Companies that buy houses: how they actually work.
"We buy any house" companies promise a fast, guaranteed sale with no fees and no chain. Some deliver exactly that. Others advertise one price and pay another. This guide explains the different types, how the price is set, how they make money, and what to check before you sign anything.
What "companies that buy houses" means.
The phrase covers any business that buys residential property directly from the owner, rather than acting as an agent to find a buyer. You sell to the company; the company either keeps the property to rent out, refurbishes and resells it, or sells it on to another investor.
The appeal is simple: no viewings, no open market, no chain, a fixed completion date, and — with a genuine buyer — no fees. The cost is that you sell below full market value. A direct sale to a property company is typically 75–85% of what the property would fetch on the open market, sometimes less for properties needing significant work.
The main types.
National cash buyers
The large "we buy any house" brands that advertise heavily. They operate a standard model at one price point across the whole country, often 70–80% of market value. Fast and predictable, but they apply the same template to a tenement flat and a rural cottage, and some are known for reducing the offer close to completion.
Local and regional property companies
Smaller firms that buy in one area or region. They know the local market, will look at each property individually, and can often be more flexible on structure and timing. Quality varies — check who you're actually dealing with.
Lead-generation and "sourcing" sites
These don't buy anything. They collect your enquiry and sell it on — sometimes to several buyers at once. You may get multiple calls and offers that then change once someone views. Not inherently bad, but you should know if that's what you've contacted.
Auction and "modern method of auction" firms
Not a direct sale — your property is listed and sold to the highest bidder, usually with a reservation fee paid by the buyer and a fixed timescale. Faster than the open market, but not guaranteed and not fee-free in every case.
Why the offer is below market value.
A genuine buyer is taking on risk and cost that a mortgage buyer on the open market doesn't:
- Their own money is tied up from the day they buy until the day they sell or let — that carries a cost.
- They carry the risk of the market moving, the refurb costing more than expected, or the property being harder to sell on than it looked.
- They're paying for speed and certainty — no marketing period, no chain, a guaranteed completion date. That's the value you're buying from them, and it has a price.
- They cover costs you'd normally pay — a genuine buyer pays your legal fees and doesn't need a Home Report.
The discount is the deal. What matters is that the number you're quoted at the start is the number you get at completion.
What to watch for.
- A price cut near completion. The most common complaint. A strong opening offer, then a "survey issue" or "market change" knocks tens of thousands off once you're committed and short of time.
- "Cash" that isn't cash. Ask for proof of funds. Some buyers use bridging finance or need to line up an end buyer first, which reintroduces the delay and fall-through risk you were trying to avoid.
- Tie-in agreements. A contract that locks you in for a period, blocks you from selling to anyone else, or charges a fee if you walk away.
- Upfront or "admin" fees. A genuine buyer doesn't charge you to buy your house.
- Lead sites posing as buyers. If you're getting calls from several companies, your enquiry was sold on.
- Pressure. "This offer is only valid today" is a sales tactic, not a market reality.
Questions to ask before you commit.
- Are you the company that will actually buy the property, or will you pass my details on?
- Can you show proof of funds before missives?
- Is the offer fixed, and under what circumstances would it change?
- Am I tied into anything by talking to you or accepting a valuation?
- Who pays the legal fees, and is a Home Report needed?
- What's a realistic completion date, and what could delay it?
- Are you a member of a redress scheme (Property Redress Scheme or The Property Ombudsman), and are you registered for anti-money-laundering supervision?
How regulated is this?
Buying property from a homeowner isn't regulated by the FCA the way a mortgage or investment would be. The protections that do apply:
- Redress schemes — property buyers should be members of the Property Redress Scheme or The Property Ombudsman, which gives you somewhere to escalate a complaint.
- Anti-money-laundering supervision — high-value dealers and estate agency businesses must register with HMRC and carry out ID checks.
- Consumer protection law — misleading pricing and high-pressure selling are covered by the Consumer Protection from Unfair Trading Regulations, enforced by National Trading Standards. In 2021 several "sell house fast" firms were subject to enforcement action over undisclosed referral fees and misleading claims.
- The National Association of Property Buyers (NAPB) — a voluntary trade body whose members sign up to a code of practice.
How we work.
Clyde Housebuyers is a Glasgow-based property company covering Scotland's Central Belt. We buy directly using our own funds, cover your legal fees, and don't charge you anything. We look at each property individually rather than applying a fixed percentage, and we'll tell you when a different route — an assisted sale, an open-market listing, or a traditional estate agent — would net you more than we'd pay.
Sometimes another buyer is better placed to help with a particular property. When that's the case we'll ask your permission before introducing your enquiry to a partner firm, and we receive a small percentage of the fee from that firm on completion.
Clyde Housebuyers is a trading name of PropGain UK Limited (registered in England & Wales, company number 16913648). We're ICO registered, HMRC AML supervised, and a member of the Property Redress Scheme.
Companies that buy houses — FAQs.
How much do companies that buy houses pay?
Typically 75–85% of open-market value for a property in reasonable condition, less for one needing major work. National "we buy any house" brands are often at the lower end, around 70–80%.
Are house-buying companies a scam?
The model itself is legitimate — a genuine buyer gives you speed and certainty in exchange for a below-market price. The problems come from specific practices: reducing the offer late, tie-in contracts, or lead sites that sell your details. Check proof of funds, redress-scheme membership, and whether the offer is fixed.
Do I pay any fees to sell to a house-buying company?
You shouldn't. A genuine buyer covers your legal fees and doesn't need a Home Report. Any company charging you an upfront or admin fee to buy your house is a red flag.
How quickly can a company buy my house?
Two to four weeks is realistic for a genuine cash buyer in Scotland. The limit is usually the missives and conveyancing process, not the buyer's funds. Be wary of anyone promising completion in a few days as standard.
Is it better to use an estate agent instead?
If the property is in good condition and you can wait, an agent or the open market will usually get you more. A house-buying company makes sense when speed, certainty, or the condition of the property rules the open market out. More on selling without an agent.
Want a straight valuation with no tie-in?
Tell us about the property. We'll give you a clear figure, explain how we got to it, and show you what the other routes would be worth. No obligation, no pressure.