WeBuyAnyHouse Scam

Author
Discussion

Candellara

Original Poster:

1,398 posts

142 months

Saturday 24th October
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paulwirral said:
Have the WBAH outfit maybe purchased or scammed their way into what was called an " option " back in my day . Pay a deposit and have some sort of title to the property for a certain amount of time ? I'm no expert, obviously , but it used to be the norm on commercial property when the developer would be expecting a long term planning decision
I think this is the case but i'm not certain. It certainly prevents a sale to a private individual

Candellara

Original Poster:

1,398 posts

142 months

Saturday 24th October
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Deep Thought said:
It seems what they do is offer a very quick 7 day sale (or similar) and offer below market value on the basis that WBAH have buyers ready to pay (and WBAH get the difference).

The seller then signs the paperwork for the sale but this includes some sort of clause allowing the WBAH 6(?) months to actually complete the sale. This gives WBAH the opportunity to advertise and sell the house at market value and take a very handsome "commission" of the difference between market value and their offer price.
I think this is the case and there are clauses within which prevent the seller from selling elsewhere. It's not clear how long this is for though.


Deep Thought

27,789 posts

157 months

Saturday 24th October
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bennno said:
Deep Thought said:
It seems what they do is offer a very quick 7 day sale (or similar) and offer below market value on the basis that WBAH have buyers ready to pay (and WBAH get the difference).

The seller then signs the paperwork for the sale but this includes some sort of clause allowing the WBAH 6(?) months to actually complete the sale. This gives WBAH the opportunity to advertise and sell the house at market value and take a very handsome "commission" of the difference between market value and their offer price.

Another variation seems to be they offer to buy at close to market value, but hold out and hold out until the last minute then change their offer price to maybe 25% less and rely on the seller having no choice but to sell at that point.

The scenario the O/P is describing seems to be the former though.
WBAH must exchange on the house at an agreed price surely? Why else would you accept their price give them months to advertise it.
I think the premise is that they "expect" to get a buyer within say, 7 days, but there is an out in the contractual wording that doesnt commit them to that. People dont read the fine print, so only after they've signed and the sale doesnt immediately go through do they realise what they've signed up to.

Say the house is worth £250,000. They offer £210,000 but with the promise of a speedy completion. The seller signs up. They advertise it at £250,000. Your contract with them is for £210,000 so you have no say over what WBAH accept over and above that.



The Spruce Goose

25,295 posts

155 months

Saturday 24th October
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Candellara said:
I think this is the case and there are clauses within which prevent the seller from selling elsewhere. It's not clear how long this is for though.
Sounds very unfair. Considering they are older and therefore vulnerable as well, they should have had all pertinent facts fully explained to them, which i doubt they did.

Candellara

Original Poster:

1,398 posts

142 months

Saturday 24th October
quotequote all
Deep Thought said:
Say the house is worth £250,000. They offer £210,000 but with the promise of a speedy completion. The seller signs up. They advertise it at £250,000. Your contract with them is for £210,000 so you have no say over what WBAH accept over and above that.
Yes, but i think that the seller has a choice to accept or not accept the offers provided by WBAH

So, i think the situation will be that they either accept any forthcoming offers from WBAH and take the under valued amount or dismiss any offers or viewings from them until they can extricate themselves from the agreement and then just market the house with a local agent at the typical 1% selling rate

The Spruce Goose

25,295 posts

155 months

Saturday 24th October
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Candellara said:
Yes, but i think that the seller has a choice to accept or not accept the offers provided by WBAH

So, i think the situation will be that they either accept any forthcoming offers from WBAH and take the under valued amount or dismiss any offers or viewings from them until they can extricate themselves from the agreement and then just market the house with a local agent at the typical 1% selling rate
they really need legal advice, i'm sure any lawyer could poke holes in there terms.

Candellara

Original Poster:

1,398 posts

142 months

Saturday 24th October
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The Spruce Goose said:
they really need legal advice, i'm sure any lawyer could poke holes in there terms.
Yep, i think you're right.

m3jappa

4,936 posts

178 months

Sunday 25th October
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Shocking really, i cant believe people like this exist.

I mean if they were actually buying it themselves for x amount and then selling themselves for more then fair enough. You want a quick sale, they buy it etc.

But this sounds like sale or return where they aren't actually buying it at all, but your then tied in.

Very very slippery and makes me feel sad for anyone who isn't switched on enough to realise that.

I imagine the money they make is enormous. 40k here, 50k there a few times a week with very little outlay.......slippery fkers.

Isaac Hunt

11,766 posts

171 months

Sunday 25th October
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Read the 1* reviews on Google. Some absolute horror stories.

