Quick house sale firms warned by OFT
07/08/2013
The Office of Fair Trading (OFT) has announced three firms who target homeowners struggling to sell their properties by promising them quick sales.
The firms, which have not been named as yet, could face action after it has emerged that they may be selling houses for customers for as little as half of their market value, in return for promising to sell the house quickly; sometimes in less than a week.
The OFT is hoping to force firms in the sector to make their business practices clearer to customers, in the hope that they become more open, and fairer.
Usually people selling their house through ‘quick house sales’ companies will receive 10-20pc less than the actual value of the house on the open market, and to most customers this will have been made clear and agreeable. However, concerns have been raised over last minute changes to sales that are forced on the customer by the agent. In some cases firms have reduced the sale price at the last minute when the seller has already committed to a sale, and has also tied customers into sales with heavy financial penalties if they decide to sell to another party.
However, the OFT has reassured consumers that the industry as a whole is ‘dynamic and innovative’, and that only a few firms are bringing bad practice. Over 120 firms have received contact from the OFT, which will advise them on the correct practices to make sure they are meeting industry standards.
Director at the OFT, Gaucho Rasmussen, said: “Responsible quick house sales firms offer a valuable service to consumers who want a fast sale. However we have also seen potentially illegal behaviour. When sellers get a bad deal they could lose a lot of money. We want to ensure that consumers can have confidence in this sector and put an end to these shoddy practices”.
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