December 12th, 2010 
Paul What is an Assisted Sale?
Put simply, an agreement between you and the vendor that you will assist them in selling their property on whatever terms you agree.
The basic principle is very much like a private estate agency agreement i.e/ you get paid for helping a vendor sell their Property. But rather than just getting a set percentage fee (which you could if you wanted) you have more flexibility. For example, you might say you will help the vendor sell their property and whatever amount they achieve over and above x amount is your profit.
You can get as creative as you want. You can do some works to make the Property more attractive, redecorate, market it using your local expertise, conduct an open day, do the viewings or inplement any other great ideas you may have.
Who are your vendors?
The scope of potential vendors is vast – it can potentially be anyone who wants to sell their property.
The skill in negotiation comes in finalising a deal suited to the circumstances of your vendor. For example, if they are a distressed vendor you will be well versed in dealing with them. Questions you may ask:
What’s the current mortgage, what’s a realistic sale price, any arrears, do you need to ask their lender for time to find a buyer if they are threatening repossession.
An example. Maybe you can establish that a realistic selling price is 160k when the Property is cleared, given a lick of paint and marketed in the right way. If the vendor is happy to accept 140k then the difference, or part of it (depending on what you agree), can be yours. As you know, estate agents can put a property on the market and if it doesn’t sell there’s not usually much else done. Of course, this is of no use to a vendor who cannot afford their mortgage and repossession looms.
Pro’s
No Mortgage required, profitable, little or no risk, helping a vendor, a basic principle that can be developed allowing you to be creative.
Let us have your views on Assisted Sales and any questions you have.
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In an assisted sale, which is best – profit from deal comes from :
a) the vendor
b) the buyer
c) both
in deals where (b) or (c) is the answer, would vendor assisted deposit upto 5% and stamp duty complicate things!
Do you secure an assisted sale with a basic option agreement?
We do, reason being it is a good mechanism to register at land reg and thus to protect the investor
The profit comes from the difference between the price the vendor will accept and the price the purchaser actually pays.
For example, if vendor would accept sale price of 170k but you negotiate price of 185k with buyer , profit is 15k. Stamp duty would be payable at 1%.
Is the stamp duty on the investors profit i.e. The £15k as well as? Or just the property @ £185k .
Hi Richard
Stamp Duty is only payable on the price paid by the buyer only , so on 185k.
thanks
Hi,
i am passionate about lease option.
currentlly i have 3 commercial property deals i am talking to motivated sellers who is not getting tenant to fill in their properties.basiclly we are talking to do this deal based on joint venture to share any profit we can have. in this case which lease option power play i can use? i want to buy your full manual of 51 power play but cant find it in internet can you help me?also i need help to close this deal finding a tenant buyer is that possible?can you help me? can you call me on 07912644453 please?waiting to hear some feedback on my concerns.
thanks
NITINBABU VRAJLAL
Hi Nitinbabu.
Good news on yoru delas. I believe you are speaking to our Andrew Brown on them already. If you need any help, as ever, call 0161 772 4500
thanks
Hi,
i just wanted to know if you dont mind me asking this: Haw much do charge to for drafting of ASSISTED SALES AGREEMENTS?
Hi,
i have a vendor who want a quick sale and i am not interested in buying this property for myself just wanted to make some money out of it so was thinking to sale via the auction house but i need to tie the vendor so the question is which is more suitable here: an short time option or assited sale agreement?
Hi
Each method has it’s own pro’s and con’s but if you give me a call we can discuss each
thanks