“Proptech” (property technology) start-up Nested is a new online property service that aims to assist house sellers who are stuck in a property chain and face losing their dream home by selling their property within 90 days. It is the brainchild of founders and early execs of GoCardless and Songkick, Matt Robinson and Phil Cowans, and trained architect, James Turford.
The team has already raised £3m from self-made billionaire brothers, Oliver and Alex Samwer and leading investors including Passion Capital and Indeed founder Paul Forster.
Nested is available now to property owners in London whose homes are worth less than £1,000,000. Properties sold using Nested are guaranteed from day one and sellers will have the funds for their next purchase in 90 days, whether it is sold or not, putting them in the best possible position to purchase their next property. This avoids a common situation where buyers find their dream homes but lose out to cash buyers..
Matt Robinson, CEO of Nested, explains. “The whole property chain and selling process is broken, with sellers complaining about slow lawyers, endless phones calls, untrustworthy estate agents, and of course, being let down by the buyer at the last minute. With so much time and effort wasted on the sales process, we set out to solve the problems that trap sellers in a lengthy sales chain and with no guarantee of a sale at the end of it.
Mr Robinson went on to say that: “Today a third of agreed offers fall through, something we are seeing more of with increased uncertainty post-Brexit. Many sellers find themselves forced to start again, often losing the house of their dreams further down the chain as a result. Some resort to moving into rented accommodation in order to move on time for a new job or the start of the new school year, and end up paying for two properties. Nested makes sellers chain-free from day one, removing months of uncertainty and putting them in the strongest position to make their next purchase.”
Nested provides sellers with a property valuation within minutes and guarantees a minimum price from day one, promising to sell the house within 90 days or give them the money. Thanks to its valuation algorithm and unique processes, the company is able to guarantee the customer fair market value, unlike traditional home buying companies in the distressed house sale industry.
Nested charges a minimum fee of 1.8%, and if they can sell for more than the guarantee, they give the majority (80%) of any upside to the homeowner, whether the property is sold before or after 90 days. Nested retains the other 20%, meaning their incentives are fully aligned with the homeowner to sell for the maximum amount possible.
Nested has been launched in London initially and promises to be a breath of fresh air in a marketplace where frustration and disappointment are usually the order of the day.