Some homeowners need to sell their property quickly to avoid repossession or the crippling effects of mounting consumer debt. Others are eager to start their new lives overseas or simply can’t wait to secure the purchase of their dream home that finally came onto the market.

The decision to sell property in order to settle debt and avoid repossession is almost never plan A – everyone knows that property is the best investment one could make, and most people will go to great lengths to hold onto their prized assets for as long as possible.

As soon as their financial situation escalates beyond control, the first thing the average homeowner would most probably do is approach the bank manager about another loan. The problem here is that banks are very serious about risk management, and loans are never extended unless the bank is certain that the money will be repaid in future. The chances are slim indeed for someone with bad credit, mortgage arrears, or no proof of income to be granted a loan extension.

All of this might even be beside the point. The real issue is this: Should someone who is so deep in debt that their home is about to be repossessed really be asking for another loan? Settling old debt by signing up for new debt simply doesn’t make good financial sense.

Sooner or later, once all other alternatives have been exhausted, the homeowner realises that selling is their only real option. There are, however, a variety of available selling methods to consider. These include selling through an estate agent, on the open market, auctioning your property off, or selling to a cash house buyer.

Advantages and disadvantages of other selling methods

Each of the above-mentioned home selling methods has both advantages and disadvantages that homeowners should consider before making a decision; these will now be discussed in turn.

1. Selling through an estate agent

   The biggest advantage of selling your home through an estate agent is the fact that it is not demanding on the homeowner. From determining the value of your property and advertising it on the market, to organising home viewings and processing the sale, the estate agent basically does everything for you.

   The disadvantages of this option, on the other hand, are somewhat more numerous. Firstly, estate agents are known for the overvaluation of property. According to this trend, agents lead homeowners to believe that their properties are worth much more than what they actually are. Why would they do this? The answer is simple: Estate agents calculate their commissions as a percentage of a home’s initial selling price – by inflating that original amount, they secure themselves more money out of the deal. The seller, however, becomes increasingly stressed and frustrated as no buyers come forward.

   Secondly, estate agents are known for hidden costs, “extra” deductions, fine print, and a range of other disadvantages that so often characterise the process of selling a home this way. Not to mention the fact that it could take up to a year to sell a house through an estate agent!

2. Selling on the open market

   Selling property on the open market can be highly advantageous for somebody who knows what they are doing. This way, sellers do not have to pay any estate agents’ fees or marked-up marketing costs – just to name a few expenses – and thus stand to fetch a large selling profit.

   If, however, you are not familiar with the ins and outs of the property market, you could potentially suffer a great loss. From market research and advertising, to complicated legal procedures and the sale itself, selling on the open market entails strategising, stressing and risking all on your own.

3. Auctioning your property off

   Auctioning your property off should always be seen as an absolute last resort. With these kinds of odds, it is difficult to see how the option of an auction can even be considered when there is another way.

4. Selling to a cash house buyer

   And there is another way! Cash house buyers have become increasingly popular in the UK, due to the fast and effective way in which some of these companies do business. Do take note of the word some. Why should you consider this option, and who should you approach? Keep reading for answers…

MPG: The ultimate cash house buyers

Thanks to MPG Investments, you can sell your house – for cash – in just 7 days. This is no clever sales pitch; there is no fine print and there are no hidden fees – just our guarantee, and solid track record to back it up.

The one disadvantage of selling to a cash house buyer such as MPG Investments is that the sale could yield up to 20% less than your home’s official market value. For many people, however, this is a small price to pay for a fast, stress-free sale.