Tell estate agent about size of deposit?

Turin_Turambar

When you find a house that you want to put a offer in for, I understand that you need to tell the estate agent, so they pass it on to the vendors, that you have a deposit and an agreement in principle to say that you can get a mortgage.

I can afford a deposit of £50k, should I tell the estate agent I have such a large deposit? I am looking at properties for around 100k.

bryanb

Turin_Turambar wrote: »

When you find a house that you want to put a offer in for, I understand that you need to tell the estate agent, so they pass it on to the vendors, that you have a deposit and an agreement in principle to say that you can get a mortgage.

I can afford a deposit of £50k, should I tell the estate agent I have such a large deposit? I am looking at properties for around 100k.

I would think that proving you could get a mortgage is enough, the deposit is irrelevant to the vendor as long as it's certain you can get the mortgage. But of course, if you want to show off a bit.......

Turin_Turambar

I have seen a repo I'm interested in (95k) and was wondering if I tell the estate the amount of the deposit they will tell the vendor/bank, and they may see me as being a safer bet for pushing through a mortgage quicker than someone with a smaller deposit?

bryanb

It's possible of course, but only if offers are equal. The bank is obliged to get the best possible price.

ciano125

I'd tell them that I could afford the house, and that was that. They dont need to know anything more than that I dont think.

PasturesNew

One day in the future I will be a cash buyer... there's no way I'll give an EA a clue how much money I've got. I will just make it clear to them that I am a serious buyer without showing my hand.

ruggedtoast

When I was selling the agents kept going on about the buyers 50k deposit like it was god and turned down another offerer from 2 doors down who imo would have been a better bet, though they'd pitched slightly lower.

The "buyers" visited half a dozen times, dragged builders and fathers and maiden aunts through the house and generally !!!!ed me about for weeks until 5 days before we were due to exchange they tried to gazunder me and then pulled out. The people who ended up buying just had a normal mortgage.

The size of your deposit impresses estate agents because most of them are greedy money obsessed spivs with the intellect of an amoeba. You may as well use this to your advantage.

Thrugelmir

Turin_Turambar wrote: »

I have seen a repo I'm interested in (95k) and was wondering if I tell the estate the amount of the deposit they will tell the vendor/bank, and they may see me as being a safer bet for pushing through a mortgage quicker than someone with a smaller deposit?

Why would you receive preferential treatment because you have a larger deposit? You still require a mortgage and due process will need to be followed.

typeractive

I agree with the majority of the responses so far. I have no faith nor trust in an EA. All they need to know is that you're good for the cash - not how much you have or haven't got for that matter. Suggesting you have such a large deposit (well done by the way), might actually backfire. Imagine the EA and vendor clearly knowing your finances. You try to barter them down on prices and they know that you have the potential to go higher if you really want it (pending circumstances on the mortgage are all fine and dandy).

I can understand you want to buy the property - I'm in a similar situation, like many others. Make your offer and see what comes back from there. I'd explain to the EA: "I'm in a strong position to get the process moving quickly, with finances ready to go.." or words to that affect. If they reject your offer, reconsider and then move from there.

...I must admit though - I share your 'concerns' and it's much easier for me to give the logical advice to others than to sort myself out - that's why I also come on here and post 'daft' questions - great to chew, even better to share and all that

Good luck though!

pawpurrs

Sorry But I Disagree with the above, to Me its vital infomation, having had THREE buyers turned down for a mortgage, the bigger the deposit the better, and the more confident I would be to accept an offer from them.
Someone with a 5% deposit is going to struggle a lot more than someone with a 50% deposit, and I believe it is the EA and the Vendors Buisness to know, that finance is in place, size of deposit etc, best to be above board, open and honest. Just because you have a larger deposit, does not mean you would pay more for the property.

Gwhiz

I am fortunate that I paid of my mortgage years ago so have been able to buy my last 4 houses for cash. Every time I tell a seller (private or a developer) the fact that I do not need any financing gets them very excited and very willing to do a deal very quickly. I'd say it's an incredibly powerful bargaining tool and makes you a very attractive buyer, so definitely worth letting on!