Tell estate agent about size of deposit?

chickmug

ciano125 wrote: »

I appreciate what you're saying, and perhaps not everyone is as honest as I am. If I'm buying a property and my credentials and word when I say I have the money are not good enough for the seller (although they are evidently good enough for my mortgage lender) then so be it. I'm always upfront and honest and expect the same in return. If someone can't accept that, we won't be doing business.

The problem is that a few bad 'uns spoil it for all the good 'uns. Whether agents, buyers, sellers, FA's. I really feel that as the years have passed I have needed to up my game, on behalf of the sellers, to save getting caught out by some of the dodgy moves.

ciano125

chickmug wrote: »

The problem is that a few bad 'uns spoil it for all the good 'uns. Whether agents, buyers, sellers, FA's. I really feel that as the years have passed I have needed to up my game, on behalf of the sellers, to save getting caught out by some of the dodgy moves.

I wouldnt disagree with that at all.

How would you feel if I told you that I wasnt prepared to show you my bank balance etc, but was happy to get a fax from my bank saying that I had the funds in place? Surely that and the Mortgage in Principle would tell you that I'm good for what I say.

No offence intended to you of course Chickmug, but I simply do not trust Estate Agents who are acting against me. I'm fortunate in my position in that I know how to negotiate and buy and sell property, but I've seen so many people get screwed over by bad 'uns that I'm just not prepared to give an inch.

On the other side of that though, if I deal against a good agent, they're more likely to get work from me when I need to sell my house in the future. If I don't think an agent is any good when dealing against me, I'm not likely to use them to sell my house am I?! :rotfl:

chickmug

ciano125 wrote: »

I wouldnt disagree with that at all.

How would you feel if I told you that I wasnt prepared to show you my bank balance etc, but was happy to get a fax from my bank saying that I had the funds in place? Surely that and the Mortgage in Principle would tell you that I'm good for what I say.

No offence intended to you of course Chickmug, but I simply do not trust Estate Agents who are acting against me. I'm fortunate in my position in that I know how to negotiate and buy and sell property, but I've seen so many people get screwed over by bad 'uns that I'm just not prepared to give an inch.

On the other side of that though, if I deal against a good agent, they're more likely to get work from me when I need to sell my house in the future. If I don't think an agent is any good when dealing against me, I'm not likely to use them to sell my house am I?! :rotfl:

Just bear in mind when you want an agent, to act for you, what I have said. Then you will feel differently perhaps? Our repeat business rate was near 70% and included many that never bought through us but liked the way we dealt with them. Polite but I am afraid we insisted on the right info.

But good luck to you in buying and hoping you don't hit an agent like me;)

Liz33

I would think that telling them the big deposit will put you in a better bargaining position and the vendor would prefer to take your offer over someone who needs a higher mortgage especially the problem with getting mortgages at the moment, i would tell them

Hippychick

We just had our offer accepted on a property and told the EA how much deposit we were putting down, NOT how much money we have, I feel there is a big difference there.

We told them the amount of deposit and the mortgage in principle amount made totalled the offer price, I don't think they need to know exactly how much you have in savings just enough to know you can afford it.

Good luck.

typeractive

Hippychick wrote: »

We just had our offer accepted on a property and told the EA how much deposit we were putting down, NOT how much money we have, I feel there is a big difference there.

I understand your point, though is that not similar to just telling them how much you have? I mean for example – it is irrelevant the money you have set aside for other items. A cash buyer might be a millionaire but it’s not like they would need to disclose that. What are you gaining from telling them the deposit but not your full financial position?

I don't think they need to know exactly how much you have in savings just enough to know you can afford it.

That’s my point.

All that is relevant is assuring the vendor your good for your word. If that includes telling them how you can finance the mortgage in these times then fair play. I think it’s good to give an indication of financial strength / seriousness of intent to buy but it’s not fully necessary to disclose figures: deposit or what you keep in the back for a rainy day – nothing wrong with it I guess, just not something I wish to do myself….though I am a FTB and might crack under the pressure when making my offer! :rotfl:


Well done on your purchase by the way – are you due to complete your mortgage in ten years? Or is it secured until then with more to pay?...now who's getting nosey about other people's finances! hehehehe :rotfl:


Cheers

westv

Would it make any difference if all the "prove you have the finance" stuff was done after an offer has been accepted? With the EA requiring the purchaser to prove he/she has the funds within a certain time scale. 3 days for example.

chickmug

westv wrote: »

Would it make any difference if all the "prove you have the finance" stuff was done after an offer has been accepted? With the EA requiring the purchaser to prove he/she has the funds within a certain time scale. 3 days for example.

I would say better before but acceptable immediately after but what we would of found is the seller 'hard on our heels' asking for us to get absolute verification ASAP.

RobertoMoir

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.

The size of the deposit is irrelevant - you can either afford the house with mortgage or you cannot.

The idea that you have money "sitting around" might make them dig in harder when you negotiate price.

ciano125

RobertoMoir wrote: »

The size of the deposit is irrelevant - you can either afford the house with mortgage or you cannot.

The idea that you have money "sitting around" might make them dig in harder when you negotiate price.

Exactly. If they don't know what you've got, they can't say to their clients "He's got £x,000 sat in the bank, try and get another £5k out of him" or suchlike. If they suspect you're at the limit I think they are less likely to try it on with you as well by saying that they've got another interested party and would you like to increase your offer. I dont think they would want to risk losing you.