While quick house sale transactions took place prior to the huge recession of 2008, it was the financial crisis that created an entire marketplace based on this principle. As thousands of UK residents became encumbered with negative equity and were forced to default on their mortgage repayments, the quick house sale market offered sanctuary and an opportunity to avoid repossession.
While this marketplace continues to help stricken and struggling home-owners, it has evolved considerably since its formation. Not only has it benefitted from significant regulatory measures, for example, but it has also diversified to meet the needs of an increasingly diverse client base.
How has the Quick Sale housing Market Evolved?
If you chart the course of the quick house sale market since the economic recovery began in earnest, you will notice two things. The first is the determination of national regulatory bodies to ensure a fair and consumer-friendly market, where firms adhere to a clearly defined and principled code of conduct.
The most important element of this was ensuring that service providers offer a fair price and pay the agreed amount in full, as while it is well-known that quick house sales firms pay below market value in exchange for a quick, cash settlement the boundaries of such a transaction must be made clear.
Beyond this, the market has also begun to appeal to a wide demographic of potential customers. This has helped to improve the reputation of the market considerably, especially when you consider that quick, cash house sales were once exclusive to those who had defaulted on their existing mortgage repayments. This is no longer the case, however, as quick house sales are now in demand among investors, those relocating abroad and individuals keen who are keen to purchase their dream property.
Will these trends continue indefinitely?
In terms of investors, the proposed increase in stamp duty for buy-to-let home-owners and the gradual erosion of tax benefits for this demographic has forced many to consider offloading real estate assets. The quick house sale market offers a quick method of releasing some much-needed capital and offloading a depreciating asset, and while investors will need to accept a price below current market value it is important to remember how inflated current prices are in the first instance.
So while there remains no doubt that the quick house sale market will continue to benefit from stringent regulatory measures, the question that remains is whether it will also evolve constantly over the course of the next decade? In truth, much of this depends on external market circumstances; although there is every chance that cash rich home-owners who are keen to purchase their dream property without a chain will consider selling through this vehicle in the future.
If the expected economic recession takes hold, however, 2016 could yet see the quick house sale market return to its original guise as a saviour of those burdened with mortgages that they cannot afford.
A Good Industry to join then?
Property has always been a risky yet potentially lucrative industry to join. With House prices in the UK and US steadily rising as demand outstrips supply, purchasing houses below the market price to sell on for a quick profit certainly makes economic sense. However, with incumbents like Open Property Group and high capital needed to get going, it will be tough to muscle in on and subsequently do well in the industry. That being said though, if you have the required assets and cash reserves, the appropriate skills in DIY and are committed and driven, there is no reason why you can’t make it and become a successful property entrepreneur.
In the property market already? Comment your thoughts and tips to any would be property tycoon below.