The real estate market is going through a good spell and it is not hard to sell a flat. In fact, in large cities and especially in Madrid and Barcelona, it is quite easy. But it may happen that we cannot even wait for the fluctuations of the market; that we are in a hurry to sell. In those cases, sacrificing thousands of euros in order to sell immediately may be accepted.
There are already companies that are engaged specifically in that. These are companies that can buy our homes in 7 days or less. In the last few days, Tiko and Clicpiso, Spanish start-ups, have presented themselves in a big way in the Spanish press. With a lot of money behind them, these companies claim they can give us the liquidity we are looking for in a matter of days.
Tiko claims to be able to do it thanks to the use of technology and strong financing. They apply their technology to assess the home and make an offer in 24 hours. Once accepted, a technical and legal inspection of the apartment or house manages the conveyancing of the property and completes the payment in a few days. Subsequently, Tiko is responsible for refurbishing the homes and selling them in a period not exceeding 90 days. They claim that their business is based on speed and volume: it achieves small margins over a large volume of transactions.
All done and dusted in a question of days.
After the success achieved in Turkey, where it operates under the name of Evtiko, the Turkish-German entrepreneur Mr. Sina Afra wants to enter the European market by opening a new headquarters in Madrid, from where Tiko already works as a buyer that promises to make an offer for your house in 24 hours, take care of the paperwork and eliminate the stress of selling and deposit the funds in a few days.
Tiko chose Madrid because, according to Afra, "people love to buy rather than rent" it is an expanding market, the fifth in Europe, where in addition to the buying and selling process, they take care of all the paperwork and intermediate steps eliminating any setbacks in the purchase.
Another company, a carbon copy of the first, is Clicpiso.
The founders of Clicpiso, Francisco Moreno and Víctor Ortiz, acknowledge that the process of selling a house can be "exhausting" and it supposes a "great investment of time and energy". This company seeks to guarantee, thanks to technology, the immediacy and transparency in the purchase process and "eliminate paperwork and stress." They ensure that they are able to eliminate the extra costs and commissions by relying on their own algorithm.
To sell a property to them, you just have to provide the details of the property on their website and the company makes a free initial offer within 24 hours. Once the offer is accepted, an expert visits the property that you want to sell and they will present the final offer, which will be the price paid to you when closing the sale.
Madrid first; other regions to follow
According to the founders of Tiko, "Spaniards prefer to buy rather than rent. In fact, Madrid is the fifth market in Europe by number of transactions. However, selling an apartment there takes on average almost five months; we reduced it to just a few days. " The company has tested its model in Istanbul (under the name of Evtiko) and has been very successful. Now Spain is their foothold in Europe and Madrid is the first Spanish region where it has been decided to launch the service.
In the last two months since its launch, Clicpiso has obtained an equity investment of more than 2 million euros. This start-up has already won the support of "excellent corporate track record" investors from companies such as Santander United States, Aviva, Dunas Capital, Inverseguros, Aena and LaFinca.
Tiko has so far achieved funding of 35 million euros with the support of major investors such as Rocket Internet and Cabiedes. They work hand in hand with the market players, especially real estate agencies, from which they buy real estate directly. Tiko has an expansion plan to 10 European cities in the next 3 to 5 years. It opened its offices in Milan at the beginning of 2018.