Tried to make an offer today but....

pippa80

We never needed to show ours this time last year as ftb's. The EA tried to get us to see their mortgage broker, but we politely declined and that was that.

wastedtalent

We gave ours just after our offer was accepted.

It said we could borrow about 60k more than the whole value of the offer we had accepted. if we did borrow the full amount we'd struggle to pay it if interest rates rise, so we had never any intention of borrowing anywhere near that much. EA's should be aware that what you can and what you'd be willing to borrow, are very different.

atush

I am agaisnt Miss Motivation on this. the EA works for the vendor, but under law MUST pass on any offer. Therfore the EA wants to give the vendor your information so as to reduce your ability to negotiate. Although, just because you can afford somethng doesn't mean you have to pay that much for it.

If you have a AIP that you will show them (or a mtg arranged thru a broker and can give his name and number) do that after the offer is put forwards. I can understand once you have agreed a price you have to turn over such info immediately.

In this market anyone who even entertain an offer is a complete numpty.

Southend1

Acidic_Camel wrote: »

The 'risk' that the vendor will raise their offer after seeing the AIP won't go away, surely? They will need to see it before you sign the contract and they can still raise their asking price up to that point - .

Why would the vendor need to see it? As long as my solicitor/conveyancer can confirm the funds are in place?

This is not me trying to have a pop btw, I genuinely don't understand why the vendor needs to know anything other than that the finance is in place for me to proceed.

woodsey2002

Acidic_Camel wrote: »

Just to throw in my recent experience...

When we got our AIP we were told explicitly by the bank (two, in fact) that the estate agents would request it if we had an offer accepted. At some point you will have to show it to the EA because they will need the proof that you can pay what you claim.

No one is saying that you don't have to show proof of financing once an offer has been accepted, they are asking the potential buyer to see their broker to be 'qualified' before they even put the offer forward..

This seems ridiculous and as I found out the agent can and will use it to their advantage, the EA's broker that we saw ended up negotiating with the vendor without our knowledge and put forward an offer different to what we had intended to do to make it 'fit' the deal he was trying to sell us..
I've dealt with more agents than i care to remember in the last couple of years and no-one else has ever asked for proof of financing before an offer has been put forward, they have asked for our position regarding whather we have anything to sell or if we are requiring a mortgage but thats been it!!

With the house we are currently buying, we offered 15% below asking and it was initially rejected as being too low, we told the agent we could not and would not go higher even though our AIP clearly stated we could have gone way higher..had they had this information before our offer was put forward, they may still have eventually accepted our offer anyway but they may have held out as we could clearly have offered the asking price, we'll never know but I wasn't prepared to take the risk especially after what happened with the other property.

As a buyer, we have no way of knowing how low a vendor will go and likewise a vendor should not know how high a buyer can go..

Acidic_Camel

This is not me trying to have a pop btw

Understood, same here.

Southend1 wrote: »

Why would the vendor need to see it? As long as my solicitor/conveyancer can confirm the funds are in place?

Sorry, for 'vendor' read 'estate agent' (although the vendor will still need confirmation from a source they trust).

I kind of see it like this:

You don't trust the estate agent because they're in the pay of the vendor.

The vendor doesn't trust your solicitor/conveyancer because they're in your pay.

The compromise is the AIP, but like I say, it's still a risk.

betmunch

Southend1, have they called back yet?

If so what did they ask and what did you say?

Southend1

betmunch wrote: »

Southend1, have they called back yet?

If so what did they ask and what did you say?

No not yet. I'm going to give them til 3.30 then call.

betmunch

Good luck.

Southend1

betmunch wrote: »

Good luck.

Thanks.

I'll post an update later today.