EA insists I see mortgage adviser before I can make an offer....

betmunch

I dont lie, no one has ever asked me that thus far.

In terms of commission I would say an EA gets an additional 50% (on average) of the house sale commission if the buyer uses the in house mortgage advisor. (Will be different with the smaller EA/MA partnerships)

This commission to the EA will have no baring on:
a)what is recomended to the client
and b) what is available to the in house MA.

From what you have said I would recomend the following course of action:
Meet with the HSBC, get an AIP and a KFI for the product they have recommended to you. Make sure you get an advised sale if you can, rather than a non-advised sale.
Agree that you will see the in house MA once a price has been agreed on.
Genuinely give the in house guy a chance to beat the rate HSBC have offered (its highly unlikely they will be able to, but you never know)
Choose the best rate from HSBC or in house advisor and go with them.

If there is anything untoward or your not sure about then post back here and we will tell you whos been naughty!

Good Luck

betmunch

retepetsir wrote: »

Hmmmmmm. Now I've got to decide what to do! May cancel/delay the meeting with the EA's own MA before we make our first offer in writing.

Even knowing my own companies procedures, I alway advise the buyer and vendor agree a price before sitting with the MA. It minimises the conflict of interest (which I accept is still there, but its very well managed where I am).

Which EA has the house you want?

retepetsir

betmunch wrote: »

Even knowing my own companies procedures, I alway advise the buyer and vendor agree a price before sitting with the MA. It minimises the conflict of interest (which I accept is still there, but its very well managed where I am).

Which EA has the house you want?

Many thanks for your help.

Its with Connells

Catatonia

I agree with the posts against this 'rule'. For the posters that feels that this helps 'qualify' your buyers, how so? The only way to show that you can get a mortgage is to apply for one, so sitting in front of an advisor giving them figures won't guarantee that it won't fall through.

When offering on a house I was told I had to get my offer 'qualified'. This meant someone in another office phoning me up (I was originally told to travel to see them, which I refused) and asking what deposit I was going to put down, and how I was planning to fund the rest (ie mortgage). I don't know how this process is supposed to weed out bad buyers - for one thing, I could have made the figures up.

I think buyers not getting a mortgage is unfortunately one aspect of risk that sellers have to bear. I can't see a way of eliminating this risk, not only as until a price on a particular property has been agreed you can't apply for a mortgage anyway.

betmunch

Connells? Enjoy! Round our way they make the guys I work with look like angels!!!!

retepetsir

betmunch wrote: »

Connells? Enjoy! Round our way they make the guys I work with look like angels!!!!

How on earth did they manage to get 'EA of the Year' awards so many times :rotfl:

betmunch

I wouldnt like to comment on that!

googler

retepetsir wrote: »

How on earth did they manage to get 'EA of the Year' awards so many times :rotfl:

They were the only ones who entered?

The judges won't be considering every EA business in the country, merely those who enter themselves for the awards.....

retepetsir

http://www.reviewcentre.com/reviews-all-85282.html#tabs-menu

Ouch

One_Day_Rodney

Sounds like the estate agent are breaking the Ombudsman of Estate Agent (OEA) and the Office of Fair Trading (OFT) code of practice and law - in particular section 6.

6.
Submission of Offers
6a
By law, you must tell sellers as soon as is reasonably possible about all offers that you receive at any time until contracts
have been exchanged (in Scotland, missives have been concluded) unless the offer is an amount or type which the seller
has specifically instructed you, in writing, not to pass on. You must confirm each offer in writing to the seller, and to the
buyer who made it, within two working days.
6b
You must keep a written or computerised record of all offers you receive – including the date and time of such offers –
and the seller’s response. Such records should be made promptly.
Discrimination
6c
By law you must not discriminate, or threaten to discriminate, against a prospective buyer of the seller’s property because
that person declines to accept that you will (directly or indirectly) provide services to them. Discrimination includes – but
is not limited to – the following:
* Failing to tell the seller of an offer to buy the property.
* Telling the seller of an offer less quickly than other offers you have received.
* Misrepresenting the nature of the offer or that of rival offers.
* Giving details of properties for sale first to those who have indicated they are prepared to let you provide services
to them.
* Making it a condition that the person wanting to buy the property must use any other service provided by you or
anyone else.
Continuation of Marketing
6d
When an offer has been accepted subject to contract (in Scotland, conclusion of missives) you must consult and take the
seller’s instructions as to whether the property should be withdrawn from the market, or continue to be marketed. In the
latter case, you must so advise the prospective buyer in writing. The prospective buyer must also be informed in writing
should the seller later decide to put the property back on the market.
You remain under the legal obligation to pass on offers, as defined in 6a above.
In England, Wales and Northern Ireland
6e
You must do everything you reasonably can to keep all prospective buyers who have recently made offers through you, and
which have not already been rejected, informed of the existence of other offers submitted to the seller.
6f
Your negotiations must neither unfairly advantage nor disadvantage any prospective buyers. You must be fair and not
misleading in disclosing the amount of any offers made to other prospective buyers. Before deciding to disclose the amount
of an offer, you must advise the seller of such intention and get his agreement; and you must warn all prospective buyers
who make offers that it is your practice to do so. If you do disclose any offer to one prospective buyer, then all offers must
be immediately disclosed to all prospective buyers with a current interest in negotiations for the property.
6g
After an offer has been accepted, you must promptly tell that prospective buyer if the seller accepts another offer.
6h
By law you must not misrepresent or invent the existence, or any details, of any other offer made – or the status of any
other person who has made an offer. If you know that the seller has instructed a solicitor to send a contract to an alternative
buyer, you must then tell your prospective buyer in writing.

Full document can be found here....

http://www.121move.co.uk/oeacodeofpractice.pdf


Take a copy into the agents and tell them to bog-off.