you.

Whichever route you choose, our job is to make the process simple. From the first conversation to completion, we focus on speed where it’s needed, transparency at every step, and protecting our clients’ interests from start to finish.

So if you’re actively selling, get in touch and we’ll happily provide a FREE house valuation report so you have the facts you need to make your next move with confidence.

A massive thanks for watching to the end.  If you found this video helpful, I’d really appreciate a like and subscribe.

And if you’re weighing up your own sale options – whether it’s a fast sale, auction, or express estate agency – feel free to reach out. No pressure and no obligation of course…

See you in the next one…