Probatepropertyhub.co.uk claims to be a credible alternative to auctions but loads a lot of the costs on to the buyer rather than the seller.
A new online platform connecting property buyers and solicitors aims to provide a speedy way to liquidate probate estates has launched, but with some punchy costs for both buyer and seller.
Probatepropertyhub.co.uk is a new one-stop for probate property sales, exclusively for probate solicitors who can list properties for auction or as a ‘buy now’ for estates needing a super quick sale.
The platform was launched to help solicitors, particularly when assets need to be liquidated quickly; the buy now option lets sellers skip the auction process, guaranteeing completion within 45 days.
But in return, buyers pay a 2.5% fee plus VAT which must be paid within 24 hours of the sale, not on exchange, a fee which is non-refundable, and landlords buying through the platform will then have 60 days to exchange and 90 days to complete, or lose the fee.
If buyers use its eBay-style ‘buy it now’ button, then buyers have just 45 days to get to completion. Also, the site charges a minimum fee of £2,500.
Also, if the platform achieves more than the ‘guaranteed minimum price’ agreed between it and the vendor, it takes 50% of the uplift.
“As executors have a legal duty of care to safeguard the assets of the estate, how does probatepropertyhub’s model work with this model,” asks independent Proptech Real Estate Strategist Andrew Stanton.
A spokesperson for the platform says: “Solicitors are required to provide the best possible outcome for clients, but this is often a balance between achieving a quick sale and getting the right price,” says a spokesman. “They are legally compelled to achieve the best price possible and so this can make it difficult to market a property.