FTB- Clueless! Can EA lie? What to offer?

Caleb11

Hi

I'm a first time buyer and I have an AIP mortgage in place. I've seen a repossession I really like for offers over £69k. It's a new build built in 2003. It needs a few repairs- carpets, hole in wall, shower screen, lights, blinds and all appliances. I've noted my interest to the EA through my solicitor. I was thinking of offering 69500 once it's been on the market for the 2 weeks that the EA says its legally required to. On the phone they said there are 3 people interested and it is likely to go for nearer the home report value of 75k. Would they or can they lie about this to make me offer more? If I'd to offer 69500 can the tell me I've been outbidded even if I haven't to try & get me to offer more? The reason I ask is because I told them I have aip mortgage & would be able to go up to 75k if need be although I don't really want to because of repairs. What would you offer in my situation? I'm a first time buyer and don't really have anyone close to me I can turn to for this kind of advice. Thanks

sveedy

Caleb11 wrote: »

Would they or can they lie about this to make me offer more? If I'd to offer 69500 can the tell me I've been outbidded even if I haven't to try & get me to offer more?

yes, quite a few EAs will lie through their teeth. not all of them but quite a few. their job is to extract as much money from a purchaser as possible. they are not your friend.

Caleb11 wrote: »

The reason I ask is because I told them I have aip mortgage & would be able to go up to 75k if need be although I don't really want to because of repairs.

telling them how much you can stretch to was a mistake. the other 'offers' will magically move towards that figure. I'm a bit a of newb at this game too so not sure what you should do now...perhaps say the lender has reduced the amount they will lend and put in a final bid below that amount? someone more knowledgable than me will be able to give you a steer on this.

or find another property you like with another agent.

golden rule is - don't get friendly with the EA or tell him too much information. they are acting for the seller and they are trying to screw you for every single penny.

Caleb11 wrote: »

I'm a first time buyer and don't really have anyone close to me I can turn to for this kind of advice.

keep asking questions here, there is a lot of experience and views that will help you.

Caleb11

Damn I'm really keen on the property but o offer 75k means putting down more deposit and then having less in the bank for repairs. It was a sort of moment were I told them then straightaway regretted it but didn't know if legally they are not allowed to lie. My mortgage broker is aparently friends with the EA and has also phoned to register my interest. Once she done so she called back and said there was more interest and that the house was likely to go for 75k and started discussing ways to make it happen. I'm starting to wonder if they might be working together

Lokolo

If it's a repo then offer what you want. The bank will either accept or reject the offer. If they accept it then the bid will be posted and they will announce "Any offers in excess of the current bid of X" for a few weeks until the contracts are exchanged.

If people have put offers in already then the EA will have put it on the property details.

betmunch

Just make your offer and stick to your guns.

No one is going to make you pay more than you are prepared to pay.

If £69500 is your top offer fior that house then thats it, end of story.

hazyjo

Is it England/Wales?

As above, it will continue to be marketed until contracts are exchanged. You have to work fast with a repo. You might lose money from solicitors, surveys, mortgage fees, etc if you lose out to a higher offer. I'd definitely offer the lower amount and leave it on the table. You can see if anyone else offers, then put yours in.

Jx

Caleb11

It's in Scotland sorry meant to mention that. If the EA says I've been outbidded though are they forced to be truthful or could they just say this to make me offer more?

googler

Caleb, you say you have a solicitor acting for you. Part of his or her job is to advise you on where to pitch your offer, and to draft that offer in a specific legal form for you.

Have you asked their advice? If not, why not? It's what you're paying them for.

Once you've decided how much you want to pay for it, and what entry date you want (referring back to your other thread) then instruct your solicitor to make your offer, in writing, to the selling agent. Standard form dictates that a written offer has a limit date by which the offer must be accepted or declined. Don't get into discussions with the selling agent about the existence or level of any other offers. Get your solicitor to determine, from the selling agent, how many 'notes of interest' there are from others. Use this information to help decide the level of your offer.

Make your offer in writing through your solicitor. If it's accepted, all good and well. If it's declined, decide if you want to increase it, or walk away. The last possible outcome is that if the selling agent has a few notes of interest, they'll declare a closing date for offers. If this happens, your offer remains on the table and is considered at the closing date along with any others the sellling agent receives. You can of course increase your offer nearer the closing date if you wish.

If you make your offer in writing, you have to get one of these three outcomes;

1 Acceptance
2 Refusal (or possibly invitation to negotiate your offer nearer to asking - but this will be done through your solicitor since your solicitor submitted the offer)
3 Declaration of Closing Date

Consult your solicitor. It's what you're paying them for.

Does this help?

googler

Lokolo wrote: »

If it's a repo then offer what you want. The bank will either accept or reject the offer. If they accept it then the bid will be posted and they will announce "Any offers in excess of the current bid of X" for a few weeks until the contracts are exchanged.

This is an 'England & Wales' thing - doesn't happen in Scotland.

Caleb11

Thanks googler thats helped a bit. Do I pay the solicitor if e puts in an offer and it's declined and I decided to walk away?

googler

That depends on the terms of business you agreed when you hired the solicitor. What did you sign up for?