Should estate agents check your financial status to validate an offer on property ?

F_T_Buyer

Are you joking?

NEVER EVER go to an EA's IFA to financially approve your offer. They will do exactly what happened on whistle blower and find out the maximum you can afford. Then they have the upper hand if you need to negotiate!

Just get a mortgage in principle, and ask you lender to provide a document saying what you can afford. The EA should be happy with that, if they are not happy alarm bells should be ringing.

Don't tell the EA what you earn, they WILL use it to their advantage. A familiy member works in the industry, and this is common practice. I can understand why a seller would like the buyer to do this, but a mortgage in principle or letter (as above) should be fine.

natwill_3

As a current sellor and buyer I know that the Ea will check that you have mortgage plans in place, their FA will call but if you say that you have agreement in principle that should be it, no reason to say what your earnings are, they just want to know you can afford it before they take property off the market!

PoorDave

I suppose it's a case of EA's (who want to sell houses, after all) trying to avoid accepting offers on £300k+ houses only to find the buyer's combined income is less than £20k

AndrewSmith

I think it really depends on what you are being asked for.

If you are ofering on a property but have not discussed funding the purchase, the EA acting on behalf of his client the seller would be sensible to make acceptance of the offer conditional on your financial staus being verified as able to proceed.

If you already have a broker or lended giving you an agreement in principle then this should be satisfactory to the EA and his vendor.

Never tell an EA what you earn, however a FA cannot work out whether you are able to proceed at a given price without knowing such details.

I think the lesson here is get an agreement in principle before you begin viewing or offering on property.

Andy

F_T_Buyer

Oh, another thing.

Did they accept your offer before asking for you to come in? I.e. say our seller accepts your offer, but we want to make sure you can afford it. Or was it, no offer will be accepted until you have seen us?

If the later they will probably use your income info in negiotations.