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Would this help sell our house and is it legal?
reheat
Posts: 2,304 Forumite
Our house is on the market at about £180,000 so is in first time buyers' land.
But FTBs are finding life very difficult themselves, especially when trying to find a deposit; either finding enough for a deposit at all, or wanting to get past the expensive mortgages that come with low deposits.
So what if we put our house on the market at offers in excess of £180,000, and we also offer a FTB incentive to pay £2000 contribution to the buyer's deposit at exchange of contracts. But if they take this option then the minimum offer we would accept would be £182,000.
A 5% deposit would be £9100, but the buyer would then only have to find £7100 - a non-trivial saving that just might make all the difference for them.
So on exchange we get £7100 from the buyer, as their contribution to the deposit. On completion we then get £182000 - 9100 = 172,900. So in total we get our £180,000.
The buyer also gets a decent deal, because they got a mortgage they may otherwise never have got. The cost to them is £2000 added to their mortgage, which is a small price to pay for the £2000 they got up front so they could get a mortgage in the first place.
Any thoughts? does it make sense? Is it legal? Any problems with it?
But FTBs are finding life very difficult themselves, especially when trying to find a deposit; either finding enough for a deposit at all, or wanting to get past the expensive mortgages that come with low deposits.
So what if we put our house on the market at offers in excess of £180,000, and we also offer a FTB incentive to pay £2000 contribution to the buyer's deposit at exchange of contracts. But if they take this option then the minimum offer we would accept would be £182,000.
A 5% deposit would be £9100, but the buyer would then only have to find £7100 - a non-trivial saving that just might make all the difference for them.
So on exchange we get £7100 from the buyer, as their contribution to the deposit. On completion we then get £182000 - 9100 = 172,900. So in total we get our £180,000.
The buyer also gets a decent deal, because they got a mortgage they may otherwise never have got. The cost to them is £2000 added to their mortgage, which is a small price to pay for the £2000 they got up front so they could get a mortgage in the first place.
Any thoughts? does it make sense? Is it legal? Any problems with it?
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
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
0
Comments
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What happens if the surveyor from the lender values your property at £149K ?0
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Perfect legal, so long as the buyers inform their bank. If they don't then you're complicit in mortgage fraud and if they do, the bank will just deduct your gifted deposit from their calculation making it totally pointless.
You're offering a gimmick that doesn't work and will just encourage dreamers to your house no doubt wasting a considerable amount of your own time.0 -
If this worked, everyone selling to ftb would be doing it!0
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It will count as a vendor gifted deposit which will effectively prevent your buyers getting a mortgage if declared.
If not declared then it would be mortgage fraud.0 -
We bought it for £175K a couple of years back.What happens if the surveyor from the lender values your property at £149K ?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 believe0 -
Ah - that sounds like the killer! Oh well.It will count as a vendor gifted deposit which will effectively prevent your buyers getting a mortgage if declared.
If not declared then it would be mortgage fraud.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 believe0 -
Point taken.Perfect legal, so long as the buyers inform their bank. If they don't then you're complicit in mortgage fraud and if they do, the bank will just deduct your gifted deposit from their calculation making it totally pointless.
You're offering a gimmick that doesn't work and will just encourage dreamers to your house no doubt wasting a considerable amount of your own time.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 believe0 -
drop the price...simple...It is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0 -
What if we did something more like some of the EAs advertise, where the vendor pays the buyer a cashback (typically £1000, but we could do £2000) on completion. Maybe some FTBs could could stretch their deposit if they knew £2K of it would only need to be on a short term loan?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 believe0 -
We are very well aware of how simple it is - already dropped £17K.drop the price...simple...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 believe0
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