Play your cards close to your chest?

ciano125

SavingSteve wrote: »

But who is saying give him your financial details, the conversation would go;

EA : Mr. X, your client, has just offered £xxx on a property, can they afford it?

IFA : Yes.

Why would anyone have a problem with the above conversation taking place??

What's the difference between me telling the EA that I can afford it and the above? Maybe it's just me, but I know that I'm trustworthy and would take offence at someone suggesting that I wasn't.

When I sold my last house I was happy to accept an offer subject to the buyer providing proof of funds. This then gave them a chance to go away, get their proof, and then I took it off the market once they came back, no harm done. What's wrong with that?

SavingSteve

Because there are a lot of 'chancers' and frankly nosey bastrads out there. Not saying you are, as you clearly are not, but as mentioned above

googler wrote: »

Put yourself in the position of the seller and their agent. You view the property, you put an offer in, the seller accepts an offer from you, and on the basis of that they put an offer in on another property, which is accepted. The owners of that property then offer on their target property, that's accepted, and you repeat this process as many times as you'd like to consider.

If you don't have funds in place, and can't get finance to buy the house at the start of this process, everything falls apart.

confused31_2

Our house is 30,000 pound cheaper than one house and 49,000 cheaper than another in the same road, and they are no different in style to ours, if people can not prove they can buy ours with a AIP, they can go and look at the other 2, theres not many houses for sale by us at the moment anyway and the prices have not dropped that much.

I know if i could save between 30,000 and 49,000 pounds i would be running to the bank to get a AIP.

But thats the buyers choice not mine, but im not going to waste my time on people who can not even have the right information to prove they can buy, they could be potential burglars.:eek:

confused31_2

ciano125 wrote: »

What's the difference between me telling the EA that I can afford it and the above? Maybe it's just me, but I know that I'm trustworthy and would take offence at someone suggesting that I wasn't.

When I sold my last house I was happy to accept an offer subject to the buyer providing proof of funds. This then gave them a chance to go away, get their proof, and then I took it off the market once they came back, no harm done. What's wrong with that?

I wont be taking ours of the market until the survey is done, then it proves they are genuine, there too many people dropping out its not worth taking it off the market, until someone makes a comitment.

lostinrates

SavingSteve wrote: »

See I don't agree with Ciano or rl290 AT ALL.

If I were a seller I wouldn't even want to consider an offer from someone who 'supposedly' has a mortgage offer in place. It is your word, and quite frankly I don't know you so why should I believe you?

The best solution for all is to have the EA and your IFA have a conversation where the IFA is simply confirming to the EA that you, as the person offering/viewing, can afford a mortgage of £x amount. You can let your IFA know what number (as a maximum) you will let them reveal (i.e. they can't lie of course, but if you can afford £300k, but only want to reveal you can afford £150k then that is what you tell the IFA to say).

I'm looking at some properties for which we'd need a substantial mortgage, but I am keeping my potential mortagee and IFA close at hand on this and we have been a long way down the road during this crisis and they seem confident that we are viable mortgagors....however, I would not feel that my IFA should need to be asked for details for every property I do a first viewing for. Most of which I will, when I see and assess, will not make an offer on.

I'm looking at a second type of property for which we would pay cash. I don't feel the need to show a bank statement to an EA.

Mortgage offers themselves seem a little finger in the air ATM if stories on MSE are corect about funds available being reduced at the crucial point by mortgagees, and while I fully accept that at point of second viewing I should be prepared to substantiate my ability to proceed I don't feel at first viewing I should need to...before I've viewed I'm not sure that the property even is as described.

rl290

SavingSteve wrote: »

See I don't agree with Ciano or rl290 AT ALL...
...The best solution for all is to have the EA and your IFA have a conversation where the IFA is simply confirming to the EA that you, as the person offering/viewing, can afford a mortgage of £x amount. You can let your IFA know what number (as a maximum) you will let them reveal (i.e. they can't lie of course, but if you can afford £300k...

This seems sensible to me. I would be quite happy to do this once an offer is accepted. If the EA says to me that his client only wants offers from people who can guarantee they have finance in place, I would simply say: "Ok, give them my offer of X, and if they accept it I can give you proof within 24 hours". Once an offer is accepted, I would either give them the mortgage adviser's details or produce the mortgage in principle doc (with any personal data blanked out).

However, I would never do this before an offer is accepted. I would completely understand if a vendor isn't interested in looking at my offer - that is their prerogative. But in this market, I doubt many vendors would mind if they received financial assurance immediately after they made an acceptance conditional on it.

R

mbga9pgf

1- Did I have a financial advisor and whether I wanted to use one of theirs
2- Have you got a mortgage agreement
3- How much deposit have you got

Answers:

1. No, I have more than two brain cells and a copy of Microsoft excel, and would much prefer to do the calcs myself than get screwed by someone on commission.

2. Agreements in principle available online. Printed out. However, I will NOT be disclosing how much for.

3.Substantial. And dont bother asking how much. I dont intend to be squeezed on any potential margins, however, I am VERY serious about proceeding and can easily afford to proceed within 31 days of the offer being accepted. I have no chain and no debt. However, I will be looking for a significant haircut on not only peak 2007 prices, but also current prices as a hedge against any further potential house price falls. I am not willing to waste my time with time wasters, just as many sellers do not wish to do the same.

Any more questions?

Personally, I wouldnt trust an IFA, even if you had sourced them independently. What is not to say they disclose your max procedable amount in the hopes of getting increased commission on the sly? Why do you actually need an IFA?

lethal0r

so you've printed out your AIP but arent going to show it to anyone? why print it out?

oldone_2

I lost a house because at the last moment the seller suddnly realised they would be moving away from friends and neighbours and refused to exchange contracts leaving all parties with expenses.

My last purchase was for cash, with no property to sell. When I put in an offer I told the E.A this but they still wanted proof. I told them I was an old-fashioned Englishman, and my word was my bond, but they still insisted I met their financial advisors. I played along with this and at the meeting refused to answer any questions, at which point I was accused of wasting their time. You can imagine my reply to this. I then went on to say if the vendor accepted my offer I would deposit a cheque for the full amount with my solicitor - fortunately common-sense prevailed.

I will not show anyone my bank statements or any other financially sensitive documents since photo-copiers are available in all offices, and once copies are made you have no control over who will see them.

patch3228

lethal0r wrote: »

so you've printed out your AIP but arent going to show it to anyone? why print it out?

I have not printed it out, it was forwarded to me (by mortgage advisor) in an email as a pdf attachment

I presume this was also for the benefit of the mortgage advisor, who can now be on the receiving end of a call and confidently say we can borrow x amount in principle