What is a "Committed buyers process"

[Mammawilson]

Looking for a property to buy in a cheap area
House is £40,000, the agent quotes it is part of a "committed buyers process" and a non refundable payment will be made by the buyer of just under £6,000, this is on top of the sale price and will mean the home is taken off the market, it also claims this is before solicitors are brought in. It aims to protect the buyer and seller apparently. I'm new to home buying, how does this protect the buyer? What if the seller decides against the sale and you lose your non refundable deposit.

I don't think I'd be too keen on that either OP, and I've never heard the term before. So the house price is actually 46K as well, if the 6K is on top of the purchase price I would avoid that property tbh.

Perhaps you could develop your own 'committed vendor' programme.

Don’t do it, walk away.
Are you in England?

Thanks. Yes in the uk, will attach a screenshot from the advertisement. Its off Zoopla

This is what it says on the advertisement

I've just looked up the 'process' on Yopa and it sounds more like an auction to me. I would still avoid tbh!

What condition is the house in?

I've never heard of this, I'd be wondering if there is something fundamentally wrong with the house for this to be necessary.

40,000 seems incredibly cheap for a house, even in a cheap area. I'd personally stay well away.

Avoid - not a normal way to purchase a property - probably why its cheap.

Sounds like it’s being sold as a “modern method” so the fee you pay goes to the agent. This might help www.fosters-solicitors.co.uk/news/property/modern-method-of-auction/662

I'd never heard of this before and googled it. It appears for that £5k the vendor will give you a legal pack so your solicitor won't need to do all the searches, they're already in the pack.

I've no idea if that's a good thing or not, it seems quite expensive. I think I'd look elsewhere myself...

It’s a modern method auction by the sounds of things.

Research it a lot and go into it with your eyes open.

I've worked in mortgage brokerages for over 20 years. This is the first I've come across this. It would be a hard no from me.

It has been around for a while.

I am looking at more expensive properties and it says some thing like £6000 or 3% of the price you want to pay.
I think all it does is put people off or bid £6000 or 3% less

I don’t see how it protects the buyer. And having a sellers pack is not worth it - you have no protection if something arises that should have been in the searches as you did not commission them (plus searches only cost like £200).
I’ve bought at auction and you pay your 10% once the hammer goes down as it is like having exchanged at that point. But it’s not in excess of the price, though there may be a buyers premium (about £1200 if I recall correctly).

I was chatting to a FTB friend the other day and they have also been asked for an up front deposit on top of the purchase price. It seems to be a thing now - they lose it if they pull out for any reason which protects the vendor, but it seems very one sided as I think the vendor can still pull out

Modern method of auction?

it is part of a "committed buyers process"
You don't have to agree to things, just because someone asks. You could counter-offer and say "I'll offer £xxx, using the usual buying method. Thanks"

I am sure the seller would like the extra £6000 to go into their pocket and not the estate agents.

I think this is the worse method for any seller as buyers just knock off the £6000 from their bid

No way!