If you’re not a regular reader of the property pages, you might not have heard of this new scheme being trialled on the Wight. Ed
An Isle Of Wight based company is offering a new chain-breaking solution, stimulating and freeing up the buyer-seller process by actually purchasing the property at the bottom of the chain and then working with sellers further up the line to ensure the sequence of sales are completed.
The scheme is funded by discounts throughout the chain (typically three to five percent), and by fees charged to sellers further up the chain.
The Chain Solution, based in Cowes, has its own estate agency department, and also works with any 3rd party agents dealing with other properties in the chain.
Subsequent to the purchase of the property the company will either rent it out or offer it for sale at a substantial 15% discount, effectively gifting the buyer their deposit, particularly useful for first-time buyers, and referred to by the company as a ‘Robin Hood’ discount.
The company states that three such arrangements are currently ongoing on the Island, and are hoping to widen the scheme to help stimulate the housing market nationwide.
Whilst the scheme has been successful so far, it will not suit all chains. Short chains, those with a narrow spread of values or those where the bottom property is not the lowest in value may not be attractive to this arrangement.
Sellers further up the chain funding the scheme with discounts and fees, in addition to commission paid to their own agent may even be tempted to increase their asking prices to cover the additional expenses.
Whilst many see this approach as innovative and entrepreneurial, no doubt some may be more cynical of the motives in what is a private commercial venture launched by an estate agent in a collapsing market, and might be forgiven for suspecting this of being a good way to buy properties at a discount, or a get rich quick scheme, named after an outlaw who in order to give to the poor had to rob the rich.
