Buyer's incentive?

jazzycastles

I recently put my flat on the market and was offered full asking price. The agent then said the buyer wanted to take advantage of the buyer's incentive, which means I will receive £1,000 less than the full asking price.

I asked them to explain this to me as I just do not understand it. They said I don't have to 'take advantage' of it: I said I couldn't see any advantage to me! They were seemingly unable to clarify the scheme further.

As I was pleased with the full asking price offer I said OK I would go along with it. But I really don't understand why I lose £1,000!

Can anyone help?

Incidentally, I told the agents I will NOT be using their solicitors and that did not go down well with them.

princeofpounds

You are likely paying the agent to discount the agent's lawyer and/or surveyor for the buyer.

Likely neither you or the buyer are benefitting the most from this scheme. Guess who is.

Agent probably told the buyer they would have an advantage with you if they went for the scheme.

There is no standard 'incentive', but it typically refers to one of these sorts of things.

jazzycastles

princeofpounds wrote: »

You are likely paying the agent to discount the agent's lawyer and/or surveyor for the buyer.

Likely neither you or the buyer are benefitting the most from this scheme. Guess who is.

Agent probably told the buyer they would have an advantage with you if they went for the scheme.

There is no standard 'incentive', but it typically refers to one of these sorts of things.

Thanks.

On my memorandum of sale it gives the full asking price.

Can I back out of my agreement to let the buyer use this scheme? I signed nothing and it was certainly not explained to me either when I put the flat on the market or when I asked about it.

And the agents are puzzlingly upset that I am not using their lawyers....:D

jbainbridge

What does your EA contract say?

G_M

Have you signed anything agreeing to this scheme? If not, just write (always best to put things in writing) making clear you are not ageeing to the scheme.

And have nothing to do with either the EA's soliciors, or their financial advisers.

You are (presumably) paying them an agreed % of the sale price. That is their income and that is what they should accept.

The buyer has offerered you a price for the property (in this case your asking price) which is what you have accepted, and that is what you should receive.

jazzycastles

jbainbridge wrote: »

What does your EA contract say?

I've just looked at it and it is Part 4 of the contract - a part which I have specifically not signed.

I did sign Part 3 which was for their conveyancing company, but at the time I made it very clear to the agent that I was unlikely to use them and he said that wouldn't be a problem.

When the sale was agreed I gave the name of my own lawyer and he is named on the memorandum of sale, so that's obviously ok.

What I want to know really is if the buyer is paying the full price or if he is getting £1,000 off. I suspect it is simply going to the agent.

I'm scared that if I say now I will not be part of their 'scheme' they will somehow get the buyer to drop out, and I am purchasing another property which I do not want to lose.

Perhaps I should talk to my lawyer about this.

G_M

jazzycastles wrote: »

When the sale was agreed I gave the name of my own lawyer and he is named on the memorandum of sale, so that's obviously ok.

....

I'm scared that if I say now I will not be part of their 'scheme' they will somehow get the buyer to drop out, and I am purchasing another property which I do not want to lose.

Since presumably the buyer's details are also on the Mem of sale, you simply contact your buyer or his solicitors direct if you suspect the agent is misinforming him.

princeofpounds

the buyer will be getting a discount on the services but not necessarily from a competitive price. It all depends on the terms the agent is trying to put together but in past examples I have seen on the board the agent is probably taking 30-60% of the money off as commission, although the notional discount may be high.

It's pretty shady practice tbh, particularly when the agent misrepresents buyer to seller and vice versa. Suggest you speak directly to the buyer and gently find out what they have been told.

stator

Are your estate agents part of the "Sequence Group"?

• Allen & Harris
• Bagshaws Residential
• Barnard Marcus
• Brown & Merry
• Fox & Sons
• Jones & Chapman
• Manners & Harrison
• Roger Platt
• Shipways
• Swetenhams
• William H Brown
• Knight Partnership

http://www.fox-and-sons.co.uk/campaigns/1000-buyer-incentive

princeofpounds

I do love their 'fact'sheet.

'There are many reasons to use our mortgage services'...

So many, they can't name one.

But it's ok because you can 'relax'

stator

Oh dear, if it is the agent I've linked above it seems that you can't change your mind once the offer has been made:
http://www.fox-and-sons.co.uk/stock/file/MS_SEQ_868_12_14_1000%20incentive%20sellers%20fact%20sheet%20EW%20Dec%2014.pdf


I think the whole thing is a bit of a con. The agents get a fat commission for the conveyencing and no doubt a hefty fee for the mortgage broking and it's the vendor who pays for all this with not a single contribution from the agents!
It looks like they charge £600 mortgage broker fee, so really the vendor is effectively paying the mortgage and conveyencing fees for the buyer.