Estate Agent – CHAIN FREE® Questions

  1. Can you answer our questions on the telephone?
    • Yes
      • First please read this Q&A.
      • If any questions have not been answered to your complete satisfaction please call our CEO (and Founder), Anthony Apponyi DD: 01491 641 362.
  2. 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)
    • During the Facility Period your client has the option to take our finance (Fall Back Price®) on 5 days notice
    • The Fall Back Price® will be 90% Surveyors Valuation (Option 1) with a 1% Fee (1% Fall Back Price®) payable in up to one year
    • IMPORTANT POINT: Your clients will say they are a Cash Buyer to secure the house they want to buy at the best price (recouping our 1% Fee)  and not take the Fall Back Price® (your firm will have sold their house for more)
      • If your client decides to take the Fall Back Price® (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
      • Your client does not have to take the Fall Back Price® and does not have to sell their house
      • Your client will never have to sell their house for less than Market Value
  3. What advantage is CHAIN FREE® to my firm?
    • Homeowner agrees Sole Agency Fee with your firm (payable if you sell their house)
    • If you sell their house for more than the Fall Back Price® we will pay your firm a £1,000 Success Fee in addition to the Sole Agency Fee paid by your client
    • Your firm will  secure customers (no regularity issues)
    • If your client takes our Fall Back Price® (because they can’t wait for you to sell their house) we re-instruct your firm on a 1.5% Re-sale Fee
  4. Variations on a theme?
    • No
      • CHAIN FREE® is unique
      • Insurance type arrangement
      • Makes sellers Proceedable Buyers for a 1% Fee (which they can recoup)
      • Homeowner has no legal obligation to take the LTV (Fall Back Price®)
      • Homeowner has no legal obligation to sell their home
  5. What use is CHAIN FREE®?
      • Your client can say they are a Cash Buyer for 20 weeks (extendable to 40)
      • Your client can negotiate the lowest price for the house they want to buy while your firm has time to sell their house for their Asking Price
  6. We have seen many chain-mending schemes?
    • CHAIN FREE® is a chain-avoiding solution not a chain-mending one
  7. Will our clients have to sell for less than MV?
    • No
      • If your client decides to take our Fall Back Price® it will be MV if after proper marketing during their 20 week Facility Period you have been unable to sell their house for more
  8. Can our client be a Proceedable Buyer if the property they want to buy costs more than their Fall Back Price®? 
    • Yes
      • Your firm has 20 weeks (extendable to 40) to sell their house for more than the Fall Back Price®
      • An Example
  9. Will developers have to wait 20 or more weeks to sell a new build?
    • No
      • The negotiation when to exchange and what price to pay is between your client and the builder
  10. Catch 22 – any price you offer will be lower than we can recommend they sell for?
    •  No
      • IMPORTANT POINT: In no circumstances will your clients have to sell for less than a price you recommend they accept (MV)
  11. Sellers won’t want it until they need it, when a sale goes wrong or if they can’t sell for more?
    • That is what happens with old hat schemes e.g. we’ll buy any house fast and for cash.
    • CHAIN FREE® is unique:
      • a chain-avoiding solution
      • Insurance (we do not buy the home owners house)
      • Time for your firm to sell for their Asking Price
      • Finance there if the seller needs it
      • The home owner never has to sell for less than MV
      • IMPORTANT POINT: The longer your clients house has been on the market before Application the greater the risk of a lower Valuation to determine MV (and the possibility they will instruct another firm of High Stree Estate Agenst to sell their house)
  12. Many sellers can’t negotiate a price on their next property until they have sold their own?
      • In a flat market CHAIN FREE® will give your clients a safety net while you are selling their property for their Asking Price
      • In a rising market your client has the confidence to secure their next home quickly against competition
  13. Home owners will be most interested when you are least willing to make an offer and vice versa?
    • No
      • The RICS Surveyors Valuation is accurate and current
  14. Niche product for a niche market?
    • No
      • Most sellers are not Proceedable Buyers (CHAIN FREE® solves this problem)
      • Generally 62% of annual house sales are in Price Bands up to £500,000 (our market)
      • 28% UK transactions fail after an offer has been accepted
      • 25% UK sellers withdraw their property from the market
  15. How does CHAIN FREE® differ from Part Exchange/Assisted Move?
    • You are selling your clients house for the highest possible price
      • Your clients do not have to sell within a restricted period and can decide not to sell at all
      • 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
  16. Are there misconnects between valuations?
    •  No
      • We do not require an Estate Agents Opinion of Valuation
      • No reputational risk
  17. Your Fall Back Price® at 90% LTV will be too low to interest my clients?
    • With CHAIN FREE® the homeowner never has to sell for less than MV
      • IMPORTANT POINT: Most home owners will use CHAIN FREE® to say they are a Cash Buyer (to negotiate the best price for the house they want to buy and recoup our 1% Fee) and will not take our Fall Back Price® (because your firm will have sold their old house for more)
      • The LTV is a safety net while you are selling their house for their Asking Price
  18. Our agency achieves fast sales?
    • Clients living in houses up to £500,000 want to be Proceedable Buyers
      • Do not have substantial surplus funds
      • Want to avoid being caught in a chain
  19.  Tell me about your the RICS valuation – Option 1: LTV 90% Surveyors Valuation?
    • Our RICS valuations are for mortgage purposes (Red book):
      • 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
  20. What is a DataSource Valuation – Option 2: LTV 85% DataSource Valuation?
    • The DataSource Valuation is an Automated Valuation Model (AVM) from Rightmove data services.
  21. Nobody will take Option 2 – much too low?
    • Agreed

      • Alternative no 1% Fee proposition
  22. 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?