I would also question some of the 5* reviews. Some really don't sound genuine.

bristoltype603

97 posts

7 months

Sunday 25th October
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This sounds like they're obtaining a 6 month option to buy. So if the 'offer' price is £210k and the market value is £250k then a rough back of the envelope calculation for the cost of the 6 month call option is £42k...which they're effectively getting for nothing.
eek

Candellara

Original Poster:

1,398 posts

142 months

Sunday 25th October
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m3jappa said:
Shocking really, i cant believe people like this exist.

I mean if they were actually buying it themselves for x amount and then selling themselves for more then fair enough. You want a quick sale, they buy it etc.

But this sounds like sale or return where they aren't actually buying it at all, but your then tied in.

Very very slippery and makes me feel sad for anyone who isn't switched on enough to realise that.

I imagine the money they make is enormous. 40k here, 50k there a few times a week with very little outlay.......slippery fkers.
Yep, not a scam but i do feel very sorry for anyone that gets suckered into these sort of arrangements.

They no doubt prey on the vulnerable and bloody vultures is the best way of describing them. Truly shocking that there isn't some sort of protection against this sort of underhand behaviour all wrapped up in fine print of t's and c's

Jamescrs

1,396 posts

25 months

Sunday 25th October
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The Spruce Goose said:
they really need legal advice, i'm sure any lawyer could poke holes in there terms.
I would guess that anyone using the services of WBAH is probably not in a position to afford legal advice in most cases.

Condi

10,695 posts

131 months

Sunday 25th October
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Deep Thought said:
I think the premise is that they "expect" to get a buyer within say, 7 days, but there is an out in the contractual wording that doesnt commit them to that. People dont read the fine print, so only after they've signed and the sale doesnt immediately go through do they realise what they've signed up to.

Say the house is worth £250,000. They offer £210,000 but with the promise of a speedy completion. The seller signs up. They advertise it at £250,000. Your contract with them is for £210,000 so you have no say over what WBAH accept over and above that.
Probably something like this, although I expect that WBAH have legally committed to buying the house within a given time frame, and appear to have started marketing the house before they actually own it.

I doubt WBAH are simply working as marketing agents, or have an option on the property.

EDIT - the company is connected with a property investment company called Urbane Brix, and if someone could be bothered to go through the accounts no doubt that WBAH uses investors money from Urbane Brix to finance the properties and transfers them to the Urbane Brix portfolio which is then managed to provide a return to investors. Some properties may go back on the market, most would end up as BTL I expect.


EDIT 2 - Ahhh, okay, so they seem to offer 2 services. A "fast service" whereby WBAH buy the house using cash and complete quickly, but take a big discount to the open market price, and a "slower service" whereby WBAH act as an agent or middle man, using a database of investors from the company Urbane Brix and open market offers. The second option gets you closer to market value but takes longer, and it appears that WBAH have 6 months to find a buyer at which time you are under contract with them to sell them the house at the agreed price, irrespective of whatever price they achieve. To extradite yourself from their contract costs £500 or so, but they are members of The Property Ombudsman if you want to take your complaint higher.

Edited by Condi on Sunday 25th October 15:38

Monkeylegend

19,917 posts

191 months

Sunday 25th October
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Maybe they should have gone with WeBuyAnyHome.

Their website says they are not linked with anyone else and unlike their competitors they pay direct from their own funding, so no selling agents involved.

Allegedly.


bigandclever

10,674 posts

198 months

Sunday 25th October
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Candellara said:
I think this is the case and there are clauses within which prevent the seller from selling elsewhere. It's not clear how long this is for though.
Presumably it’s written in the paperwork that (I assume) you haven’t seen.

Candellara

Original Poster:

1,398 posts

142 months

Sunday 25th October
quotequote all
Condi said:
To extradite yourself from their contract costs £500 or so, but they are members of The Property Ombudsman if you want to take your complaint higher.

Edited by Condi on Sunday 25th October 15:38
Interesting. I'd happily pay the Vendor to extradite. Where did you find this information?

bigandclever

10,674 posts

198 months

Sunday 25th October
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Extricate.

Condi

10,695 posts

131 months

Sunday 25th October
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Candellara said:
Interesting. I'd happily pay the Vendor to extradite. Where did you find this information?
Companies house/ Review website/ WBAH's own website.

Candellara

Original Poster:

1,398 posts

142 months

Sunday 25th October
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Condi said:
Companies house/ Review website/ WBAH's own website.
Thanks chap. Much appreciated

Candellara

Original Poster:

1,398 posts

142 months

Tuesday 27th October
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