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  • FIRST POST
    • dreyfuss
    • By dreyfuss 12th Jun 17, 4:24 PM
    • 71Posts
    • 126Thanks
    dreyfuss
    Buyer incentive - must see EA broker
    • #1
    • 12th Jun 17, 4:24 PM
    Buyer incentive - must see EA broker 12th Jun 17 at 4:24 PM
    Hi,

    Got a bit frustrated today. Want to view a house and called EA to arrange. EA wanted to book me into a meeting with their mortgage broker before viewing and even after I said we'd essentially be cash buyers in this case and that we'd already arranged a morgage on a house that had fallen through, he still made the appointment! I know they need to guage/weed out time wasters so need to ascertain what we can afford but I'm a bit annoyed that we can't keep our affordability cards closer to our chest. If I want to make a reduced offer for example.

    What should I have said? Just no? This is first time this hard sell has been used on me! I've had EA pass on my number but still let me view the house I want to see!
    Btw it was W H Brown

    Any thoughts?
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    Learn from the mistakes of others - you won't live long enough to make them all yourself.
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Page 1
    • Guest101
    • By Guest101 12th Jun 17, 4:29 PM
    • 14,625 Posts
    • 14,349 Thanks
    Guest101
    • #2
    • 12th Jun 17, 4:29 PM
    • #2
    • 12th Jun 17, 4:29 PM
    Seriously learn to say no.


    It's that simple.
    • DumbMuscle
    • By DumbMuscle 12th Jun 17, 4:32 PM
    • 196 Posts
    • 290 Thanks
    DumbMuscle
    • #3
    • 12th Jun 17, 4:32 PM
    • #3
    • 12th Jun 17, 4:32 PM
    I've had one of those (apparently sold as "buyer vetting" to the seller). I went along, wasn't asked for any proof of any of my numbers, and then pulled up the MSE comparison to show the dozen or so better offers that were available compared to the ones the broker had access to (several from large high street banks that there's really no excuse to not cover).

    (The house turned out to be rather rubbish - but I have to hand it to the EA's photographer for making the kitchen look a reasonable size despite it being essentially a cupboard)

    Do you have the viewing booked as well? Give them a call to reschedule the mortgage brokering until after the viewing, then cancel it later if the viewing doesn't work out.
    • kingstreet
    • By kingstreet 12th Jun 17, 4:37 PM
    • 31,726 Posts
    • 16,952 Thanks
    kingstreet
    • #4
    • 12th Jun 17, 4:37 PM
    • #4
    • 12th Jun 17, 4:37 PM
    You've not mentioned the incentive in the title?
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
    • dreyfuss
    • By dreyfuss 12th Jun 17, 4:49 PM
    • 71 Posts
    • 126 Thanks
    dreyfuss
    • #5
    • 12th Jun 17, 4:49 PM
    • #5
    • 12th Jun 17, 4:49 PM
    Incentive is £1000 off if (as I understand it) go through their mortgage broker and possibly their conveyencer.

    Wasn't much of an incentive if you don't need a mortgage!

    Anyway know its not much of issue just got grow up!
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    Learn from the mistakes of others - you won't live long enough to make them all yourself.
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    • Guest101
    • By Guest101 12th Jun 17, 4:52 PM
    • 14,625 Posts
    • 14,349 Thanks
    Guest101
    • #6
    • 12th Jun 17, 4:52 PM
    • #6
    • 12th Jun 17, 4:52 PM
    Incentive is £1000 off if (as I understand it) go through their mortgage broker and possibly their conveyencer.

    Wasn't much of an incentive if you don't need a mortgage!

    Anyway know its not much of issue just got grow up!
    Originally posted by dreyfuss




    It's not much of an incentive because the price is just inflated to start with....
    • ReadingTim
    • By ReadingTim 12th Jun 17, 5:07 PM
    • 1,830 Posts
    • 2,667 Thanks
    ReadingTim
    • #7
    • 12th Jun 17, 5:07 PM
    • #7
    • 12th Jun 17, 5:07 PM
    When I was looking, I told the agents upfront that I had an AIP/DIP of £x, (which was about 85% of the purchase price) and had a deposit to cover the rest, but didn't say how large the deposit was. This allowed the EA to ascertain I wasn't a timewaster, but didn't provide enough info to guess my budget. I don't recall being prevented from viewing places without seeing the in-house broker, but I was firm in my assertion that I already had a whole of market broker lined up and didn't need to see anyone else.

    Finally, just a couple of thoughts:
    • You're not a cash buyer if you need a mortgage. A cash buyer has the entire purchase price sitting in their bank account. You don't.
    • A mortgage offer on (say) property A isn't very helpful when trying to buy property B, as the banks may not lend as much on B as they would on A. A generic AIP/DIP is more useful in this case.

