Whats the catch with this £1000 buyer incentive?

Jimmy_Neutron

Whats the catch with this £1000 buyer incentive for sellers?

https://www.jonesandchapman.co.uk/campaigns/1000-buyer-incentive

theartfullodger

The catch is they can't price things properly & every, every, EVERY time get the number wrong by 1000.

Not something that would gain my confidence...

shortcrust

Jimmy_Neutron wrote: »

Whats the catch with this £1000 buyer incentive for sellers?

https://www.jonesandchapman.co.uk/campaigns/1000-buyer-incentive

It looks like the seller pays the £1,000 and the buyer has to use the in house conveyancing to qualify. So the only people who really benefit are the EAs.

Jimmy_Neutron

But why would the seller want to pay an additional £1000 on top of the ea fees unless they where to receive the extra on top of the figure they had in mind to sell for, or wants a hopeful quick sale?

shortcrust

Jimmy_Neutron wrote: »

But why would the seller want to pay an additional £1000 on top of the ea fees unless they where to receive the extra on top of the figure they had in mind to sell for, or wants a hopeful quick sale?

For the same reason as any other cashback offer - the hope/expectation that the extra money will draw buyers in and make the proposition more appealing. And who'd want to be the only seller with the EA who doesn't offer the 1000 quid? As I said though, the only winner here seems to be the EA. It would put me off using them.

stator

This is a CONNELLS GROUP company
AVOID- AVOID - AVOID

I wouldn't use them as a BUYER or SELLER as they are only in it for themselves.
The £1k 'offer' is to trick the buyer into using the connells group broker and conveyancer, earning connels group a large commission. The seller is forced to accept a £1k lower offer, not knowing it's connells group who pocket the money, not the buyer.

Search this forum for horror stories regarding CONNELS GROUP

If you, as the seller sign up to the scheme and then refuse to accept the £1k lower offer CONNELS GROUP will charge you their estate agent fees anyway because they have found a 'ready and willing' buyer.

eddddy

Jimmy_Neutron wrote: »

Whats the catch with this £1000 buyer incentive for sellers?

https://www.jonesandchapman.co.uk/campaigns/1000-buyer-incentive

If you're a seller, you agree to pay £1,000 towards the buyer's legal and mortgage fees.

If you're a buyer, you get £1,000 from the seller towards your legal and mortgage fees.

So it's marketing hype intended to attract buyers. If you're a seller and you think it will help you get a buyer, go for it.


But the buyer has to use the EA's in-house conveyancers and mortgage brokers. So a big chunk of the £1,000 will end up in the EA's pocket as referral fees.

And you may find that that the in-house conveyancers and brokers are much more expensive than independent ones (perhaps over a £1000 more expensive).


So savvy, rational sellers and buyers would avoid the scheme and maybe split the savings by agreeing an offer of £500 less. (The EA won't like this, because they make less money.) But once a seller has signed up to the scheme at the outset, they cannot back out.

But not all sellers and buyers are savvy and rational.

stator

Agents in the Connells Group have been known to push offers from buyers who use their in-house brokers and conveyancers. Potential buyers who refuse might find their offers being 'lost'.
Connells Group also put off potential buyers by refusing to show houses to people who haven't seen their inhouse broker. As a buyer I refused and so never saw any houses sold by Connels Group.

shortcrust

stator wrote: »

Agents in the Connells Group have been known to push offers from buyers who use their in-house brokers and conveyancers. Potential buyers who refuse might find their offers being 'lost'.
Connells Group also put off potential buyers by refusing to show houses to people who haven't seen their inhouse broker. As a buyer I refused and so never saw any houses sold by Connels Group.

The EA I'm buying through implied that I would be far more attractive to the seller if I was going through their mortgage broker. I knew it was a con but I went with them because I really wanted the house and didn't want to take the risk of the EA pushing other buyers who would earn them some extra commission.

Jimmy_Neutron

It's interesting to see the tricks and schemes estate agents use on buyers and sellers.

Clairejones1966

I've just been bought through connells. Unknown to them we had met the vendor. An absolute farce. I had not one call returned until just before completion when the chain was ab9ut the fall apart..... Anyway, I digress.
We put in an offer, and got a phone call from the vendor. He had been passed on the offermminus £1000. He contacted them find out why....very interesting explanation. We weren't going to use in-house solicitors and had our own mortgage broker. Why on earth would I take their offer of £1000 Off when I would pay their broker more than mine?

Anyway, buyers incentive goes like this, according to vendor. I haven t seen the paperwork, so don't know for sure. If we accept in house broker and solicitor we get £1000 off the asking price. And give connells full control and sight of all our correeponce too...... BUT as we didn't do that they then increase their fee to the vendor by £1000 ostensibly as it's takes much more effort to check our finances and identity as we are not using their in house companies.....

So it's a rubbish deal for the vendor and buyer.

I also got told they couldn't accept an AIP from my bank! As he didn't understand the document and needed us to go through their broker.

So anyone looking to sell their house, read the small print, it's not worth the hassle.