developers that offer deposits paid do so because

bukup

developers that offer deposits paid do so because

it helps sell the property for more than it is worth ?

True of false

LisaT186

Not necessarily, usually it just makes it more attractive than the developer down the road. As long as they get the margin they need to cover their costs and make a profit (after all they are in business), then they can discount or pay what they want really. Don't forget it still has to value up by an independant surveyor.

Doozergirl

TRUE.

Also to sucker in FTBs that can't afford a deposit.

ALso to make innocents feel they're getting a bargain.

plane_boy2000

Not always. People need to remember that a developer is less emotional about a house than someone selling a home - its a business transaction and they will do what they need to turn their investment back into cash ASAP. Italso helps them preserve the value of the development as its likley that you will get no further discount so the land registry will show all teh houses being sold for the asking price. My house is two years old and the developer threw in a few incentives such as stamp duty paid etc which were worth about 15K but they refused to drop the price for the same reason.