are white lies ok?

theGrinch

a colleague is trying to buy a house in which there has been a lot of interest. she called the agent this morning and was told that the vendor will probably go with another (identical amount) offer as it was a "cash offer".

she requires a 65% mortgage, but she never told the estate agent that she needed a mortgage as it was never raised. Her broker, has already spoken to the lender and there seems no problem with the mortgage.

should my friend call the estate agent and confirm that she too is a "cash buyer"?

danm

this would be found out pretty quickly and would probably ruin her realtionship with the EA

Guy_Montag

Assuming the EA isn't a lying sod trying to get her to up her offer. Which is what I would assume.

Doozergirl

If I were an EA I'd think it was a bit strange that she didn't mention it during the first call

I think EAs like to verify offers. It's a bit hard to show the cash in the bank when it isn't.

The valuer will also call the EA to get the vendor's telephone number to arrange the valuation and they always say where they're from.

So, it's likely she'll get found out at some point, especially if the mortgage company delay things. Lying to get found is just embarrassing IMO!

AndrewSmith

Well put the boot on the other foot.

How would your friend feel if they were told by the agent that they had exclusivity over the property and no more viewings were to be carried out, only to find out later that there is another 'cash' buyer against them in a contract race?

Tell the truth, you have nothing to gain by lying about this. Some vendors prefer mortgaged buyers as they are under the impression that there is greater commitment once the mortgage has been applied for / survey fees paid etc.

theGrinch

hmmm...how would it be found out by the EA? She has confirmed that she can show the amount required in her bank and I assume that is the only check they would do.

by the time the solicitors are discussing it, it will be weeks down the line and everything approved.

I think she needs to get into the mind of the seller and do what she has to. Afterall you dont buy a house everyday and if its the one you want, then go for it.

There is nothing to say the EA isnt misleading about the "cash buyer".

Then again, I cant see much difference between a cash buyer and a 65% LTV mortgage. Its the searches and the legal process that takes the time!

Voyager2002

theGrinch wrote: »

a colleague is trying to buy a house in which there has been a lot of interest. she called the agent this morning and was told that the vendor will probably go with another (identical amount) offer as it was a "cash offer".

she requires a 65% mortgage, but she never told the estate agent that she needed a mortgage as it was never raised. Her broker, has already spoken to the lender and there seems no problem with the mortgage.

should my friend call the estate agent and confirm that she too is a "cash buyer"?

EAs often talk about a "cash buyer" when they mean someone who does not have to sell their existing property before buying the new house. If that is your friend's position then she has a huge advantage compared to other prospective buyers.

She needs to get herself to the EA's office with some kind of proof of her ability to pay that unusually large deposit, and evidence that she has been approved in principle for the 65 per cent mortgage. And next stop is seeing the vendor to confirm, and of course to do some sweet talking: people like to think that their home is going to go to someone nice who will appreciate it.

Doozergirl

She can prove she's got the money in the bank?

I agree that a 35% deposit is substantial anyway.

Lying isn't going to kill anyone I supopse, but maybe she could say that she has the cash avaible in the bank if there are any problems with the mortgage (which at 65% LTV isn't likely anyway) and that she is eager to complete quickly as well.

Is there any chance of another viewing, laying it down straight and getting under the vendor's skin?

Doozergirl

Voyager2002 wrote: »

EAs often talk about a "cash buyer" when they mean someone who does not have to sell their existing property before buying the new house.

Erm, they don't I often have to go through the whole process of confirming that I'm not using 'cash' from the sale of a property or 'cash' from a mortgage.

EAs know exactly what 'cash' means and they won't refer to any other means of buying as cash. They do refer to each buyer's circumstances seperately, even to differentiate between FTB and 'nothing to sell'.

danm

theGrinch wrote: »

Then again, I cant see much difference between a cash buyer and a 65% LTV mortgage. Its the searches and the legal process that takes the time!

A cash buyer does not necessarily need these done if they chose not too...which is why EA's like cash buyers.

abaxas

Why not just say...

'This is a cash offer' *

* These particulars, whilst believed to be accurate are set out as a general outline only for guidance and do not constitute any part of an offer or contract. Intending vendors should not rely on them as statements of representation of fact, but must satisfy themselves by inspection or otherwise as to their accuracy.