Quick house sale providers offer to buy a house or find a third party buyer very quickly, usually at a discount from the full market value.
The OFT have launched a study into the market calling for people who have used, or considered using, these businesses to contact the OFT about their experiences. They are concerned that homeowners making use of the service may be receiving far less than their property is worth, particularly the risk to those in financial difficulty.
Consumers at risk may also include those who need to sell their property quickly following a relationship breakdown or the elderly, who might need money to pay for their care.
They pointed to several practices of particular concern. These included; unclear fee structures, last minute price reductions and misleading claims about property value.
Cavendish Elithorn, OFT Senior Director for Goods and Consumer, said: “Businesses offering quick house sales may provide a useful service for homeowners who need to unlock cash in a hurry.
“However, they are often used by consumers in vulnerable situations and therefore we are concerned about the risk of consumers being misled and losing out on large sums of money.
"We want to hear from anyone who has used a quick house sale provider, whether they have had a good or bad experience with the business.
“We will protect the confidence of anyone who contacts us and their information will be invaluable in helping us to build up a picture of the market and establish whether we need to take action.”
David Sansome, Managing Director at Sansome & George said: “I would strongly urge anyone considering using one of these companies to look at alternatives and to ensure that they have their property professionally appraised.
Selling at below market value may be an appropriate thing for some sellers in certain circumstances to consider but it must be remembered that the buyer is acting in their own interests and not that of the seller.
At Sansome & George we will always be pleased to advise”
