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Have you considered offering a "chain breaker" service? What is a chain? (provided in case this is a UK specific term) A common problem with buying & selling p
by johnlbevan2 10y ago
Have you considered offering a "chain breaker" service?
What is a chain? (provided in case this is a UK specific term)
A common problem with buying & selling property.
In order to buy a new house you first want to know that your current one will be successfully sold.
As such, you may have a queue of buyers all waiting for someone down the line to get a buyer for their property; as if they fail to get a buyer they drop out causing the next person in the chain to have to find a new buyer before they can buy.
Equally sometimes people waiting in a chain are "gazumped" (another buyer makes a better offer to the current buyer), thus pushing out the current buyer and impacting the buyer's chain from the other end).
You could provide a service whereby buyer and seller have already met, but are stuck in a chain. You'd be able to buy the seller's property and hold it for the buyer until they're ready.
- If they're able to sell their property they can then pay you the price of the new property plus the "holding fee" before moving in.
- If they're unable to sell their property they have the option to sell their current property to you and take the new property as described in the previous step; or to remain where they are simply paying you the holding fee for having held the original property for them, with the new property then entering your portfolio of properties to do up and sell on to the highest bidder.
- These holding fees could be charged monthly up front should that prove simpler than lump sum amounts at the point of decision.
Your service already avoids the need for a chain; but this alternate offering allows you to capture a part of the market of those people not interested in your full service, by having the potential buyers ask that the property be purchased by you instead of the sellers coming to you.
- brianwawok 10y agoThat is taking a pretty big risk. Wonder what kind of price the market would pay? I myself was able to chain break when I bought my current house, by doubling up on my mortgage (keeping old until after I had moved and it sold). Cost me maybe 5k in interest on the period of double mortgage? But because I could offer to buy my new house with a clean offer, I saved 5-10k in cost (as I would beat out a 10k offer that had a * on requiring a sale to go through first). of course my strategy only worked because I buy cheap houses not the 40% of my income houses that the bank wants me to buy...
- xherberta 10y agoMy favorite chain breaker service has to do with kidney transplants: Some economists noticed a few cases where would-be kidney donors who weren't compatible with their family member who needed a kidney were able to find another incompatible donor-recipient pair, and were able to swap so that each donor was able to gave to the other donor's loved one. Of course, this only works if the medical compatibility works out between the pairs. To facilitate more transplants, economists created a donor-matching network that could handle cases where three incompatible donor-recipient pairs (or even thirty!) could work out an exchange allowing all of the recipients to get a suitable kidney. Naturally, laws prevent money from changing hands for kidneys, everywhere on earth except in Iran. Heard about this here: http://www.econtalk.org/archives/2015/07/alvin_roth_on_m.html http://www.econtalk.org/archives/2015/07/alvin_roth_on_m.htm...
- johnlbevan2 10y agoThat's an awesome idea; thanks for sharing.