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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!
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.
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:
Our home buying fee is calculated as a percentage of your final valuation and is comprised of 2 components.
In addition, Stamp Duty might apply to the sale of your home, the cost of which will be deducted from your proceeds.
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.
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.
|Home buying fee %||12%|
|Home buying fee £||£12,000|
|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|
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.
Yes, it will be there so you will have this guarantee in writing.