This PropTech venture wants to sell your house in just 90 days
This PropTech venture wants to sell your house in just 90 days
…or it will buy it
A new PropTech startup is promising to sell your property within just three months – or else it will lend you a lump sum of interest-free cash to put a down payment down on your next home.
London-based ‘Nested’ has raised GBP3 million (USD3.8million) in funds to kickstart what hopes to be the “Amazon for home sales”, writes Business Insider.
The business comes from Matt Robinson, cofounder of direct debit startup GoCardless, SongKick executive Phil Cowans and architect James Turford.
The funding comes from:
• London seed fund Passion Capital
• Tim Bunting, a partner at venture capital firm Balderton
• Tom Hulme, a partner at Google Ventures
• Paul Forster, the founder of jobs website Indeed
• Germany’s billionaire Samwer brothers, founders of venture builder Rocket Internet
The business will allow people to get an immediate offer on the value of their house, and if the owner is pleased with it, Nested takes over the selling process. If a sale is not confirmed within 90 days, the company provides sellers with a loan to secure their next property.
Robinson explains that the current methods of selling and buying houses is “based around chains, which are the bête noir of anyone trying to buy or sell a house.”
More: UK PropTech startups to get £100,000 funding
“If you want to go and buy a house and you already own a house, you can’t buy this one until you’ve sold that one,” he told Business Insider. He added: “For us, it’s giving people the piece of mind and financial freedom to do what they want to do in life. It’s more powerful than you realise because in the market if you’re a cash buyer or a certain buyer, you can pay up to 5% less. Actually, we’re potentially allowing people to go and buy better houses.”
Nested makes money by claiming 2 percent on the valuation price, and 20 percent on the difference above that value.
When a house sells, the owner gets 80 percent of any upside, and Nested takes 20 percent.
So, if a property is worth USD100,000, Nested will guarantee the owner USD85,000. If the home then sells for the predicted USD100,000, the owner walks away with the extra USD12,000 and Nested takes USD3,000.
Listen to Matt Robinson pitch Nested to investors earlier this year:
Read next: Not just another hotel room: German PropTech CEO talks
Source: Property Report