With Parts B & C moving closer to launch, we spoke with Beth Rudolf about what will be expected of agents, the dangers of non-compliance and how technology can support in easing the transition.
Q&A with our iamsold Account Manager, Jade
Jade has looked after all The Property Franchise Group agents for nearly 2 years. She has remained the main point of contact for TPFG agents throughout her time as Account Manager. Jade has a close working relationship with many of the branches in the network. If you need anything at all, or can’t get in touch with your auction specialist, she’s always on hand to help.
What is the best way to pitch auction during vendor contact?
It’s not about pitching the auction, it’s more about finding the need for security, transparency or speed. You can do this by asking questions such as “why are you moving?” and “are there any timescales involved that need to be adhered to?”. Establish if the vendor meets any of the 3 needs and use that as a basis for the pitch.
For example, if a vendor has had a private treaty sale fall through due to a property having structural issues, they would require transparency and security. You would use a statement such as, “from what you’ve said, it sounds like you would benefit from the security offered by the Modern Method of Auction. iamsold has a 95% success rate as the buyer pays a non-refundable reservation fee to secure the sale. The auction pack provides transparency and gives potential buyers all the information they need to make an informed decision on bidding.”
What should I discuss if a potential buyer asks about the fee on a viewing?
This all depends on the agent’s confidence. The important thing to always remember is that, if you don’t feel confident about discussing the fee but are asked about it, just explain that the buyer is paying for the security of a completion within 56 days*, as well as additional information and transparency.
However, after the viewing they will receive a call from an Auction Specialist who will be able to give a detailed answer to any questions they may have. Take note of any questions they have and pass them over to our Auction Specialist. We will then call the potential buyer creating seamless communication.
What is an Auction Pack and what is the cost to the vendor?
An auction pack is a collection of all the documents legally required for a sale, excluding the survey, such as title documents, local authority searches, water and drainage searches and EPC.
As the auction provider, we will collect all that information for the vendor, which comes at a cost of £445 inc. VAT which is only payable upon completion.
The vendor has the choice to acquire the auction pack themselves, however, it will most likely be more expensive and we cannot proceed to market the property until we have all of that information. We would always recommend using ourselves for the auction pack as it’s no sale no fee, so in the unlikely event that the sale falls through there will be nothing to pay.
What should I take into consideration whilst establishing auction suitability?
Circumstances are the most important thing to take into account when considering auction suitability. Vendors motivated to sell quickly and securely are often able to be flexible on price, which allows us to generate the interest required to sell. Auction isn’t suitable for those in a chain due to the 56-day fixed timescales*.
Use open questions to establish exactly what the vendor has in mind for their journey so you can determine if it will match up with the auction offering. Why are they selling? What is their goal? When do they need to complete by? What will happen if they don’t complete by this date?
What fee does the buyer pay and what fee will we, the agent, receive?
The rule of thumb is that, if a property sells for under £143,000 the fee to the buyer will be £6,000 and the agent will receive 50% (£3,000). Anything over that, the buyer will pay 4.2% of the sale price and the agent will receive 50%.
If you are unsure about anything with relation to fees, feel free to contact me and I can give you the exact figures there and then.
The buyer will either be paying the £6K or 4.2%, we will have the full discussion with them about what they are paying for, why they are paying it, and what the benefits are, during the viewing feedback.
To find out more, call 0345 646 0302 or email firstname.lastname@example.org
*Based on standard properties. From receipt of draft contracts