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Opinions on £1000 Cashback Please

My EA provides a £1000 scheme to buyers if they use the EA conveyancing, which effectively comes off the price we get for our house. But of course we can account for that when deciding if we can afford to accept an offer.

Our house is going to be selling for around £180K in the south east, so is a good candidate for first time buyers. My feeling is the cashback might well be attractive to first time buyers, who will likely be struggling to scrape up their deposit. Seems probably worth our while to go with the cashback offer therefore.

Any thoughts please?
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Comments

  • david29dpo
    david29dpo Posts: 3,986 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    So you end up paying the £1000 and the agent get a cut from the conveyancing?
  • reheat
    reheat Posts: 2,304 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    david29dpo wrote: »
    So you end up paying the £1000 and the agent get a cut from the conveyancing?
    Very much an over simplification. All that counts is the bottom line, and if the cashback can attract more people in so my sale price is at least £1000 better than I would otherwise have got? Agreed the agent benefits too, but I don't care a monkey's if (and it's the "if" I'm asking opinions about) it gets me a better price to at least cover the cashback.
    Favours are returned ... Trust is earned
    Reality is an illusion ... don't knock it
    There's a fine line between faith and arrogance ... Heaven only knows where the line is
    Being like everyone else when it's right, is as important as being different when it's right
    The interpretation you're most likely to believe, is the one you most want to believe
  • For a FTB, £1k cashback is nice - but I wouldn't really like to go with an EA's conveyancer. They will be working for the seller and I could potentially lose more than gaining £1k from the house sale.

    Personally I woul avoid/decline an EA's recommended conveyancer.
  • reheat
    reheat Posts: 2,304 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    overandout wrote: »
    For a FTB, £1k cashback is nice - but I wouldn't really like to go with an EA's conveyancer. They will be working for the seller and I could potentially lose more than gaining £1k from the house sale.

    Personally I woul avoid/decline an EA's recommended conveyancer.
    Me too, unless I convinced myself the numbers made it worthwhile.
    Favours are returned ... Trust is earned
    Reality is an illusion ... don't knock it
    There's a fine line between faith and arrogance ... Heaven only knows where the line is
    Being like everyone else when it's right, is as important as being different when it's right
    The interpretation you're most likely to believe, is the one you most want to believe
  • overandout wrote: »
    For a FTB, £1k cashback is nice - but I wouldn't really like to go with an EA's conveyancer. They will be working for the seller and I could potentially lose more than gaining £1k from the house sale.

    Personally I woul avoid/decline an EA's recommended conveyancer.



    Sorry but this is wrong

    A conveyancer works for his client. If you are the buyer then the conveyancer works on your instruction. It makes no difference if they are recommended by someone else or are required in a process.

    If a friend recommended a conveyancer you wouldnt expect them to take instruction from them rather than you would you?

    The EA's conveyancer will be part of the same group of companies nothing more. The fact that they will get a referral fee will make head nor tail of difference to you or the service you receive
    £2 Savers Club #156! :)
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  • reheat
    reheat Posts: 2,304 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Sorry but this is wrong

    A conveyancer works for his client. If you are the buyer then the conveyancer works on your instruction. It makes no difference if they are recommended by someone else or are required in a process.

    If a friend recommended a conveyancer you wouldnt expect them to take instruction from them rather than you would you?

    The EA's conveyancer will be part of the same group of companies nothing more. The fact that they will get a referral fee will make head nor tail of difference to you or the service you receive
    To me that makes good sense.
    Favours are returned ... Trust is earned
    Reality is an illusion ... don't knock it
    There's a fine line between faith and arrogance ... Heaven only knows where the line is
    Being like everyone else when it's right, is as important as being different when it's right
    The interpretation you're most likely to believe, is the one you most want to believe
  • Sorry but this is wrong

    A conveyancer works for his client. If you are the buyer then the conveyancer works on your instruction. It makes no difference if they are recommended by someone else or are required in a process.

    If a friend recommended a conveyancer you wouldnt expect them to take instruction from them rather than you would you?

    The EA's conveyancer will be part of the same group of companies nothing more. The fact that they will get a referral fee will make head nor tail of difference to you or the service you receive

    My friend will not have any vested interest to the property, the EA does. My friend wouldn't really earn anything from the recommendation, the EA possibly does.

    As I said, personally I wouldn't go with a conveyancer that is recommended by the EA. As I wouldn't go with a mortgage advisor recommended with the EA.....
  • reheat wrote: »
    My EA provides a £1000 scheme to buyers if they use the EA conveyancing, which effectively comes off the price we get for our house. But of course we can account for that when deciding if we can afford to accept an offer.

    Our house is going to be selling for around £180K in the south east, so is a good candidate for first time buyers. My feeling is the cashback might well be attractive to first time buyers, who will likely be struggling to scrape up their deposit. Seems probably worth our while to go with the cashback offer therefore.

    Any thoughts please?
    Wouldn't touch it with a barge pole as buyer or seller. But then I strongly disagree with the idea of an EA mortgage advisor and I disagree with EA's providing services to Buyers. It muddies the waters - buyers think that the agent is working for them. Agents have an interest in weeding out buyers who will not take their services.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • david29dpo
    david29dpo Posts: 3,986 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    reheat wrote: »
    Very much an over simplification. All that counts is the bottom line, and if the cashback can attract more people in so my sale price is at least £1000 better than I would otherwise have got? Agreed the agent benefits too, but I don't care a monkey's if (and it's the "if" I'm asking opinions about) it gets me a better price to at least cover the cashback.

    Its always a good idea to keep things simple when EAs are involved.
  • The cashback has to be revealed to the buyer's lender so it is just a price reduction. In terms of price negotiations on a £180K property £1K isn't all that significant - a buyer might offer £5K less and the haggle is whether they end up getting £3.5K or £1.5K off.

    Depending on who the agent's pet conveyancer is and their ability to slow down/speed up the transaction, you might even be better off offering to reduce the price by £1K if they don't use the agent's convenaycer!
    RICHARD WEBSTER

    As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.
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