    You might want to tighten up on your terminology, as they way you've described it makes you sound like you don't really know what you're talking about, and a shifty agent may try and make a fast buck out of that. By contrast, if you can correctly understand and explain the situation you're in, and politely but firmly decline the offer to see the in-house broker, you stand a better chance of being taken seriously, and keeping your cards close to your chest.
    • Surrey_EA
    • By Surrey_EA 12th Jun 17, 5:25 PM
    • 1,015 Posts
    • 1,219 Thanks
    Surrey_EA
    • #8
    • 12th Jun 17, 5:25 PM
    • #8
    • 12th Jun 17, 5:25 PM
    Just say no/refuse to speak to broker. Some EAs are known for these hard sell tactics, just ignore them.

    On another point in your op, you would not be "essentially a cash buyer" as you need a mortgage. A cash buyer is someone who does not need a mortgage, nor has a property to sell, ie they have cash in the bank to purchase a property.
    • saajan_12
    • By saajan_12 12th Jun 17, 5:49 PM
    • 647 Posts
    • 422 Thanks
    saajan_12
    • #9
    • 12th Jun 17, 5:49 PM
    • #9
    • 12th Jun 17, 5:49 PM
    • A mortgage offer on (say) property A isn't very helpful when trying to buy property B, as the banks may not lend as much on B as they would on A. A generic AIP/DIP is more useful in this case.
    Originally posted by ReadingTim
    Why do you say that? A mortgage offer on another property but on the same borrowers shows that lender was willing to lend a certain amount to those borrowers, having done a hard search, and verified income, credit history, other debts, etc.

    An AIP/DIP is just based on the headline numbers that the borrowers tell the lender, noone has verified whether this is correct or gone in much detail.

    Both (mortgage offer on another property and an AIP/DIP) show the lender is willing to lend a certain amount to those people, subject to the property but the offer is a much stronger check.
    • dreyfuss
    • By dreyfuss 12th Jun 17, 6:35 PM
    • 71 Posts
    • 126 Thanks
    dreyfuss
    Thanks for the replies.

    Sorry should have said the house we want to view we could buy with our house sale and savings so wouldn't need a mortgage. We got a mortgage arranged for the house that fell through (at sorting completion date stage) because it was a bit more expensive though quite a small mortgage.

    I will try and sort terminology. I haven't done this since 20 years ago!
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    Learn from the mistakes of others - you won't live long enough to make them all yourself.
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    • puckishpixie
    • By puckishpixie 12th Jun 17, 8:57 PM
    • 1 Posts
    • 1 Thanks
    puckishpixie
    That sounds familiar...
    I had the exact same experience with WH Brown. Was told i had to see their broker before my offer on a property with them could be 'ratified' with the seller.

    I went and listened, told them i wanted to discuss it with my parents as I am FTB and already had a AIP with an independent broker (even through i knew i wasn't gonna be going with them).

    Strangely after being told during the meeting that i had the best offer and the other party couldn't do any higher. After refusing to use their broker and the other party using their EA's broker they suddenly found more funds - which i half suspected would happen.

    Was angry at the time but have had an offer accepted on a much better property now - I'd say stick to your gut and refuse.
    • MK_
    • By MK_ 13th Jun 17, 9:38 AM
    • 23 Posts
    • 7 Thanks
    MK_
    I hate these tactics! I wish they would change the ombudsman code of conduct to stop this. the rules apply to offers but not to viewings.

    Could this work?...Place an initial offer on the property (you can always withdraw it if you dont like it), and make that offer conditional of you being able to view the property.
    The EA has to by law submit the offer to the vendor (unless the vendor has specifically instructed them in writing not to accept offers below a certain amount), and by law, the EA can't withhold an offer from the vendor subject to you taking up their other services.

    If nothing else it might flag up to the vendor that their EA is playing silly and potentially missing out on good buyers just because they are trying to line their pockets.
    • dreyfuss
    • By dreyfuss 13th Jun 17, 6:04 PM
    • 71 Posts
    • 126 Thanks
    dreyfuss
    Got viewing but "not qualified"!!
    So I phoned up as not heard anything and they said they'd spoken to the vendor and viewing would be ok. I said that our finances were sorted so wouldn't need to see their mortgage advisor thankyou. To which he said that the vendor would prefer us to be "qualified" but as it's just a viewing it would be okay. If we went on to put in offer we would have to "qualify"

    Seen about dozen houses but this is the first time for all this rigmarole....
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    Learn from the mistakes of others - you won't live long enough to make them all yourself.
    -----------------------------------------------------------------------------------------------------
    • AdrianC
    • By AdrianC 13th Jun 17, 6:54 PM
    • 14,785 Posts
    • 13,141 Thanks
    AdrianC
    but I'm a bit annoyed that we can't keep our affordability cards closer to our chest. If I want to make a reduced offer for example.
    Originally posted by dreyfuss
    Whether you CAN afford to pay more for a property or not doesn't mean you WANT TO pay more for a property.

    When you're asked if that's your final offer, simply say yes. Don't lie about it being all you can afford. And don't EVER be pressurised into paying more than you're willing to for a place, whatever blather you're given...
    • note3
    • By note3 13th Jun 17, 7:28 PM
    • 279 Posts
    • 406 Thanks
    note3
    I dealt with this by saying that although we could go up to XXX amount it was entirely dependant on how many boxes it ticked and what work we felt needed doing.
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