OUR PROMISE IS SIMPLE:

The price we pay will be fair, accurate and transparent. We are so confident in our final valuation that if we re-sell your property for a higher price within 6 months, we’ll give you the difference (less our home buying fee).

Sounds great, but what does it mean? Below we are going to take you through how the Spring Price Promise works (see here for our full Terms and Conditions). We strive for the greatest transparency possible – so you always know exactly how much you are going to get for your house and why. We’ve imagined some of the questions you might have about how the Price Promise works – if you have any others, get in touch!

LET’S START FROM THE BEGINNING...
WHAT WILL YOU PAY ME FOR MY HOME?

Our offer to you is our final valuation of your home less our home buying fee, which is calculated as a percentage of your final valuation. In certain cases, Spring might need to pay Stamp Duty on our purchase of your home. If so, the amount of Stamp Duty payable will be deducted from your formal offer.  

WHAT DETERMINES YOUR VALUATION OF MY HOME?

Our valuation is the price at which we believe your home would sell on the open market within a realistic timeframe. Once we buy your home, we take on the risk of selling it on, so this forms the basis of our offer.

Fortunately, our valuations are extremely thorough. We factor in multiple views on your home’s value including:

  • 2 highly experienced Spring Property Buyers (done remotely)
  • 1-2 local independent estate agents (usually done remotely)
  • Estimate from a sophisticated national valuation model (done remotely)
  • 1 independent surveyor from the Royal Institute of Chartered Surveyors (on-site visit)
HOW DO YOU CALCULATE THE HOME BUYING FEE?

Our home buying fee is calculated as a percentage of your final valuation and is comprised of 2 components.

  • Our Base Fee, which is 9% of the valuation.
  • A variable Risk Premium of up to 6% based on your home’s location, situation and condition. Your Property Advisor will give you more specific information about the Risk Premium applied to your home’s offer.

In addition, Stamp Duty might apply to the sale of your home, the cost of which will be deducted from your proceeds.

 

WHAT DOES THE SPRING PRICE PROMISE
HAVE TO DO WITH MY VALUATION AND OFFER?

Simply put, on the rare occasion our valuation is wrong and we end up selling your home for more than our final valuation, within 6 months of buying it, we will give you the extra funds, less the home buying fee and any stamp duty payable. To take advantage of the Spring Price Promise you must have chosen a completion date which is within 90 days of your acceptance of our formal offer and, if we have requested it, you must have agreed to us marketing your property prior to completion of your sale of the property to us.

CAN YOU GIVE ME AN EXAMPLE
OF HOW THE SPRING PRICE PROMISE WORKS?

Yes!

Let’s say our final valuation of your home is £100,000 and we determine a home buying fee of 12%. This means our formal offer is £88,000 (£100,000 less the £12,000 home buying fee). We complete on your house on January 2nd 2021, depositing £88,000 in your account.

On May 31st we sell your home to a family for £110,000. By selling the house for more than your final valuation within 6 months of completion, the Spring Price Promise is triggered. We contact you and arrange to send you another payment for £10,000 less our original home buying fee of 12% and any additional Stamp Duty. You receive £8,536 (£10,000 less £1,200 fee and £264 of Stamp).

In total, Spring has now paid you £96,536 in cash proceeds, which is equal our final sale price of £110,000 less the 12% home buying fee and additional Stamp.

EXAMPLE OF SPRING PRICE PROMISE
BEING TRIGGERED ON A HOME SPRING VALUED AT £100,000
Final Valuation £100,000
Home buying fee % 12%
Home buying fee £ £12,000
Formal offer £88,000
Stamp Duty payable (3% in this case) £2,640
Proceeds on completion £85,360
Eventual selling price £110,000
Amount over final valuation £10,000
Home buying fee % 12%
Home buying fee £s £1,200
Additional proceeds from Price Promise £8,800
New Formal offer from Price Promise £96,800
Addional Stamp Duty £264
Final proceeds from Spring Sale £96,536
OK GREAT, AND WHAT ABOUT IF IT SELLS
FOR LESS THAN YOUR VALUATION?

Well, that is the risk that Spring takes – we take the loss, not you. This is also why we work so hard to have such thorough valuations.

We know how important peace of mind is to our customers and our unique Spring Price Promise is there to reassure you that if we do ever make a mistake, we protect you.

WILL THE SPRING PRICE PROMISE BE COVERED IN MY SALES CONTRACT?

Yes, it will be there so you will have this guarantee in writing.

TERMS AND CONDITIONS FOR SPRING PRICE PROMISE TO APPLY
  • The Spring Price Promise may not apply if you are selling to us via a developer or other partner.
  • You must have chosen a completion date within 90 days of acceptance of our Formal Offer.
  • You must have agreed to pre-completion marketing of your property, if applicable.
  • If our resale of your property has not completed within 6 months from the date of completion of your sale to us, the Spring Price Promise does not apply.
  • We will contact you after we complete on our sale to notify you if you are owed any Additional Payment.
  • Our solicitors will deposit the Additional Payment into the same bank account as your initial sale proceeds.
  • If in our Formal Offer we specify an amount that we need to spend on repairs to the property before we resell the property, that amount will be deducted from the Additional Payment.
  • If the property is damaged between the assessment of the property by the independent surveyor and completion of the sale, the cost of any repairs required to the property as a result will be deducted from the Additional Payment.
  • If the Additional Payment results in us having to pay Stamp Duty if none was payable at the time of the sale of your property or Stamp Duty at a higher rate than was included in the home buying fee which applied to the sale of your property, such additional Stamp Duty will be deducted from the Additional Payment