estate agents and AIPs

solventblackbird

Hi all

I've heard that it is good to get an AIP before you start viewing houses as it means the estate agents will take you more seriously. But I've also heard not to show the estate agents the AIP because it undermines your negotiating position if they know what your top limit is.

Can anyone clarify? Do I tell them I have one, but not show them the document?

betmunch

Personally I would view property without an AIP, but when I find one I like I would get it before making an offer. However I don understand the theory behind getting the AIP before even viewing, although I dont subscribe to it myself.

I would tell them you have it/will get it before offering depending on what you are going to do. If it has the maximum you can borrow on it then I would blank that out so it just shows you have been aproved, unless you are strong enough to make a stand when they are trying to push you into a higher bid.

EchoLocation

Yes get an AIP or you could be wasting everyones time including your own. I got one when I first started looking, but no other EA has even asked if I had one, nevermind asked to see it. Any EA is likely to ask you what your budget and/or top limit is anyway, and I have never felt any reason not to tell them. Refusing to give them this infomation is not a good tactic in my eyes, after all it doesn't matter what they know, it's only ever your decision on what to offer - don't be talked, pushed or rushed into anything you're not prepared to do. I've found it best to give them a figure of 'around X', and say 'I don't really want to pay more than X, and that is only for something that really ticks all the boxes'.

solventblackbird

thank you both - that makes a lot of sense. And yes, I want to get an AIP in advance because I want a crystal clear picture of how much I can borrow before looking. Good to know that the EAs don't always ask - I thought they did. The last house I viewed they wouldn't show me until I told them I was a cash buyer (which could have been true, if the vender would have taken a very cheeky offer!).

EchoLocation

solventblackbird wrote: »

thank you both - that makes a lot of sense. And yes, I want to get an AIP in advance because I want a crystal clear picture of how much I can borrow before looking. Good to know that the EAs don't always ask - I thought they did. The last house I viewed they wouldn't show me until I told them I was a cash buyer (which could have been true, if the vender would have taken a very cheeky offer!).

They may well ask you, I guess it depends on how the local market is and if they've experience issues with offers falling through. I suspect some of mine haven't asked me as they'd just prefer to use me as viewing fodder to placate their vendors.

It's a throwaway comment I know, but never consider any offer you make as 'cheeky'. Unless you're really taking the p1ss it's far more likely - certainly in my area - that it's their asking price that's 'cheeky'. Finally as a bit of advice, if you aren't already doing your homework, always get the house number of the EA and check the sold history of the property. Always Property Bee it as well.