Paying buyer's deposit??

socks_uk

Our 3 bed terrace has been on the market since June 28th this year and in July we were really keen on a bungalow for sale with the same EA as ours (which had just been reduced) and asked our EA what we could do to sell ours quicker. Our EA suggested we reduced our price from £74,950 to £72,500 which we did and the owners of the bungalow accepted an offer of £117,000 which they then suprisingly took of the market two days later! (It came back on the market at the end of August and now it's been taken off again!! We're not going near that one again!Once bitten...!)

Anyway, we've spotted another bungalow and, of course, want to sell ours. The EA from the bungalow suggested we pay the 3% or 5% deposit for any potential buyer. It sounds a brilliant idea but I wish our EA had suggested it instead of suggesting us reducing ours (we could always have come down later but we can't put the house up again - or could we??)

If I chose to change EA could I get away with putting it back on the market for £74,950 with 3% dep paid? I really need as close to £70,000 as I can get.

Any thoughts on this anyone?

Jill

P.S.
Not at all happy with our EA. We reduced the price of our house 22nd July and it still hasn't been in the local newspaper with the new price! Only got to wait until 28th Sept to be able to change.

Doozergirl

If the property hasn't been widely marketed by your agent at the new price, there mightn't be that much knowledge of your house being on the market at all! I suggest you change agents, certainly. Many agents will be able to advertise your property every other week at least, your agent doesn't sound too hot. If the agent selling the bungalow is confident that this 'deposit paid' incentive works, they would be the best people to market the property as such.

It sounds like a nice idea - 3% isn't really going to help those that have no deposit at all though. Most lenders like to see a bigger deposit than this and in the current climate, many properties are being valued at less than the sale price by mortgage valuers. The bigger the deposit, the less trouble you experience in this area. New builds offer 5%.

I do wonder how many people this would attract; how many people that can't afford a deposit are actively looking for property compared to the number of people with deposit in place looking for a property at just 'a good price'?

If you advertise 5% deposit paid, you are advertising it for £71,250 in a complicated way. There is a very simple question of why you don't advertise it plainly as such?

Regardless of whether you go for this incentive, please change agent. Get some fresh enthusiasm going! Good luck...

meanmachine_2

To be honest, if you start offering these types of incentive, you're making it crystal clear to buyers (like me) that you're getting a bit desperate.

Not a good vibe.

I'd just try different agents.

It seems clear to me, reading these threads and others, that properties are still selling, but they've got to be good examples of their type.

If I've got three to choose from, one on a quiet road and in good nick, but the other two not so perfect, you know what my decision is going to be.

During a rising, "bull" market you can find a buyer for most properties. That's not the case at the moment.

socks_uk

Thanks for your comments.

I was in the staff canteen (ASDA) chatting to a few collegues and one of them said her and her boyfriend were fed up of living with his parents and were saving up hard to buy a house and I asked her if she'd be intrested in a house if it was 'deposit paid' and she said she would. I have given her my address and phone number and told her to come anytime she likes but don't ring the EA. She's going to mention it to her b/f.

As regards to the EA, I'm waiting for the 3 months to be up and then withdraw, which is only in 2 weeks time.

Jill

Doozergirl

Wouldn't that be great for you! You'd save on agents fees too!

HGLTsuperstar

Be careful, some EA's stipulate a period after the end of their official term where they can still claim responsibility for a sale if the buyer first appeared whilst you were under their contract.