The NAEA has expressed its alarm over what it says is a sharp rise in quick-sell property websites.
It says their growth has been driven by the recession, which is increasingly leaving desperate sellers vulnerable.
Mark Hayward, president of the NAEA, said: “Our members have noticed a significant increase in the number of companies purporting to offer cash purchases on properties in whatever condition within 24 hours.
“While this might sound like a great solution for people looking to sell their property in a hurry, we are finding that it is often families who are in desperate financial circumstances which are targeted through website advertising and a door-to-door sales approach.
“The tough economic conditions mean that in some cases sellers are pressurised into making quick decisions to sell their property.
“They sign the contract at an agreed price only to find that they are offered a vastly reduced rate just before the sale. In a highly pressurised situation it is understandable that many people accept these last-minute lower offers.”
A search yesterday on Google for quick-sale property websites in the UK yielded many results. Companies go by names such as Quickbuyers, Propertyrescue, and Webuyanyhome which welcomes visitors to its site with a song offering no hassle and no estate agents.
Some say they will make an offer immediately on the phone, others within an hour, others suggest a 24-hour or 48-hour service, and others suggest the whole deal could go through in a week or a month.
Some claim they offer 80% of the value of a property, others say they offer 100% in cash, and a number seem extremely keen to stress their ethics and display a logo for Property Buyers Code of Practice.
We were also intrigued to find one site, sellhousefast, which is a member of the Property Ombudsum (sic). We were equally intrigued to find at least one site offering a sale and rent-back service, despite the Financial Services Authority having effectively closed down the entire industry in February.
The Property Buyers Code of Practice website was mysteriously unavailable yesterday when EAT looked, but we found the code on another website. Whilst the code may not have been reproduced in its complete form, it made no reference to clients’ rights to cancel within a cooling off period.
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Comments
Actually Hawkeye we do have an Estate Agents in our group of companies, what do you think i'm the local butcher reading Estate Agent Today? As we are one of the one's that does it properly we haven't suffered that much (obviously some, but compared to others not greatly) my main point was a bit of healthy competition with a choice for vendors doesn't scare us, but it obviously does you!!
Hawkeye,
That is the kind of reasoned argument that has got estate agents where they are today.
To summerise your argument. You are not an estate agent so you have no right to take advantage of good deals. Smell the coffee laddie
No problem with these sites they are about as parasitic as those selling solar panels.
It is dead easy to just say no but I can understand people in desperate need of a deal going this way. At auction the loss is around 15% of real value but so many vendors do not know the real value and close their ears to good reason but are oblivious to the consequenses of dealing with a bunch of sharks.
@Nick you are talking out of what you should sit on so just bu66er off this site as you are clearly not an EA.
@Andy ditto
Boo Hoo!, the poor estate agents, for years they've had a licence to print money by taking pictures of peoples houses putting them on a website & sitting waiting for people to call, the way I see it you can get 85-100% by sitting on an estate agents books for god knows how many years or they can get 70-80% to sell it quickly with one of these quick sale companies, it is simply a choice, the low life's who offer less later on should be very ashamed of themselves but as for the true companies out there what's wrong with a bit of healthy competition and options for people?
Of far more concern than Tesco will be when Rightmove and Zoopla decide that they might as well pile in - they'll make far more gazillions once they don't have to worry about agents ganging up on them for "private selling".
£199 per transaction rather than around £10 per property?
Everyone already using portals as first port of call for property?
Easy money. Big brand online takeover, bye bye what's left of independent businesses on the High Street.
What’s new? Estate agents have always had access to very cheap properties with vendors who are under duress or in a hurry to sell. They have traditionally bought them themselves or passed them to their friendly builder mate for a finders fee. Now these quick buy sites are cutting in on this market.
There is no doubt there will be charlatans out there who will gazunder at the last minute but there always has been. These sites can serve a positive purpose for those about to be repossessed or owners of dilapidated property. The public should be aware that no company is going to offer 90% plus for quick sale. They could go to every estate agent and buy most of their stock.
"......A very quiet yet potentially explosive consultation to amend the Estate Agents Act 1979 has been under way and ends this Friday. If it goes through, as seems likely, it would actively encourage consumers to bypass traditional agents completely........The proposal, by the Department for Business Innovation & Skills.........."
NFoPP/NAEA and RICS ....Please get your skates on and use your best endeavours to react quickly to this. It should be your priority to look after your members interests to the exclusion of all other current "bolt-on" activities!
I hear Simon Morris is involved with 'webuyanyhome'.
Nuff said Godber.