Buy my home ..I'll throw in a holiday!

Published on Tuesday 9 September 2008 09:44

IT'S a sign of the times. Spread over an entire page, a recent advert by top Edinburgh estate agents Savills shows pictures of numerous houses all with red "sold" signs across them.

The message the firm, which deals with the top end of the property market, is trying to get across is that credit crunch or no credit crunch, it can still sell houses.

But the mere fact the company has to press this point shows the market isn't in the buoyant state it was a few months ago, when property was snapped up often before it even got on to the estate agent's websites.

Last week, the Edinburgh Solicitors Property Centre revealed that average city house prices had dropped for the first time in 37 years. The average cost of a home in the city last month was 201,517, a year-on-year decrease of 6.5 per cent.

But it's not all misery and mortgage woe, according to city estate agents, so long as sellers aren't overly optimistic.

"Houses are still selling, but they have to be on the market at the right price," says James Whitson, director of Rettie & Co. "We recently had one property which had 30 viewings and closed with six offers on the table. To achieve that, sellers have to be realistic about the price they are hoping for."

David Sangster, a partner at Neilsons solicitors and estate agents, agrees: "There are some people who can sell right away although it's not the majority of sellers just now.

"But you still get the odd closing date with several offers on the table. So the market hasn't shut down – that'll never happen. People will always be buying and selling houses."

Easy to say but what do you do if it's your home that isn't selling and you don't want to drop the price? Well, many householders whose homes are above the 175,000 stamp duty threshold are instead opting for one obvious incentive for buyers.

"The favourite is to offer to pay stamp duty on the property and that can amount to a lot of money," says Mr Sangster. "It's a tactic that catches the eye. After all, it's a tax and no-one likes paying taxes."

Others are offering cash back and setting fixed price figures knowing they will probably settle for less.

And if they do slash thousands off the price of their home, they make it clear to buyers they are getting a bargain. The owners of recently developed property at 14/2 Bridge Street in Musselburgh are advertising the house as having its price slashed from 245,000 to a fixed price of 199,000 in a bid to encourage bargain hunters.

And it's not just the price. David Marshall, business analyst with ESPC, says: "At any time you will see some sellers offering incentives to buyers to make their property stand out from the crowd, and in today's market with competition among sellers much higher we are likely to see more of this behaviour.

"Some will favour purely financial incentives to appeal to buyers, while others may favour something a little quirkier to help entice buyers in while also offering them something of value."

It's a ploy typically used by the larger property developers to sell new properties, he adds. "Over the years we have seen a variety of offers from basic cash back to gym memberships and holidays in the sun being advertised as incentives to buyers," he explains. And now that idea is being picked up by private house-sellers.

In one of the most extreme cases, homeowner Malcolm Young, 57, offered 50,000 cash back to anyone who would buy his 599,000 four-bedroom home in Queensferry Road – only to find he had no takers.

Mr Young and wife Yvonne, 45 – who had planned to move to Ireland – have now taken their home off the market and deferred their plans until an upturn in the market. He's far from the only seller to offer incredible incentives – and these sellers are hoping for a little more success than the Youngs . .

DAVE AND LYNDA PRYDE

IT sounds like a lottery winners' dream – snap up a new home and enjoy a dream holiday in one fell swoop. And it's what homeowner Dave hopes will stir up interest in his 325,000 fixed-price family home in Ratho.

He says he'll pay up to 9999 towards a family holiday for the buyer of his four-bedroom home. If they prefer, they can have 500 a month for two years or the stamp duty paid in full.

Dave, 50, a retired civil servant, hit on the trio of offers after realising the property market was struggling.

"I've had two people want to buy my house but they can't sell their own," he says. "So you're in limbo."

Dave and wife Lynda, 49, hope the holiday offer will make the property stand out in a crowded but nearly static market.

"There are plenty of sellers offering to pay stamp duty," he adds. "So it's about giving buyers something they don't expect."

The couple – whose three grown-up sons have now left home – want to move to Crieff in Perthshire where they have elderly relatives.

"It's frustrating because a year ago we could have sold the house for 350,000," adds Dave.

"We put it on the market in April just when things were starting to look difficult."

He has adopted another innovative approach.

"I put the details of the house in an e-mail and sent it to every address I have, saying that if the person who gets it can find someone to come and view the house and if they buy it, I'll hand them 1000."

Mr Sangster says Dave's idea could tip the balance when it comes to selling: "Sellers are having to become more inventive. It's about being as creative as possible to grab people's attention and get them in. It's great to see someone being so inventive."

