Question re £1000 Buyers incentive schemes

pampam

Can anyone answer this for me please.
I am helping my grandson to get on the property ladder and the house he wants is part of the Sequence Homes / WH Brown £1000 incentive scheme.


We do not want to use the incentive scheme as in my opinion it is just another way of EA's getting money out of buyers and seller. It entails us having to get a mortgage through the EA and using their solicitors. They charge a brokerage fee of £598 so that brings the incentive down to £400 straight away plus I reckon their sols will be more expensive too!


My question is this.


If we don't use the scheme could we ask the seller to reduce the cost of the property by £1000? I have a feeling that the EA has not informed him of our proper offer but has told the seller we have offered £1000 less. I hope that makes sense.


I just wonder if the seller is a) aware of what is going on with the offers and b) tied to this incentive scheme in some way so he can't knock the £1000 of the asking price?


Unfortunately I can't ask him as he has moved away and the house in question is empty


Any advice very much appreciated thanks

eddddy

pampam wrote: »

a) aware of what is going on with the offers

I'm not sure why the EA would want to understate your offer by £1k.

The seller will have explicitly agreed to the incentive scheme, so they will know they have to pay out £1k from whatever offer they accept (if the buyer uses the EA's recommended service providers.)

pampam wrote: »

b) tied to this incentive scheme in some way so he can't knock the £1000 of the asking price?

The seller can knock any amount they choose off the purchase price - whether there is an incentive scheme or not.

But my recollection of this EA's contract is if the seller has signed up to this scheme, they cannot back out. If the buyer uses the EA's recommended service providers, the seller must pay £1k.

If the buyer doesn't use the EA's recommended service providers, the seller doesn't pay £1k,


(Perhaps your best bet is to find a way of contacting the seller and agreeing to 'split the difference' by reducing the price by £500 - in return for not taking up the incentive.)

pampam

eddddy wrote: »

I'm not sure why the EA would want to understate your offer by £1k.

The seller will have explicitly agreed to the incentive scheme, so they will know they have to pay out £1k from whatever offer they accept (if the buyer uses the EA's recommended service providers.)




The seller can knock any amount they choose off the purchase price - whether there is an incentive scheme or not.

But my recollection of this EA's contract is if the seller has signed up to this scheme, they cannot back out. If the buyer uses the EA's recommended service providers, the seller must pay £1k.

If the buyer doesn't use the EA's recommended service providers, the seller doesn't pay £1k,


(Perhaps your best bet is to find a way of contacting the seller and agreeing to 'split the difference' by reducing the price by £500 - in return for not taking up the incentive.)

I have tried in vain to find out the owners name. I know that they have moved to Wales and I know their Cristian names but that is as much as I can find out from neighbours of the property. If you have any ides how I can find out more info I would be very grateful
Thank you

wjr4

Can't you buy the property without the incentive? You'd save more money by going to an independent mortgage broker/financial adviser rather than using their solicitor/broker.. I know one of the estate agents near me have that scheme and pressurise you to use their services.. Just say no!

marksoton

I'd be telling them to do one. If they're offering 1K off you can be assured you'll pay the price somewhere down the line. Be it monetary or p155 poor service.

pampam

rjw4 wrote: »

Can't you buy the property without the incentive? You'd save more money by going to an independent mortgage broker/financial adviser rather than using their solicitor/broker.. I know one of the estate agents near me have that scheme and pressurise you to use their services.. Just say no!

Yes I realise that. I just would like to speak to the vendor myself to negotiate a deal between us without this £1000 hanging about in the back ground. I want him to be aware that we do not intend to use the incentive.

rosyw

Speaking from personal experience of buying through W H Brown I would avoid their scheme like the plague! I didn't use it as I was a cash buyer but my vendors used their "in house solicitors" - a more useless bunch I've never had the displeasure of dealing with! W H Brown are pretty useless themselves but their solicitors were horrendous, adding about a month to the whole process by losing paperwork etc. I had a very nice letter from W H Brown about a week after completion, informing me that we'd exchanged contracts! :rotfl: I should add that in order to actually get to exchange my vendors had given the solicitors 24 hrs to sort it out or they were appointing someone else and would be collecting the paperwork the following day - and they meant it!