Estate Agent won't put forward my offer until I talk to their mortgage people

JimmyTheWig

Loopgames wrote: »

I still don't see a problem except the time factor involved

The problem is the worry that the estate agent might find out (overhearing, seeing the files on the financial advisors desk, the financial advisor may let it slip, it may be part of the plan to tell the agent, etc) how much you can afford to spend.
So a property is on for £200k.
You've got £50k deposit and can get a mortgage for £140k.
You put in an offer for £180k.
An independent broker would be able to confirm that you could afford the £180k. The offer may well get accepted.
A broker tied to the estate agent may let on that you could afford to go to £190k. The offer may well get rejected.

By letting them know how much you can go to you are showing your hand and making it harder to bargain.

Loopgames

JimmyTheWig wrote: »

The problem is the worry that the estate agent might find out (overhearing, seeing the files on the financial advisors desk, the financial advisor may let it slip, it may be part of the plan to tell the agent, etc) how much you can afford to spend.
So a property is on for £200k.
You've got £50k deposit and can get a mortgage for £140k.
You put in an offer for £180k.
An independent broker would be able to confirm that you could afford the £180k. The offer may well get accepted.
A broker tied to the estate agent may let on that you could afford to go to £190k. The offer may well get rejected.

By letting them know how much you can go to you are showing your hand and making it harder to bargain.

What happens if you are a cash buyer - does the finanacial adviser look at your bank account or can they just get a verification from your solicitor, say?

JimmyTheWig

Loopgames wrote: »

What happens if you are a cash buyer - does the finanacial adviser look at your bank account or can they just get a verification from your solicitor, say?

I would imagine they would want to know how much money you had in the account.
To what extent they verify that I don't know.

DVardysShadow

JimmyTheWig wrote: »

I would imagine they would want to know how much money you had in the account.
To what extent they verify that I don't know.

There in lies the subtlety. They do not need to know how much is in the account. They only need to know whether there is enough to cover the price agreed.

JimmyTheWig

DVardysShadow wrote: »

There in lies the subtlety. They do not need to know how much is in the account. They only need to know whether there is enough to cover the price agreed.

Yes, that's why I said "want" rather than "need".
If they're wanting to pass on info to the agent then they'll want to know the full balance.

Sugared-frog

We had to (or fell for the process) which ever way you look at it, show various details to view the house - we were told it was a condition of the sale and as we liked the property we agreed to it. However I didn't let that influence what price I was prepared to pay. Just because I could potentially pay more, each house's maximum would be different due to how much it was worth in the first place and how much work would be needed.

The house we are currently in the process of buying is in the same road as another house that we had already bid on and we stopped bidding on that house when we reached our limit, whereas this house we preferred so had a higher limit. Whether the EA thought we would go higher on that first house I don't know.

The estate agent has no idea of our plans for each house and therefore how much money we would need to keep back for that work.

I guess I'm trying to say that although I didn't want to show them the details, I don't feel that our position was weaken that much by them knowing.

Hoof_Hearted

timmyt wrote: »

paid up front did you....did they push to get that extra £5k- £15k:eek:

No, they got me £20k over asking price instead....

atush

Loopgames wrote: »

That might be a subjective opinion.;)

Our buyer was already experienced in the buy to let market. I still don't see a problem except the time factor involved if you have to go through the vetting process with each agent - that can be more than slightly annoying I should imagine.

Not subjective, but my actual opinion. Given I am an owner of 3 properties, and not an agent, surely you don't accuse me of bias?

The truth is, was i one of your prospective purchasers you would have lost me and my likely better offer as I would give short shrift to your agent trying on this dodgy practice. I would of course, have offered up letters or introduction to my bankers/mortgage advisor for their perusal to assure them I was 'qualified'. But your property would have gone from my hot list to my ice cold list as soon as the demand to see a tied advisor left your agent's mouth.

So, just be careful what you sign, and get details of what an agent means by 'qualified' is my message to sellers.;)

atush

JimmyTheWig wrote: »

I would imagine they would want to know how much money you had in the account.
To what extent they verify that I don't know.

What would stop someone from moving the money after?

In this case, I would give them my premier banking manager's number for him to confirm the acct had in excess of the amt required. But I would hardly give them a bank statement or carte blanch in my personal banking affairs.

Tracey1_2

[FONT=&quot]I too have had a similar problem. I viewed a house today for £130k and put in an offer of £122k (I have viewed 2 other houses in the same street but the first went before I was in a position to buy and the second needs so much work done it is daunting) The agent came back and said the vendor was looking for £125k - I replied that I wasn't going up to the threshold and as the porch needed attention, my top offer was £124. They again came back to me and said that the vendor would accept the offer on the condition that I went through the agent for my mortgage (I have an MIP through London & Country). Surely this is nothing short of blackmail! I feel that it has either come from the agent or they have convinced the vendor to make this condition by saying the sale would drag on otherwise. Can I ask for the vendor’s contact details to speak to them directly? I feel they are trying to back me into a corner by saying how many viewings they have booked. I've told them that I will hear what they have to say but will go with the mortgage deal that suits me - they still want me to go in tomorrow so they could 'cancel any further viewings if we got things sorted'. Surely this is not legal and fair behaviour. I don't want to lose the house (as I know it is a nice property in an area I love) but I refuse to be blackmailed. They then started to go on about using their solicitor - even when I said I had my own from my last house purchase). In my experience, it seems like agents are really pushing their mortgage products at the moment. I have a feeling that's how I lost out on my last place (a repo - the other buyer went through the agent for their mortgage. Another example is when I contacted an agent to view a property, I was called back by someone wanting to set up a mortgage appointment - I told him I just wanted to view the (darn) property at this stage! I have tried to get in touch with L&C to ask their opinion, but have not had a reply. I would speak to the vendor but they have already moved out of the property. Can anyone advise please?[/FONT]