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Holding deposit of £250 - yes or no?
Greymarl
Posts: 47 Forumite
Morning.
So, I had the first valuation on a property, 2 more due on Saturday. There was a lot I liked about this agency, but one thing that put me off was the mention of a buyer's holding deposit of £250. I need to ring and check whether it is refundable and if it isn't, who keeps it if the buyer pulls out - the agency presumably but I have never come across this before.
It's not an expensive house, so we're talking a first time buyer in all likelihood. If it were me, I would not be keen to lose £250 on top of the costs of the survey if the survey came back with major issues and there was a need to pull out.
The theory is that it ensures that the buyer is serious, but I am not convinced. I thought I'd get your thoughts first before I call them and discuss it with them and see whether this is an absolute, and to see who keeps the deposit if things don't work out and also where the money goes if the sale goes ahead.
Many thanks.
So, I had the first valuation on a property, 2 more due on Saturday. There was a lot I liked about this agency, but one thing that put me off was the mention of a buyer's holding deposit of £250. I need to ring and check whether it is refundable and if it isn't, who keeps it if the buyer pulls out - the agency presumably but I have never come across this before.
It's not an expensive house, so we're talking a first time buyer in all likelihood. If it were me, I would not be keen to lose £250 on top of the costs of the survey if the survey came back with major issues and there was a need to pull out.
The theory is that it ensures that the buyer is serious, but I am not convinced. I thought I'd get your thoughts first before I call them and discuss it with them and see whether this is an absolute, and to see who keeps the deposit if things don't work out and also where the money goes if the sale goes ahead.
Many thanks.
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Comments
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An EA with cash flow problems
A buyer who is going to be spending money on a survey etc is usually pretty serious about the potential purchase.
If you do pay any holding deposit make sure that you have the full terms and conds *in writing* before you pay any money over.0 -
That was my first thought!An EA with cash flow problems
Though that may work to my advantage when negotiating a fee. Or it may be a bad sign too...
I'm the vendor. I currently don't know what the terms would be, and need to find out. Would this put buyers off? My instinct is yes, and that the only people who stand to benefit are the estate agents....If you do pay any holding deposit make sure that you have the full terms and conds *in writing* before you pay any money over.0 -
Opportunistic thieves.... finding any new way to create a new fee/income stream, where there's never been one before.
Walk away from them. Even a serious buyer would have doubts when asked for this sum.0 -
PasturesNew wrote: »Opportunistic thieves....
Having done a bit of reading, it seems this used to be quite common, and this agency strike me as being a little behind the times in general...0 -
Your potential buyers will probably hold a similar view to your own. Tell them that if they want your business they remove that requirement and get confirmation *in writing*That was my first thought! Though that may work to my advantage when negotiating a fee. Or it may be a bad sign too...
I'm the vendor. I currently don't know what the terms would be, and need to find out. Would this put buyers off? My instinct is yes, and that the only people who stand to benefit are the estate agents....
Have you ( or a family member/mate) tried posing as a buyer on another property to see how they act with potential buyers?0 -
It did - I encountered it in the days when interest rates were in double figs..
Having done a bit of reading, it seems this used to be quite common, and this agency strike me as being a little behind the times in general...
As PN says though, EAs and LAs are forever looking for ways to fleece the punters. Am surprised they don't yet levy an "air breathing fee" for the time we spend in their offices0 -
Not yet, I am going to ask a friend to do so for me though, it's got to be a good idea hasn't it? I've 2 more agencies to try then will see how I get on out of those 3 and whether I need to try more.Have you ( or a family member/mate) tried posing as a buyer on another property to see how they act with potential buyers?
Out of curiosity, how far do people go with the "mystery shopping" thing? I wouldn't be comfortable booking a viewing as that's not fair on the seller of the property.0 -
Generally, the idea is to have the mystery shopper see how yours is presented once it is on with the agent. They ask in your area, your price and spec and see whether yours comes up. They see whether they can get a viewing on yours....
Out of curiosity, how far do people go with the "mystery shopping" thing? I wouldn't be comfortable booking a viewing as that's not fair on the seller of the property.
Before yours is on, your best indicator is how they present themselves as marketers of your property.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 ForumTeam0
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