Get SoldUK - I don't understand how it could work?

socratez

Thanks all, I will definitely be swerving this company!

eddddy

Sarah1Mitty2 said:

I would think they are making very little at this stage with that business plan?

The business plan might be a bit different to what you imagine.

Many 'quick sale' companies' business model relies on persuading sellers to sell their properties for 80% of the market value


I wouldn't be surprised if some agents use an equivalent business model that relies persuading sellers to set a 'marketing price' at, say, 80% of the market value.

And perhaps telling buyers not to bother offering, unless their offer is substantially above the 'marketing price' - to make sure they the agent gets a big cut.




(But I don't know anything about the agent mentioned, so obviously I'm talking in general terms, your Honour.) 

 

user1977

There are also more traditional agents who will suggest a commission structure with a much bigger percentage for anything they achieve over a target price.

Sarah1Mitty2

eddddy said:

Sarah1Mitty2 said:

I would think they are making very little at this stage with that business plan?

The business plan might be a bit different to what you imagine.

Many 'quick sale' companies' business model relies on persuading sellers to sell their properties for 80% of the market value


I wouldn't be surprised if some agents use an equivalent business model that relies persuading sellers to set a 'marketing price' at, say, 80% of the market value.

And perhaps telling buyers not to bother offering, unless their offer is substantially above the 'marketing price' - to make sure they the agent gets a big cut.




(But I don't know anything about the agent mentioned, so obviously I'm talking in general terms, your Honour.) 

 

You don`t go to these companies though if you can achieve "market value", 80% of the asking price is the actual market value in many cases.

eddddy

Sarah1Mitty2 said:

You don`t go to these companies though if you can achieve "market value", 80% of the asking price is the actual market value in many cases.

"Quick sale" companies don't pay 80% of asking price - they (claim) they pay 80% of market value.

So for example:

• The seller's current asking price might be £250k

• The quick sale company say that in order to achieve a quick sale, the true market value is £200k

• So they will pay the seller 80% of £200k = £160k 

• (So assuming they can find a buyer who is prepared to pay £200k,  they'll pay the seller £160k. If not, they walk away)

Often, their business model relies on finding naïve, unsophisticated sellers, who are often in financial difficulties.

And perhaps putting a lot of pressure on vulnerable people to sign a 6 month "Option to Purchase" contract which they might not understand.


But I must stress that I am talking about some "Quick Sale" companies in general - I am not talking about the company mentioned in this thread. (I don't know anything about the company mentioned in this thread.)

pinkteapot

To repeat, this company are NOT a quick sale company. They're an EA - they don't buy the house themselves. They market all houses at 'offers over'. The vendor gets the offers over figure (e.g. "Offers over £200k" - vendor gets £200k). The EA's commission is any amount above that the house sells for (e.g. sells for £210k, they get £10k). 

eddddy

pinkteapot said:

To repeat, this company are NOT a quick sale company. They're an EA - they don't buy the house themselves. They market all houses at 'offers over'. The vendor gets the offers over figure (e.g. "Offers over £200k" - vendor gets £200k). The EA's commission is any amount above that the house sells for (e.g. sells for £210k, they get £10k). 

If your comment is directed at me - I know that. 

Maybe you only read the last post in the thread without reading the earlier ones - so got the wrong end of the stick.

Perhaps this is the key post you missed:

eddddy said:

I wouldn't be surprised if some agents use an equivalent business model that relies on persuading sellers to set a 'marketing price' at, say, 80% of the market value.

And perhaps telling buyers not to bother offering, unless their offer is substantially above the 'marketing price' - to make sure they the agent gets a big cut.

Does that make sense now?

I think we're essentially agreeing.

DullGreyGuy

pinkteapot said:

To repeat, this company are NOT a quick sale company. They're an EA - they don't buy the house themselves. They market all houses at 'offers over'. The vendor gets the offers over figure (e.g. "Offers over £200k" - vendor gets £200k). The EA's commission is any amount above that the house sells for (e.g. sells for £210k, they get £10k). 

Errmmm... not exactly...

GetSold.UK has a network of pre-qualified buyers that we advertise your property to. If we don’t get the right offer from them on day one, we then advertise your property on all the major sites Rightmove, Zoopla, On the market & Boomin so that your property gets the most exposure possible – doing this reaches of 98% of all active buyers in the UK.

There are plenty of middlemen between quick sale companies and sellers... back in my web dev days spoke to several who wanted sites developed (a pair, one to attract sellers and one for buyers).

Pre-qualified buyers is exactly the language they used for quick sale companies.

ian1246

I remember looking at a quick-sale house buying company when our buyers pulled out, to try to fix the chain.

Baring in mind we had agreed a sale previously of £197,000... the company offered us £135,000 - less than we had originally brought the house for 5 years earlier (£165,000). We eventually sold and completed with a different buyer for £192,000.

Sarah1Mitty2

eddddy said:

Sarah1Mitty2 said:

You don`t go to these companies though if you can achieve "market value", 80% of the asking price is the actual market value in many cases.

"Quick sale" companies don't pay 80% of asking price - they (claim) they pay 80% of market value.

So for example:

• The seller's current asking price might be £250k

• The quick sale company say that in order to achieve a quick sale, the true market value is £200k

• So they will pay the seller 80% of £200k = £160k 

• (So assuming they can find a buyer who is prepared to pay £200k,  they'll pay the seller £160k. If not, they walk away)

Often, their business model relies on finding naïve, unsophisticated sellers, who are often in financial difficulties.

And perhaps putting a lot of pressure on vulnerable people to sign a 6 month "Option to Purchase" contract which they might not understand.


But I must stress that I am talking about some "Quick Sale" companies in general - I am not talking about the company mentioned in this thread. (I don't know anything about the company mentioned in this thread.)

A smart seller will just cut their price by 50k and cut out the middle-man, unless of course the quick-sale company has access to a pool of buyers that don`t look at R Move ads?