Finding a cash house buyer you can trust might seem like an impossible task, especially when you hear so many horror stories about schemes and scams. But sorting out the genuine companies from the conmen is actually easier than you think, as long as you know what to look for.
In this section, we’ll take you through all the essential checks that you can use to put any cash home buyer to the test. Each one only takes a few minutes and some simple online digging, but they could save you months of heartache and thousands of pounds.
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Remember, you’re spending 20% of the value of your home on a fast cash house sale, so you need to be sure that you’re in safe hands. If you were spending that much on a new car, you’d read all the reviews, take a test drive and compare different makes and models, and you need to do the same due diligence when it comes to finding a cash house buyer.
Your next step
We’ve already checked out all of the best cash house buying companies in the UK, impartially measuring each one against our stringent standards. You can see the outcome in our reviews section, and you’re welcome to do your own research to confirm our opinions.
Alternatively, you can trust our judgment and let us recommend the best cash house buyer for you.
Simply click the cash offer calculator button below to get an initial estimate of the value of your home in a quick cash sale.
If think you can work with that price, we’ll connect you directly to the first-class services of a fully vetted home buyer we know you can trust.
Let’s start with a simple checklist of gold standards and red flags…
Your cash home buyer checklist
We showed you this list in our main article, ‘how to avoid cash house buyer scams’, but it bears repeating. Use this as your yardstick to measure any potential cash buyer and you won’t go far wrong.
Gold standards
- Registered with Companies House
- Well established (5years or more)
- Members of the Property Ombudsman
- Proof of funds available
- Published complaints procedure
- Satisfied customers
- Open and honest communications
- Recommended by the Property Sale Watchdog
Red flags
- An offer that’s too good to be true
- Being asked to sign a contract
- Being forced to use their solicitors
- Negative reviews
You don’t have to get all the gold standards, but you should try finding a cash house buyer that offers as many as possible. On the other hand, if you come across even one of the red flags listed, you should walk away immediately.
The gold standards
Let’s take a look at each of the gold standards in a little more detail, so you know exactly what you’re looking for.
Registered with Companies House
Being registered with Companies House is the bare minimum for legitimacy as a company. Around one in five cash house buyers are not registered companies, they are just small-scale operations, often individuals, with a flash website. Any genuine company should be registered, and if they’re not, cross them off your list.
Action: Most companies list their company number on their website, or you can search for them by name on the Companies House website.
Note: Always check that the listing is genuine, as some companies will make up their registration number to appear legitimate. Be aware that some companies may be using a trading name and be registered as something else. If in doubt, contact them directly for clarification.
Well established (5 years or more)
Finding a cash house buyer that’s been around for a while is a good sign. Less reputable businesses tend to come and go, making all they can, before disappearing completely and taking your money, and your dreams, with them. If a company has been around for a while, it doesn’t automatically make them one of the good guys, but they must be doing something right.
Action: You can see when a business was established by searching on Companies House.
Note: A new company may be completely legitimate and trustworthy. Everyone has to start somewhere. However, there is no way of knowing how a new company will behave over time, so it’s better to let someone else be their test case.
Members of the Property Ombudsman
The Property Ombudsman was set up to protect the interests of people using the property industry, including when you want to sell your house fast by finding a cash house buyer.
Most reputable cash buyers will be registered with TPO. This means that they have committed to follow the TPO Code of Practice, so you should be treated fairly. TPO members also agree to independent mediation in cases of dispute, so you have someone to turn to if you feel you’ve been badly treated.
Action: Look for the Property Ombudsman logo on the cash buyer website, or search for the company on The Property Ombudsman site
Note: PSW research shows that more than 10% of cash buyers featuring the TPO logo on their website were not actually members. What’s more, a surprising number of TPO members did not feature the logo. Always double check membership on the TPO website directly to be sure.
Proof of funds available
It might sound obvious, but a legitimate cash buyer needs cash to buy properties with. If they don’t have their own cash, or an established line of credit with a bank, then they can’t offer the fast sale that you need. Some companies will use mortgages, which slow the whole process down significantly, while others don’t actually buy your home at all, but try to arrange a sale behind the scenes at a higher price.
Action: The simplest way to find out if your chosen cash buyer has cash available is to ask them. A genuine company will be happy to show you proof of funds.
Note: You can also check the financial status of a company by looking at their accounts lodged with Companies House. You can read more about this in our article ‘digging deeper into cash house buying companies’.
Published complaints procedure
Hopefully, if you have spent time carefully finding a cash house buyer, then you shouldn’t have any problems with them. But if you do, you need to know how those problems will be dealt with. A published complaints procedure will reassure you that a process is in place to resolve any issues, telling you who to complain to, how that complaint will be handled and when you can expect a response.
Action: Look for a complaints procedure on the cash buyer website. This can usually be found among the details at the bottom of the page.
Note: Just because a company doesn’t publish their complaints procedure, it doesn’t mean they don’t have one. If in doubt, ask them for details of how they deal with complaints.
