THE trading watchdog is urging almost 120 firms operating in the “quick house sale” sector to make sure their business practices are up to scratch after an investigation found some hard-pressed customers handing over their home for less than half market value.
People who sell their homes to a quick house sale firm usually receive around 10-25% less than the market value of their property in return for fast access to cash.
But concerns have been raised about firms reducing the price offered at the last minute when the seller has already committed to the transaction, making misleading claims about the value of the property or the level of discount, and trying to lock consumers into contracts with heavy penalties if they sell to someone else.
The OFT said it has seen firms dropping the prices they will pay by up to 53% on initial offers, which were already below market price, leaving people tens of thousands of pounds out of pocket compared with the market value. The average quick sale is estimated at around £100,000.
The regulator warned that some firms risk giving the industry a bad name.
Gaucho Rasmussen, OFT director, said: “Responsible quick house sale firms offer a valuable service. However, we have also seen potentially illegal behaviour and as a result, the OFT has opened investigations into three companies.”
Source: Herald Scotland