How Much Below Market Value Do House Buying Companies Offer? The Ultimate Guide for 2025

There’s no shortage of promises out there, like “We’ll buy any house”, “Cash in your account in seven days”, or “Top prices paid”. 

But what do those offers really look like when you look a bit closer? And how far below market value do house buying companies actually go?

That’s what this guide is here to answer. We’re pulling back the curtain on how these companies work, what percentage they usually offer and what that means for your bottom line.

You’ll also learn what affects the price you’re quoted, how to avoid a lowball offer, and how to tell if a company’s genuinely interested or just stringing you along or even ripping you off.

Because while speed and certainty are priceless when you’re stuck in a slow chain or facing repossession, nobody wants to be taken for a ride.

What does ‘below market value’ really mean?

Before we talk percentages, it helps to be clear on what we’re comparing against.

The market value of your home is what you’d reasonably expect to get if you sold it the traditional way. That usually means listing with an estate agent, hosting viewings, waiting out the chain and hoping the survey doesn’t throw up anything dramatic.

It’s based on what similar properties have sold for recently, in your area, in similar condition.

Cash house buying companies don’t use a different definition. They still start with the same market value. The difference is in what they’re prepared to pay below that figure.

So how much do cash house buyers actually offer?

Most reputable house buying companies offer between 75 and 85 percent of market value.

That’s a broad range, and the exact figure depends on all sorts of factors. But if anyone’s offering 85 to 90 percent or more, be cautious. They will very likely be overpromising upfront, then lowering the offer just before exchange when they think you are desperate.

On the flip side, if someone’s offering less than 70 percent, they might be taking advantage of desperation. That’s not how legitimate buyers work.

At Sell House Fast, we offer fair, transparent prices based on the true value of your home. We also cover your legal fees and make sure the process is smooth, quick and guaranteed.

Why do house buying companies offer less than market value?

It’s a fair question. If your home is worth £200,000, why might a buyer offer £160,000?

It’s not that they’re trying to fleece you. It’s because they’re offering something traditional buyers can’t: certainty, speed and zero faff.

House buying companies take on the risk and cost of getting that home sold. Here’s how that breaks down:

• They cover fees like valuations and admin. They pay for everything upfront so you don’t have to.
• They move quickly, usually buying in days or weeks. In comparison, traditional buyers rely on mortgages, surveys and long chains.
• They don’t cherry-pick, and many homes they buy need work. From tired decor to major repairs, they’ll take it all on.
• Some properties are held for rental, but most are sold on. Because they aim to resell, the company needs enough margin to make that viable and there are a number of costs like second home stamp duty, holding costs, resale costs, legal and purchase costs that need to be factored in on top of the profit they look to make.

In short, that discount reflects the risk, cost and speed they’re offering. It’s not charity, but it’s not daylight robbery either.

The key is knowing what’s fair, and making sure the company you work with isn’t padding their profit at your expense.

What affects how much you’re offered? 

Not all homes are treated the same by house buying companies. The amount you’re offered depends on several real-world factors that influence how easy your property will be to resell.

Here’s what makes the biggest difference:

Condition

If the home needs major repairs or a full refurbishment, your offer will be adjusted to reflect that. Cosmetic updates might not change much, but structural issues definitely will.

Location

Homes in high-demand areas tend to get higher offers. If your home’s in a remote or less popular area, the discount might be steeper due to slower resale times.

Property type

Flats usually attract lower offers than houses. Leasehold properties, short leases or unusual constructions can also bring the offer down.

Market conditions

If prices are falling or buyer demand is low, cash buyers will need more margin to resell. In hot markets, offers might edge higher.

Legal or planning issues

From missing documents to boundary disputes to planning irregularities, anything that complicates the legal process can affect the final price.

At Sell House Fast, we assess every property individually. There’s no one-size-fits-all figure, but we always aim to give a fair offer that reflects the true market and your specific situation.

Typical cash offers explained

Let’s put some figures to those percentages so you know what to expect in real terms.

If your home is worth £200,000 on the open market:

• A 75 percent offer would be around £150,000
• An 80 percent offer would be around £160,000
• An 85 percent offer would be around £170,000

That difference might feel steep. But remember, it often ends up closer to the true amount you’d pocket anyway.

Estate agent sales usually involve:

• Estate agent fees (typically 1% to 3% plus VAT)
• Legal fees
• Mortgage payments while the home is still on the market
• Council tax and maintenance while waiting for completion
• Risk of a fall-through which could force you to relist

Add in the time, hassle and uncertainty, and for some sellers, that fast and final offer from a cash buyer feels a lot more appealing.

And if you’re stuck in a chain, facing repossession or just don’t want the stress, then speed and security might be worth every penny.

How do house buying companies calculate their offers?

Most reputable companies start in the same place as estate agents: with comparable sales.

They’ll look at what similar properties have sold for recently in your area. That gives them a clear idea of your home’s open market value. From there, they’ll apply a discount based on how quickly they need to move and what they’ll need to invest in resale.

They’ll factor in:

• The cost of holding the property, including council tax, insurance and utilities
• Any renovation or repair work that might be needed to make it saleable
• Their own legal and administrative costs
• The need to leave some room for profit, especially if they’re reselling quickly

A genuine buyer will be open about this process. If they’re cagey about how they’ve reached their figure, or they dodge questions, take it as a red flag.

At Sell House Fast, we keep things simple and transparent. We give you a clear breakdown of what we think your home is worth, what we’d offer and why. No hidden fees. No changes at the last minute.

