Estate Agent got very snarky...

RX-78

Quite agree with conflict of interest. Isn't it actually breach of data protection act to hint how much more the buyer can afford?

If I was a seller, I would be unhappy if my EA was turning potential buyers away based on their refusal to consult EA's mortgage advisor. Actually, I think this in itself may be a breach of contract....

tabskitten

bought 3 houses and i just say a flat NO- never had a problem at all!!

MrBeeee

tabskitten wrote: »

bought 3 houses and i just say a flat NO- never had a problem at all!!

Did you always end up paying the maximum amount the estate agents mortgage advisor said you could borrow per chance?

sonastin

MrBeeee wrote: »

Did you always end up paying the maximum amount the estate agents mortgage advisor said you could borrow per chance?

Probably not, having told them "no" which I presume was instead of telling them what he could afford:rotfl:

princeofpounds

How exactly do you make money from the buyers using your in-house advisor? Is he not offering the best rates as IFAs should? Where are the buyers paying extra by using them?

The advisors receive commission for each mortage they sell from the lending banks. Unlike IFAs, they are often tied agents (meaning they do not have to select from a wide range of products or try to give you the best deal). They also compromise your financial position (see below).

I saw an advisor based in my local EA and he claimed that he does not work for this EA and is an independent advisor. Seemed a trustworthy enough guy. Did he lie?

Technically no. He would be employed by a sister company (like Foxtons and Alexander Hall). But they belong to the same parent company. It's technically possible they have a totally separate financial advisor who has struck a deal to sit in their office, but that's unlikely.

When other posters say that they don't want to expose their details - does it mean that EA-based advisors discuss with the agents the buyer's personal details? Can they do that?

In theory the mortgage people and the EAs are not meant to share details, but of course they do. The infamous panorama on Foxtons showed several instance of this kind of behaviour and I'd be surprised if it wasn't commonplace.

What harm is there to use them? This is a genuine question from an inexperienced FTB.

It means the seller's agent knows everything about your budget and negotiating position

jockosjungle

Hmmm, I've had the same problems as the OP and in all honesty I think there is a little blame on both sides (more on EA though).

If what you say is true and you told the EA that you'll sort yourself out, it is fair enough but not really very helpful to anyone. What you should have said is "I've already got a mortgage in place from <my bank>, I've got a signed mortgage contract here saying what they'll lend me. If you had got that from either the Post Office or HSBC on a 10% fixed, a mortgage adviser cannot beat the quote, you could also then have said that.

We got bullied into a mortgage interview with a part market guy in Entwistle Green, really forced us on a hard sell (we only went in to enquire about a house advert in the window we couldn't read).

When I actually found the house I wanted, I did the whole market MA in the local EA after we'd agreed a price. Wanted to see if he could beat my quote and he couldn't.

I am very uncomfortable about using an inhouse MA, I imagine they'd make sure you paid the maximum you could (often they demand to put bids in for you).

Just make sure next time that you have an AIP in place, that way you do have the funds and they cannot insist you see their adviser, they cannot anyway but they can also tell you to get lost when you put a bid in

R

Fire_Fox

This is one of the many reasons I advocate placing a best and final offer in writing including a copy of the mortgage in principle/ proof of funds.

Fly_Baby

princeofpounds wrote: »

It means the seller's agent knows everything about your budget and negotiating position

Thank you so much for the detailed response to my questions.

I am still a bit confused: the EA knows my budget anyway. And if I say that I can afford up to, say, 300K, then what's the point in pushing me for more if I just cannot get a bigger mortgage?

If the house is on at 270K and I am offering that and reluctant to pay more - then again, the EA knows that I can afford up to 300K.

What's the solution then? They will need to know what my budget is anyway, before starting to offer me any viewings.

jockosjungle

They do know you can pay more, it depends how you play it with the agent. Some people will say I can only afford £265k, I'm at my max at £260k but I sold a lung and found an extra £5k, its my best offer I can do. If the agent knows you can get £300k then they know you are a liar and will probably offer more.

An EA also knows that if you are getting a mortgage a valuer has to agree your price, so they won't push you up to your maximum budget, but they will know if you have a little more give in you. It is their call obviously and some are more honest than others, I went into my EA with a mortgage offer of £145k, and offerd a final £62k on my property which they accepted, I'd have gone a little higher but they don't know that. Then again I'd laid my groundwork on this place, I had viewed it some weeks previous and enquired about another house, he asked if I'd seen this one and I said yes but thought £65k was too high, so a good week before I'd viewed it again I'd already started to establish my position, that I'd do a deal but not at the asking price. Then again this house hadn't shifted in a year and had just come down from £70k

R

Fly_Baby

jockosjungle wrote: »

They do know you can pay more, it depends how you play it with the agent. Some people will say I can only afford £265k, I'm at my max at £260k but I sold a lung and found an extra £5k, its my best offer I can do. If the agent knows you can get £300k then they know you are a liar and will probably offer more.

An EA also knows that if you are getting a mortgage a valuer has to agree your price, so they won't push you up to your maximum budget, but they will know if you have a little more give in you. It is their call obviously and some are more honest than others, I went into my EA with a mortgage offer of £145k, and offerd a final £62k on my property which they accepted, I'd have gone a little higher but they don't know that. Then again I'd laid my groundwork on this place, I had viewed it some weeks previous and enquired about another house, he asked if I'd seen this one and I said yes but thought £65k was too high, so a good week before I'd viewed it again I'd already started to establish my position, that I'd do a deal but not at the asking price. Then again this house hadn't shifted in a year and had just come down from £70k

R

Many thanks for your post. I've got so much to learn as a house buyer.

If I can afford 300K but only offer 260K is because this property isn't worth 260 for me. I would offer 300K on a different property.

But I see what you mean. Strangely (or not?), both EAs I am with are only offering me properties at 300K plus - sometimes even ar 350K! Do they think I will magically produce 50K out of nowhere or should I take it as the seller's willingness to accept offers 15 below the asking price?