J8 - Selling Property - by profit share

This is the no fees route

With this service you take the view that if we are as hot as we think we are, then we should be able to cover our own cost and get sufficiently more for the property than a base price to be able to get our reward. 

This is the same service as the 'J8 for a fee service' but we spend the money and get the additional rewards.

It is however better than that because we share the additional profit we make with you.

Who might this appeal to

• A person or group of people who have inherited a property and wants to get the property sold without any up front cost to them
• Someone who is unsure that the property can be sold
• Others who don't like paying fees

So how does this work

This is explanation is presented with a working example with figures that are easy to understand, but does not relate to an individual real sale. 

1. We agree a base price, this is usually the price that you would accept an offer at, less normal cost of selling. So if you think you would list a property at £110,000 hoping to get £100,000, then its the 100,000-agents commission say 3% (3,000), so the base price would be set at 97,000. 
2. We sell it for as mush as we can get say for example 120,000
3. We work out what we would have normally charged under the J8 service say for example, (1,500+6%(7,200)+500 cost= 9,200) 
4. We deduce the additional profit £120,000-base price 97,000, -J8 service cost 9,200 =13,800 extra
5. We split the additional profit equally with you 13,800/2= 6900 to each of us.
6. You have ended up with £6,900 more than you were prepared to accept and not had to pay any cost at all. So out of the sale you end up with the base price 97,000 + 6,700= 103,700.
7. Our share under this contract is the difference between what you end up with and the selling price.

Contractually

You agree to pay us a £1,500 registration fee and give us a forward dated cheque for this value, which includes the first inspection, taking details and all we would do under the J8 service. We do not bank the cheque at once but get started.

Together we look at the options and you can if you wish switch to the J8 or J7 services and we will bank the cheque and continue form there. We also under this service J9, make you an offer to buy from you for £1,500 the option to buy and sell this property based on an agreed base price and you also receiving a share of the additional profit as explained above. The payment of this 1,500 is achieved by giving you back your cheque. 

When the property is sold the revenue goes into your solicitors client account and he is instructed  to make the necessary payment to us in order for us to release the option to buy contract. Without us releasing this agreement you would not be free to sell to anyone else.

If you fail to complete the sale, where the buyer is willing and able to, you are liable to pay our full share, as if you had completed.

Setting the base price

Some people might feel there was room to inflate the original asking price and by this means move up the base price. This is not going to be the case as the asking price used to calculate the base price has to be based on sensible combinations of estate agents valuations and local sales statistics of what similar property in the area is selling for. Most people will have no difficulty in agreeing a base price that is sensible and reasonable, where this is not the case rather than get into an argument about it, the solution is to get an independent valuation by a building society approved valuer, and using as the base price the valuation he provides less 5%. The cost of this valuation is to be paid initially by you, you will be allowed to recover this in full when the property is sold before any profit split is calculated. 

Very few will want to use this secondary means of setting a base line as it is not really in your interest to inflate the base line price, as it would mean we would take longer to sell the property. Eventually the property would sell whatever base price we set as over time property prices go up until a point comes where the property is priced reasonably. 

So should you use this service

We would suggest most should not, that you will just about always be better off by using one of our other two selling services.

In effect we are charging you more in order that we rather then you take the risk associated with our fees. With the example you can see above we end up with 60% more for doing the same job. You also loose the control as to which offers to take and which not to.

The only situations where generally it would be beneficial to you is where we could not sell it at all or where the price we sold it for was only marginally above the base price agreed. 

The situations where this is applicable perhaps is where you just cannot or do not want to be involved, you want us to manage the whole thing and just get on with it. 

How to book this service

You need to make it clear to the club office that it is the J9 profit share selling service that you wish to use and check we have availability of key people to handle this at the current time. If so then you send in a cheque for £1,500 with a note attached that states " I enclose this cheque in accordance with the on line instructions in relation to using the J9 selling service,  that the cheque should not be cashed until after the first meeting. I am interested in granting an option for you to sell the property under the arrangements explained. If I change my mind or switch to another service then you should cash this cheque."

The club may fix the initial appointment with you when you call or more likely call you to make one once the cheque is received.