LeeMac

iTrader: (1)

Our house been on the market a few months, a bit of interest, one withdrawn offer and as its new year I popped over to the agents and told them rather than dropping 5k I would offer 5k cashback to help any first timers
They didnt like this but I persisted and after 1 week had a viewer and as a result of th cash back
they are young kids about 20 and said 5k would help them towards a deposit and they had the money etc to buy
I even dropped the price a couple of k
we came to an agreement and they looked chuffed when they left

today, the agents have said this 5k is a bad idea and I would incur tax charges
and that we will go with the sale with an offer at 7k under

I am not happy about this now and feel the buyers might pull out as they said they didnt have enough for a deposit

anyone know if i would be taxed on the 5k
if so I could make it 4k+tax

feckin agents

zip106

Can't really help, but as it seems YOU are giving away the money surely you don't have tax to pay on what is essentially a gift?
The only possible tax implications (but I can't really see why) would be for the recipients?

Dunk

iTrader: (1)

Estate BS to try to influence you against this method. Only issue I can see is your buyers' mortgage co being uneasy over mortgaging at a level that is greater than the sale value, and wanting to recalc the LTV.

(There's no Income Tax liab, and assuming it's your principal private residence no CGT liab either......ask the Estate Agent to explain themselves and their BS)

D

LeeMac

iTrader: (1)

I could understand if I had put the 5k on top of the original asking price

my asking price is about right if not good, in the middle of two valuations (considering the current market valuations!)

davegtt

Surely the Estate Agents are working for a percentage of the sale price, therefore wouldnt it be in their best interest to go with your deal rather than dropping the price by 7k? they'd be essentially robbing themselves of part of the fee.

LeeMac

iTrader: (1)

set fee

john banks

When I saw the title I thought this would be a thread about you buying a house with a cashback and was getting ready to comment that cashbacks are a gimmick that encourages people to pay more than they can afford for an overpriced property that will likely put them into instant negative equity. After reading the situation I still posted as it may give an idea as to the feeling some people have for this.

If you've only been on for a few (2?) months at this time of year, it depends how much of a hurry you're in.

The last house I sold, sold when it was the cheapest of similar properties and in the best condition.

LeeMac

iTrader: (1)

I could say same with our house but depends how you see it
I would say it was the best of others in the area but also probably smaller than most but also in a quiter location than others

when I advertised I wasnt in a hurry, new year in and ive seen some belters for sale so I want out

I bought my first on a 5% dep paid so thought it good to be able to offer to others who might not have the bigger deposit needed nowadays

I have a buyer tho so just hope it stays like that