Cashback offer as an incentive for house sale

cake_lover

Hi everyone,

I'm wanting to sell our flat and looking to get a quickish sale if possible. It was valued at 95k but I would be happy if I got 85k for it. I was thinking of selling it for around 88k with 3k cashback to help any first time buyers.

I would be interested to know if anyone else has done this or whether people think this would be a good idea or not.

Thanks

CL

sonastin

The £3k cashback would have to be declared to the mortgage lender who would then value the house and assess the deposit as though the buyers were buying an £85k house with however much of their own money they are putting in. Anything else would be mortgage fraud on the part of your buyers. If you attract cash buyers or buyers with a large enough deposit, £3k cashback in return for paying an extra £3k won't make any difference. I don't think there is much benefit in doing it.

SG27

I'm a first time buyer and I think these incentives are a waste of time. I'd much rather just have £3k off the asking price!

HappyMJ

Bad idea...waste of time and could put non first time buyers completely off even looking at the property.

CloudCuckooLand

Just put it up for £85k fixed price. If you have gauged the market correctly it will naturally look priced to sell.

If its not within someone's budget, they don't waste your time viewing it to find out that's your bottom figure.

You don't get low offers.

Everyone knows where they stand.

cake_lover

Thanks for your replies everyone. My reasoning was that if someone was wanting to buy but still short of money for a deposit or for solicitors fees etc then it would help them out.

But I can see where you're all coming from.

cheers

JQ.

As stated above, it won't help with the mortgage as the lender will just deduct the 3k from the offer. From a marketing point of view it also makes you sound quite desperate. If I was bidding I'd therefore make a stupidly low offer.

These incentives did used to work when the banks didn't care who then lent to or how much anything was actually worth. We are in different times now and eveyone's wise to such tricks.

cake_lover

Thanks again. I don't know if it makes any difference though as we live in Scotland and the home survey report valued the house at 95k so even buying for 88k wouldn't put the buyer in negative equity....

DVardysShadow

cake_lover wrote: »

Thanks again. I don't know if it makes any difference though as we live in Scotland and the home survey report valued the house at 95k so even buying for 88k wouldn't put the buyer in negative equity....

If the buyer gets it for 88, it is worth no more than 88 - if it were worth more, you would be selling it for more. Once it is sold for 88, the value is what the next ready able and willing buyer will pay. If that is less than 88, then the home survey is meaningless.

sulli1

DVardysShadow wrote: »

If the buyer gets it for 88, it is worth no more than 88 - if it were worth more, you would be selling it for more.

The house has been valued at £95k but the seller hopes for a quick sale. Just because somebody buys something for the listed price whatever it may be- a house, an antique, etc doesn't mean it can't be worth more.

Flashmanchop

SG27 wrote: »

I'm a first time buyer and I think these incentives are a waste of time. I'd much rather just have £3k off the asking price!

With an attitude like that, your clearly here for financial help.

Your basically saying that you would rather pay more for a house?

10% @ £85k = £8,500
Net Mortgage = £76,500

10% @ £88k = £8,800 - £3000 = £5,800
Net Mortgage = £79,200

(Possible) difference montly c. £13.03, BUT your £3,000 Poorer.