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Old 18-02-2008, 04:46 PM
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dave99 dave99 is offline
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Location: North of London - UK
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Default Leads to a level of commitment

Quote:
Originally Posted by MrSkipsey View Post
Can anyone explain why the cost of reservation varies?
Ive been doing a few searches and have noticed that on some developments a handful of agencies have various deposits but the payment structure seems to be the same.

Is this purely to secure more sales by offering at a cheaper reservation price?
HI

There are many ideas on how to do this.

I ask for a £100 refundable reservation fee
- which effectively just takes the specific apartment off the "available" list whilst the new owner can more research, or a site visit etc.
Next Stage is a £1000, deposit after about 4 to 5 weeks if the owner has not been able to see the development or is happy to proceed.
Then the real payments start as agreed with the owner over anything from 3 months to 15 months.

The process lends itself to variations so that it is possible for the developer to have some confidence that the new owner is serious without any significant burden to the owner.

Where the initial payment is much higher (anything from £2000 upwards) then I'd be very worried about getting it back if I chose not to proceed for ANY reason.

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