Estate Agent – CHAIN FREE® Questions

  1. Can you answer our questions on the telephone?
    • Yes, but first please read this Q&A.
    • If any questions have not been answered to your complete satisfaction please Contact us.
  2. Catch 22 – any price you offer will be lower than we can recommend they sell for?
    • In no circumstances will your clients have to sell for less than a price you recommend they accept (MV)
    • The home owner never has to sell for less than MV
  3. What is CHAIN FREE®?
    • A chain-avoiding insurance type arrangement (available through the Home Owners Plan™) for a Facility Period of 20 weeks (extendable to 40 weeks)
    • IMPORTANT POINT: Your clients can use CHAIN FREE® to say they are a Cash Buyer to secure the house they want to buy at the best price (recouping our Fee/1% of the Fall Back Price®)  and will not need to take the Fall Back Price® (because your firm will have sold their house for the highest price)
    • If your client decides to take the Fall Back Price® (because they can’t wait for your firm to sell their house for their Asking Price) the Drawdown Documents include a Sale Contract (our Legal Department will add the buyers name) and Transfer for your client to sign so their house can be sold through the Plan. See: How it Works
  4. Sellers won’t want it until they desperatly need it, when a sale goes wrong or if they can’t sell for more and then will be offered a knockdown price?
    • The Conundrum
    • That is what happens with old hat schemes promoted by vulture funds praying on desperate sellers e.g. we’ll buy any house fast and for cash.
    • CHAIN FREE® is a chain-avoiding insurance type arrangement enabling the seller to secure their next house with no legal commitment to sell their own and no legal commitment to take our finance.
    • Other Schemes
  5. Telling the seller at the earliest opportunity about CHAIN FREE® is a defeatist message when they want my firm to provide a positive outlook?
    • The Conundrum
    • The purpose of CHAIN FREE® is to helps your customer quickly secure their next home against competition.
  6. An example of CHAIN FREE®?
    • Your client will use CHAIN FREE® to secure the house they want to buy while you are selling their house for their Asking Price
    • An Example: Surveyors Valuation £350,000; Fall Back Price® (90% LTV) £315,000; 1% Fee £3,150; 20 week Facility Period and the house your clients want to buy £400,000
    • Buying: Offer accepted £376,000 (£400,000 less 6%)
    • Saving £24,000 on Buying Price (£400,000 less £376,000)
    • Selling: You sell clients house within 20 weeks for £360,500 (Surveyors Valuation £350,000 plus 3% £10,500)
    • CHAIN FREE® has enabled your client Selling at £360,500 to Buy a £400,000 house for £376,000 (£400,000 less £24,000)
    • Total Saving: £20,850 (£24,000 less our 1% Fee £3,150)
    • IMPORTANT POINT: If your clients final offer of £396,850 (£400,000 less £3,150) was accepted your client would have secured the house they want to buy and recouped our 1% Fee without having to take our finance (Fall Back Price®) or having to sell their home.
  7. Your Fall Back Price® will be too low to interest my clients?
    • With CHAIN FREE® the homeowner never has to sell for less than MV
  8. What advantage is CHAIN FREE® to my firm?
    • Your contact details submitted in Section 3 of our Application (We do not buy the homeowners house)
    • Homeowner agrees Sole Agency Fee with your firm (for your firm to negotiate)
    • After Application home owner required to tell us the name of the High Street Estate Agents acting for them on sole agency
    • If your client does not take the Fall Back Price® and you sell their house for more than the Fall Back Price® the Plan will pay your firm a £1,000 Success Fee in addition to the Sole Agency Fee paid by your client.
    • If your client takes the Fall Back Price® (because they can’t wait for you to sell their house at their Asking Price) the Plan will re-instruct your firm and the Plan will pay a 1.5% Resale Fee. See: Fees
    • Your firm will  secure customers selling and applicants buying against competition (no regularity issues)
  9. Variations on a theme?
    • CHAIN FREE® is unique
    • Insurance type arrangement
    • Makes sellers Proceedable Buyers for a 1% Fee (which they can recoup)
  10. We have seen many chain-mending schemes?
    • CHAIN FREE® is a chain-avoiding solution not a chain-mending one
  11. If the seller can’t sell at their Asking Price won’t they switch agents?
    • CHAIN FREE® should prevent this
    • Time to sell own house and ability to secure next one
  12. Home owners will be most interested when you are least willing to make an offer and vice versa?
    • The RICS Surveyors Valuation is accurate and current
  13. How does CHAIN FREE® differ from Part Exchange/Assisted Move?
    • Your clients do not have to sell within a restricted period and can decide not to sell at all (just using CHAIN FREE® to buy at a discount)
