Properties that had been marketed by collapsed firm Emoov could go under the hammer or be sold in conjunction with a network of 1,000 local estate agents.
Auction firm Pattinson yesterday told EYE it has bought ‘exclusive access’ to the sellers of properties although did not say whether it has bought the actual listings.
Administrators James Cowper Kreston did not comment or provide information.
A flyer to Emoov sellers apparently said that Pattinson would sell their properties for free with £750 on completion.
EYE also asked about Pattinson’s claim that the Emoov properties could be sold by the end of the year – in reality, just a few trading days away.
A statement yesterday to EYE from Pattinson said it had stepped in to help customers, and said it would help them get their properties back on the market.
The move has come after Purplebricks amid a blast of publicitiy said it would sell the properties for free, with no suggestion that it had paid the administrators anything for the listings. There has been no update on what the take-up has been.
Pattinson told EYE yesterday: “Pattinson can confirm that they have stepped in to try to help customers affected by the collapse of Emoov and Tepilo.”
The statement went on to quote auction director Justin Beckwith, who said: “We were sad to hear that Emoov and Tepilo have had to go into administration.
“It is important that at this time we factor in the needs of the customers who have been left in limbo.
“In many discussions I have seen on agent forums, there have been suggestions that properties should be organised and distributed among agents who can deliver.
“We have taken up the mantle and are happy to head up the project of ensuring Emoov and Tepilo customers are looked after.
“Agents have expressed a desire to help Emoov and Tepilo customers out across the country and we are happy to give them the platform from which to do this.
“Our plan is to adapt the marketing and sale to provide security for the seller throughout the process.”
The statement added: “With a network of 1,000 partner agent offices across the country they [Pattinson] hope to be able to support these customers and sell their properties with minimal disruption.
“They [Pattinson] will be contacting customers over the coming days to establish their needs and ensure a relevant local agent will be assigned to assist in the marketing of their property if they wish to do so.”
The statement includes a comment from managing director Caroline Pattinson, who said: “The property market works best when agents work together.
“We have a network of branches and partner agents and our Customer Care Centre is open seven days a week, the only days we are closed are Christmas Day, Boxing Day and New Year’s Day, so I think we are well placed to help.
“Some agents say that December is a quiet month and Brexit is having an impact, but as a company we have sold 45% more properties than in December 2018.
“These sellers left in limbo by Emoov and Tepilo could be sold before the end of the year if we can get them back on the market.”
Comments (15)
Just wondering,
Is Pettsion now an online agent?
if so then do they pay online agent fees to Rightmove.
Also how many chimney pots do their geographical area cover according to Rightmove as there was 1 agent who was busted on this and asked to pay double
On-line auctioneers have a different pricing model.
Reason why Pattisons can do for free as they will charge buyer 5%+ VAT reservation Fee with a min of £6000.00
which basically puts buyers off
That fee to a buyer on top of Stamp duty just doesn’t sit right with me unless buying BMV.
IMO, if a buyer knows they are going to have to shell out a 5% Reservation Fee on top of the purchase price, they are likely to reflect this in their bid, resulting in a lower final sale price than might otherwise have been the case.
For this reason, some, possibly most, asset managers handling properties in possession, will be unlikely to sell using this MOMA. It could make a difficulty demonstrating the right level of TCF, an essential part of which is achieving the best price.
So they now have two choices (Three IMO but I’ll come to that).
1. Free listing with PB but no doubt get pressure to sign up to additional terms
2. Go to auction and limit your market
3. (This is the best one), Talk to your local high street agent and we’ll do what we can to find you the right buyer, at the right price to help minimise any losses.
“2. Go to auction and limit your market”
A common misconception amongst sellers. Actually, for the right property, an auction can be the approach that will offer the best market and the best price. It does have to be the right property, rather than your stereo typical modern three bed semi on an estate, in good condition and with an owner occupier where private treaty is likley to be the best route and I can well imagine that many of the Emoov stock will fall into this category, making an auction of any sort, the wrong route.
I agree that auctions can work and work very well. We have referred some in the past.
There is a percentage of the general public however that will not engage in buying a property through auction, thus limiting your market reach.
That’s very true. In my experience of auctions, it tends to be the buyers who have a property to sell and/or those who require a mortgage who are put off. In general terms, if a property is likely to be bought by a buyer requiring a mortgage, that is often a flag that the property is best not suited to auction.
I think we are saying much the same thing. My main point is that sections of the public (and some agents) think that auctions are for distressed stock (properties in possession) or properties in very poor repair and that auction is the “method of last resort” where properties are sold below market value whereas, as outlined above, in many cases, quite the opposite is the case and auction can obtain the best price – better than private treaty.
It’s a case of being able to make the right professional judgement, based on knowledge of the local and regional market.
Pattinson Auction don’t charge the seller, they charge the buyer.
They will most likely do the online auction route.
This method of sale doesn’t work for people in a chain.
They will “sell the properties for free with £750 payable on completion”
So not free at all then? We really are in a mess when people don’t actually know what selling means!
I may be wrong but I think the offer is that Pattinsons won’t charge the seller and will pay the seller £750 on completion. Given that Pattinsons operate on a MMOA basis and charge the buyer a “non-refundable 5% plus VAT Reservation Fee (to a minimum of £5,000 plus VAT)”, they would have plenty of scope to bung a seller £750 out of their Reservation Fee.
If I am right, I imagine that the £750 on completion offer will only apply to those sellers who are willing to go down the MMOA route.
Details needed.
Each seller has a contract with Emoov and although Emoov haven’t honoured that contract of late the sellers will still have obligations (payment?) to Emoov with any disputes resolved in the usual way. Most will still need to pay their fees if not paid in advance. Normally disputes will be resolved by negotiation and sometimes by the Courts with a claim for payment and a counterclaim for damages.
If somebody has bought the contracts then you’d think they could get the listings back up and there be little in the way of deductions from payments due. Those who have already paid may be due compensation for the failure to honour the contract.
What do Pattinson mean by “exclusive rights”. I’m not sure the administrators could award that without agreement from the sellers unless Pattinson took on the contractual obligations that Emoov had. It seems too soon for the administrator to have entered into some agreement with all the sellers.
If they’ve bought a list of properties then perhaps they have an agreement with the administrator that they won’t let anybody else have the list but it was publicly available just a few weeks ago and local Agents will know the properties anyway.
If they can convince owners to market/Guide and Reserve 15% below market value then it could work.
Many vendors don’t understand the process and don’t like the auction route. As they feel they will make a loss. Which is not always the case.
Everyone’s trying to help/get a piece of the action and a bit of free publicity.