How do I avoid undervaluation and property scams?

Not all house buying companies are created equal. Some are up-front, fair and reliable. Others rely on pressure, confusion and last-minute changes.

So, how can you tell the difference?

One of the biggest warning signs is a company offering 90% or more of your home’s market value with no questions asked. It might sound like a great deal, but it often comes with a catch. These companies may drop the offer significantly just before exchange, betting you’ll go along with it to avoid starting over.

Other big red flags include:

• Refusing to show proof of funds
• Adding on extra fees after you’ve accepted their initial offer
• Being vague about the process or timeline
• Giving you no written breakdown of the offer
• No clear company information available
• Last-minute price drops

You should never feel rushed, confused or out of your depth. A good company will explain everything clearly, give you time to decide and answer all your questions. 

Trust your instincts on valuations, because if it seems too good to be true, it almost certainly is.

At Sell House Fast, we’ve helped sellers like you get a fair deal without drama. We always offer proof of funds and we never charge anything upfront.

Which properties get lower offers?

Cash buyers don’t use a blanket approach. Some types of homes are simply riskier or harder to sell on, so the offer reflects that.

Homes in poor condition are usually priced lower. If a property needs a new roof, rewiring or major structural repairs, the cost of fixing it eats into what a buyer can offer. Even if you’re used to the quirks of an older house, a buyer taking it on blind will factor in worst-case costs.

Flats often come with leasehold complications, service charges and ground rent, which makes them less appealing to some investors. The result is typically a lower offer than you’d get on a freehold house in the same area.

Properties in remote or low-demand areas tend to be harder to resell. That means longer holding periods for the buyer, more risk and a bigger discount.

On the other hand, if you’ve got a modern house in good condition, especially in a city or commuter belt, you may be offered closer to the 85 percent end of the scale. That’s because the buyer can confidently predict strong resale demand.

What are my options?

Cash house buyers aren’t the only way to sell your home. But they are the fastest and most reliable. Let’s look at how they stack up against the rest.

What are the risks of selling below market value?

Selling for less than market value sounds like a red flag. And for some sellers, it might not be the right move. But it’s only risky if you don’t know what you’re getting into.

The biggest risk is working with an unregulated or untrustworthy buyer. Some will hook you in with a high initial offer, then drop the price late in the process. If you’ve already made plans to move, you might feel pressured to accept.

Others may charge hidden fees or fail to disclose conditions that affect the deal. You could end up worse off than if you’d used an estate agent from the start.

Then there’s the emotional risk. Selling your home can be stressful at the best of times. If the process is rushed or unclear, it’s easy to feel overwhelmed.

The solution, then, is to work with a company that’s clear, consistent and above board.

At Sell House Fast, we’ll never pressure you to accept an offer. We’re open about every step and we always let you decide what works for you.

When selling below market value makes sense

Not every seller has the luxury of time. And not every property is cut out for the open market.

If your sale is under pressure, a slightly lower offer can often be a smarter choice than holding out for full price.

For example, if you’re facing repossession, a fast sale could help clear your debts and protect your credit rating. The cost of waiting even a few weeks might be more than the discount a cash buyer applies.

If you’re dealing with a probate property, the family might want a clean break, especially if the house needs work. Holding out for top price might involve months of delays and viewings, and it’s not always worth it when emotions are already high.

In a divorce or separation, selling fast can ease tension and speed up the process. It’s one less thing to argue over and helps both parties move forward.

Even landlords looking to sell a tenanted property often prefer a cash buyer. You don’t have to wait for the tenant to leave or bring the place up to showroom standards.

And if your house sale has already fallen through, a reliable cash buyer can step in quickly, with no fresh listings, and no starting again from scratch.

How do I know if I’m being offered a fair deal?

A fair offer doesn’t mean full market value. But it does mean transparency, respect and no nasty surprises.

Start by checking the market value yourself. Look at recent sales of similar properties in your area. Sites like Rightmove and Zoopla can give you a ballpark. Ignore asking prices and focus on sold prices, because they show what buyers were actually willing to pay.

Next, ask the company how they reached their offer. A reputable buyer will give you a breakdown of their figures. They should also explain what deductions, if any, they’ve made for repairs, location or other issues.

Make sure they aren’t charging you anything. You shouldn’t be paying for valuations, admin or legal work. If they mention fees, walk away.

Get everything in writing: the initial offer, the process, the timeline all needs to be clear and documented. That way, if anything changes, you can spot it straight away.

Lastly, check reviews. Not the hand-picked ones on their website, but real ones on platforms like Trustpilot or Feefo. Look for consistent praise, not just the odd glowing review, and more importantly pay attention to the bad reviews, as they’ll tell you far more than the good ones.

With the right company, you’ll get a fair offer and a smooth process. No drama, no dropouts, no bait and switch.

Selling for less doesn’t mean losing out

So, can you sell a house below market value and still come out ahead? Absolutely! Especially if speed, certainty and simplicity are what you need most.

You’ll avoid fees, viewings, delays and the dreaded risk of another house sale falling through. You’ll also be working with people who know how to move fast, handle complexity and give you a clean, stress-free experience.

At Sell House Fast, we offer a clear, fair alternative. We can buy your house for cash, can usually complete in a matter of days and take care of the legwork. If you want to sell a tenanted property, sell your flat fast or need a fast house sale after a chain collapse, we’re here to help.Get in touch today to get your free cash offer and to find out how it works. We’ll talk you through it, give you a no-obligation offer and let you decide if it’s right for you.