100% of Market Value? Avoid This Scam When You Rent Back
Apr 12th, 2009 | By admin | Category: Negative Equity News, Repossession, Sack Your Estate Agent, Sell and rent back, cash property buyers, possession orderSTOP PRESS: UPDATE July 2009
Since I wrote this article the housing market has changed dramatically. I warned sellers against the dangers of sell and rent back companies offering 100% of market value. Sell and rent back simply cannot work when the buyer pays 100% market value for your house.
However, I have now developed a system of purchasing that mean I CAN pay you your asking price, BUT it will only work if you are prepared to vacate your home, it will not work for any kind of sale and rent back.
If you would prefer to get the maximum price for your home instead of losing out on 20-40% of your equity, or if you are facing low or negative equity then this may be a possible solution for you.
Some companies promise to pay 100% of market value for your home and then rent it back to you. This is a scam we are seeing more and more of as repossessions rise in the UK.
If that were true why would they spend £000s advertising on Google and in National Newspapers when these homebuyers could go to any estate agents in the country, walk in and buy ANY property for 100% of market value?
In fact, in the current Credit Crunch with house prices tumbling they could probably pay 90% and sellers would be happy.
Add to that that these companies promise to pay cash, well surely they could buy brand new or refurbished properties for around 90% of their advertised market value.
See where we are heading with this?
There must be a catch?
There is.
Download this free guide to Understanding Selling and Renting Back that exposes the scams of companies and who promise to pay 100% of market value for a quick sale.
STOP PRESS:
For the last few years I have been warning people about the dangers of sell and rent back to unscrupulous investors who will buy your property at well below market value and then later evict you from your own home.
From July 1st 2009 this will no longer be a problem. The FSA (Financial Services Agency) will be regulating all sell and rent back operators.
Unfortunately, like most of the hurried regulation Gordon Brown’s Government brings in, this means you could now have a new problem.
Because, along with the cowboys that this new law is supposed to get rid of, thousands of perfectly good independent operators will also be outlawed from July 1st.
The huge range of landlords and investors willing to take the risk on sell and rent back has meant that home owners wanting to sell their home and rent it back have had a huge choice, leading to competition in the marketplace from landlords offering to pay you more than the next person. Competition is good for the consumer.
From July 1st this will stop overnight.
From literally thousands of sell and rent back operators – most of them, like me, small friendly and approachable – there will be perhaps 10 or so huge faceless companies licensed by the FSA to operate sale and rent back. No competition will surely mean a lower price for your home and you will be dealing with the same kind of corporate people as when you have to deal with your mortgage lender, instead of someone who has an interest in treating you as an individual.
And if you think you have heard of the FSA before, you have.
They are the bunch of clowns who let the banks rip us all off with whilst bringing the banking system to a collapse and caused the problems (the credit crunch, mass unemployment) that may be the reason you are thinking of selling and renting back in the first place.
Just imagine how this bunch of incompetents will regulate these new giant rent back companies?
Personally, I will no longer be operating a sell and rent back scheme after July 1st.
At least I was able to help a lot of people over the last few years with friendly advice. Over 95% of those people who came to me didn’t need to sell and rent back and hopefully they are still in their homes or at least found a new way to sort out their financial problems.
However, if you wish to sell your home and move on then I can still help you. It’s only sale and rent back that I cannot advise you on. The way that I work means that I can also pay your asking price – more than any sell and rent back operator can possibly pay you.
“PS. After the 1st July I’m not even going to be allowed to tell you NOT to sell and rent back even if I think you don’t need to!”
