28 DAY FIXED PRICE SALE
BEST FOR PROBLEM SOLVING (85-90% Market Value paid, FAST ACCESS TO CASH), ££
This option particularly suits sellers who require funds and expertise to resolve issues preventing a straightforward full market value sale at auction, such as:
- awkward tenants;
- short leases;
- structural or building regulation issues;
- title issues and
- legal disputes.
With this option, our company will pay the funds for the expertise in advance to resolve these issues and to subsequently enable the property to sell the property for its best price through our modern auction.
How It Works
Sellers are offered a *Fixed Option Price usually between 85-90% of market value of the property (determined by comparing the property to recent sales of similar property in the same area). Our company sells the property for a higher price through our auction and we profit from the balance.
From this balance our company pays all the fees to resolve the issues with the property – e.g. resulting from survey results at stage 3 above or as part of an agreement with a buyer to secure a sale.
Once this is agreed and the tie in period (8 weeks) is in place, we begin advertising (cannot be started until documents are signed and returned.)
National Residential finds a buyer and secures the sale.
We set our reserve at or slightly above the fixed offer price and we sell the property to the highest bidder. We keep all of the money raised over the fixed price agreed with the seller as our fee. Once the buyer has paid a 2% deposit to secure the sale, we can advance up to 80% of the fixed price offer to the seller.
We sort out problems to ensure the sale proceeds to completion.
We ensure our buyers are aware of any issues we are aware of in the sale of the property during the negotiations (stage #1) and agree a course of action – e.g. if a freehold property has a short lease, we can extend the lease before the sale completes or sell for a lower price so the buyer extends the lease after completion.
All costs involved in resolving problems are paid from the difference between the fixed price and the sale price.
NB. In the example above (short leasehold) sellers must pay for their own LPE1 and management pack to enable the sale.
Buyer and seller exchanges contracts.
This has more significance in traditional sales because this is the point traditional sales are secured and a deposit is taken however we secure our sales and take a deposit much earlier in the process (stage 2) so our buyers and sellers cannot change their minds with no penalty or attempt to renegotiate.
Buyers pay National Residential the full sale value. We pay sellers the fixed price agreed minus any cash advance.
NB. Depending on the value we add to a property, the financial risk we take investing in solutions and the amount of cash we advance, we may also be able to come to profit share agreement if the sale price exceeds all our expectations however any value we add to the property as a result of our actions will be deducted from the calculations – i.e. if we pay £5K for work that increases the value by £10K, we would deduct the £5K added value from our calculations.
Cash Advance Option
We are also able to offer an INTEREST FREE – CASH ADVANCE to sellers with this option to provide immediate funds for any reason (subject to conditions and status).
No two sets of seller circumstances and motivation are the same. One of our key advantages is that we can tailor our packages to suit any situation once we know the extent of potential risk & reward. We can then give you exact figures (in writing of course) so you can decide how you want to proceed.
Your inquiry is completely risk free – you will know exactly what we can do for you and if you prefer to use a traditional sale or another service provider, simply walk away.
All our agreements (standard and bespoke) are fully protected by our commitment to the regulatory bodies PRS & NAPB. In the even of any dispute between a client and service provider, they provide a redress scheme to adjudicate and instruct conflicting parties.
Who Chooses This Type Of Sale
Sellers who are happy to accept a fixed price offer at appx 85% of the National Residential’s valuation (based on the sales history of similar properties in the area) in return for a fast, secured sale choose this type of sale.
They often include :
- People who need access to some of the money generated by the sale before the sale completes e.g. due to debt and/or debt recovery proceedings. Once we have secured a buyer, we can pay off debts to prevent the seller accumulating more debt due to legal costs issued against them.
- People who own property that is difficult to sell also choose this type of sale – e.g. properties that are occupied by tenants, properties in a state of disrepair – so that they can step back from the complications, stress and uncertainty of having to solve any problems that jeopardise a sale.
- People who are spending money on maintaining empty property or paying mortgage repayments with no return on their investment.
There are no hidden charges with our sales. Unlike most traditional auctions and some online auctions, we do not charge an entry fee or advertising costs or customer service charges for responding to buyer inquiries. We do not charge for ‘for sale’ signs or to include video tours (a great selling tool) in our listings. In fact we even pay for the EPC certificates and legal packs required by law to sell a property.
And, despite all the time, effort and money we invest in preparing a property for sale – if we cannot deliver what we agree in the contract, sellers walk away with nothing to pay – i.e. we provide a NO SALE, NO FEE offer.
To protect our investment, we will require sellers sign a Sole Selling Rights (SSR) contract as used by most estate agents. However, our tie-in term is just 8 weeks with 14 days notice to quit which compares very favourably with most estate agents that tie sellers in for 12 weeks or more.
If a property fails to sell at auction we normally relist and/or advertise to our database of investors in the remainder of the tie-in period.
For a full list of our Terms & Conditions, along with sample contracts pls see Fixed Price Option T&Cs.