    • Not a problem
      • 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”.
  23. What about regulation?
    • Albani is regulated by the FCA
      • CHAIN FREE is unregulated loan
      • Your firm does not have to be regulated
      • See: Regulation
  24.  Are there mortgages for buyers?
    • Yes
      • You can offer applicants buying our surveyor pre-valued houses VAL FREE®
  25. Will sellers who buy their next house before you have sold theirs have to pay a higher rate of SDLT on the second property?
    • No
      • 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
  26. Tell me about the online agent?
    • We will only agree to work with a single firm (Coming soon…) that can provide an on-site agent
  27. What are the Online Estate Agent conditions?  
    • The Online Estate will accept (only) Responsibilities at Drawdown Date
    • Their on-site agent must attend the property on the day the seller wants to draw down our finance (to verify the sellers house is empty and vacant so the Fall Back Price® can be remitted to their clients solicitors)
  28. Why have both online and high street agents?
    • So sellers can choose the Estate Agent (Online or High Street) that suits them
  29.  How long does our client have to consider your Fall Back Price®?
    •  As long as they like
      • Your client will receive CHAIN FREE® with a Fall Back Price® when they have signed the Offer Documents (which they can do on-line).
      • Their Facility Period starts on the date of our Valuation of the house they are selling
  30. How long do my client’s solicitors have to review your Offer Documents?
    • No time limit
    • The Offer Documents can be viewed and signed electronically (subject to HMLR)
  31. What are the Offer Documents?
    • Finance Agreement (Albani offer of Fall Back Price®)
    • Pro forma Drawdown Notice (your client’s solicitors confirmation that they want to take the Fall Back Price®)
    • Instructions to your client’s solicitors (for Option 1 to secure our 1% Fee if they do not drawdown/take the Fall Back Price® and their property is sold by your firm)
    • CHAIN FREE® Home Owners Plan™ (T&Cs)
    • Copy Valuation (Surveyors Valuation or DataSource Valuation)
  32. How long does my client have to accept your Offer Documents?
    • Mortgage lenders can allow a buyer 6 months from offer to completion of contracts (finance for a specific property)
    • Your client will have 2 weeks (finance for any purpose).
  33. What are the main terms of the Finance Agreement?
    • House, garden and garage must be empty, vacant, clean and tidy: your firm must confirm this to our Legal Department on the day your client wants to take our finance. See: Responsibilities at Drawdown Date
  34. What happens if our client is in a chain that has broken?
  35. Why do you say CHAIN FREE® is like insurance?
    • IMPORTANT POINT: CHAIN FREE® (available through the Home Owners Plan™) is an insurancetype arrangement because if your client can’t wait for you to sell their house for their Asking Price we (Albani) guarantee that when your client signs the Offer Documents (incl. Plan T&Cs)  they can drawdown our finance (Fall Back Price®) on 5 days notice at any time during their 20 week to 40 week Facility Period.
  36. How can our client extend their Facility Period to 40 weeks?
    • Contact us for details
      • Their house will be re-valued and a revised Fall Back Price® offered
      • If the Revised Valuation and Revised Fall Back Price® are higher our 1% Fee for Option 1 will not increase (it will be calculated on the original Fall Back Price®).
      • If the Revised Valuation and Revised Fall back Price® are lower our 1% Fee will be reduced (it will be calculated on the Revised Fall Back Price®).
  37.  Will our client be committed when they sign your Offer Documents?
    • No
      • They do not have to take the Fall Back Price®
      • They do not have to sell their house
  38. If the home owner makes their own Application do we know if our firm is chosen by them to sell their house?
    • Yes
      • The Application Approval Email we send the home owner directs them to a webpage on which they must confirm the name of the High Street Estate Agents acting for them on Sole Agency.
      • We 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).
  39.  Can we cross-sell?
  40. Do we need to train our staff?
    • No
      • Financial training not required
      • Product training available at our cost (to increase footfall and to earn additional fees)
        Adam J Walker & Associates
  41. Does the customer see our Application?
    • Yes
      • And receives an Application Approval Email.
  42. Why would an Application be rejected?
    • If you or the home owner’s answers to our questions are unacceptable (unable to submit).
      • If their house is not in a town where CHAIN FREE® is available, not freehold, worth in excess of £500,000, not in good condition or with risk of flooding etc.
  43. What happens when an Application is approved?
    • If the home owner has chosen your firm to sell their house you will receive a copy of the Application with an Email containing your Unique Reference Number (URN)
      • Your URN will open a link to our Management Pages.
  44. Why is CHAIN FREE® only available in certain towns?
    • CHAIN FREE® is only available in towns within Local Authority Areas where property prices are stable or rising.
  45. Why don’t you ask for the home owners name on the Application Form?
    • We are only interested in their house not in their financial standing (our open-bridge finance is non-status, non-recourse and interest-free).
      • Asking for the home owners name on the Application Form (particularly if they are already client’s of your firm) is intrusive
  46. Do Estate Agents always have to complete Section 3 of the Application?
    • Yes
  47. How do you protect your integrity?
    • We do not take fees or commissions from third parties (this applies to all products and services on our platform including those accessible at SMART MOVE®)
  48. Your website contains too much information?
    • Designed to appeal to the demographic of our target customers (living in houses max current MV £500,000)
    • We want to be different – we beleive the non-tech design will be more acceptable to your target audience and the content will promote transparency. We don’t want our website to look like those promoting bridging-finance or cash offers to desperate sellers
  49. What are your terms?
  50. Suggestions for improving the estate agent and customer proposition?

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