Putting in an offer and the sales techniques of EAs

Rebchappers

Hopefully someone can confirm if we are being shafted here....

We had an offer accepted on a house last month, got the mortgage offer and the DAY BEFORE exchange of contracts, a couple of searches came back that we werent happy with, so we pulled out of the sale.

We have now found another house we want to buy, that is slightly more expensive and we have put an offer in. The estate agents have said that before they can confirm if our offer has been accepted, they require proof of how much our lender is willing to lend us...

We are not happy about this, as the amount we are able to borrow is more than the asking price for the property. The house is a repossession, and so the seller is legally bound to get the best price possible. If they can see that we can borrow X amount, but have only put an offer in of Y amount, then they will more than likely decline it as they know we can pay more for it. The EA said that we MUST show this proof.

Isa this right? I am more than happy to take our mortgage offer down to the EA office or fax it to them within 5 minutes of our offer being accepted, but i am not happy to do it before.... i feel we are being shafted. Is this the correct process and am i legally allowed to decline this information until our offer has been accepted?

A speedy response is appreciated, as i have to contact the Estate Agents this afternoon

Thanks

BrixMorta

I think there may have been a misunderstanding here. I suspect the agent just needs to establish that you are good for the money you have offered. After all, to do their job properly they need to be able to advise their client properly, which they can’t do without this information.

Rebchappers

Can the EA disclose to the seller what the maximum amount we can go up to is?

chickmug

I am an EA and too true we need to ensure that those who want to buy can get, or have got, the money. It is laid out in our Code of Conduct, etc with the NAEA that we must find out about such matters so we can advise the seller that the person making the offer really can afford it.

Bear in mind that a high percentage, when they are quizzed, can NOT afford the properties they are trying to look at so little wonder why some Ea's are so doubting.

All this said if if I were your EA and you said you could back up your offer with proof very soon after offering I would find that fully accpetable.

Good luck

thescouselander

It would be easy enough to go on any lenders website and get an Offer in princpal for the right amount which you could then print out. It can all be done on line and doesn't take a second. That way you dont need to reviel the maximum amount of money you have to spend.

chickmug

thescouselander wrote: »

It would be easy enough to go on any lenders website and get an Offer in princpal for the right amount which you could then print out. It can all be done on line and doesn't take a second. That way you dont need to reviel the maximum amount of money you have to spend.

But can you enter bogus figures to get higher offer than your income allows?

I think some people are getting unreasonably paranoid about giving this information. I make it simple - no co-operation and offer will be put forward but with our reccommnedation, to the seller, to reject unless proof of funding is given. 99% of the time the seller takes my advice. If you were the seller wouldn't you want your EA to make sure for you?

ginvzt

Well, there is no way the EA will know exactly how much I can borrow. We have a sizeable deposit and asked our lender (Nationwide) to write that they will lend us £150k (example). We are looking at houses above £200k and I am not going to let EA see my savings not let them know my salary.

Running_Horse

Our EA only allowed viewings by people with finances checked and in place. After a series of chancers and timewasters and two sales falling through the year before, we would not accept anything else. If you did not have the finance you said, a lot of time and money would be wasted by others. Not sure if it should specify an exact amount though.

Incisor

Running_Horse wrote: »

Our EA only allowed viewings by people with finances checked and in place. After a series of chancers and timewasters and two sales falling through the year before, we would not accept anything else. If you did not have the finance you said, a lot of time and money would be wasted by others. Not sure if it should specify an exact amount though.

Doesn't work in the current situation. Mrs I and I are looking and the most we have viewed with 1 agent is 2 houses. There is no way we are going to do more than say we are in rented having sold and needing a small mortgage. Certainly not for every EA in town.

fatpig_2

My advice is if you shake hands with an Estate Agent to make sure you count your fingers afterwards.

cats!

Perhaps word has got about with regards to you pulling out the day before exchange??

EA needs to be sure you are good for the funds. Confirm you can afford what you are offering, but NO MORE!

Good Luck.