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Bruce Banner

O F T Investigating Three Quick House Buying Companies..........

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........I wonder who put them up to that.

We can't have people selling their house at a discount :rolleyes:.

http://www.bbc.co.uk/news/business-23588742

Sounds like the standard story of anything in financial services that's not heavily regulated, the cowboys come marching in..

Of course, if it was up to me, you would have estate agents acting like used car salesmen (!). You'd sell your house to an agent who would then try and sell it on for more, making money on the difference. There would be a BIG inventive for rapid turnover, Agents might be required to give guarantees (neighbors, structural faults, etc)..

Not only would this make house buying and selling vastly easier - no chains, no last minute problems, etc - it would also make it far more responsive. Your local estate agent would not be giving a valuation, they would be offering a price they were prepared to pay. And they could not offer unrealistically high prices without going bust.

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Surely the price achieved at the point of the sale *is* the value? I don't really understand the point of this article or news item at all. :blink:

I notice how there is no mention of how much the property was originally purchased at, perhaps this wouldn't look so good when we find out she has made rather a large profit despite it not being sold at the perceived "value"?

Edited by JustAnotherProle

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........I wonder who put them up to that.

We can't have people selling their house at a "discount" :rolleyes:.

http://www.bbc.co.uk/news/business-23588742

In a way I agree with you as long as it is done in a fair, open and transparent way meaning the seller knows all relevant information and has documentation to show they have taken and been given independent legal advise, the adviser not connected in any way to the buyer.......people should be free to sell their own goods and services at the price they want to. ;)

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The chap who bought the house next door to our rented house, at the same time as we moved in, sold it two or three years later to one of these companies when he found that he couldn't afford to service his mortgage. He got about 70% of what he paid for it and although the EA (who sold it to him) said it was worth more he was relieved to get out with the shirt on his back.

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The chap who bought the house next door to our rented house, at the same time as we moved in, sold it two or three years later to one of these companies when he found that he couldn't afford to service his mortgage. He got about 70% of what he paid for it and although the EA (who sold it to him) said it was worth more he was relieved to get out with the shirt on his back.

Yes, selling quick and getting the best price are usually mutually exclusive, but attractive for different reasons.

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This all looks like a bit of a non-story. Most companies involved are behaving well, but a couple are taking the piss with unfair contracts, and the OFT is doing its job. C'est la vie.

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Surely the price achieved at the point of the sale *is* the value? I don't really understand the point of this article or news item at all. :blink:

I notice how there is no mention of how much the property was originally purchased at, perhaps this wouldn't look so good when we find out she has made rather a large profit despite it not being sold at the perceived "value"?

If you don't understand the point of the article, then maybe you wouldn't understand any article on any subject. It is true that a quick sale would be at a low price - but to drop the price offered by one-third the day before the sale goes through is just fraud, in my view. They should state the actual price they will buy at at the beginning of the process, leaving the householder to assess whether they will accept the low price or not. To offer £120,000, have that accepted, allow someone to pay thousands in financial commitments on new places, and then the day before the move drop it to £80,000 - well, whatever way you look at it, that is just a con. I want to see an HPC, but that doesn't mean to say I want to see fraudulent financial services.

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If you don't understand the point of the article, then maybe you wouldn't understand any article on any subject. It is true that a quick sale would be at a low price - but to drop the price offered by one-third the day before the sale goes through is just fraud, in my view. They should state the actual price they will buy at at the beginning of the process, leaving the householder to assess whether they will accept the low price or not. To offer £120,000, have that accepted, allow someone to pay thousands in financial commitments on new places, and then the day before the move drop it to £80,000 - well, whatever way you look at it, that is just a con. I want to see an HPC, but that doesn't mean to say I want to see fraudulent financial services.

Your rather strange attack on my cognitive ability aside, you fail to grasp my admittedly simplistic and somewhat flippant response to the article, the point being nobody is actually forcing the homeowner to accept the new offer.

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Your rather strange attack on my cognitive ability aside, you fail to grasp my admittedly simplistic and somewhat flippant response to the article, the point being nobody is actually forcing the homeowner to accept the new offer.

that's a pretty poor point though- somebody selling their home in a rush to fund a life-saving operation might disagree that they have a choice in accepting the offer, or somebody who requires the money to emigrate and start a new job oversees, or to simply not end up bankrupt as they are already financially committed to a new place and wouldn't be able to afford both. Sure, you probably think they still have a choice, and of course they do, but people who have other options and aren't desperate won't be using these companies in the first place.

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If you don't understand the point of the article, then maybe you wouldn't understand any article on any subject. It is true that a quick sale would be at a low price - but to drop the price offered by one-third the day before the sale goes through is just fraud, in my view. They should state the actual price they will buy at at the beginning of the process, leaving the householder to assess whether they will accept the low price or not. To offer £120,000, have that accepted, allow someone to pay thousands in financial commitments on new places, and then the day before the move drop it to £80,000 - well, whatever way you look at it, that is just a con. I want to see an HPC, but that doesn't mean to say I want to see fraudulent financial services.

It's not fraud it's sharp practice and it happens all the time in the housing market. Why should these companies be forced to keep their word any more than private buyers who play the same game.

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that's a pretty poor point though- somebody selling their home in a rush to fund a life-saving operation might disagree that they have a choice in accepting the offer, or somebody who requires the money to emigrate and start a new job oversees, or to simply not end up bankrupt as they are already financially committed to a new place and wouldn't be able to afford both. Sure, you probably think they still have a choice, and of course they do, but people who have other options and aren't desperate won't be using these companies in the first place.

Do you have to pay for life saving operations in the UK?

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I believe a number of 'Below Market Value' buy-to-let types have set up "Quick Sale" estate agents as fronts to gather in properties off the desperate and unwary.

I don't think often they truly market them to a wide market such that the discount is available to the ordinary Joe.

Why would anyone be desperate, if its value is increasing every month? Or perhaps it's not quite like that! See blue chart on front page! :huh:

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