BetterMove wants £1,000 from my son to buy a house!

MultiFuelBurner

Run forest run !!!!!!!

Wonka_2

SierraTangoAlpha said:

Hi Beveve, 
I’m from Bettermove so perhaps I can help ease your mind. 

In which case maybe it would be more credible if you followed the forum rules and registered as a representative 

The MSE Forum Guide: Frequently Asked Questions & Rules (moneysavingexpert.com)

Scotbot

I just decided not to view a house  being sold through British Home Buyers. The listing clearly states a £2000 deposit must be paid up front to be returned on completion provided completion takes place within a specified time frame.  

Fine in principle but not in practice as I  cannot guarantee the sale of my property, which will fund the purchase, will go through. That's down to my buyer not me.

I see the logic of paying these deposits to stop people changing their minds but it just won't work with the current system where buyers have no obligation prior to exchange 

RHemmings

Pure Investments, Denton want a £2000 non-refundable reservation fee for people who want to buy this flat. 

https://www.rightmove.co.uk/properties/144250289

It does imply that the £2000 comes off the eventual purchase price, here: 

Payment Plan
1. Provide certified ID, proof of address and proof of funds to Pure Investor
2. Reserve your unit with a signed reservation form
3. Pay a £2,000 non-refundable reservation fee
4. Instruct solicitor
5. Remaining balance due on completion

But, this appears to me to be another example of Estate Agents wanting to make sure that they are paid even if a sale falls through. 

user1977

RHemmings said:

Pure Investments, Denton want a £2000 non-refundable reservation fee for people who want to buy this flat. 

https://www.rightmove.co.uk/properties/144250289

It does imply that the £2000 comes off the eventual purchase price, here: 

[quote]
Payment Plan
1. Provide certified ID, proof of address and proof of funds to Pure Investor
2. Reserve your unit with a signed reservation form
3. Pay a £2,000 non-refundable reservation fee
4. Instruct solicitor
5. Remaining balance due on completion
[/quote]

But, this appears to me to be another example of Estate Agents wanting to make sure that they are paid even if a sale falls through. 

I expect there are several other reasons to run a mile from that one, beyond the reservation fee.

RHemmings

user1977 said:

RHemmings said:

Pure Investments, Denton want a £2000 non-refundable reservation fee for people who want to buy this flat. 

https://www.rightmove.co.uk/properties/144250289

It does imply that the £2000 comes off the eventual purchase price, here: 

[quote]
Payment Plan
1. Provide certified ID, proof of address and proof of funds to Pure Investor
2. Reserve your unit with a signed reservation form
3. Pay a £2,000 non-refundable reservation fee
4. Instruct solicitor
5. Remaining balance due on completion
[/quote]

But, this appears to me to be another example of Estate Agents wanting to make sure that they are paid even if a sale falls through. 

I expect there are several other reasons to run a mile from that one, beyond the reservation fee.

Yes, but it was the reservation fee that I thought most interesting (not in a good way) for this listing. 

BobT36

Crazy, that. Surely they should be taking that 2k from the seller?? 

london21

Does not sound or feel right.

Personally I wouldn't. 

RHemmings

BobT36 said:

Crazy, that. Surely they should be taking that 2k from the seller?? 

My guess about these schemes is that it works like this: Sellers decide which EA sells their house. So, if the EA can offer no fees to sellers, then that's a competitive advantage to sign up certain sellers. Those sellers who don't think it through carefully and don't realise that fees to the buyer (particularly non-refundable fees that aren't returned if the sale falls through) put off a large proportion of buyers and then the house is much less likely to sell. 

Nothing to stop potential buyers offering on the house but making it a condition of their offer that they don't pay the £2k. 

eddddy

BobT36 said:

Crazy, that. Surely they should be taking that 2k from the seller?? 

The thread is getting confusing, because different companies with different business models are being mentioned.

RHemmings said:

Pure Investments, Denton want a £2000 non-refundable reservation fee for people who want to buy this flat. 

https://www.rightmove.co.uk/properties/144250289

This company appear to charge sellers 1.25% + vat for selling their property.

But they also charge buyers a £2k reservation fee.

I suspect their argument would be that it stops timewasters. i.e. People who make offers, then walk away (for no good reason). That kind of timewaster would lose their £2k reservation fee.

But it's much more complicated than that...