- There are no agency fees to pay (a savings of £2000 on our 100% Market value option),
- We pay £720 inc VAT towards legal fees on completion if you use our panel solicitors.
- We pay for EPC’s and pay our national network of agents to create professional video tours, floor plans and photographs for marketing and we pay to manage agents to carry out viewings for you.
Frequently Asked Sellers’ Questions
Not necessarily. We work out our Fixed Price offers by taking recent sales in the area and the property condition into account. If we increase the value of the property through our spending and project management, we would expect to benefit from the value we add by our involvement.
Also, our high completion rate is due, in part, to strict rules that prevent any party trying to renegotiate after a sale has been agreed. However, we welcome all negotiations before a contract is signed and we may be able to agree a cap on any difference and what happens to any sales money over the cap at that stage. Please ask.
Our buyers are chain free and pay deposits resulting in over 95% of agreed sales completing – and quickly! Our buyers also complete in an average timescale of 78 days and many buyers complete within just 56 days. This compares to much longer timescales of 200 days with a local estate agent where appx 40% of sales fall through!
- If you have 200 days to wait for a sale and are hoping for an unrealistic price and are prepared to accept an almost 40% risk of your sale falling through, then use a local estate agent because you don’t need us!
- However, if you are happy to sell for a realistic market price, and complete in just 78 days (or even quicker), with a 95% success rate of your sale completing then you simply can’t beat us!
Estate agents tell you they will sell your property for a price far higher than they will eventually achieve to win your business over their competition. They rely on you sticking with them as they reduce the price until the eventually get a sale. This strategy is completely uninspiring, and completions take 200 days on average when you could have achieved the same price with us within just 78 days!
Most people know deep-down the high price promised by the estate agent is unrealistic but are enticed to go with it – after all there is just a chance it will sell for that high price, right?
Wrong! Properties do not sell for unrealistic high prices and after no or few viewings over many months you become increasingly frustrated at not being able to sell and move on with your life.
You eventually reach the point where you must make a decision! Do I reduce the price? Do I change my estate agent? Or, do I call a ‘quick sale company’ because I am running out of time and I need a guaranteed quick-sale now?
The risk for you now is making the wrong decision and either remaining on the market for many more months or selling your property under-value because you cannot afford any more delays.
Worse still, you eventually get a sale only for it to fall through because the buyer:
- Cannot get a mortgage;
- Simply pulls out, or
- Tries to reduce the price just before completion!
Rather than accepting this dreadful status-quo and experiencing these avoidable frustrations, there is a better way! National Residential will achieve the best possible price for you and in the quick timescales you require through our unique pricing strategy and processes. Furthermore, all our buyers have the proven funds to buy and we put in measures to ensure they complete within **56 days. Buyers also pay non-refundable deposits which they risk of losing if they pull out or try to reduce the price.
National Residential therefore achieve Best Prices, Quickest Sales and Certain Completions – these are the main reasons why sellers opt for National Residential versus using a normal estate agent.
What happens if buyers pull out and sales fall through?
Although our buyers are chain-free, pay deposits and have proven funds, there remains the low risk that they pull out or cannot complete for some reason. If this happens, buyers will lose their deposit so long as the reason is not the responsibility of the seller (for example; there are no problems with title or structure of the property).
If buyers do withdraw and lose their deposit, we will agree to pay 50% of this deposit to sellers so long as they agree to sell with us again.
Are your prices guaranteed?
We are unable to guarantee sale prices when we sell though our auction but we are able to offer a guaranteed price when we agree to purchase for cash.*
28 Day Auction Sale – when we sell properties, we cannot guarantee the price they will sell for through our auction. Although we cannot guarantee sale prices, what we can guarantee is there are ZERO costs for sellers if we do not achieve the price they need and are unable to agree a sale with one of our buyers. We provide a no-sale-no-fee service so sellers have nothing to lose.
*7-Day Cash Sale – once we have confirmed valuations with local agents and RICS surveyor, our cash offer is 100% guaranteed.
We use the UK’s leading conveyancing solicitors who are experienced in achieving extremely fast completions and providing the best customer service. You want a quick and guaranteed sale and the lowest costing legal fees, so why pay slow local solicitors high prices and receive a slow poor service because solicitors fail to perform?
In our experience when buyers or sellers use their own solicitors a high proportion of these sales drag on or fail to complete at all because their solicitors are either ill-experienced and/or under-motivated to prioritise completing in the quick timescales buyers and sellers require.
We are in the business of providing the highest possible service standards and achieving fast and certain completions for both our buyers and sellers. We only recommend the best solicitors in the UK because they have proven time and time again that they can complete sales quickly, and because they provide buyers and sellers with the best experience and service standards possible and at the lowest prices.
Our sales progression team provide the best service standards in our industry because we use super-efficient solicitors for both sides. This means both sellers and buyers benefit from a fast efficient service and avoid the costs, stress and delays of sales falling through.