Nested online property Disrupter ?
wonga no straight talking
Errol Damien, ready to change the real estate goal posts ?
It plans to give customers a valuation, and sell their home at or above that price within three months, taking a 2% commission on the valuation price and 20% of the difference above that value. If it is unable to sell, Mr Robinson said, Nested would buy the house itself and then sell it on.
The start-up firm is in advanced talks to secure £5m in debt financing and plans to sell its first house when it launches in June.
Backers
Mr Damelin left Wonga in 2014 and previously backed the online estate agent Purplebricks before it floated last year.
He joins backers including Balderton Capital’s Tim Bunting and Google Ventures’ Tom Hulme, who are investing "personally in the venture".
Mr Robinson, who co-founded the UK payments company GoCardless before leaving last year, said his new company wanted to channel the success of Opendoor.com, a US start-up that has raised more than $100m.
Strong Appetite in US
There are big names who have invested in Opendoor [Paypal co-founder Max Levchin, Former YouTube and Facebook CFO Gideon Yu, Eventbrite co-founder Kevin Hartz, Y Combinator’s Sam Altman, Quora CEO Adam D’Angelo, Yammer co-founder David Sacks, Angelist’s Naval Ravikant, Yelp CEO Jeremy Stoppelman, Box CEO Aaron Levie, Initialized Capital’s Harjeet Taggar, Garry Tan and Alexis Ohanian, Former Twitter vice president Elad Gil, Blippy co-founder David King, Flixster co-founder Joe Greenstein, Angel investor Mike Greenfield, Quora co-founder Charlie Cheever, Path’s Dave Morin, Facebook vice president Dan Rose, Trevor Traina, Resolute Ventures’ Mike Hirshland, Caffeinated Capital’s Ray Tonsing, Felicis’ Aydin Senkut, True Ventures’ Om Malik, Thrive Capital’s Josh Kushner, Crunchfund’s Michael Arrington (who disclaimer: founded TechCrunch) and SV Angel.]
Opendoor: Sold. The minute you're ready.
In the US there are quite a few people who see an opportunity in the $20 trillion US residential real estate market – which I think is a good thing. This is a space that–despite its size–hasn’t seen an awful lot of innovation.
Whether or not the "market fit" in the UK is comparable, remains to be seen , as there is a higher percentage first time buyers, to home sellers ratio currently.
Secondly, 2 percent is a very high for the UK ,considering rise in online estate agents , who charge a fixed fee in the mid to high hundreds of pounds, [ in the US glassdoor charges 6% making though there is no competition from online estateagents ]
A strong rebuttal by Carney that BoE has no intention of raising rates short term ,also makes this less likely proposition, moving forward.
Interest rate rise would put many more in trouble, with almost 60% saying they are already struggling ,to meet housing costs , if this is what they are gambling on it will be interesting to see public perception moving forward.
Already a Crowded market ?
Add to a crowded market of sell your homes fast .These companies offer to either buy your house or find you a third party buyer very quickly, and pay cash for your property, usually at a discount from the full market value.There are more than 100 firms to choose from in the “quick house sale” market, all offering to buy property or find third-party buyers. In return, the vendor agrees to sell at a reduced price, usually forgoing between 10pc and 25pc of the property’s market value.
webuyanyhomes
Pros
- They can provide a useful service for homeowners who need to unlock cash in a hurry.
For example to:
- avoid repossession, clear debts or sort out financial problem
- dispose of inherited property
- move for age or health related reasons
- sell as a result of divorce or relationship breakdown
- relocate due to a change of job or to emigrate
- try a different route if unable to sell through a traditional estate agent – get around issues that have made a property hard to sell, for example with a short lease or if a property has a high risk of flooding
Cons
- some companies agree to buy a house, but then reduce the price at the very last minute
- fee structures are not always made clear to the customer
- some companies make false property valuations
- some contracts tie customers in, preventing them from selling to anyone else who might come along with a better offer
Unscrupulous Traders
Not all are Unscrupulous , as the market has regulation through the orgs like property obudsman though,
Cases were vendors signed a deal with a quick house sale company agreeing a purchase price of £75,000, but the day before the removal men were due to arrive, the company lowered the offer to £40,000.[BBC 2013]
some sellers are losing up to 53pc of their property value.[Telegraph 2013]
Errol Damien went on to say
“What we want to do is give those people certainty, a concrete promise they can sell their house,” he said. “There’s a massive company to be built here, even if it’s only one in 10 sales.”
Ultimately the consumer, coupled with market conditions, will decide the traction of start up nested success.