To view the property go to www.neilsons.co.uk

SUSIE ROBB

IT'S a picture postcard mountain village resort in the French Alps. And Susie hopes the stunning scenery of Samoens might help secure a buyer for her Edinburgh Victorian tenement flat.

She is offering a fortnight's stay at her holiday home chalet near Chamonix to the person who snaps up her 245,000 fixed-price home at 58 Ashley Terrace.

"I couldn't get on to the market until the start of May, by which time things were already slowing down. If it gets people interested and through the door then it's worth it."

Susie, 39, who works in commercial property with Allied Irish Bank, says she has become trapped by the slow movement among first-time buyers, which is having a knock-on effect up the property ladder.

Her estate agent, Wilson Hunter, of Hunters Residential, agrees properties with incentives stand a better chance of being noticed.

"In a good market you don't really need to do these things. But sales are down and everyone has to work harder and good estate agents will look at every marketing tool available.

"Even though things are slow, people are still achieving, in general, ten per cent over their asking price. It all hinges on what you set the asking price at."

To view the chalet go to www.samoensholiday.com. Her Ashley Terrace is on the market through Hunters Residential at www.hunters-residential.co.uk or 0131-447 9555

MORE FOR YOUR MONEY

LOOKING for a property but want a little added extra? These properties are among scores currently on the market with added incentives to buyers...

&#149 Relax in comfort on a leather suite in front of a plasma screen TV – both part of the fixed price of 205,000 for 8/1 East Pilton Farm Crescent, The Strada, Fettes. The two-bed flat comes with a 42in television and Italian leather corner suite. Connor Malcolm (0131-557 3188).

&#149 The seller of 3/1 Telford Grove, Craigleith, is offering to pay 50 per cent of the buyer's mortgage for a year. The two-bedroom flat costs 188,250. Pagan Osborne (0131-539 3333).

&#149 Grab 10,000 cash back if you purchase the four-bedroom 226 Lanark Road, Kingsknowe, fixed at 395,000. Drummond Miller (0131-229 3399).

&#149 Get 15,000 cash back on the three-bedroom 52 Silverknowes Drive, Silverknowes. Fixed at 330,000. Lints Property (0131-555 2999).

&#149 Receive 5000 should you buy 40 Eastcroft Court, Livingston, a detached four-bedroom house fixed at 279,995. Caesar and Howie (01506-435 306).

&#149 There is 5000 for the buyers of four-bed 23 Stoneyflatts, South Queensferry, fixed at 275,000. Neilsons (0131-625 2222).

&#149 There's 500 towards the first factor charge for the buyer of the two-bed 2/16 Western Harbour Breakwater, Platinum Point, The Shore. Offers over 270,000. Morisons (0131-226 6541 )

&#149 Most of the furniture is included in the sale of two-bed 20 Spottiswoode Road, Marchmont, fixed at 249,995. (David Johnson and Co (0131-622 9222).

&#149 Receive 5000 cash back from three-bed Kilpunt Steading, Venlaw, Broxburn, fixed at 249,950. Sturrock Armstrong (0131-556 0159).

&#149 Three per cent cash back and stamp duty paid for the buyer of three-bedroom 5 West Lorimer Place, Cockenzie. Fixed price 177,500. Leslie Deans (0131-667 1900).

&#149 10,000 cash back at one-bed 142 St Stephen Street, Stockbridge, fixed at 165,000. Somerville and Russell (0131-665 9041).

&#149 The owners of 49 Wester Broom Terrace, Corstorphine are offering 5000 cash back on the sale of their five-bedroom property. Neilsons (0131 625 2222).

&#149 Stamp duty is paid plus 2000 cash back to the buyer of three-bedroom 11 Inchcross Park, Bathgate, fixed price 189,995. Unwins (01506-468 822).

DEVELOPERS TRY INVENTIVE INCENTIVES

NEW-BUILD property developers have led the way with a string of increasingly inventive incentives.

Cala Homes has its Helping Hand package – a 5.84 per cent mortgage fixed until September 2011, a refund of the arrangement fee, and an offer to buy your old home.

Miller Homes is offering its 460,000 four-bedroom home at its Varcity Fettes development with 10,000 cashback, survey fees and legal fees paid, and carpets included. At one point it was offering to pay council tax, TV licence, gym membership, Sky TV and cinema discounts.

Persimmon Homes is offering 1000 towards fittings for new properties while some plots at its Rowan Park development in Dalkeith come with 25,000 discount, stamp duty paid and kitchen upgrades.

Other offers include one from Muir Homes, which is offering five years' free membership of Deer Park Golf Course, 10,000 cashback and free carpets at its Deer Park Heights development in Livingston.