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Can I do this to secure a house in a desirable area?

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sambessey
sambessey Posts: 119 Forumite
in House buying, renting & selling
Hi

I am trying to buy a house in S11 where good houses get snapped up almost as soon as they come on the market at the moment.

For various reasons I need to get something sorted very soon. I have seen a house I would like to buy, and as I dont't have time to look again if I don't get it, I am wondering if it is the done thing to offer on a house and perhaps put down some kind of small immediate deposit (say 2,000) as a 'guarantee' that I will not pull out of the sale/ mess the vendor around in order to make my offer more attractive?

Any opinions on doing this?

Thanks

Comments

  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
    First Post First Anniversary Combo Breaker
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    In my opinion the best way to secure a sale is to prove to the vendor you have the means to secure a mortgage on the property, via a mortgage promise and also that you are able to complete quickly. I would not recommend giving the vendor a cash deposit as it can lead to all kinds of problems. e.g. what f a strucural fault was discovered at survey and the lender refused to lend or imposed a retention? what if your circumstances changed and you were no longer able to buy the property? You would lose your cash for nothing and house buying is expensive enough.

    Before you put an offer in on a property have a read of Andrew Smiths guide to property purchases/dealing with estate agents heres the thread http://forums.moneysavingexpert.com/showthread.html?t=175653
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • suki1964
    suki1964 Posts: 14,313 Forumite
    Name Dropper Photogenic First Anniversary First Post
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    I saw the house for us before I had put ours on the market or secured a mortgage and so gave a deposit to secure the purchase. It was held by the estate agent and was subject to survey
  • sambessey
    sambessey Posts: 119 Forumite
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    Thanks

    Has anyone else got any experience of doing this/ advice?
  • Robert_Sterling
    Robert_Sterling Posts: 2,207 Forumite
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    When you pay a deposit the money is usually returnable as you have not exchanged contracts.

    However it is possible to offer a non returnable deposit but that in itself would not prevent the seller from pulling out as far as I can see.
    ..
  • sambessey
    sambessey Posts: 119 Forumite
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    Robert_Sterling wrote:
    When you pay a deposit the money is usually returnable as you have not exchanged contracts.

    However it is possible to offer a non returnable deposit but that in itself would not prevent the seller from pulling out as far as I can see.
    I know it would not protect me against the seller pulling out, but I am offering to put one down immediately on this house because:

    A) I work abroard a lot and really really need to secure a house ASAP as it is very important I exchange before the middle of September (and it's hard for me to look at houses as I am living in Bristol and looking in Sheffield!)

    B) The type of house I am looking at (3 bed terrace in lower S11) and the condition it is in are notoriously difficult to purchase as there are always multiple bids placed and they always go for several K over the asking price

    C) The house has just come back on to the market as the original buyer put in a high offer on the proviso the house was taken off the market, and then lost interest and the vendor said she would not 'make that mistake again'.
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