Cashback.

telfordwhite

Although our house is competitively priced for the area (180k, 4 bed detached) we are considering offering 5k cashback on completion rather than drop the price by the same amount.

Seems like a good idea to me but is there something I am missing?

good idea or not?

Doozergirl

I'd rather have £5000 less on my mortgage I have no idea what I'd do with £5000 cashback.

I thnk more people would prefer money off the house. It's not like you gain anything by offering the cahsback?

lynzpower

I agree, why would you offer that?

Additionally, I suspect that this will incur extras solicitors charges.

I also expect that this might pose some problems ( dunno tho ) with lenders, I mean are they lending 245 or 250? im sure it could be reoslved, but may add extra time to proceedings.

telfordwhite

Doozergirl wrote: »

I'd rather have £5000 less on my mortgage

I have no idea what I'd do with £5000 cashback.

Maybe if you are a cash or FTB it would help with fees perhaps? Equitable buyers could just knock it off the mortgage.

lynzpower

woud a ftb really buy a 4 bed detached?

Doozergirl

Equitable buyers could just not have it on the mortgage in the first place? WHat is the likelyhood of a FTB who is short of funds, buying a 4 bed detached house?

I can see that cashback works for developers because it looks like previous houses sold for more than they did in reality, but for you, you are just complicating the issue? You gain nothing from giving the £5000 back, so just drop the price!

telfordwhite

Thanks for the replies.

Just for clarification, the actual price would be in effect 175k. FTBs (who have been known to buy flats for more than this figure) would pay 180k and get the cashback on completion, if they wanted.

There are many 3 bed houses (ftb fodder) in the area for a similar price (or more) than our 4 bed.

The thing about dropping the price that concerns me is that maybe it won't get noticed, it is already amongst the cheapest houses of it's type in the area.

lynzpower

where abouts are you telfordwhite?

telfordwhite

lynzpower wrote: »

where abouts are you telfordwhite?

tr3 for rightmove purposes.

lynzpower

Ok well I just looked on RM, and you can get 3 bed semis in tr3 for 90k and around.

Now if I was a FTb, Id be looking at these sort of places- surely?

telfordwhite

Trust me Lynz, you wouldn't want to live in these areas, they are the low end of the scale but i get your point.