5% deposit paid question

sunshine777_2

Hello to you all

I am looking for some help regarding houses that state they are 5% deposit paid by vendor, or 5% deposit paid by a house builder - how does this work please, are you physically given the money or is it knocked off the price?

Thank-you

Beardmidget

Why would the difference be meaningful?

poppysarah

It means they want too much for the house. Usually a lot more than the 5% discount they pretend to offer.

sunshine777_2

Thank-you for your replies.

It's just that we are FTB and are struggling to get a 10% deposit which we will more than likely need, though we have 5% deposit of our own.

I suppose what I really wanted to ask was that if you see a house that you like instead of making a lower offer can you ask whether the Vendor will offer the 5% deposit paid, if that makes sense, we are talking very low figures by the way.

Thanks

Beardmidget

sunshine777 wrote: »

I suppose what I really wanted to ask was that if you see a house that you like instead of making a lower offer can you ask whether the Vendor will offer the 5% deposit paid

The mortgage company will want to know who has paid the deposit... so it may mean that you can't get their 90% deals using this scheme.

Whatever the weather, you shouldn't be offering anything near the price they're asking because the mortgage company's valuation will be much lower and you'll be stuffed anyway.

Sorry if that sounds harsh, but you don't want to be paying reservation deposit and losing it.

sunshine777_2

Thanks for all your replies, it is a great help.