Cash house buying companies promise a fast, certain sale. Thousands of people use them every year. But the sector has a mixed reputation, and if your sale has just fallen through you're exactly the kind of seller a bad firm hopes to find. Here's how to tell the difference.
The short answer
Yes, many cash house buying companies are legitimate. Selling to one is entirely legal. But the quick-sale sector has no statutory regulator. After a government review in 2013, the industry set up its own trade body, the National Association of Property Buyers (NAPB), and members follow a code of practice with complaints handled by The Property Ombudsman.
These are voluntary schemes, not a regulator. So you have to do the checks yourself.
How cash buying companies work
There are broadly two types:
- Direct buyers buy your home with their own money
- Brokers or middlemen agree a price with you, then pass your home on to an investor, sometimes taking a fee
Neither is automatically bad, but you should know which one you're dealing with, because a middleman's offer is only as good as the investor behind it.
Seven checks before you sell
- Ask whether they're buying with their own money. Get the answer in writing.
- Ask for proof of funds. A genuine cash buyer can show it.
- Check NAPB and Property Ombudsman membership on those organisations' own websites, using the company's registered name, not just a logo on its website.
- Look them up on Companies House. Check how long they've traded and whether their accounts are filed.
- Read independent reviews, especially recent ones, and look for complaints about price cuts.
- Ask whether the price can change after their survey, and on what grounds. Get it in writing.
- Use your own independent solicitor, not one the company insists on.
Red flags
- Upfront fees from you. Be very wary of paying anything before completion.
- An offer close to full market value for a guaranteed quick sale. Genuine quick-sale offers are usually around 75% to 85% of market value.
- Pressure to decide today.
- Price cuts just before exchange, often blamed on a vague survey finding. See our guide to gazundering.
- Sale-and-rent-back offers from firms that aren't authorised by the Financial Conduct Authority. Regulated sale-and-rent-back needs FCA authorisation.
- No physical address, no company number, or claims to be "regulated" without saying by whom.
Is it worth it?
A cash sale usually means accepting less than market value. For some sellers, especially those about to lose their onward purchase, the speed and certainty are worth it. For others, waiting for an open-market buyer is better. Our honest guide to cash buyers helps you weigh it up.
How Ready Set Sold is different
Most quick-sale firms act for themselves or for investors. We act for you.
- We're your estate agent, under a signed agency agreement, so our legal duty is to you, not the buyer.
- We never buy your home ourselves. We introduce cash buyers from our vetted panel.
- Every panel buyer shows proof of funds and passes ID and anti-money laundering checks before viewing.
- Every offer comes to you in writing, and we help you compare it with an open-market valuation.
- It's free for you. The buyer pays our sourcing fee on completion.
Frequently asked questions
Are "we buy any house" companies a scam?
Not as a rule. Many are genuine businesses, but some use unfair tactics. Check membership, proof of funds and reviews before you agree anything.
Are cash house buyers regulated?
There's no statutory regulator. Reputable firms join the NAPB and are covered by The Property Ombudsman, which gives you an independent complaints route.
How much do cash house buyers pay?
Usually around 75% to 85% of market value, depending on the property and how fast you need to sell.
Should I pay a fee to a cash house buying company?
Be very cautious. Many reputable firms charge sellers nothing, and paying upfront is a common warning sign.
Sources: National Association of Property Buyers; The Property Ombudsman; Whitegates: avoiding "we buy any house" scams.