Further Reading
Start me up: Why London needs open workspaces for creativity, innovation and growth
LA police testing knife found on OJ Simpson property - reports
'Kleptocracy tours' 35,000 London properties currently have unknown offshore owners
UK's largest property developers accused of 'profiting' on the back of the housing crisis
Pop Up Housing a solution not just for London but the UK
estate regeneration statement GOV UK DCLG ,Lord Heseltine ,Brandon Lewis MP
Digital Mortgage service: making improvements again & again
Uber's property footprint unmatched among San Fran Bay Area ,Tech StartUps
OnTheMarket overseas properties , Britons with holiday homes in France face paying extra 10% in tax if they sell the property following a Brexit
Guests staying with AirBnB for the super bowl top 15,000
FT first 'Rightmove maintains grip in battle of property portals @onthemarketblog
Morrisons Super Markets signs deal to sell food to Amazon online customers
Amazon eyes up UK restaurant delivery market
Booking.com Launches of Passion Search ,Don’t battle your passions, unleash them
Formula One star Eddie Irvine lists his Irish home on Airbnb
David Cameron calls EU referendum for June 23 2016 Official Statement @onthemarketblog
zoopla.co.uk selects Birst's Cloud BI platform for data integration from all its brands and apps
Good News UK mortgage approvals hit two-year high BoE
IMF Statement: LUXEMBOURG: Concluding Statement of the 2016 Article IV Consultation Mission
Emoov.co.uk what Brexit means UK House prices
Spanish house prices 2015 see rise highest rise 2007 crash , stabilisation of housing market, idealista.com
No Brexit for me, why I'm staying in a reformed EU and so should you
Scotlands House prices rise and sales grow ros.gov.uk
An analysis of recent trends in the Irish rental market 2015 in Review
fourth quarter 2015: First-time buyers took out 87,100 loans to purchase homes. + house prices in UK
GeoPhy Exodus-from-EU-may-spark-correction-in-the-rental-market.html
1st of March David Cameron St David's Day message "wonderful country and a great part of the United Kingdom"
Amazon eyes up UK restaurant delivery market
Bank of England's unease over market's rate view Carney & Shafik
Morrisons Super Markets signs deal to sell food to Amazon online customers
Buy-to-let investors 'could face losses'
Brick-And-Mortar Crumbling? Don't Believe It > Forbes > Leadership
Chinese authorities shut down microblogging accounts belonging to a real estate mogul
Foxtons high street estate agent facing landmark claim for £2million from group of 55 landlords
Brexit ,purplebricks.com investor, impacts on the property market overall and on aggregate consumption in the economy will be limited.
Not all are Unscrupulous , as the market has regulation through the orgs like property obudsman though,
Cases were vendors signed a deal with a quick house sale company agreeing a purchase price of £75,000, but the day before the removal men were due to arrive, the company lowered the offer to £40,000.[BBC 2013]
some sellers are losing up to 53pc of their property value.[Telegraph 2013]
Office of Fair Trading report Quick House Sales [2013]
Errol Damien went on to say
“What we want to do is give those people certainty, a concrete promise they can sell their house,” he said. “There’s a massive company to be built here, even if it’s only one in 10 sales.”
Ultimately the consumer, coupled with market conditions, will decide the traction of start up nested success.
Further Reading
Start me up: Why London needs open workspaces for creativity, innovation and growth
LA police testing knife found on OJ Simpson property - reports
'Kleptocracy tours' 35,000 London properties currently have unknown offshore owners
UK's largest property developers accused of 'profiting' on the back of the housing crisis
Pop Up Housing a solution not just for London but the UK
estate regeneration statement GOV UK DCLG ,Lord Heseltine ,Brandon Lewis MP
Digital Mortgage service: making improvements again & again
Uber's property footprint unmatched among San Fran Bay Area ,Tech StartUps
OnTheMarket overseas properties , Britons with holiday homes in France face paying extra 10% in tax if they sell the property following a Brexit
Guests staying with AirBnB for the super bowl top 15,000
FT first 'Rightmove maintains grip in battle of property portals @onthemarketblog
Morrisons Super Markets signs deal to sell food to Amazon online customers
Amazon eyes up UK restaurant delivery market
Booking.com Launches of Passion Search ,Don’t battle your passions, unleash them
Formula One star Eddie Irvine lists his Irish home on Airbnb
David Cameron calls EU referendum for June 23 2016 Official Statement @onthemarketblog
zoopla.co.uk selects Birst's Cloud BI platform for data integration from all its brands and apps
Good News UK mortgage approvals hit two-year high BoE
IMF Statement: LUXEMBOURG: Concluding Statement of the 2016 Article IV Consultation Mission
Emoov.co.uk what Brexit means UK House prices
Spanish house prices 2015 see rise highest rise 2007 crash , stabilisation of housing market, idealista.com
No Brexit for me, why I'm staying in a reformed EU and so should you
Scotlands House prices rise and sales grow ros.gov.uk
An analysis of recent trends in the Irish rental market 2015 in Review
fourth quarter 2015: First-time buyers took out 87,100 loans to purchase homes. + house prices in UK
GeoPhy Exodus-from-EU-may-spark-correction-in-the-rental-market.html
1st of March David Cameron St David's Day message "wonderful country and a great part of the United Kingdom"
Amazon eyes up UK restaurant delivery market
Bank of England's unease over market's rate view Carney & Shafik
Morrisons Super Markets signs deal to sell food to Amazon online customers
Buy-to-let investors 'could face losses'
Brick-And-Mortar Crumbling? Don't Believe It > Forbes > Leadership
Chinese authorities shut down microblogging accounts belonging to a real estate mogul
Foxtons high street estate agent facing landmark claim for £2million from group of 55 landlords
Brexit ,purplebricks.com investor, impacts on the property market overall and on aggregate consumption in the economy will be limited.
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