    • We do not buy your clients house and do not take fees or commissions
    • Your clients do not subjugate buying/selling decisions to third parties
  14. Disconnect between valuations?
    • We do not require your Opinion of Valuation
    • No reputational risk
  15. Our agency achieves fast sales?
    • Clients living in houses up to £500,000 are particularly vunerable to chains
    • Those selling houses over £500,000 also want to secure before selling
  16.  Tell me about your the RICS valuation?
    • Our RICS valuations are for mortgage purposes (Red book)
    • Will take account of how long the house has been on the market for sale (reference Rightmove)
    • Valuations that are too optimistic/pessimistic benefit no one
    • Panel Managers work with Valuers to ensure accuracy and consistency
    • In-house Valuation Auditor carries out checks to prove the process if challenged
    • Contemporaneous valuation audits by reference to database records
  17. Your Surveyors Valuation vs. our Opinion of Valuation? 
    • Surveyors behind the market vs. Agents envisaging price direction
    • Cautious Surveyors vs. Optimistic Agents
    • Section 3 of our Application (which you must complete) encourages agents to think carefully before advising their client
    • No point in serious disconnect between our Surveyors Valuation and any Opinion of Valuation you may give your client
  18. What does case-by-case mean for houses over £500,000?
    • CHAIN FREE® (available through the Home Owners Plan™) is accessible to all your clients (and applicants buying) irrespective of the  value of their house
    • The Plan is an insurance type arrangement which means we must be able to limit our offering of finance (Fall Back Price®) at 85% Surveyors Valuation for houses over £500,000 to reflect market conditions.
    • Case-by-case means houses over £500,000 will be considered on an individual basis.
    • Our Application Form will require the homeowner to submit (within various Price Bands) what they think their house is worth (certain Price Bands may be restricted in real-time)
    • If the Price Band is not resricted and after our Surveyors Valuation we subsequently decline to make offer of a Fall Back Price® at 85% Surveyors Valuation we will return the £298 Administration Fee paid by your client.
  19. If the seller draws down the Fall Back Price® there will be a mortgage on their house when they make a mortgage application for the next property?

    • The new lender will ask them if they already have a mortgage.
    • Your client must answer “Yes” because a lender will ask them on completion “if there are other loans secured against another property?”
    • Because your client has said “Yes” the lender will ask for details.
    • Your client should say that they “have non-recourse finance from Albani and therefore no mortgage or home loan commitment”.
  20.  Are there mortgages for buyers?
    • You can tell applicants buying about our VAL FREE® mortgages
    • Other products of your choice
  21. Will sellers who buy their next house before you have sold theirs have to pay a higher rate of SDLT on the second property?
    • Sellers will only pay (if applicable) the Standard Rate of SDLT
    • We undertake to pay any Additional Rate of SDLT on the second property the seller buys
  22.  What happens if our client is in a chain that has broken?
  23. Why do you say CHAIN FREE® is like insurance?
    • Guarantees Albani Limited will provide your client with finance (Fall Back Price®)
    • Provides your client with a chain-avoiding insurance type arrangement (CHAIN FREE®)
  24. If the home owner makes their own Application do we know if our firm is chosen by them to sell their house?
    • The Application Acceptance Email we send the home owner contains their URN and link to their Personal Webpage on which they confirm the name of the High Street Estate Agents acting for them on Sole Agency.
    • We then contact the firm to complete Section 3 of the Application (which requests basic information from the Estate Agent not what they think the property is worth).
  25. Tell me about the Application?
    • The home owner can join the Plan within 4 weeks  from the date of their Application
  26. Why do you give the home owner a stop date of 4 weeks to join the Plan?
    • A stop date (currently 4 weeks) is necessary so we can risk-manage Applications vs. Product Sales (home owners joining the Plan).
  27. If our client does not join the Plan within 4 weeks can they make another Application?
    • Yes
    • The Application will be risk-assessed on how long their house has been on the market for sale (reference Rightmove).
  28. What is the maximum number of weeks the home owners house can be on the market?
    • A total of 10 weeks seems reasonable
    • A £350,000 3 bedroom house in Basildon can be sold (on the market for sale) in 4 weeks.
  29. What is the latest time that my client’s can make a second Application?
    • When their house has been on the market for no more than 10 weeks.
  30. Do we need to train our staff?
  31. Your website contains too much information for the customer?
    • We want to be different – we beleive the non-tech design will be more acceptable to our target audience and the content will promote transparency and ethical finance. We don’t want our website to look like those offering bridging-finance or cash to desperate sellers.  
  32. What is your procedure for answering customer questions?
    • We prefer to answer them personally at 0844 544 4869 (not with online Q&As)
  33. Suggestions for improving the estate agent and customer proposition?