It’s been another hectic week for the industry, here is what has caught our eye.
First: Gone in 90 days
There was plenty of scepticism over the launch of a proptech firm which intends to take 10% of the estate agency market by promising to sell a vendor’s home in 90 days or give them the cash.
Nested guarantees the sale within 90 days or lend the seller the full amount, interest free, enabling them to move on.
The business has raised £3m from investors including Passion Capital and billionaire German entrepreneurs Oliver and Alex Samwer via their Global Founders Capital fund.
‘Eamonn’ commented: “Nested pay off the sellers existing mortgage (replace with a legal charge of their own) and then advance the seller the balance of funds from their lower valuation, “called a guaranteed sale price” minus 20% of the real selling price.
“Plus the vendor is going to be hit with a temporary stamp duty surcharge until they can claim it back of HMRC
“Yes it’s a Nice Idea and it solves problems but only adds the value of peace of mind. Not sure I agree it adds any more value when people don’t get the equity value of their home.
“Would have been nice to see them partnering with high street agents and factoring in a percentage cut. It would help them grow. But instead they have tried to be like Purplebricks and easyProperty in being an online valuation expert.”
PropertyPaddy quipped: “He’s gonna need a tad more than £3m if he starts in London, that’s the price of a studio flat in Chelsea.”
Second: Portal wars
Readers mulled over OnTheMarket ending its “special offer” to agents at the end of next week as it continues its recruitment drive in the heated portal market.
Some agents, currently not members, have received the following email:
“A few months ago OnTheMarket.com created an opportunity for a select number of agents to list on OnTheMarket.com for 12 months with a listing-only contract and a small monthly fee.
“We had a large response to this and added a significant number of agents and listings to improve our offering to the consumer.
“We have a record number of members listing with us now, but the offer has to come to an end on the 30th September. As the market picks up post summer, join a website with your best interests embedded into its core.
- 100% agent owned
- No shares or shareholders
- Not for profit
- No on-line agents allowed to list
“OnTheMarket.com list all your sales and lettings properties, new homes and students lets as well as having brand presence.
“There is no better time to be part of something that is run and controlled by you the agents.
“I would welcome the chance to introduce myself and discuss this opportunity in more detail, when would be a good time for you?”
Eric Walker said: “I sincerely believe OTM is a good offering restricted by the ‘one other portal’ rule which, if dropped, would boost membership. Success would then be determined by results as agents would see the value for money & savings it may bring.”
Marketshare said: “OTM have only been running for 20 months and you seriously expect to put a dent in Rightmove in such a timeframe? Particularly considering agents (I assume you’re an agent) like yourselves do your best to shout it down!
“I think most agents with the good sense to sign up did so for the (potentially once in a lifetime) opportunity to take back some control of their industry.
“I decided to support OTM and was happy with the contract that I signed and the price I pay. I did not make the decision based on what others might pay in the future.”
Third: OTM analysis
Although EYE runs plenty of stories about OnTheMarket, in-depth analysis does not really belong on these news pages – which is one of the reasons we set up Arena.
Smile Please has used it to good effect for an extremely interesting look at OTM.
It’s well worth reading, no matter where you stand in the debate, and can be found here
Comments are closed.