Satisfied customers
The proof of the pudding is in the eating, as the saying goes. So who better to tell you about your chosen cash house buyer than someone who has used their services. You can do this in two ways, either by visiting independent review sites or by asking the company to put you in touch with previous customers. If they have a good reputation, and treat their customers well, then they should not have a problem with doing this.
Action: Ask your chosen cash house buyer to put you in touch with previous customers who have used their service, and check out independent review sites like Trustpilot and Google
Note: Independent reviews should be used with caution, as they can be manipulated and may not give you an accurate picture of the company. See the red flag section below for details.
Open and honest communications
First impressions can tell you a great deal about how a company conducts itself and how you can expect to be treated in the future. Finding a cash house buyer you can trust starts with calling or emailing them to see what response you get, and how fast you get it. If they are slow in responding, chances are they will be slow in buying your home too. It’s important to feel confident and trust in the company from the start, and their initial communications will speak volumes about their approach.
Action: Contact the company by phone or email and see how quickly they respond and how they present themselves.
Note: Go with your gut feeling on this one, and if you don’t feel comfortable with their initial communication, move on. Remember, your fast house sale will cost you a great deal of money, so you deserve first class service in return.
Recommended by the Property Sale Watchdog
We’ve used all the points above, and many more, to independently review dozens of companies to help find the right cash fast cash buyer for you. You can read all our impartial cash homebuyer reviews yourself, or you can cut to the chase and see who our experts think is the best cash house buyer for you.
Action: Simply click the cash offer calculator button below for an initial estimate of the value of your home in a quick cash sale. If think you can work with that price, we’ll connect you directly to the first-class services of a fully vetted home buyer we know you can trust.
Red flags signal danger
With so many dodgy cash house buying companies out there, it’s important to know the red flags and how to spot them. If you come across any one of these when you are finding a cash house buyer, you should walk away immediately.
These red flags are non-negotiable warning signs and you should not consider working with any company that fails any of these tests:
An offer that’s too good to be true
You might think that the average cash offer of 80% is low, or even greedy, but it really isn’t. Around half of that goes on the cost of acquiring your home, holding it and selling it on. Then there are admin costs, running costs and staff costs for the company on top of that. In the end, the profit margins are actually much smaller than they look, and cash house buyers simply can’t offer you any more without making a loss.
If you get an offer that seems too good to be true, then it almost definitely is.
Many dodgy companies use high offers to tempt you in, with no intention of ever paying that much. The worst part is, they will save their price drop until the last minute, when you have little choice than to accept.
A reputable cash house buyer will give you a genuine, fair price at the start, and they will stick to it.
Being asked to sign a contract
Think about it, why would a cash buyer ask you to sign a binding contract in the first place? If they pay what they say, and they treat you well along the way, there’s no reason you wouldn’t stay with them. They only need a tie-in contract if they are planning something underhand that would make you want to walk away.
If a company asks you to sign a contract, you need to ask yourself why.
Many contracts will have a cash penalty if you withdraw, and some companies even use this as their main source of income. They sign you up, treat you badly, and pocket the penalty when you feel you have no choice but to buy your way out. It’s cynical, but it’s very effective.
Cash house buyer contracts will never be worded in your favour. They only benefit the buyer and never the seller.
Being forced to use their solicitors
On the face of it, using the cash buyer’s solicitors seems to make sense. They will be experienced in this type of transaction and can help to speed things along. If you trust the cash buyer, then there’s no reason not to choose this route, and you’ll often find your legal fees paid for you if you do.
Remember, your solicitors should always act in your best interests, whether they are recommended by the cash buyer or you choose your own.
The problems come when you are not given a choice. If a cash house buyer is insisting that you use their legal team, then you have to ask what they’re trying to hide. What dirty tricks they’re afraid your own solicitors might uncover?
You should always have a choice about which solicitors you use. If the cash buyer insists that you use their legal team, walk away.
Negative reviews
We discuss how to use review sites in detail in our companion article ‘reviewing the review sites’, but it goes without saying that finding a cash house buyer with lots of bad reviews should ring alarm bells. It is all too easy for companies to get negative reviews removed, so if there are still a number of damning reviews left, then this is a very bad sign.
Negative reviews serve as a warning. Learn from the mistakes of others and avoid making the same mistake yourself.
That said, there will always be some people who don’t understand the cash house buying industry, and who are outraged by the price they are offered for their home. You can usually ignore this type of negative review.
There is more to reviews than just an average ‘star’ score. If you learn how to interpret independent reviews, then you can turn them into a valuable tool in finding a cash house buyer you can trust.
Here at the Property Sale Watchdog, we’ll always point out any red flags in our reviews, and only the very best, red-flag-free companies earn our recommendation.
To find out who our experts think is the best cash house buyer in the UK for you, simply click the cash offer calculator button below.
We’ll give you an instant estimate of the value of your home in a quick cash sale, and if think you can work with that price, we’ll connect you directly to one of our recommended buyers.